Marketing ConceptsMarketing Concepts

Marketing concepts are the philosophies, beliefs or attitudes adopted by companies or marketers in relation to market their product. Some say they are consumer oriented, some say they value their customers and some say customers are their kings. Various types of marketing concepts:

A. Traditional Concepts B. Modern Concepts 1. Exchange concept 1. Marketing concept2. Production concept 2. Societal concept3. Product concept 3.Holistic marketing concept 4. Selling concept

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Targetmarket

Integratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

Startingpoint

Focus Means Ends

(b) The marketing concept

(a) The selling concept

Features of Modern Marketing Concepts

• Modern marketing is consumer oriented.

• It begins and ends with Consumers.

• It precedes & succeeds production.

• It is competition oriented.

• Its strategy is target marketing

• The distribution policy under modern marketing is direct marketing and direct selling.

• Modern marketing relies on information.

• It emphasizes mutuality of benefit.

• Business networks.• Emphasis on retaining

customers• Marketing on the net.• Shifting from international

to borderless world marketing.

• Innovation.• Business Process

Outsourcing.• Branding shifting values.

Operational Model for Implementing the Philosophy of the

Marketing Concept is the:

• Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix.

The Marketing Mix Consists of Four Basic Strategic Variables

(the four “Ps”)

•Product StrategyProduct Strategy•Price StrategyPrice Strategy•Promotional StrategyPromotional Strategy•Place Strategy (Channels of Place Strategy (Channels of Distribution)Distribution)

The role of marketing management is to mix or blend these four strategic variables in such a way as to meet

the needs of...THE TARGET MARKET

ProductProduct PricePricePromotion Promotion PlacePlace

Target Market

Product

• Goods manufactured by organizations for the end-users are called products.

• Products can be of two types - Tangible Product and Intangible Product (Services)

• An individual can see, touch and feel tangible products as compared to intangible products.

• A product in a market place is something which a seller sells to the buyers in exchange of money.

Price

• The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa.

• Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers.

Place

Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet.

Promotion Promotion refers to the various strategies and ideas implemented

by the marketers to make the end - users aware of their brand. Like:

• Advertising.• Word of mouth Lately three more P’s have been added to the marketing mix.

They are as follows:• Packaging- Attractive, transport, sale & exchange.• People- to whom and through whom goods are being sold.• Public relations- increase awareness through public relations

(Customers, Govt., employees, retailers, wholesalers, press, )• Politics- (should go in accordance with rules & regulations made

by law makers.)

MarketingMix

Target Market

ProductProduct VarietyQualityDesignFeatures Brand namePackagingSizeServicesWarrantiesReturns

PriceList priceDiscountsAllowancesPayment periodCredit terms

PromotionSales promotionAdvertisingSales forcePublic relationsDirect marketing

PlaceChannelsCoverageAssortmentsLocations InventoryTransport

4C’s

Customer Solution

Cost (to customer)

Convenience Communication

Utility/Importance of Marketing Mix• Helps in understanding important tasks of marketing.• Important tool of marketing programme.• It promotes better utilisation of limited resources.• Facilitates the meeting of different requirements of customers.• It provides customer satisfaction.• It helps in goal achievement.• It facilitates communication.• It helps in establishing relations with customers.• It helps in developing new products.

Factors affecting marketing Mix

– Marketing Factors1. Marketing planning

2. Brand policy

3. Package policy

4. Advertisement policy

5. Distribution channels

6. Physical distribution

7. Policy

8. Pricing policy

9. Market research

10. Product life cycle

11. Market segmentation (Gender, price, income, interest, location, region etc)

• Market factors1. Consumer behaviour

2. Competition

3. Distribution pattern

System.

4. Government control.

MARKETING MANAGEMENT

Acc. to Philip Kotler, “The analysis, planning, implementation and control of programmes designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organisational objectives.”

It is the art & science of choosing the target markets and getting ,keeping and customers growing through creating, delivering and communicating superior customer value.

CustomerSatisfaction

Profit maximization

Marketing Management tasks

Conversional Marketing

Maintenance marketing

Developmental Marketing

Remarketing

Converting negative demand into positive

demand. Eg: air travel

Transforming latent demand into actual

demand. Eg: Nano car

To revitalize the productEg: hi-tech products

To monitor the demand level and maintain it

Marketing Environment

The Company’s marketing environment consists of "the actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers”

Types of MarketingEnvironment

Suppliers

Customers

Publics

Competitors

Intermidiaries

MicroEnvironment

Macro Environment

Demographic

Technological

Socio-cultural

Political

Economic

Macro Environment

1.Demographic Environment The statistical study of human population and its

distribution. Eg age, gender, income, religion.2.Economic Environment• In order for an economy to exist there must be a ‘market’.• A ‘market’ exists where consumers have money to spend

and are willing to spend it.• The economic environment is a significant force that

affects the marketing of any organisation: eg unemployment, inflation, interest rates.

• It also influences business cycles such as: prosperity recession recovery. These impact on what people buy, when and how.

3.Socio-Cultural factors• Marketers are faced with changing socio-cultural

patterns, lifestyles, social values and beliefs.• Changes that have significant marketing

implications:– Emphasis on quality of life.– Changing gender roles.– Attitudes towards health, nutrition and well-

being.– Impulse buying.– Desire for convenience and a premium on

time.

4.Political factors

• The five categories affecting political–legal influences on marketing:– Monetary and fiscal policies.– Social legislation and regulations.– Government relationships with individual

industries.– Legislation specifically related to marketing.– The provision of information and the purchase

of products.

5.Technological factors

• Technology has had an impact on our lifestyles, work, leisure, consumption patterns and economic well-being.

• Technology is a mixed blessing: it may improve our lives in one area while creating environmental and social problems in another.

Micro Environment

1.CustomersTo identify and anticipate the needs of the customers,

a company should gather information about them.2.Competitors• Companies face competition from three main

sources:– Brand—from manufacturers of similar products.– Substitute products—dissimilar products

satisfying the same needs.– Indirect—other firms trying to win customers

purchasing power.

3.Suppliers

• Organisations which provide the firm with the items it needs to conduct business.

• For production of goods and services company requires lot of inputs. The firms and individuals who supply the inputs or resources needed by the company to produce goods and services are known as suppliers.

4.Marketing Intermediaries

Defined as independent business organisations that directly assist the flow of products and services between a marketing organisationand its markets.

• Resellers—wholesalers and retailers: the middlemen.

• Facilitating organisations that provide transportation, warehousing, financing and other supportive services needed to complete the exchange between buyer and sellers.

• They complete the trade or channels of distribution.

5.Public

Public comprises of consumers, labour unions, press & media, Govt. officials etc. These people affect directly or indirectly the marketing decisions of the company so before implementing any policy or procedure any company should take into consideration the view point of the above mentioned people.

Impact of Environment on Marketing

DirectImpact

Indirect Impact

Consumers, shareholder,Suppliers, competitors, labour org and govt. officials (they affect plans, policies & strategies.)

Economical, political, Socio-cultural and Technological factors.(They affect investment, org& structure)