Transcript marketing orientation

MARKETING AND HUMAN
NEEDS
• Marketing touches all of us
everyday of our lives (How?):
• We wake up in the morning to
a sears radio alarm clock,
which begins to play a song
followed by a commercial
advertising a united Airline’s
vacation flight to
Hawaii(service)
MARKETING AND
HUMAN NEEDS
• We move to the bathroom
where we brush our teeth with
COLGATE, shave with
GILLETTE, gargle with
LISTERINE, spray our hair
with REVLON and use various
other TOILETRIES and
APPLIANCES produced by
manufacturers around the
MARKETING AND
HUMAN NEEDS
• We put on our Calvin Klein
JEANS and SHIRT and Bass
SHOES.
• We enter the Kitchen and pour
some Minute Maid orange juice,
and prepare a bowl made up of
Kellogg’s rice Krispies and a
sliced Chiquita banana in
Borden Milk.
MARKETING AND
HUMAN NEEDS
• After this, we drink one or two
cups of Maxwell House Coffee
with two teaspoons of Domino
sugar accompanied by a slice
of Sara lee coffee cake.
• We are the personal
beneficiaries of oranges grown
in California or South Africa,
Coffee imported from
MARKETING AND
HUMAN NEEDS
Brazil, a newspaper made of
Canadian wood pulp, and Radio
news coming from as far away
as Australia.
All of these goods ended up in
our homes.
The marketing system has made
all these possible without effort
on our part.
WHAT IS MARKETING?
• Marketing consists of a set of
principles for:
• Choosing target markets
• Measuring their needs
• Developing want-satisfying
products and services and
WHAT IS MARKETING?
• Delivering them at a value to
the customer and profit to
the company
DEFINITIONS OF
MARKETING
Marketing has been defined in
a number of ways:
The American Marketing
Association’s definition:
“Marketing is the performance of
business activities that directs
the flow of goods and services
DEFINITIONS OF
MARKETING
from producer to customer or
user”.
Criticisms
This definition unfortunately
makes marketing sound largely
like a distribution activity.
It fails to indicate marketing’s
role in determining what goods
are to be produced.
DEFINITIONS OF
MARKETING
• It does not indicate the specific
business activities constituting
marketing.
Another definition
“Marketing is getting the right
goods and services to the right
people, at the right place, at the
right time, at the right price,
with the right communication
and promotion”.
DEFINITIONS OF
MARKETING
Criticisms
This definition supplies an idea
of the specific activities that
marketers carry out.
However, it fails to define
marketing activity broadly
enough in that other things
besides goods and services can
be marketed.
DEFINITIONS OF
MARKETING
• Furthermore, it defines
marketing as a firm process
rather than a social process.
Third Definition
“Marketing is the creation and
delivery of a standard of
living”.
DEFINITIONS OF
MARKETING
Criticisms
This definition takes a macro or
social view of marketing.
However, it does not reveal the
fundamental and universal
nature of marketing.
DEFINITIONS OF
MARKETING
Fourth Definition
According to Phillip Kotler :
“Marketing is human activity
directed at satisfying needs
and wants through exchange
processes”
DEFINITIONS OF
MARKETING
Comments
To understand this definition, the
following more basic
concepts:needs, wants,
demands, products,
exchange, transactions and
markets have to be defined.
DEFINITIONS OF
MARKETING
Needs
The most fundamental concept
underlying marketing is that of
needs. Inanimate objects do
not have needs, but living
matter does.
“A human need is a state of
felt deprivation in a person”
DEFINITIONS OF
MARKETING
• Human needs are many and
complex.They include:
• The basic Physiological
needs for food, clothing,and
warmth; safety needs; social
needs for belongingness,
influence, and affection;and
individual needs for knowledge
and self expression.
DEFINITIONS OF
MARKETING
• These needs are a basic part of
human makeup.
• When a need is not satisfied,
the person is unhappy, this
being greater the more intense
and central the need.
• An unhappy person will do one
of two things:
DEFINITIONS OF
MARKETING
• Undertake steps to obtain an
object that will satisfy the need
• Try to extinguish the desire.
• That is, need reduction can
occur in two ways:
• Need reduction
= Obtaining desired goods or service
Extinguishing the desire
DEFINITIONS OF
MARKETING
Wants
Human wants are the expression
of human needs as they are
shaped by a person’s culture
and individual development.
