SESSION - 1

UNDERSTANDING MARKETING CONCEPTS

What is Marketing?

Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Thus, Marketing is the

What is Marketing?
Marketing

is an organizational

function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in way that benefit the organization and its

Model of Marketing Process

Understand the marketplace and customer needs & wants Design a Customer-driven marketing strategy Construct an integrated marketing program that delivers superior value

Build profitable relationships and create customer delight Capture value from customers to create Profits and Customer Equity

Marketing Management Philosophies

Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept
Consumers favor products that are

available and highly affordable Improve production and distribution Consumers favor products that offer the most quality, performance, and innovative features Consumers will buy products only if the company promotes/ sells these product Focuses on needs/ wants of target markets & delivering satisfaction better than competitors Focuses on needs/ wants of target markets & delivering superior value Societys well-being

Company orientation towards Marketplace: Stages

Production concept (1900 - 1950, first stage of Capitalism): useful mostly in countries like China huge market and low manpower cost. Concentrate on high production efficiency, low cost and mass distribution. Co.s like Lenovo and domestic appliance co. Haier applied this orientation to dominate the market. Product concept (mid 1950s): focuses 1950s)

 Selling Concept (mid 1950s): aggressive selling and promotions. Mostly used for unsought products (customers not normally think/ plan to buy) like insurance, encyclopedias. Marketing Concept (early

Company orientation towards Marketplace: Stages

Marketing & Sales Concepts

Theodore Levitt, Harvard

Starting Point
Factory

Focus
Existing Products

Means
Selling and Promoting

Ends
Profits through Volume

The Selling Concept The Selling Concept

Profits through Satisfaction

Market

Customer Needs

Integrated Marketing

The Marketing Concept The Marketing Concept

Holistic Marketing Concept

Operating in a dynamic marketing environment. Concept is based on the design, development and implementation of - marketing programs and activities which can effectively link to the target consumers. consumers Four components:
Relationship marketing Integrated marketing Internal marketing Social responsibility marketing

Marketing Department

Senior Management

Other departments

Products & Services Communications Channels Price

INTERNAL MARKETING

INTEGRATED MARKETING

HOLISTIC
Brand & Customer equity

MARKETING

Sales

PERFORMANCE MARKETING

RELATIONSHIP MARKETING

Ethics Societal benefits & welfare Legal framework Other Stakeholders Channels

Environment

Customers

Societal Marketing Concept

Society Society (Human Welfare)) (Human Welfare

Societal Societal Marketing Marketing Concept Concept

Consumers Consumers (Wants) (Wants)

Company Company (Profits) (Profits)

Marketing Mix Elements (4Ps): term was first used by Neil Borden, 1953

4 Ps

4 Cs

4 As

(Jerome E. McCarthy) 1960

(Robert Lauterborn) 1993

Product Price Place/ Distribution Promotion

Customer solution Customer Cost Convenience

Acceptability Affordability Accessibility/ Availability Awareness

Communicatio n

Marketing Mix Elements cont