Transcript Marketing Concepts

Marketing Concepts
Marketing concepts are the philosophies, beliefs or
attitudes
adopted by companies or marketers in relation to
market
their product. Some say they are consumer oriented,
some
say they value their customers and some say
customers are
their kings.
Various types of marketing concepts:
A. Traditional Concepts
1. Exchange concept
2. Production concept
3. Product concept
concept
4. Selling concept
B. Modern Concepts
1. Marketing concept
2. Societal concept
3.Holistic marketing
(a) The selling concept
Starting
point
Factory
Focus
Means
Ends
Existing
products
Selling and
promotion
Profits through
sales volume
(b) The marketing concept
Target
market
Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
Features of Modern Marketing
Concepts
• Modern marketing is
consumer oriented.
• It begins and ends with
Consumers.
• It precedes & succeeds
production.
• It is competition
oriented.
• Its strategy is target
marketing
• The distribution policy
under modern marketing
is direct marketing and
• Modern marketing relies
on information.
• It emphasizes mutuality
of benefit.
• Business networks.
• Emphasis on retaining
customers
• Marketing on the net.
• Shifting from international
to borderless world
marketing.
• Innovation.
• Business Process
Outsourcing.
• Branding shifting values.
Operational Model for
Implementing the
Philosophy of the
Marketing Concept is the:
• Marketing Mix - A mixture of several
ideas and plans followed by a
marketing representative to promote a
particular product or brand is called
marketing mix. Several concepts and
ideas combined together to formulate final
strategies helpful in making a brand
popular amongst the masses form
marketing mix.
The Marketing Mix Consists of Four
Basic Strategic Variables
(the four “Ps”)
•Product Strategy
•Price Strategy
•Promotional Strategy
•Place Strategy (Channels of
Distribution)
The role of marketing management is
to mix or blend these four strategic
variables in such a way as to meet
the needs of...
Product
THE TARGET MARKET
Price Promotion
Place
Target Market
Product
• Goods manufactured by organizations for
the end-users are called products.
• Products can be of two types - Tangible
Product and Intangible Product (Services)
• An individual can see, touch and feel
tangible products as compared to
intangible products.
• A product in a market place is something
which a seller sells to the buyers in
exchange of money.
Price
• The money which a buyer pays for a
product is called as price of the product.
The price of a product is indirectly
proportional to its availability in the market.
Lesser its availability, more would be its
price and vice a versa.
• Retail stores which stock unique products
(not available at any other store) quote a
higher price from the buyers.
Place
Place refers to the location where the
products are available and can be sold or
purchased. Buyers can purchase products
either from physical markets or from virtual
markets. In a physical market, buyers and
sellers can physically meet and interact
with each other whereas in a virtual
market buyers and sellers meet through
internet.
Promotion
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Promotion refers to the various strategies and ideas implemented
by the marketers to make the end - users aware of their brand.
Like:
Advertising.
Word of mouth
Lately three more P’s have been added to the marketing mix.
They are as follows:
Packaging- Attractive, transport, sale & exchange.
People- to whom and through whom goods are being sold.
Public relations- increase awareness through public relations
(Customers, Govt., employees, retailers, wholesalers, press, )
Politics- (should go in accordance with rules & regulations made
by law makers.)
Marketing
Mix
Product
Product Variety
Quality
Design
Features
Brand name
Packaging
Size
Services
Warranties
Returns
Place
Target Market
Price
List price
Discounts
Allowances
Payment period
Credit terms
Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing
Channels
Coverage
Assortments
Locations
Inventory
Transport
4C’s
Customer
Solution
Cost
(to customer)
Convenience Communication
Utility/Importance of Marketing Mix
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Helps in understanding important tasks of marketing.
Important tool of marketing programme.
It promotes better utilisation of limited resources.
Facilitates the meeting of different requirements of customers.
It provides customer satisfaction.
It helps in goal achievement.
It facilitates communication.
It helps in establishing relations with customers.
It helps in developing new products.
Factors affecting marketing Mix
– Marketing
Factors
1.
2.
3.
4.
5.
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11.