Wants always have a reference
to culturally defined objects
that will satisfy the need.
DEFINITIONS OF
MARKETING
Demand
• People have numerous wants,
many of which they cannot
satisfy.
• Every person has a finite set of
resources(income, savings, time,
energy) and must make choices
of what things are affordable and
will make him or her feel better
off.
DEFINITIONS OF
MARKETING
• A want becomes a demand
when the person is able and
willing to buy the object he
or she desires.
Products
The existence of human needs,
wants, and demands implies
the concept of products.
Product is defined as follows:
DEFINITIONS OF
MARKETING
• “A product is something
that is viewed as being
capable of satisfying a need
or want”.
• It is important not to limit our
concept of product to physical
objects.
• The key thing about a product
is the service that it renders.
DEFINITIONS OF
MARKETING
• Anything capable of rendering a
service- i.e.satisfying a need-can
be called a product. This
includes:
persons
places
organisations
activities and
ideas
DEFINITIONS OF
MARKETING
Exchange
The fact that people have needs,
wants, and demands and there
are products capable of
satisfying them is necessary
but not sufficient to define
marketing.
DEFINITIONS OF
MARKETING
• Marketing exists when people
decide to satisfy needs and
wants through exchange.
• “Exchange is the act of
obtaining a desired object
from someone by offering
something in return”.
DEFINITIONS OF
MARKETING
• In most modern societies,
producers offer to sell their
goods to others in exchange for
money.
• Exchange is the core concept of
the discipline of marketing. For
exchange to take place, five
conditions must be satisfied:
DEFINITIONS OF
MARKETING
• There are at least two parties
• Each party has something that might
be of value to the other party (or
parties)
• Each party is capable of
communication and delivery
• Each party is free to accept or reject
the offer of the other party ( or
parties)
• Each party believes it is proper to deal
with the other party in this way
DEFINITIONS OF
MARKETING
Transactions
If exchange is the core concept
of the discipline of marketing,
what is the discipline’s unit of
measurement? The answer is:
a transaction!
“A transaction consists of a
trade of values between
two parties”
DEFINITIONS OF
MARKETING
• A transaction involves several
measurable entities:
* at least two things of value
* conditions that are agreed to
* a time of agreement
* a place of agreement
DEFINITIONS OF
MARKETING
Markets
The concept of transactions
leads to the concept of a
market.
“A market is the set of all
actual and potential buyers
of a product”
DEFINITIONS OF
MARKETING
• A market can grow up around a
product, a service, or anything
else of value e.g.:
* a labour market
* a money market
* a donor market
DEFINITIONS OF
MARKETING
Marketing
The concept of markets finally
brings us full cycle to the
concept of marketing.
Marketing means human activity
that takes place in relation to
markets.
DEFINITIONS OF
MARKETING
• Marketing means working with
markets, which means
attempting to actualize
potential exchanges for the
purpose of satisfying human
needs and wants.
Thus, we return to our definition
DEFINITIONS OF
MARKETING
of marketing as human
activity directed at
satisfying needs and wants
through exchange
processes.
Exchange processes involve
work in that :
DEFINITIONS OF
MARKETING
• The seller has to:
* search for buyers
* identify their needs
* design appropriate
Products
* promote them
* store and transport them
* negotiate and so on .
DEFINITIONS OF
MARKETING
Activities such as :
* product development
* search communication
* distribution
* pricing and
* service
constitute core marketing
activities.
DEFINITIONS OF
MARKETING
The buyers also carry out
marketing activities.
*The housewife does her
“marketing” that is, she
searches for goods she needs
at prices she will be able to
pay.
DEFINITIONS OF
MARKETING
• The purchasing agent who needs a
commodity in short supply has to
track down sellers and offer attractive
terms.
• Seller’s Market – is one in which
the buyer is the more active
“marketer”
• Buyer’s Market – is one in which
the seller is the more active
“marketer”
MARKETING
MANAGEMENT
Introduction
Those who engage in
exchange learn how to do it
better over time. In
particular, sellers learn how
to professionalize their
marketing management.
MARKETING
MANAGEMENT
Definition
“Marketing Management is the
analysis, planning,
implementation, and control of
programs designed to create,
build, and maintain mutually
beneficial exchanges and
relationships with target markets
for the purpose of achieving
organizational objectives”
MARKETING MANAGEMENT
PHILOSOPHIES
• Having described Marketing
management as the conscious
effort to achieve desired exchange
outcomes with target markets,
what is the philosophy that guides
these marketing efforts?
