MARKETING CONCEPTS

Marketing Concepts

Needs: Basic Human Requirements Wants: Needs become Wants when

they are directed to specific objects that might satisfy the need.

Demand: Willingness to Buy Willingness to Pay Ability to Pay

Marketing Concepts

Product: “An offering that can satisfy a need or want.” Goods; Services; Experiences; Events;

Persons; Places; Properties; Organizations; Information; Ideas.

Marketing Concepts Value: “A ratio between what the

customer gets and what he gives.”

Value = Benefits Costs

Benefits:- Functional & Emotional Costs:- Monetary, Time, Energy &

Psychic Costs

Marketing Concepts

Satisfaction: “Person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations. ”

Marketing Concepts

Market: “The group of Buyers & Sellers interested in negotiating the terms of purchase / sale of goods or services.

Consumer Markets Business Markets Global Markets Nonprofit & Governmental Markets

Marketing Concepts

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 ways that benefit the organization and its stakeholders.” - AMA

Marketing Concepts

Marketing Management: “The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.”

Marketing Concepts

Marketing can be defined as an ongoing process of

1. Discovering & translating consumer needs & desires into products and services.

2. Creating demand for these products and services.

3. Serving the consumer demand with the help of marketing channels and then

4. Expanding the market even in the face of keen competition.

Marketing Concepts

The Production Concept:

Consumers prefer inexpensive products that are widely available.

Businesses focus on achieving high production efficiency, low costs and mass distribution.

Marketing Concepts The Product Concept:

Consumers will favor those products that offer the most quality performance or innovative features.

Businesses focus on making superior products and improving them over time.

Managers assume that buyers admire well-made product and can appraise quality & performance.

Marketing Concepts The Selling Concept:

It holds that, consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products.

Organizations should undertake aggressive selling & promotion efforts.

Aim is to sell what they make rather than make what the market wants.

Marketing Concepts

The Marketing Concept:

It holds that the key to achieving organizational goals consist of a company being more effective than competitors in creating, delivering and communicating customer value to the chosen target markets.

Selling Vs Marketing

.

Factory ProductsSelling &Promoting

Profits throughSales volume

TargetMarket

CustomerNeeds

Focus MeansStartingPoint

Ends

IntegratedMarketing

Profits throughCustomer Satisfaction

Marketing

Selling

Selling Vs Marketing

Distinction between Selling and Marketing.

Approaches to Marketing

Product Approach:

A particular product is selected and then a detailed study is made regarding the various sources of its supply, quality of the product, its characteristics, its uses, limits of the market for the product, the intervening middlemen engaged in the work of distribution, the various means of transport which actually carry the goods to the consumers and after sales services.

Approaches to Marketing

Functional Approach:

It studies marketing by dividing the field of marketing into separate functions such as buying, selling, transportation, storage, grading, standardization, financing, marketing research, etc.

Approaches to Marketing

Institutional Approach:

It emphasizes on the detailed study of various institutions involved in the process of marketing like, producers, wholesalers, agents, retailers, transporters, financial institutions, godowns and warehouses, etc.

Approaches to Marketing

Managerial Approach:

It focuses on decision maker’s viewpoint.

The main areas of decision making include marketing organization of the product, physical distribution policies, pricing, advertising, personal selling, etc.

Approaches to Marketing Societal Approach:

The entire marketing process is regarded as a means by which society meets its own consumption needs.

The focus is, the interactions between the various environmental factors and marketing decisions and their impact on the well being of the society.

Approaches to Marketing

Economic Approach:

Marketing is considered from the economic point of view i.e. creation of value, demand and price.

Criticized as narrower view of marketing.

Approaches to Marketing

Legal Approach:

Focuses only on one aspect i.e. the effect of transfer of title in a legal way.

Eg. Sale of Goods Act, Contract Act etc.

Approaches to Marketing

Systems Approach:

Advancement of Managerial Approach.

A system is the group of inter-related and interdependent elements who work together in a coordinated way to achieve the desired objectives.

Marketing Process

1. Analyzing Marketing Opportunities

2. Selecting Target Market

3. Developing the Marketing Mix

4. Managing the Marketing Effort

Marketing Process

Marketing Mix

1. Product

2. Price

3. Place

4. Promotion

Marketing Mix Product

Product Variety, Quality & Design, Features, Brand Name, Packaging, Sizes, Services, Warranties, Returns.

Marketing Mix

Price

List Price, Discounts, Allowances, Payment period, Credit terms.

Marketing Mix

Place

Channels, Coverage, Locations, Inventory, Transport.

Marketing Mix

Promotion

Sales Promotion, Advertising, Sales force, Public relations, Direct marketing.