Introduction to marketing and marketing concepts

1. Marketing Concepts
Introduction to marketing

2. Market
• Buyer
• Seller
– Exchange mutual benefits
• Marketer :
 Who seeks response(attention, a purchase, a vote, a
donation) from another party, called the prospect.

3. Marketing Defined
• A social & managerial process by which
– individuals
&
groups
• Obtain what they
need
&
want
• through creating and exchanging products and values with others.

4. Marketing Defined
• NEED: THE STATE OF FELT DEPRIVATION
• WANT: THE SATISFIERS OF NEED
• DEMAND: WILLINGNESS TO BUY
&
ABILITY TO PAY

5. Marketing Vs selling
Selling:
Product Customer
Promotional efforts
Push the product to customers
product oriented
Marketing:
Customer Product Customer
Pull the customers towards the product
Customer oriented

6. Difference between Selling and Marketing
Emphasis is on the product Emphasis on consumer needs and wants
Company manufactures the product first and then
decides to sell it
Company first determines customers’ needs and wants
and then decides on how to deliver a product to satisfy
these wants
Management is sales volume oriented Management is profit oriented
Planning is short-run-oriented, in terms of today’s
products and markets
Planning is long-run-oriented,in terms of new products
tomorrow’s markets and future growth
Stresses needs of seller Stresses needs and wants of buyers
Views business as a goods producing process Views business as consumer satisfying process
Emphasis is on staying with existing technology and
reducing costs
Emphasis is on innovation in every sphere, on providing
better value to the customer by adopting a superior
technology
Different departments work in highly separate water tight
compartments
All departments of the business operate in an integrated
manner, the sole purpose being generation of consumer
satisfaction
Cost determines price Consumer determines price, price determines cost
Selling views customer as the last link in business Marketing views the customer as the very purpose in
business.

7. Customer value:
Difference between
• The values the customers gains from owning and using a
product
&
• The cost of obtaining it.
Customer satisfaction:
How well the product’s performance lives up to the
Customer’s expectation.

8. Marketing concepts

9. Concepts of marketing
• Exchange concept
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concept
• Holistic marketing concept

10. The Production Concept
• The Production Concept emerges out of the production orientation
of the firm. It is based on the idea that the more we make, the more
profitable it becomes. So let us go out there and make customers
buy our products.
Example:
• One of the best examples of the production concept is Henry Ford’s
Model. T. Henery Ford is the father of the production line.
• By developing an efficient assembly line, Ford was able to bring the cost of
the Model T down from around $800 to just under $300, putting
affordable transportation into the hands of average consumers in the
United States.
• The biggest secret to Ford’s assembly line is that he built one car --the
Model T.

11. The Product Concept
• The Product Concept has the proposition
that consumers will favor those products
that offer the attributes like quality,
performance and other innovative
features.
• Managers focus on developing superior
products and improving the existing
product lines over a period of time.

12. The Selling Concept
• The Selling Concept proposes that
customers, be individuals or organizations
will not buy enough of the firm’s products
unless they are persuaded to do so
through selling effort.
• So companies should undertake selling
and promotion of their products for
marketing success.

13. The Marketing Concept
• The Marketing Concept proposes that
the reason for success lies in the
company’s ability to create, deliver and
communicate a better value proposition
through its marketing offer in comparison
to the competitors for its chosen target
segment.

14. The Societal Marketing Concept
• The Societal Concept proposes that the
enterprise’s task is to determine the
needs, wants and intentions of the target
market and to deliver the expected
satisfaction more effectively and efficiently
than the competitors in a way to preserve
or enhance the consumer’s and society’s
well being.

15. Examples of societal marketing
• Body Shop: Body Shop is a cosmetic company found by Anita Roddick.
The company uses only vegetable based materials for its products. It is
also against Animal testing, supports community trade, activate Self
Esteem, Defend Human Rights, and overall protection of the planet.
Thus it is completely following the concept of Societal Marketing.
• Ariel: Ariel is a detergent manufactured by Procter and Gamble. Ariel
runs special fund raising campaigns for deprived classes of the world
specifically the developing countries. It also contributes part of its
profits from every bag sold to the development of the society.
• British American tobacco Company: BAT is a British based Tobacco
company. It was found in the year 1902. BAT is involved in working for
the society in every part of the world. It conducts tree plantation
drives as part of its societal marketing strategy.

16. Marketing concept Vs production concept
Production
capabilities
Manufacture
product
Aggressive
Sales effort
Customers
Production orientation

17. MARKETING CONCEPT
Customers
needs
Potential
Market
opportunities
Marketing
Products &
services
Customers
Marketing orientation

18. Holistic marketing concept
• Based on development, design and
implementation of marketing programs,
processes and activities that recognize their
breadth and interdependencies.

19. Holistic marketing concept
• Relationship marketing
• Integrated marketing
• Internal marketing
• Performance marketing