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Marketing Concepts
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major concepts
and tools of marketing.
Understand the orientations exhibited by
companies.
Learn how companies and marketers are
responding to new challenges.

What is
marketing?
Marketings Role within the Organization and
the Global Economy
Marketing
Strategic
Planning


The Marketing
Concept
The 4Ps
Target vs. mass
marketing
Marketing
Functions
The New Economy
Consumer benefits from the digital revolution
include:
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product
information with others.
The New Economy
Firm benefits from the digital revolution
include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer
communication.
Ability to customize promotions.
Marketing Tasks
Marketing practices may pass through three
stages:
Entrepreneurial marketing
Formulated marketing
Intrepreneurial marketing
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BRANDS
Brands just dont exist.they are an integral
part of our lives!
Core Concept Of Marketing
Need,Want and Demand
PRODUCTS(GOOD, SERVICES, IDEAS)
VALUE, COST & SATISFACTION
EXCHANGE & TRANSACTIONS
RELATIONSHIPS AND NETWORKS
MARKETS

MARKETERS AND PROSPECTS
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Demand States and Marketing Tasks
1. Negative Demand(Vaccination,dental
Work)
2. No Demand(Foreign Language)
3. Latent Demand(Harmless Cigarettes)
4. Declining Demand
5. Irregular Demand(Synchromarketing)
6. Full Demand
7. Ovearfull Demand(Demarketing)
8. Unwholesome Demand


What Can Be Marketed?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

A Premium Quality Pure & Gentle Soap
to give a Soft Skin
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5
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information
Simple Marketing System
Manufacturer
markets
Services,
money
Government
markets
Services,
money
Services
Services,
money
Taxes
Taxes,
goods
Taxes,
goods
Taxes,
goods
Money Money
Consumer
markets
Intermediary
markets
Goods, services
Goods, services
Resources Resources
Resource
markets
Money Money
Structure of Flows
Price Promotion
Cost Communication
Marketing
Mix
Product
Place
Customer
Solution
Convenience
The Four Ps vs. The Four Cs

Production Concept

Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive

Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations Towards the
Marketplace
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Market
Integrated
marketing
Profits through
customer
satisfaction
Customer
needs
(b) The marketing concept
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
Starting
point
Focus Means Ends
(a) The selling concept
Marketing Vs Selling
Customers
Front-line people
Middle Management

Top
Management
Traditional Organization
Chart
Customers
Front-line people
Middle management


Top
manage-
ment
Customer-Oriented Organization Chart
a. Marketing as an
equal function
Finance Production
Marketing
Human
resources
b. Marketing as a more
important function
Finance
Human
resources
Marketing
Production
Evolving Views of Marketings Role
c. Marketing as the
major function
Marketing
Production
d. The customer as the
controlling factor
Customer
Evolving Views of Marketings
Role
e. The customer as the controlling
function and marketing as the
integrative function
Customer
Marketing
Production
Evolving Views of Marketings
Role
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The Production Concept:
The production concept holds that
consumers will favour those products
that are widely available and low in cost.
Manager in the production oriented
organisation concentrate on achieving
high production efficiency and wide
distribution.
The Product Concept:
The product concept holds that
consumers will favour those products
that offer the most quality performance
or innovative features. Manager in
product oriented organization focus their
energy on making superior products and
improving them over times.
The Selling Concept:
The selling concept holds that the consumers if
left alone, will ordinarily not buy enough of the
organizations products. The organization must
therefore undertake an aggressive selling and
promotional effort.
Most companies practice the selling concept
when they have overcapacity. Their aim is to
sell what they make rather than what the
market wants
Marketing Concept:
The marketing concept holds that the key
to achieving organizational goals consists
of being more effective than competitors
in integrated marketing activities toward
determining and satisfying needs and
wants of target market.
The Societal Marketing Concept:
The societal marketing concept holds that the
organizations task is to determine the needs,
wants and interest of target markets and to
deliver the desired satisfaction more effectively
and efficiently than competitors in away that
preserves or enhance the consumers and
societys well-being.
Humanistic marketing
Ecological marketing

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Profit
Customer
Satisfaction
Total Company
Effort
The
Marketing
Concept
DEFINITIONS OF
MARKETING
MARKETING IS THE MANAGERIAL
PROCESS THAT IDENTIFIES, ANTICIPATES
AND SATISFIES CUSTOMER REQUIREMENTS
PROFITABLY
THE CHARTERED INSTITUTE OF
MARKETING

MARKETING IS THE HUMAN
ACTIVITY DIRECTED AT
SATISFYING HUMAN NEEDS AND
WANTS THROUGH AN EXCHANGE
PROCESS
KOTLER 1980


MARKETING IS A SOCIAL AND
MANAGERIAL PROCESS BY WHICH
INDIVIDUALS AND GROUPS OBTAIN
WHAT THEY WANT AND NEED
THROUGH CREATING, OFFERING AND
EXCHANGING PRODUCTS OF VALUE
WITH OTHERS
KOTLER 1991
Marketing Management:
MM is the process of planning and execution
the conception, pricing, promotion and
distribution of ideas, goods and services to
create exchanges that satisfy individual and
organizational goals.
Implications of marketing
Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these needs?
Can we offer a product/ service that the customer
would value?
Can we communicate with our customers?
Can we deliver a competitive product of service?
Why should customers buy from us?

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1960 1970 1980 1990 2000
Reemergence of
Competition
Globalization
Rise of Quality
Price
Competition
Cost-cutting
Reengineering
Logistics/
Digitalization
Information
Technology
Evolving
Marketplace
Evolution of the Marketing
Discipline
Consumer Centric focus
New categories innovating for the consumer
New product lines identifying consumer needs
and translating these into products
Extensions - offering the same assurance
across variants