MARKETING

*MARKETING*

PRODUCT LIFE CYCLE

INTRODUCTION
Like human beings, products also ’ve a limited life cycle & they pass through
several stages in their life cycle.
The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it

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shoots out leaves and puts down roots as it becomes an adult (maturity); after
a long period as an adult the plant begins to shrink and die out (decline).
The length of the cycle and the duration of each stage may vary from
product to product, depending on the rate of market acceptance rate of
technical change, nature of the product and ease of entry. Every stage creates
unique problems and opportunities and, therefore, requires a special
marketing strategy.

(As consumers, we buy millions of products every year. And just like us, these
products have a life cycle. Older, long-established products eventually become
less popular, while in contrast, the demand for new, more modern goods
usually increases quite rapidly after they are launched.

Because most companies understand the different product life cycle stages,
and that the products they sell all have a limited lifespan, the majority of them
will invest heavily in new product development in order to make sure that their
businesses continue to grow.)

DEFINITION

“an attempt to recognize distinct stages in the sales history of the product”.
____PHILIP KOTLER________

“generalised model of sales and profit trends for a product class or category
over a period of time” ______MR.BLACK WELL R.D__________

MEANING
The product life cycle describes the period of time over which an item is
developed, brought to market and eventually removed from the market. The
cycle is broken into four stages: introduction, growth, maturity and decline.

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1. Introduction The need for immediate profit is not a pressure. The product is
promoted to create awareness. If the product has no or few competitors, a
skimming price strategy is employed. Limited numbers of product are available
in few channels of distribution.

This is the stage in which the product has been introduced first time in the
market and the sales of the product starts to grow slowly and gradually and
the profit received from the product is nominal and non-attained.

Product branding and quality level is established and intellectual property

protection such as patents and trademarks are obtained. 3

Pricing may be low penentration pricing to build market share rapidly or high
skim pricing to recover development costs.

Distribution is selective until consumers show acceptance of the product.

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Promotion is aimed at innovators and early adopters marketing
Communications seeks to build product awareness and to educate potential
consumers about the product.

2. Growth stage in the growth stage, the product is visibly present in the
market, the product has habitual consumers, and there is quick growth in
product sales. More new customers are becoming aware of the product and
trying it. The customers are becoming satisfied with the product and are
buying it again and again. 

In the growth stage, the firm seeks to build brand preference and increase
market share.

Product quality is maintained and additional features and support services

may be added.

Pricing is maintained as the firm enjoys increasing demand with little

competition.

Distribution channels are added as demand increases and customers accept

the product.

Promotion is aimed at a broader audience.

3. Maturity stage in maturity stage, the cost of the product has been decreased
because of the increased volume of the product and the product started to
experience the curve effects. Also, more and more competitors have seen to
be leaving the market. In this way very few buyers have been left for the
product and this results in less sales of the product.

Product features may be enhanced to differentiate the product from that of

competitors. 4

Pricing may be lower because of the new competition.

Distribution becomes more intensive and incentives may be offered to

encourage preference over competing products.

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Promotion emphasizes product differentiation.

4. Decline stage At this point there is a downturn in the market. For example
more innovative products are introduced or consumer tastes have changed.
There is intense price-cutting and many more products are withdrawn from the
market. Profits can be improved by reducing marketing spend and cost cutting.

As sales decline, the firm has several options

Maintain the product, possibly regenerating it by adding new features and

finding new uses.

Harvest the product- reduce the cost and continue to offer it, possibly to a
loyal corner segment.

Discontinue the product, liquidating remaining inventory or selling it to

another firm that is willing to continue the product. 5

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PRICING METHODS
(INTRODUCTION)
Cost consideration and consumer situation are the two fundamentals that
impact price decisions.

Pricing for products or services and encompass three main ways to improve
profits. These are that the business owner can cut costs or sell more, or find
more profit with better pricing strategy. When costs are already at their lowest
and sales are hard to find, adopting a better pricing strategy is a key option to
stay viable.

Merely rising prices is not always the answer, especially in poor economy. Too
many businesses have been lost because they priced themselves out of the
Marketplace .On the other hand, too many business and sale staff leave
"money on the table". One strategy does not fit all, so adopting a pricing
strategy is a learning curve when studying the needs and behaviours of
customers and clients.