• That is, what is the relative weight
given to serving the interests of
the organization, the customer and
the society?
MARKETING MANAGEMENT
PHILOSOPHIES
• There are five alternative
concepts under which
business and other
organisations can conduct
their marketing activity ( or
activities):
MARKETING MANAGEMENT
PHILOSOPHIES
• The production concept
• The product concept
• The selling concept
• The marketing concept and
• The societal marketing
concept
MARKETING MANAGEMENT
PHILOSOPHIES
1.The production concept
The production concept is one
of the oldest concepts guiding
sellers.
Definition
The production concept is a
management orientation that
assumes that consumers will
MARKETING MANAGEMENT
PHILOSOPHIES
favor those products that are
available and affordable, and
therefore the major task of
management is to pursue improved
production and distribution
efficiency.
 The implicit premises of the
production concept are:
MARKETING MANAGEMENT
PHILOSOPHIES
Consumers are primarily
interested in product
availability and low price.
Consumers know the prices of
the competing brands.
Consumers do not see or
attach much importance to
nonprice differences within the
product class.
MARKETING MANAGEMENT
PHILOSOPHIES
The organisation’s task is to
keep improving production and
distribution efficiency and
lowering costs as the key to
attracting and holding
customers.
Appropriate situations:
The production concept is an
MARKETING
MANAGEMENT
PHILOSOPHIES
appropriate philosophy of
management in two types of
situations.
The first is where the demand
for a product exceeds
supply.Here consumers are
ready to buy any version of the
product they can find.
MARKETING
MANAGEMENT
PHILOSOPHIES
The second situation favouring
a production orientation is
where the product’s cost is
high and has to be brought
down through learning how to
produce it more efficiently.
MARKETING
MANAGEMENT
PHILOSOPHIES
Criticisms - It is open to:
The charge of impersonality and
Consumer insensitivity.
2.The Product Concept
Introduction
The product concept is another
major concept guiding sellers.
MARKETING
MANAGEMENT
PHILOSOPHIES
Definition
The product concept is a
management orientation that
assumes that consumers will
favor those products that offer
the most quality for the price,
and therefore the organization
should devote its energy to
improving product quality.
MARKETING
MANAGEMENT
PHILOSOPHIES
The implicit premises of the
product concept are:
Consumers buy products rather
than solutions to needs.
Consumers are primarily
interested in product quality.
Consumers choose among
competing brands on the basis
MARKETING
MANAGEMENT
PHILOSOPHIES
of obtaining the most quality
for their money.
The organisation’s task is to
keep improving product quality
as the key to attracting and
holding customers.
MARKETING
MANAGEMENT
PHILOSOPHIES
3.The Selling Concept
Introduction
The Selling Concept (also
called the Sales Concept) is
another hallowed way in which
many producers guide their
exchange activity.
MARKETING
MANAGEMENT
PHILOSOPHIES
Definition
The Selling Concept is a
management orientation that
assumes that consumers will
either not buy or not buy enough
of the organisation’s products
unless the organization makes a
substantial effort to stimulate
their interest in its products.
MARKETING
MANAGEMENT
PHILOSOPHIES
The implicit premises of the
selling concept are:
Consumers have a normal
tendency to resist buying most
things that are not essential.
Consumers can be induced to
buy more through various
sales-stimulating devices.
MARKETING
MANAGEMENT
PHILOSOPHIES
The organization’s task is to
organize a strong salesorientated department as the
key to attracting and holding
customers.
Examples of Where the
Selling Concept is practiced:
MARKETING
MANAGEMENT
PHILOSOPHIES
“unsought goods” i.e. those
goods that buyers normally do
not think of buying.Examples
include:
* insurance
* encyclopedias and
* funeral plots
 Manufacturers and resellers
MARKETING
MANAGEMENT
PHILOSOPHIES
Nonprofit areas. Examples
include:
*Political Parties
*Churches
MARKETING
MANAGEMENT
PHILOSOPHIES
4. The Marketing Concept
Introduction
The marketing concept is a
more recent idea in the history
of exchange relations.
Definition
The marketing concept is a
management orientation that
MARKETING
MANAGEMENT
PHILOSOPHIES
holds that the key to achieving
organizational goals consists of
the organization’s determining
the needs and wants of target
markets and adapting itself to
delivering the desired
satisfactions more effectively
and efficiently than its
competitors.