Marketing planning
Brand policy
Package policy
Advertisement policy
Distribution channels
Physical distribution
Policy
Pricing policy
Market research
Product life cycle
Market segmentation
(Gender, price, income,
•
Market factors
1. Consumer behaviour
2. Competition
3. Distribution pattern
System.
4. Government control.
MARKETING MANAGEMENT
Acc. to Philip Kotler, “The analysis, planning,
implementation and control of programmes
designed to create, build and maintain beneficial
exchanges with target buyers for the purpose of
achieving organisational objectives.”
It is the art & science of choosing the target
markets and getting ,keeping and customers
growing through creating, delivering and
communicating superior customer value.
Customer
Satisfaction
Profit
maximization
Marketing Management tasks
Conversional
Marketing
Converting negative
demand into positive
demand.
Eg: air travel
Developmental
Marketing
Transforming latent
demand into actual
demand. Eg: Nano car
Remarketing
To revitalize the product
Eg: hi-tech products
Maintenance
marketing
To monitor the demand
level and maintain it
Marketing Environment
The Company’s marketing environment
consists of "the actors and forces outside
marketing that affect marketing
management's ability to develop and
maintain successful transactions with its
target customers”
Types of Marketing
Environment
Suppliers
Intermidiaries
Micro
Environment
Competitors
Customers
Publics
Demographic
Economic
Technological
Political
Socio-cultural
Macro
Environment
Macro Environment
1.Demographic Environment
The statistical study of human population and its
distribution. Eg age, gender, income, religion.
2.Economic Environment
• In order for an economy to exist there must be a
‘market’.
• A ‘market’ exists where consumers have money to
spend and are willing to spend it.
• The economic environment is a significant force that
affects the marketing of any organisation: eg
unemployment, inflation, interest rates.
• It also influences business cycles such as: prosperity
recession recovery. These impact on what people buy,
when and how.
3.Socio-Cultural factors
• Marketers are faced with changing socio-cultural
patterns, lifestyles, social values and beliefs.
• Changes that have significant marketing
implications:
– Emphasis on quality of life.
– Changing gender roles.
– Attitudes towards health, nutrition and wellbeing.
– Impulse buying.
– Desire for convenience and a premium on
time.
4.Political factors
• The five categories affecting political–legal
influences on marketing:
– Monetary and fiscal policies.
– Social legislation and regulations.
– Government relationships with individual
industries.
– Legislation specifically related to marketing.
– The provision of information and the purchase
of products.
5.Technological factors
• Technology has had an impact on our
lifestyles, work, leisure, consumption
patterns and economic well-being.
• Technology is a mixed blessing: it may
improve our lives in one area while
creating environmental and social
problems in another.
Micro Environment
1.Customers
To identify and anticipate the needs of the
customers, a company should gather
information about them.
2.Competitors
• Companies face competition from three main
sources:
– Brand—from manufacturers of similar
products.
– Substitute products—dissimilar products
satisfying the same needs.
– Indirect—other firms trying to win customers
3.Suppliers
• Organisations which provide the firm
with the items it needs to conduct
business.
• For production of goods and services
company requires lot of inputs. The firms
and individuals who supply the inputs or
resources needed by the company to
produce goods and services are known as
suppliers.
4.Marketing Intermediaries
Defined as independent business organisations
that directly assist the flow of products and
services between a marketing organisation
and its markets.
• Resellers—wholesalers and retailers: the
middlemen.
• Facilitating organisations that provide
transportation, warehousing, financing and other
supportive services needed to complete the
exchange between buyer and sellers.
• They complete the trade or channels of
distribution.
5.Public
Public comprises of consumers, labour
unions, press & media, Govt. officials etc.
These people affect directly or indirectly
the marketing decisions of the company so
before implementing any policy or
procedure any company should take into
consideration the view point of the above
mentioned people.
Impact of Environment on
Marketing
Direct
Impact
Consumers, shareholder,
Suppliers, competitors,
labour org and govt.
officials (they affect plans,
policies & strategies.)
Indirect
Impact
Economical, political,
Socio-cultural and
Technological factors.
(They affect investment, org
& structure)