Definition:

The Pricing Methods are the ways in which the price of goods and services can
be calculated by considering all the factors such as the product/service,
competition, target audience, product’s life cycle, firm’s vision of expansion,
etc. influencing the pricing strategy as a whole.

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1) Cost-oriented method:-Because cost provides the base for a possible

price range, some firms may consider cost oriented methods to fix the price.

A) Cost plus pricing:- Cost plus pricing involves adding a certain

percentage to cost in order to fix the price. For instance, if the cost of a
product is Rs. 200 per unit and the marketer expects 10 per cent profit on
costs, then the selling price will be Rs. 220. The difference between the selling
price and the cost is the profit. (This method is simpler as marketers can easily
determine the costs and add a certain percentage to arrive at the selling price).

B) Mark-up pricing:- Mark-up pricing is a variation of cost pricing. In this

case, mark-ups are calculated as a percentage of the selling price and not as a
percentage of the cost price. Firms that use cost-oriented methods use mark-
up pricing. Since only the cost and the desired percentage mark-up on the
selling price are known, the following formula is used to determine the selling
price.

C) Break-even pricing:- In this case, the firm determines the level of

sales needed to cover all the relevant fixed and variable costs. The break-even
price is the price at which the sales revenue is equal to the cost of goods sold.
In other words, there is neither profit nor loss.

The following formula is used to calculate the break-even point:

Contribution = Selling price – Variable cost per unit 7

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(For instance, if the fixed cost is Rs.2, 00,000, the variable cost per unit is Rs.
10, and the selling price is Rs.15, then the firm needs to sell 40,000 units to
break even. Therefore, the firm will plan to sell more than 40,000 units to
make a profit. If the firm is not in a position to sell 40,000 limits, then it has to
increase the selling price.)

D) Target return pricing:-In this case, the firm sets prices in order to
achieve a particular level of return on investment (ROI).

The target return price can be calculated by the following formula:

Target return price = Total costs + (Desired % ROI investment)/ Total sales in
units.

(For instance, if the total investment is Rs.10, 000, the desired ROI is 20 per cent, the total

cost is Rs.5000, and total sales expected are 1,000 units, then the target return price will be

Rs.7 per unit

5000 + (20% X 10,000)/ 7000

Target return price = 7)

E) Early cash recovering:- Some firms may fix a price to realize early
recovery of investment involved, when market forecasts suggest that the life of
the market is likely to be short, such as in the case of fashion-related products
or technology-sensitive products.

(Such pricing can also be used when a firm anticipates that a large firm may
enter the market in the near future with its lower prices, forcing existing firms
to exit. In such situations, firms may fix a price level, which would maximize
short-term revenues and reduce the firm’s medium-term risk.) 8

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2) Customer demand base pricing:-demand-based pricing refers to a
pricing method in which the price of a product is finalized according to its
demand. If the demand of a product is more, an organization prefers to set
high prices for products to gain profit; whereas, if the demand of a product is
less, the low prices are charged to attract the customers. The success of
demand-based pricing depends on the ability of marketers to analyse the
demand. 

A) what the traffic can bear pricing:- As per pricing based on

‘what the traffic can bear’, the seller takes the maximum price which the
customers are willing to pay for the product under the given circumstances. It
is not a sophisticated method. It is used more by retail traders than by
manufacturing firms. But in markets with monopoly and price in-elastic
demand, it can conveniently applied.

B) Skimming pricing:-Skimming Pricing aims at high price & high

profits in the early stage of marketing the product. As the word skimming
indicates, this method literally skims the market in the first instance through
high price & subsequently settles down for a lower price.

c) Penetration pricing:-Penetration pricing, as the name indicates,

seeks to achieve greater market penetration through relatively low prices. It is
the opposite of skimming pricing. This method too is quite useful in pricing of
new products under certain circumstances.

(or)

Penetration pricing refers to a marketing strategy used by business to attract

customers to a new product or service. Penetrating pricing is the practice of
offering a low price for a new product or service during its initial offering in
order to lure customers away from competitors. This marketing strategy relies
on the idea that low prices can help make a customer aware of and more
willing to buy a new product. 9

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3) Competitor market based pricing:-in this method in which an

organization considers the prices of competitors’ products to set the prices of
its own products. The organization may charge higher, lower, or equal prices as
compared to the prices of its competitors.

