This document provides an overview of marketing essentials from Anglo Business Publications. It defines marketing and discusses the core marketing functions. It also explains the evolution of different marketing concepts over time from a production focus to a societal marketing focus. Additionally, the document outlines the marketing mix of product, price, place and promotion. It discusses how needs, wants and demands relate to customers and markets. Finally, it introduces the topic of the marketing environment that will be covered next.

1. Anglo Business Publications

2. MBA
Marketing Essentials
Lesson 01

3. Content
1. What is marketing?
2. What can be marketing?
3. Core marketing functions
4. Marketing mix
5. Evolution of the Marketing Concept
6. Economic benefits of marketing
7. Core marketing concepts
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4. MARKETING
• Pricing
• Promoting
• Selling
• Distributing
IDEAS / GOODS /
SERVICES
CREATE
EXCHANGES
SATISFY
CUSTOMER
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5. WHAT CAN BE
MARKETED?
IDEAS
GOODS
SERVICES
PERSONS
ORGANISATIONS
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6. Core Marketing Functions
CoreMarketingFunctions
Market Planning
Marketing Information
Management
Product/Service
Management
Pricing
Promotion
Distribution Channel
Management
Selling
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7. Out of this 7 Core Marketing
Functions,
PRODUCT, PRICE,PROMOTION
& DISTRIBUTION
are called
MARKETING MIX
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8. Identification of
customer needs,
making
products/services
to fulfil those
needs and
maintaining long-
term relationship
with customers by
satisfying their
changing needs.
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9. Evolution of the Marketing Concept
• Marketing concept evolved over a period of time from other
management concepts which were popular in the past. Other
management concepts used by businesses to satisfy needs of
customers were;
– PRODUCTION CONCEPT
– PRODUCT CONCEPT
– SELLING CONCEPT
– MARKETING CONCEPT
– SOCIETAL MARKETING CONCEPT
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10. • The Production Concept (Industrial revolution period)
• The basic idea behind production concept was: The firms will
produce what they can produce efficiently. This will ensure
enough supply of the products at low-cost and demand will
be created by itself.
• Production concept prevailed into late 1920s because most of
the products being produced were the basic necessities and
there was a huge unfulfilled demand for them.
• The factory system of mass production created as a result of
the Industrial Revolution was responsible for the emergence
of the Production Concept
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11. • Product Concept
• Those companies who believe in this philosophy are of the opinion that if the
quality of goods or services is of good standard, the customers can be easily
attracted.
• The basis of this thinking is that the customers get attracted towards the
products of good quality. On the basis of this philosophy or idea these
companies direct their marketing efforts to increasing the quality of their
product.
• It is a firm belief of the followers of the product concept that the customers get
attracted to the products of good quality. This is not the absolute truth because
it is not the only basis of buying goods.
• The customers do take care of the price of the products, its availability, etc.
• A good quality product and high price can upset the budget of a customer.
Therefore, it can be said that only the quality of the product is not the only way
to the success of marketing.
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12. • Selling Concept
• Those companies who believe that there is a need to attract the
customers towards them. They think that goods are not bought but
they have to be sold.
• The basis of this thinking is that the customers can be attracted.
Keeping in view this concept these companies concentrate their
marketing efforts towards educating and attracting the customers. In
such a case their main thinking is ‘selling what you have’.
• This concept offers the idea that by repeated efforts one can sell-
anything to the customers. This may be right for some time, but you
cannot do it for a long-time. If you succeed in enticing the customer
once, he cannot be won over every time.
• On the contrary, he will work for damaging your reputation. Therefore,
it can be asserted that this philosophy offers only a short-term
advantage and is not for long-term gains.
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13. • Marketing Concept
• Those companies who believe in this concept are of the opinion
that success can be achieved only through consumer satisfaction.
The basis of this thinking is that only those goods/service should
be made available which the consumers want or desire and not
the things which you can do.
• In other words, they do not sell what they can make but they
make what they can sell. Keeping in mind this idea, these
companies direct their marketing efforts to achieve consumer
satisfaction.
• In short, it can be said that it is a modern concept and by
adopting it profit can be earned on a long-term basis. The
drawback of this concept is that no attention is paid to social
welfare. Anglo Business Publications

