•Marketing It is the process by which

companies create value for

customers and society, resulting in
strong customer relationships that
capture value from the customers in
return.
•Marketing must be understood in the
sense of satisfying customer needs.
 RELATIONSHIP ART

COMMUNICATION SCIENCE &

TECHNOLOGY
SPECIALIZATION IN ACTIVITIES OF COMPARATIVE
ADVANTAGE
• Without market facilities, areas must maintain
diversified activities to produce their own food,
shelter, tools and other needed goods. In the
presence of a market, however, an individual can
specialize in one activity and sell the surplus in
order to purchase other needed goods.
ENHANCED RESOURCE USE EFFICIENCY AND
TRADE
• Through specialization and trade, a
community is better able to utilize its limited
resources. Specialization and the resulting
efficiency of resource-use is the basis for
economic growth and development.
ADVANCES IN MARKETING WITH ECONOMIC
GROWTH
• As economic growth proceeds, several changes in
marketing take place. With economic development,
the activities and tasks of marketing increase.
Activities such as storage and processing,
packaging and retail distribution become more
important.
• It is the philosophy where business firms
should analyze first the needs of customers before
making a plan which would satisfy the customers better
than their rivals.
• These are the different concepts in which firms have to
keep in mind in order to have a better service to the
customers as they receive satisfaction on what they
get. Although, the present business firms are not being
able to follow these different principles.
 5 Marketing Concepts
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Societal Marketing Concept
 PRODUCTION CONCEPT
• ONE OF THE OLDEST MARKETING MANAGEMENT ORIENTATIONS AND WAS USED
FROM THE TIME OF INDUSTRIAL REVOLUTION UNTIL THE EARLY 1920’S.
• “PRODUCTSWHICH ARE HIGHLY AFFORDABLE AND AVAILABLE” ARE WHAT
CUSTOMERS WANTED.
• COMPANIES ADOPTING THIS CONCEPT FOCUSES ON IMPROVING PRODUCTION
AND DISTRIBUTION OF PRODUCTS.
• THIS BRINGS A MAJOR RISK TO SOME COMPANIES FOR THEY ONLY FOCUS ON
OPERATIONS AND IS FORGETTING ABOUT THE REAL OBJECTIVE.
 PRODUCT CONCEPT
•THIS CONCEPT STATES THAT CONSUMERS ARE LIKELY TO
FAVOR PRODUCTS WHICH OFFER QUALITY, GREAT
PERFORMANCE, AND HAS INNOVATIVE FEATURES.
•THIS IS MORE FOCUSED ON CONTINUOUS
IMPROVEMENT OF THE COMPANY’S PRODUCTS.
 SELLING CONCEPT
•THIS PART FOCUSES ON THE THINGS TO DO IN ORDER TO CONVINCE THE
CONSUMERS TO BUY A CERTAIN PRODUCT.
• THIS HOLDS THE BELIEF – “CONSUMERS WILL NOT BUY ENOUGH OF THE
FIRM’S PRODUCTS UNLESS IT UNDERTAKES A LARGE – SCALE SELLING
AND PROMOTION EFFORTS.”
