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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
What do you understand by the term
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
What do you understand by the term
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
What do you understand by the term
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 Concept
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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The Marketing Concept
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
What do you understand by the term
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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