MARKETING
MANAGEMENT
PHILOSOPHIES
Expressions of the
Marketing Concept
The Marketing Concept has
been expressed in more
colorful ways, such as:
* “Find wants and fill them”
* “Make what you can sell
instead of trying to sell
MARKETING
MANAGEMENT
PHILOSOPHIES
what you can make”
*”Love the customer and not
the product”
* “Have it your way”
(Burger King) and
* “You’re the boss”
(United Airlines)
MARKETING
MANAGEMENT
PHILOSOPHIES
The underlying premises of
the Marketing Concept are:
Consumers can be grouped
into different market segments
depending on their needs and
wants.
 The consumers in any market

MARKETING
MANAGEMENT
PHILOSOPHIES
segment will favor the offer of
that organization that comes
closest to satisfying their
particular needs and wants.
The organization’s task is to
research and choose target
markets and develop effective
offers and marketing programs
MARKETING
MANAGEMENT
PHILOSOPHIES
as the key to attracting and
holding customers.
Comments
The selling concept and the
marketing concept are
frequently confused by
businesspeople and the public.
MARKETING
MANAGEMENT
PHILOSOPHIES
Levitt draws the following
contrast between these two
orientations:
Selling focuses on the needs
of the seller; marketing on
the needs of the buyer.
Selling is preoccupied with the
seller’s need to convert his
product into cash; marketing
MARKETING
MANAGEMENT
PHILOSOPHIES
with the idea of satisfying the
needs of the customer by
means of the product and the
whole cluster of things
associated with creating,
delivering and finally consuming
it.
 The marketing concept replaces
and reverses the logic of the
selling concept.
MARKETING
MANAGEMENT
PHILOSOPHIES

In essence, the marketing
concept is a customer needs
and wants orientation backed
by integrated marketing effort
aimed at generating customer
satisfaction as the key to
satisfying organizational goals.
MARKETING
MANAGEMENT
PHILOSOPHIES
The Marketing Concept is the
company’s commitment to the
time-honored concept in
economic theory known as
Consumer Sovereignty.
 The determination of what is to
be produced should not be in the
hands of the companies or in the
hands of government but

MARKETING
MANAGEMENT
PHILOSOPHIES
in the hands of consumers.
The companies produce what the
consumers want, and in this way
they maximize consumer welfare
and earn their profits.
Examples of companies
Practicing marketing Concept
Companies that have adopted this
concept include:
MARKETING
MANAGEMENT
PHILOSOPHIES
* Procter and Gamble
* IBM
* Avon
* McDonald’s
5.Societal Marketing Concept
 Introduction
The Societal Marketing Concept is a
response to a call for a new
MARKETING
MANAGEMENT
PHILOSOPHIES
concept beyond the marketing
concept.
 This call was motivated by the
gaps discovered in an age of:
* environmental deterioration
* resource shortages
* explosive population growth
* worldwide inflation and
* neglected social services.
MARKETING
MANAGEMENT
PHILOSOPHIES
Among the proposals made are:
“The human concept”
 “The intelligent consumption
concept” and
 “The ecological imperative
concept”
All of these proposals get at
different aspects of the same
problem.

MARKETING
MANAGEMENT
PHILOSOPHIES
However, Kotler et al proposed
“the societal marketing concept”
Definition
“The societal marketing concept
is a management orientation that
holds that the key task of the
organization is to determine the
needs, wants, and interests
MARKETING
MANAGEMENT
PHILOSOPHIES
of target markets and to adapt
the organization to delivering
the desired satisfactions more
effectively and efficiently than
its competitors in a way that
preserves or enhances the
consumer’s and the society’s
well-being”.
MARKETING
MANAGEMENT
PHILOSOPHIES
The underlying premises of
the societal marketing
concept are:
 Consumers’ wants do not
always coincide with their longrun interests or society’s longrun interests.
MARKETING
MANAGEMENT
PHILOSOPHIES
Consumers will increasingly favor
organizations that show a
concern for meeting their wants,
long-run interests, society’s longrun interests.
The organization’s task is to
serve target markets in a way
that produces not only want
satisfying but long-run individual
MARKETING
MANAGEMENT
PHILOSOPHIES
and social benefit as the key to
attracting and holding
customers.