2 Marketing Concepts

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MARKETINGCONCEPTS

Module II


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Designing a Customer-DrivenMarketing Strategy

Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

HolisticMarketingconcept

Marketing Management Orientations


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Production concept is the idea thatconsumers will favor products that are

available or highly affordable

Concentration is on low cost and

Production efficiency

Used when the company has in expensivehuge labor pool

Use when company wants to expand



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Product concept is the idea that consumerswill favor products that offer the most quality,

performance, and features.

Organization should make continuous product

improvements

Improved product will not be successful if it is

not priced, advertised, distributed and sold



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Selling concept is the idea that consumerswill not buy enough of the firms products

unless it undertakes a large scale selling

and promotion effort

This concept is aggressively practiced for un

sought goods like insurance, encyclopediaetc

Marketing on hard selling carries high risk



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Marketing concept is the idea thatachieving organizational goals

depends on knowing the needs and

wants of the target markets and

delivering the desired satisfactions

better than competitors do Here the job is to not find the right

customers for your products, but right

products for your customers


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Societal marketing concept is the idea thata company should make good marketing

decisions by consideringconsumers wants

the companys requirements

consumers long-term interests

societys long-run interests.


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Holistic Marketing

InternalMarketing

IntegratedMarketing

SociallyResponsible

Marketing

Relationship Marketing


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Holistic Marketing

This is the management task of hiring, training

& motivating the employees to serve the

customers well. Smart & successfulcompanies understand that there is as much

activity outside the company as inside.

For it makes no sense to promise excellentservices if companys service staff is not ready

to provide.

Internal Marketing


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Holistic Marketing

One of the major tasks of marketers is to

integrate all the marketing activities &

programmes like creating, communicating &

delivering value to the customers. The

marketing programme consists of various

decisions on value-enhancing marketing activities

that can be used. The Famous Marketing Mix the Four Ps, as

devised by McCarthy constitute the traditional

marketing activities in four broad groups as given

below in details :

Integrated Marketing


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Holistic Marketing

Products Design, Features, Brand Name,

Models, Style, Appearance, Quality, Warranty,

Package (design, type, material, size,

appearance & labelling), Service ( pre-sale, after

sale, service standards, service charges),

Returns.

Price Pricing Policies, Margins, Discounts,Rebates, Terms of Delivery, Payment Terms,

Credit Terms, Instalment Purchase Facility,

Resale Price.



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Holistic Marketing

Place Channels of Distribution (channel design,

types of intermediaries, location of outlets,

channel remuneration, dealer-principle relation,

etc.), Physical Distribution (transportation,warehousing, inventory levels, order processing,

etc.)

Promotion Personal Selling, SellingExpertise, Size of Sales Force, Quality of Sales

Force, and Marketing Communications -

Advertising (media-mix, media vehicles, and

programmes), sales promotions, publicity & publicrelations direct & interactive marketin .



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Holistic Marketing

Now, these traditional concepts of Four Psrepresent the sellers view of the marketing toolsavailable to influence buyers.

In holistic marketing one has to see also thebuyers point of view, where each of these toolswill deliver the customers benefit or value.

Robert Lauterborn suggested the buyers Four Cs

as follows : Product = Customer Solution

Price = Customer Cost

Place = Convenience

Promotion = Communication



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Holistic Marketing

Holistic marketing incorporates socialresponsibility marketing. This involves broaderconcerns of the society at large, like social, legal,ethical & environmental in the context ofmarketing activities.

Companies operate in a society, and so do theircustomers and hence they should never forget itscontribution to the company.

It requires that marketers carefully consider therole they are playing in terms of social welfare.

Companies need to evaluate whether they aretruly practicing ethical & socially responsiblemarketing.

Socially Responsible Marketing


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Holistic Marketing

Several factors are driving the companies to

practice higher level of corporate social

responsibility, such as :

Rising customer expectations

Changing employees expectations

Govt. Legislation & pressure

Investor interest in social criteria

Changing business procurement criteria

Socially Responsible Marketing


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Holistic Marketing

The development of deep, enduring relationshipswith all the people or firms involved directly orindirectly in the firms marketing activities is

appearing as a key goal; of marketing. This is the concept of Relationship marketing it

aims at building mutually satisfying long-termrelationships with key parties like customers,

financiers, suppliers, distributors & of course thestakeholders, in order to earn & retain their business.

It also builds strong economic, technical & socialbinding amongst the parties.



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Holistic Marketing

The key constituents relationship marketing

are :

CustomersEmployees

Marketing Partners : Channels, Suppliers,

Distributors, Dealers, Retailers, Agencies etc.

Financial Community : Shareholders,Stakeholders, Financiers, Investors, Analysts etc.

Another key constituent is the Society : well-

wishers, public, environmentalists etc.



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Holistic Marketing

The ultimate goal of relationship marketing is thebuilding of a unique company asset called amarketing network, which consists of the company

& its supporting stakeholders as listed above withwhom it has built manual profit relationships.

Interestingly, today, the competition is not betweencompanies as such, but between the carefully

built marketing networks whoever has a betternetwork wins. So the principle is simple build aneffective network, & the profits will follow.



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Holistic Marketing

The development & building of a strongrelationship requires a deep understanding of thecapabilities & resources of different groups as well

as their needs, goals & desires.

Relationship marketing involves the right kind ofrelationships with right constituent groups

Investor Relationship Management (IRM)

Customer Relationship Management (CRM)

Stakeholder Relationship Management (SRM)


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2 Marketing Concepts