• IN THIS CASE, THEY THINK THAT THE PRODUCT CAN ONLY BE BOUGHT BY
A PERSON IF THEY PROMOTE IT WELL TO THE PUBLIC.
• FOR EXAMPLE, THE CONSUMER IS IN THE MARKET TRYING TO BUY THE
THINGS SHE NEEDS. AND THEN, THERE IS A SALESMAN TRYING TO
CONVINCE HER TO BUY HIS PRODUCT IN A VERY PROFESSIONAL AND
EFFECTIVE WAY. THE GIRL WOULD THEN BE CONVINCED IN BUYING THE
PRODUCT EVEN IF SHE DOES NOT NEED IT ANYWAY.
•THIS IS THE IMPORTANCE OF PROMOTION AND PERSUASION. THEY
ARE NOT CONCERNED ON THE THINGS THAT THE CONSUMER NEEDS.
HENCE, THEY ARE JUST CONCERNED ON THE THINGS THAT THEY SELL.
 MARKETING CONCEPT
•ON THE MARKETING CONCEPT, THIS HAS THE IDEA – “ACHIEVING
ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS AND WANTS OF
TARGET MARKETS AND DELIVERING THE DESIRED SATISFACTIONS BETTER
THAN COMPETITORS DO.”
•THEY WOULD PREFER TO THINK ABOUT WHAT THE CUSTOMER NEEDS
RATHER THAN HAVING TO PUSH THE PEOPLE TO BUY THEIR PRODUCTS. THE
MARKETING CONCEPT IS THE EXTREME OPPOSITE OF THE SELLING CONCEPT.
 SOCIETAL MARKETING CONCEPT
• “MARKETING STRATEGY SHOULD DELIVER VALUE TO CUSTOMERS IN A WAY THAT
MAINTAINS OR IMPROVES BOTH THE CONSUMER’S AND SOCIETY’S WELL – BEING”.
• THIS IS THE CONCEPT IN WHICH THEY WOULD GIVE WHAT THE PEOPLE NEEDS IN
THE PRESENT TIME AND AT THE SAME TIME, THEY ARE TRYING TO TAKE CARE OF THE
FUTURE GENERATION’S NEEDS IN A WAY THAT THEY ARE ENHANCING IT OR EVEN
PRESERVING IT.
• THEY WOULD PREFER TO HAVE THE HUMAN WELFARE AS THEIR TOP PRIORITY
RATHER THAN THINKING ABOUT THE PROFITS OF WHAT THE PRODUCT MAY GET.
 MACRO ENVIRONMENT
• The macro environment is less
controllable. The macro environment
consist of much larger wide-raging
influences (which impact the macro
environment) from the boarder global
society.
FACTORS AFFECTING MACRO ENVIRONMENT
• POLITICAL ENVIRONMENT
• SOCIAL AND CULTURAL ENVIRONMENT
• ECONOMIC ENVIRONMENT
• DEMOGRAPHIC ENVIRONMENT
• TECHNOLOGICAL ENVIRONMENT
• NATURAL ENVIRONMENT
 POLITICAL ENVIRONMENT
• Government action which affect the operations of a company
or business. These actions maybe on regional, local, national
or international level. Economic Environment
• Economic Environment are the economic factors that have
effects on the working of the business. It includes systems,
policies and nature of an economy, trade cycles, economic
resources, level of income, distribution of income and wealth.
 ECONOMIC ENVIRONMENT
• Economic Environment are the economic factors
that have effects on the working of the business.
It includes systems, policies and nature of an
economy, trade cycles, economic resources,
level of income, distribution of income and
wealth
 SOCIAL AND CULTURAL ENVIRONMENT

