Marketing ConceptsMarketing Concepts

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

A. Traditional ConceptsA. Traditional Concepts B. Modern ConceptsB. Modern Concepts 1. Exchange concept 1. Marketing concept1. Exchange concept 1. Marketing concept2. Production concept 2. Societal concept2. Production concept 2. Societal concept3. Product concept 3.Holistic marketing concept 3. Product concept 3.Holistic marketing concept 4. Selling concept4. 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 Features of Modern Marketing ConceptsConcepts

Modern marketing is Modern marketing is consumer oriented.consumer oriented.

It begins and ends with It begins and ends with Consumers.Consumers.

It precedes & succeeds It precedes & succeeds production.production.

It is competition oriented.It is competition oriented. Its strategy is target Its strategy is target

marketingmarketing The distribution policy The distribution policy

under modern marketing is under modern marketing is direct marketing and direct direct marketing and direct selling.selling.

Modern marketing relies on Modern marketing relies on information.information.

It emphasizes mutuality of It emphasizes mutuality of benefit.benefit.

Business networks.Business networks. Emphasis on retaining Emphasis on retaining

customerscustomers Marketing on the net.Marketing on the net. Shifting from international Shifting from international

to borderless world to borderless world marketing.marketing.

Innovation.Innovation. Business Process Business Process

Outsourcing.Outsourcing. Branding shifting values.Branding shifting values.

Operational Model for Operational Model for Implementing the Implementing the Philosophy of the Philosophy of the

Marketing Concept is Marketing Concept is the:the:

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

The Marketing MixThe Marketing Mix Consists of Consists of Four Basic Strategic Variables Four Basic Strategic Variables

(the four “Ps”)(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 The role of marketing management is to mix or blend these four strategic variables mix or blend these four strategic variables

in such a way as to meet the needs of...in such a way as to meet the needs of...THE TARGET MARKETTHE TARGET MARKET

ProductProduct PricePricePromotion Promotion PlacePlace

Target Market

ProductProduct

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

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

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

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

PricePrice

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

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

PlacePlace

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

PromotionPromotion

Promotion refers to the various strategies and ideas implemented by the Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Like:marketers to make the end - users aware of their brand. Like:

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

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

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

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

Factors affecting marketing MixFactors affecting marketing Mix Marketing FactorsMarketing Factors1.1. Marketing planningMarketing planning

2.2. Brand policyBrand policy

3.3. Package policyPackage policy

4.4. Advertisement policyAdvertisement policy

5.5. Distribution channelsDistribution channels

6.6. Physical distribution Physical distribution

7.7. PolicyPolicy

8.8. Pricing policyPricing policy

9.9. Market researchMarket research

10.10. Product life cycleProduct life cycle

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

Market factorsMarket factors1.1. Consumer behaviourConsumer behaviour

2.2. CompetitionCompetition

3.3. Distribution patternDistribution pattern

System.System.

4. Government control. 4. Government control.

MARKETING MANAGEMENTMARKETING MANAGEMENT

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

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

CustomerSatisfaction

Profit maximization

Marketing Management tasksMarketing 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 EnvironmentMarketing Environment

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

Types of MarketingTypes of MarketingEnvironmentEnvironment

Suppliers

Customers

Publics

Competitors

Intermidiaries

MicroEnvironment

Macro Environment

Demographic

Technological

Socio-cultural

Political

Economic

Macro EnvironmentMacro Environment

1.Demographic Environment1.Demographic Environment The statistical study of human population and its distribution. The statistical study of human population and its distribution.

Eg age, gender, income, religion.Eg age, gender, income, religion.

2.Economic Environment2.Economic Environment In order for an economy to exist there must be a ‘market’.In order for an economy to exist there must be a ‘market’. A ‘market’ exists where consumers have money to spend and A ‘market’ exists where consumers have money to spend and

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

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

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

3.Socio-Cultural factors3.Socio-Cultural factors Marketers are faced with changing socio-cultural Marketers are faced with changing socio-cultural

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

Emphasis on quality of life.Emphasis on quality of life. Changing gender roles.Changing gender roles. Attitudes towards health, nutrition and well-being.Attitudes towards health, nutrition and well-being. Impulse buying.Impulse buying. Desire for convenience and a premium on time.Desire for convenience and a premium on time.

4.Political factors4.Political factors

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

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

products.products.

5.Technological factors5.Technological factors Technology has had an impact on our Technology has had an impact on our

lifestyles, work, leisure, consumption patterns lifestyles, work, leisure, consumption patterns and economic well-being.and economic well-being.

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

Micro EnvironmentMicro Environment

1.Customers1.CustomersTo identify and anticipate the needs of the customers, a

company should gather information about them.2.Competitors2.Competitors Companies face competition from three main sources:Companies face competition from three main sources:

Brand—from manufacturers of similar products.Brand—from manufacturers of similar products. Substitute products—dissimilar products satisfying Substitute products—dissimilar products satisfying

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

purchasing power.purchasing power.

33.Suppliers.Suppliers Organisations which provide the firm Organisations which provide the firm

with the items it needs to conduct with the items it needs to conduct business.business.

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

4.4.Marketing IntermediariesMarketing Intermediaries

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

ResellersResellers—wholesalers and retailers: the middlemen.—wholesalers and retailers: the middlemen. Facilitating organisationsFacilitating organisations that provide that provide

transportation, warehousing, financing and other transportation, warehousing, financing and other supportive services needed to complete the exchange supportive services needed to complete the exchange between buyer and sellers.between buyer and sellers.

They complete the trade or channels of They complete the trade or channels of distribution.distribution.

5.Public5.Public

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

Impact of Environment on Impact of Environment on MarketingMarketing

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)