1 marketing concept (final)

8/7/2019 1 Marketing Concept (Final)

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The Marketing Concept

Evolving Perspectives


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What is a Market?

The set of actual and

potential buyers of a

product.

These people share a

need or want that can

be satisfied through

exchangerelationships.


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Discussion

What do you understand by the term

M A R K E T I N G


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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 relationshipsin ways that benefit the

organization and its stakeholders.


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What is Marketing Management?

Marketing management is the

art and scienceof choosing target markets

and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.


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Selling is only the tip of the iceberg

There will always be need for

some selling. But the aim of marketingis to make selling superfluous. The aim

of marketing is to know and understand

the customer so well that the product or

service fits him and sells itself. Ideally,

marketing should result in a customerwho is ready to buy. All that should be

needed is to make the product or

service available.

Peter Drucker


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Figure 1.2 A Simple MarketingSystem


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For an exchange to occur.

There are at least two parties.

Each party has something that might be of

value to the other party.

Each party is capable of communication and

delivery.

Each party is free to reject the exchange

offer.

Each party believes it is appropriate or

desirable to deal with the other party.


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Are both forms of exchange?

TransactionsA gives X to B and

gets Y in return

TransfersA gives X to B and

doesnot get anything

tangible in return


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This Is a Need

Needs Basic human

requirements like

food, clothing, shelter,

health and education


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Maslows

Hierarchy ofNeeds


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Discussion


W A N T


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This Is a Want

Wants They are

directed tospecific objects.

I want hamburger,

French

fries,television


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Discussion


D E M A N D


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This Is Demand

Demand

Wants Buying Power


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Need / Want Fulfillment

Needs and Wants Fulfilled through a

Marketing Offer:

Some combination of products, services,information, or experiences offered to a market

to satisfy a need or want.


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What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas


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Discussion


4 Ps of Marketing Mix


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Marketing Mix: The Four Ps

Price

Promotion

Place

Product


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Product Strategies

The starting point of the

4 Ps

Includes physical unit,

package, warranty, service,

brand, image, and value

Product


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Distribution (Place) Strategies

Place Product availability where

and when customers wantthem.

Involves all activities from

raw materials to finishedproducts


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Promotion Strategies

Promotion Role is to bring about

exchanges with target

markets

Includes integration of

personal selling,

advertising, sales

promotion, and public

relations


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PricingStrategies

The most flexible of the

4 Ps-- quickest to change

Competitive weapon

Price x Units Sold =Total Revenue

Price


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Figure 1.4 The Four Ps


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Evolution of Business Philosophies

1980sProduction EraProduction Era

Sales EraSales Era

Marketing EraMarketing Era

Industrial

RevolutionMid-1920s

1950s


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Focus on Manufacturing (D>S)

Means: Achieve high production efficiency,

low costs and mass distribution

Consumers prefer all that is available

You can have any color you want as long

as its black.PRODUCERSPRODUCERSPRODUCERSPRODUCERS

ProductionProduction

conceptconcept


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Make products that offer most quality,

performance or innovative features

Make the best product you can andpeople will buy it.

Build a better mousetrap

PRODUCERSPRODUCERSPRODUCERSPRODUCERS

ProductProduct

conceptconcept

Late 19th century: efficient

production of goods allowed firms

to meet strong customer demand.


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Focus on selling existing products

Sell what is made than make what the

market wants Means: Aggressive Sales & promotion

Goal: Maximize Sales

Sell this inventory no matter w

hat it takes.

Practiced by firms having over capacity

Selling conceptSelling concept

Mid-1920searly 1950s: weakened demand

required that products would have to be

sold. (personal selling, advertising, and

distribution was the focus)


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The Marketing ConceptThe Marketing Concept

The idea that the social and economic

justification for an organizations existence isthe satisfaction of customer wants and

needs while meeting organizational

objectives.

Find the right product for your customer and

not the right customer for your products


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A company-wide orientation to satisfy consumerneeds and wants

2. Set of coordinated cross functional activities (aunity of purpose) to create, deliver and

communicate superior value to the customersthrough integrated marketing

3. To achieve corporate goals (Profit throughcustomer satisfaction vs. sales volume)

4. Needed: Ethical Conduct.


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Discussion


Selling v/s Marketing


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Sellingversus Marketing

SellingSelling

FactoryFactory ProductProduct Selling &Selling & Profits throughProfits through

promotingpromoting sales volumesales volume

StartingStarting

pointpoint FocusFocus MeansMeans EndsEnds

MarketingMarketing

TargetTarget Customer Customer IntegratedIntegrated Profits throughProfits throughmarketmarket needsneeds marketingmarketing customer satisfactioncustomer satisfaction

Marketing is not synonymous with sales or advertising.

SellingSelling

MarketingMarketing

SellingSelling


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(1971 JM)

The Societal Marketing Concept

Act socially responsibly; consider the ethicalconsequences of ones actions.

Deliver the desired satisfaction to the customers in a

way that preserves and enhances consumers and

societys well being. Marketers must carefully consider the role they are

playing and could play in terms of social welfare.

Mcdonalds replaced polystyrene foam clamshells with

paper wraps and lightweight recycled boxes


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Societal Marketing Concept


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