• Social responsibility has move slowly into the

marketing literature as an alternative to the
marketing concept.
• Socially responsible marketing is that business
firms should take the lead in eliminating socially
harmful products.
 DEMOGRAPHIC ENVIRONMENT
•Is the study of human population in
terms of sizes, density, location, age,
gender, occupation, race and other
statistics.
 TECHNOLOGICAL ENVIRONMENT
•The Technological Environment:
Application of knowledge in science
environment, inventions, and
innovations to solve problems.
 NATURAL ENVIRONMENT
• The place where you do business isn't just a location,
it's also a physical environment. Your business is
shaped in many ways by the local environment
everywhere you operate. Each environment
represents its own set of challenges and
opportunities.
 MICRO ENVIRONMENT
• It refers to the environment which is in direct contact
with the business organization.
• It is associated with a small area in which the firm
functions.
• It is a collection of all the forces that are close to the
firm.
• It is a small force within the company that affects its
ability to serve its customers.
 Market
SUPPLIERS
Intermediaries

SHARE
CUSTOMERS
HOLDERS

COMPETITORS PUBLIC

ELEMENTS OF
MICRO ENVIRONMENT
 SUPPLIERS
• THEYARE THE ONES WHO PROVIDE INPUTS TO THE BUSINESS LIKE RAW
MATERIAL, EQUIPMENT AND SO ON.
• MARKETERS MUST WATCH SUPPLY AVAILABILITY AND PRICING.
• ACCORDING TO MICHAEL PORTER, “THE RELATIONSHIP BETWEEN SUPPLIERS
AND THE FIRM EPITOMIZES A POWER EQUATION BETWEEN THEM. THIS EQUATION
IS BASED ON THE INDUSTRY CONDITIONS AND THE EXTENT TO WHICH EACH OF
THEM IS DEPENDENT ON THE OTHER.”
 MARKET INTERMEDIARIES
• ITS EITHER INDIVIDUALS OR BUSINESS HOUSES WHO COME
TO THE AID OF THE COMPANY IN PROMOTING, SELLING AND
DISTRIBUTING THE GOODS TO THE ULTIMATE CONSUMERS.
•IT MAY INCLUDE WHOLESALERS, DISTRIBUTORS, AND
RETAILERS THAT MAKE A LINK BETWEEN THE FIRM AND THE
CUSTOMERS.
 SHAREHOLDERS
oSHAREHOLDERS ARE THOSE MEMBERS OF THE MICROENVIRONMENT
THAT HAVE A DIRECT INFLUENCE ON YOUR BUSINESS ALTHOUGH THEY
ARE NOT GENERALLY PAYING CUSTOMERS.
oTHE FIRM ITSELF IS AN AGGREGATE OF A NUMBER OF ELEMENTS LIKE
OWNERS LIKE SHAREHOLDERS OR INVESTORS, EMPLOYEES AND THE
BOARD OF DIRECTORS.
THE ONES
CUSTOMERS
WHO PURCHASE THE GOODS FOR THEIR OWN
CONSUMPTION.
THEY ARE CONSIDERED AS THE KING OF BUSINESS.
THEY ARE COMPRISE OF THE TARGET GROUP OF THE ORGANIZATION.
ACCORDING TO PETER. F. DRUCKER, “THERE IS ONLY ONE VALID
DEFINITION OF BUSINESS PURPOSE, THAT IS TO CREATE A
CUSTOMER.”
 COMPETITORS
IT IS THE RIVALS, WHICH COMPETE WITH THE FIRM IN THE MARKET AND
RESOURCES AS WELL.
IT IS THE PLAYERS IN THE SAME MARKET WHO TARGETS SIMILAR CUSTOMERS
AS THAT OF THE ORGANIZATION.
COMPETITORS, WHOM ARE PART OF YOUR MICROENVIRONMENT AND
COMPETE FOR YOUR CUSTOMERS, MIGHT TRY TO TAKE YOUR BEST EMPLOYEES
AND MIGHT DISTRIBUTE THROUGH THE SAME CHANNELS AS YOUR COMPANY.
 PUBLIC
IT IS MADE UP OF ANY OTHER GROUP THAT HAS AN ACTUAL OR POTENTIAL INTEREST
OR AFFECTS THE COMPANY’S ABILITY TO SERVE ITS CUSTOMERS.
ACCORDING TO PHILIP KOTLER, “A PUBLIC IS ANY GROUP THAT HAS AN ACTUAL OR
POTENTIAL INTEREST IN OR IMPACT ON A COMPANY’S ABILITY TO ACHIEVE ITS
OBJECTIVES.”
THE ENVIRONMENTALISTS, CONSUMER PROTECTION GROUPS, MEDIA PERSONS AND
LOCAL PEOPLE ARE SOME OF THE WELL-KNOWN EXAMPLES OF PUBLICS.
THE COMPANY HAS A DUTY TO SATISFY THE PEOPLE AT LARGE ALONG WITH
COMPETITORS AND THE CONSUMERS.