Module 1

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IntroductionMarketing occupies an important position

in the organization of business unit.Any business is likely to be successful

when a strong marketing viewpoint or philosophy permeates the thinking and guides the decision and actions of everyone in the business.

A business exists only to serve people, and marketing is the function that primarily determines -

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IntroductionWhat the product or services shall beHow it shall be presented, promoted and

distributedHow it shall be priced.

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What is Marketing?

Classical Definitions ( Product Oriented View)“ The performance of business activities that

directs the flow of goods and services from producer to consumer or user”

“ Marketing consists of those efforts which affect transfers in the ownership of goods and services and provide for their physical distribution”

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What is Marketing? Modern Definitions ( Customer Oriented View)“ Marketing is a social and managerial process

by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others”

According to American Marketing association-“ Marketing is the process of planning and

executing the conception, pricing, promotion and distribution of ideas and services to create exchanges that satisfy individual and organizational goals”

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Evolution of Marketing1. Barter stage

•In the pre-industrial revolution area. People bartered for things not produced by them.

•No elaborate distribution systems.

2. Stage of Money economy

•No changes except money system replaced the barter system.

•Pricing became the mechanism of exchange process.

3. Stage of Industrial Revolution

•Introduced new systems of manufacturing. Sweeping changes.

•Mass production became the order of the day.

•Provided disposable incomes and generated new ideas.

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4. Stage of competition

Mass production and distribution by the industrial revolution led the stage of competition.

Focus on how to make the products as customer’s first preferred choice.

5. Emergence of Marketing

In 50’s and 60’s, rapid industrialisation.

More manufacturers leading to competition.

Right type of product, availability, attending to customers complaint.

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Evolution Of Marketing

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal MKTG concept

Late 1800

Early 1900

Early 1930

Mid 1950

1990

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PRODUCTION CONCEPT

PRODUCTION CONCEPT

• Consumers prefer products that are widely available and inexpensive

• Managers of production – oriented businesses concentrate on achieving high production efficiency, Low costs, and mass distribution.

• The production era can be divided into four phases Subsistence phase Made to order phase Early production for market phase Mass production for market phase

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PRODUCT

CONCEPT

PRODUCT

CONCEPT

Consumers favor products that offer the most quality, performance, or innovative features.

Managers in product oriented organizations focus their energy on making superior products and improving them over time.

To improve quality and innovation companies gave importance to product engineering. Some times the product concept leads to marketing myopia.

Marketing myopia means – focus on the product rather than customers need

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SELLING

CONCEPT

SELLING

CONCEPT

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizational products.

Consumers will buy products only if the company aggressively promotes/sells these products.

forms practice the selling concept when they have over capacity.

It gives more importance to seller needs

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FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

The selling concept

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MARKETING

CONCEPT

MARKETING

CONCEPT

Focuses on needs/ wants of target markets & delivering value better than competitors.

The Marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating delivering and communicating superior customer value to its chosen target markets.

The Marketing concept rests on four pillars Target Market Customer needsIntegrated marketing Profitability

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MarketCustomer

NeedsIntegrated Marketing

Profits throughCustomer

satisfaction

Startingpoint Focus Means Ends

The Marketing concept

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SOCIETAL

MKTG

CONCEPT

SOCIETAL

MKTG

CONCEPT

The Societal Marketing concept holds that organization’s task is to determine the needs , wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in way that preserve the customers and society’s well being.

It calls upon marketers to build social and ethical considerations into their marketing practices.

There should be balance between company profits, customer satisfaction, and public interest.

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Societal Marketing

Concept

Company(Profits)

Consumers(Want Satisfaction)

Society(Human Welfare)

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MarketIntegratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

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Selling V/S Marketing ConceptFocuses on the needs of

sellerProfit through sales

volumePlanning is short term

orientedMarketer first makes the

product and then figures out how to sell it.

Focuses on the needs of buyer

Profit through customer satisfaction

Planning is long term oriented

Marketer first determines the needs and wants of the customers and then delivers the product to satisfy those needs and wants.

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Selling V/S Marketing ConceptImportance to

aggressive sellingImportance integrated

marketing