marketing concepts basic principles

© Created by SUGIHARTO, SH.MM 2013 Marketing Management

Presented by UGIK SUGIHARTO @Hotslides

THE BASIC PRINCIPLES OF

© Created by SUGIHARTO, SH.MM 2013 Marketing Management

Decide to

Marketing Concept The Main Philosophy

The Philosophy of Marketing Concept in the

organizations should:

Identifying

Analyzing

The Consumer’s need

Satisfying consumer’s need

better than their competitors

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Demands

Wants

Marketing Concept The 3 Three Applications Perspectives

Needs

Servicing

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Selling

Segmenting

Marketing Concept The 3 Three Applications Perspectives

Positioning

Targeting

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Marketing MIX

Marketing Concept The 3 Three Applications Perspectives

Advertising

Promotion

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In 1776 in The Wealth of Nations, Adam

Smith wrote that the needs of producers

should be considered only with regard to

meeting the needs of consumers.

While this philosophy is consistent with the

marketing concept, it would not be adopted

widely until nearly 200 years later American Marketing Association

Marketing Concept The Theory Perspectives

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Marketing Concept The Theory Development and Alternatives

Production concept began in the beginning of

Industrial Revolution early 1920s. Many companies

focused on production efficiency means low-cost product would create demand eventually

Can We Produce the goods ?

Can We Produce enough ?

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Produce more … more

Practically sells itself

Marketing Concept The Production Concepts

Consumers will favor those

products that are widely

available and low in cost.

Therefore increase

production and cut down

costs

And build

profit through

volume

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Marketing Concept The Product Concepts

Produce

Quality

Products

Consumers

Practically sells itself, if it

gives most quality for money

Buyers admire well-made products

and can appraise product quality

and performance

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Consumers will favor those products that

offer the most quality, performance, or

innovative features. Therefore improve:

QUALITY

Performance

Features

Marketing Concept The Products Concepts

This would lead to increased sales and profits

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Marketing Concept The Theory Development and Alternatives

Begin in 1930 mass production

became common, increased

competition left less available unfulfilled demand

Selling concept means not only

produce the goods but also try to

convince the consumers to buy

through advertising and

direct selling.

Can We charge enough ?

Can We sell the products ?

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Produce

Aggressive selling &

promotion efforts

Marketing Concept The Selling Concepts

Consumers have normal

tendency to resist Making sales becomes primary function and consumer satisfaction secondary

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Aggressive selling &

promotion efforts

Marketing Concept The Selling Concepts

Therefore, promote sales aggressively

© Created by SUGIHARTO, SH.MM 2013 Marketing Management

Marketing Concept The Theory Development and Alternatives

After the End of World war 2

The Variety of goods had increased

Hard Selling No Longer could be

relied upon to Generate Sales

Discretionary personal income

What do Customers want ?

Can we develop it while

they still want it ?

How can we keep our

customers satisfied ?

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Marketing Concept The Theory Development and Alternatives

the firms or company does

Focusing on the Customer needs

before developing The Products

Aligning all Functions of the

company to focus on those needs

Customer Satisfaction = profit over

the long-term

Began to set up separate Marketing Dept.→ CSO

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Marketing Concept The Theory Development and Alternatives

The idea is that a business must consider both its :

The idea is to satisfy the customer

and overcome the competition

In EVERY Business Decisions

Business failure is the result of

businesses which is not using the

marketing concept effectively

© Created by SUGIHARTO, SH.MM 2013 Marketing Management

Marketing Concept The Main Perspective

SELL what they want

Market it

Produced it

LEARN what they want

© Created by SUGIHARTO, SH.MM 2013 Marketing Management

build profit through customer

satisfaction and loyalty.

Determining

NEEDS

WANTS

more

Effectively

Efficiently

than

Competitor

Delivering

Marketing Concept The Main Perspective

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Marketing Concept The Main 3 Steps of Applications

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Marketing Concept The SUPPLY and DEMAND

The marketing concept is

based on supply and demand

Low supply of a desired item +

high consumer demand is the

ideal scenario

Marketing is less important in

high demand situations

the product sells itself

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Marketing Concept The Development

In the past, demand always outstripped

supply. Prior to the Industrial Revolution

it was next to impossible to produce or

import items in any significant quantity

Marketing was unnecessary

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Marketing Concept The Development

In the l950’s there was a huge

change in marketing

This facilitated the real “birth” of

mass marketing

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Consumers now realize their power

in the marketplace

Marketing Concept T h e P r e s e n t D a y D e v e l o p m e n t

Supply outstrips demand;

therefore, advertising is crucial

The internet and

globalization mean

companies from around the

world compete for the same

consumers, and …

Consumers have a greater

choice than ever before

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Marketing Concepts Basic Principles

Presented by

Sugiharto, SH. MM

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