14. • Societal Marketing Concept
• This concept stresses not only the customer satisfaction but also
gives importance to Consumer Welfare/Societal Welfare. This
concept is almost a step further than the marketing concept. Under
this concept, it is believed that mere satisfaction of the consumers
would not help and the welfare of the whole society has to be kept in
mind.
• For example, if a company produces a vehicle which consumes less
petrol but spreads pollution, it will result in only consumer
satisfaction and not the social welfare.
• Primarily two elements are included under social welfare-high-level
of human life and pollution free atmosphere. Therefore, the
companies believing in this concept direct all their marketing efforts
towards the achievement of consumer satisfaction and social
welfare.
• In short, it can be said that this is the latest concept of marketing.
The companies adopting this concept can achieve long-term profit.
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15. ECONOMICBENEFITSOF
MARKETING
New and Improved Products
Lower Prices
Added Value and Utility
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16. Anglo Business Publications

17. Types of Utility
Form Utility
Form utility involves changing raw materials or putting parts together to make
them more useful. In other words, it deals with making or producing things.
Place Utility
Place utility involves having a product where customers can buy it. Businesses
study consumer shopping habits to determine the most convenient and
efficient locations to sell products.
Time Utility
Time utility is having a product available at a certain time of year or a
convenient time of day. For example, supermarkets and other food stores
offer convenient shopping hours or they are open 24-hours a day.
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18. Possession Utility
How do you come into possession of the items you want? The exchange of a
product for money is possession utility.
Information Utility
Information utility involves communication with the consumer. Salespeople
provide information to customers by explaining the features and benefits of
products. Displays communicate information, too. Packaging and labelling
inform consumers about qualities and uses of a product.
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19. Anglo Business Publications

20. Who are Marketers?, What is Marketing? &
What is a Market?
• MARKETERS AND PROSPECTS A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from another party, called the prospect.
• The prospect becomes a customer when he/she decides to make a purchase and
pays money.
• The marketer who accepts the payment and gives to product/service to the
customer becomes the seller.
• MARKETING is the process adopted by marketers to gain attention, interest, the
desire to purchase and persuade prospects to become customers.
• MARKETS Traditionally, a “market” was a physical place where buyers and sellers
gathered to buy and sell goods.
1. Economists describe a market as a collection of buyers and sellers who buy & sell a
particular product or product class (such as the housing market or the grain
market).
2. In Marketing, the marketing people (marketers) use the term market to describe
various groups of customers. They talk about need markets (the need to look
beautiful market – beautycare market), product markets (the shoe market,
smartphone market), demographic markets (the youth market), and geographic
markets (the Chinese market) which is where the customers live.
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21. Core Marketing Concepts
• Needs, Wants, and Demands
– Needs are the basic human requirements such as for air, food, water,
clothing, and shelter. Humans also have strong needs for recreation,
education, and entertainment.
– These needs become wants when they are directed to specific objects
that might satisfy the need. An American consumer needs food and
may want a pizza or a McBurgher. A person in Sri Lanka also needs food
but may want rice and curry.
– Wants are shaped by our society and culture as well as our purchasing
power (money to buy).
– An example of how needs may convert into wants according to income
in Sri Lanka, when people need a snack (food)
1. Go to McDonald’s or KFC (Expensive and need high purchasing power)
2. Go to Perera & Sons pastry shop (Not very expensive, but not very cheap
either)
3. Go to a road-side vendor (petti-kade) for a wadai and plain-tea (Cheap
and those with lowest purchasing power may go there)Anglo Business Publications

22. In marketing, five types of needs can be identified.
• EXAMPLE: BUYING A CAR FOR THE FAMILY
1. Stated needs (what the customer say) I want an inexpensive car
2. Real needs (what the customer actually wants) I want a car with a low
running cost
3. Unstated needs (customer does not say this, but expects it) - I want a
reliable car and good service from the seller.
4. Delight needs (The customer does not need it, but would be very
happy to get with the car for the same price) - E.g. A good music system
with quality speakers.
5. Secret needs - Customer keep these needs secret - The customer wants
friends to see him or her as a clever consumer who got a good deal.
• Demands are wants for specific products backed by an ability to pay
(purchasing power). Many people want a Mercedes or a BMW but only a few
are able to buy one.
• When companies measure demand for their product, they must measure not
only how many people want their product, but also how many are able to
pay for it.
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23. NEXT
The Marketing Environment

24. Brought to you by
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