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MARKETING MANAGEMENT

Session 1:
Evolution of Marketing Concept
MAIN POINTS

1. Stages in evolution of marketing concept.


2. Difference between selling and marketing
concept.
3. Marketing management - definition

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Three Stages of Marketing Evolution
Production Product
orientation orientation

Some industries and organizations remain at the product-orientation stage.

Production Sales
orientation orientation

Other industries and organizations have progressed only to the sales-orientation


stage.
Production Sales Marketing
orientation orientation orientation ?
Many industries and organizations have progressed to the marketing-
orientation stage.
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The Societal Marketing Concept
Society
(Human Welfare)

Societal
Marketing
Concept

Consumers Company
(Want satisfaction) (Profits)

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Marketing Perspectives

u
dP
ro O
tin
a
e
c Focus: Produce more to
lower the cost

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Marketing Perspectives

u
dO
P
tin
ro a
e
c Focus: Produce more to
lower the cost

Focus: Push products to


beat competition
sS
toO
rin
le
a

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Marketing Perspectives

u
dO
P
tin
ro a
e
c Focus: Sell what it’s easy
to produce

Focus: Push products to


beat competition
sS
toO
rin
le
a

n
taO
o
rie
Focus : Coordinate all
customer contacts
eM
D
g m
p
tin
rk
a

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Marketing Perspectives

u
dP
tin
ro
-ea
c Focus: Sell what it’s easy
to produce

Focus: Push products to


beat competition
sS
-o
rin
le
a
t

Coordinate all
n
taO
o
rie
Focus :
customer contacts
eM
D
g m
p
tin
rk
a

n
taO
o
rie
eM
C
g
rk
a m
p
o
tin
y Focus : Long-run customer
satisfaction

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The Marketing Concept

fS n
o
c
tis
a E
fo
rt
m
C
to
u
e
s
r lCm
n
p
o
T
y
ta

The
Marketing
Concept

P
ro
fit

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What is Marketing?

• Marketing begins with potential customer


needs
• It is more than just persuading customers
• It focuses on facilitating exchanges by
offering a benefit(s) to customers’
need(s)
• It aims at managing profitable customer
relationships.

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In short,
 “Marketing is so basic that it cannot be
considered a separate function. It is the
whole business seen from the point of view
of its final results, that is, from the
CUSTOMER’S point of view”- Peter Drucker

MARKETING
 CONCEPT
Customer
Customer satisfaction
Orientation +
Coordinated
+ marketing
Organisation’s activities
+ Organisational
Performance
objectives success
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Difference Between Marketing
and Selling Concepts


Selling 
Marketing

• Emphasis is on the product • Emphasis is on customers’ wants.


• Company first makes the • Company first determines
product and then figures out customers’ wants and then
how to sell it. figures out how to make and
 deliver a product to satisfy those
• Management is sales-volume- wants.
oriented. • Management is profit-oriented.
• Planning is short-run-oriented, 

in terms of today’s products• Planning is long-run-oriented, in


and markets. terms of new products,
• Stresses needs of seller. tomorrow’s markets, and future
• Aims at selling more volumes. growth.

• Stresses wants of buyers.
• Builds profitable relationships.13
• EPYP-MM- Session 1


How Should a Business be Defined?
Company Product-Oriented Market-Oriented
Answer Answer
Kodak We make cameras We help preserve
and films beautiful memories
Revelon We make cosmetics ?

Voltas AC We make ACs ?

Xerox We make photocopying ?


machines

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A Need and a Benefit

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Marketing Defined
 Marketing is the process by which
companies create value for customers and
build strong (and profitable) customer
relationships in order to capture value
from customers in return.

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The Goal : Satisfaction …?
no no…
Customer DELIGHT !

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How does it happen?
Superior
Customer Value

Profitable Customer
Relationship Satisfaction
With Customer Delight

Customer
Retention

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The Customer Satisfaction / Loyalty
Relationship
Loyalty Apostle
100
Zone of Affection
80

60 Near Apostle
Zone of Indifference

40
Zone of Defection

20

0 Satisfaction
1 2 3 4 5
Terrorist ---------
V.D.S D.S S V.S
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The Marketing Management
Process

Analyzing Researching and Designing


marketing selecting target marketing
opportunities markets strategies

Organizing,
Planning marketing implementing, and
programs controlling
marketing effort

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Thank You

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