A) Going rate/parity pricing:- when a market leader has

established a market price with the intention of stabilizing the price, the
smaller firms in the industry may have to go in for parity pricing.

(or)

In this case, the benchmark for setting prices is the price set by major com-
petitors. If a major competitor changes its price, then the smaller firms may
also change their price, irrespective of their costs or demand.

B) Discount pricing:-when a company sets the price of its product

lower than the level of competition, (that means below the price that the
competitor is charging for a similar product) it is called "pricing below the level
of competition" or "discounting price". This method is effective in markets,
where customers equate to price. It is implemented by firms that are new in
the market. 10

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C) Premium pricing:-when a company sets the price of its product

than the level of competition, that means above the price that the competitor
is charging for a similar product, it is called "pricing above the level of
competition" or "premium pricing". This is done to depict a better quality
product by the company. This pricing policy can be implemented only by firms
that have a good reputation in the market (as their image is that of a quality
producer in the customer's mind) .This makes them the market leader.

D) Tender/sealed bid:-This pricing is adopted in the case of large

orders or contracts, especially those of industrial buyers or government
departments. The firms submit sealed bids for jobs in response to an
advertisement. In this case, the buyer expects the lowest possible price and
the seller is expected to provide the best possible quotation or tender. If a firm
wants to win a contract, then it has to submit a lower price bid. For this
purpose, the firm has to anticipate the pricing policy of the competitors and
decide the price offer.

11

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PRICING OBJECTIVES
(INTRODUCTION)
Pricing is the art of translating into quantitative terms (rupees& paise) the
value of the product or a unit of a service to customers at a point in time.

Pricing decisions and policies have a direct influence on sales volume and profit
of business. This is an important element in marketing mix. Right pricing can be
determined through pricing Research and testing marketing demand, cost,
competition, government regulation etc., are the vital factors that must be
taken into consideration in the determination of price. Price is a source of
revenue and main determinant of profit. In money economy, without prices
there cannot be marketing. Only when the buyer and seller agree on price,
there can be exchange of goods and services leading to transfer of ownership.
In a competitive market, prices determined buy free play of demand and
supply. With changing demand and supply conditions the price increases or
decreases. It influences consumer purchase decisions. It reflects purchasing
power of currency it can determine the general living standards.

DEFINITION
“Price is the only element in the marketing mix that creates sales
revenue the other elements as costs.”

_____________PHILIP KOTLER__________

MEANING
Pricing is the process of determining what a company will receive in exchange
for its product. It is the method adopted by a firm to set its selling price. It
depends on the firm's average costs, and on the customer's perceived value of
the product in comparison to his or her perceived value of the competing
products.

12

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1) Profit maximisation:-The basic aim of a pricing decision is to increase the

profits of the firm. The pricing policy thus must be made in a way that it can
help the firm achieve to maximum profits.

2) Price stability:- A stable price policy can win the confidence of the
consumers. It will also add to the Goodwill of the firm. For this purpose the
concern should consider long run and short run elements.

3) Facing competition:-The competitive situation must be kept in mind

while finalising the prices of products and services. Sometimes management
prices its product very low as compared to its competitors in order to
discourage potential competitors.

4) Achieving a target return:-This is a common objective of well

established and reputed firm in the market (either for the company's name or
its brand or the quality of the product) to fix a certain rate of return on
investment.

Or 13

Another objective of pricing is to achieve target return. Some company may

determine the price of their goods or services to achieve a certain return on

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investment or on sales. This is the desired profit. It is necessary to have target
return in the pricing process.

5) Capturing the market:-When a big organisation introduces its product in

the market, it fixes the price of its product lower than its competitors. This is
done keeping in mind the competitive structure of the market and with the
aim to capture a big market share.

6) Long run welfare of the firm:-The main aim of some concerns is to

fix the price of the product which is in the best interest of the firm in
the long run keeping the market conditions and economic situations
in mind.

7) Ability to pay:-Pricing decisions are sometimes taken according to the

ability of customers to pay that means more prices can be charged from
people having a capacity to pay. It is determined on the basis of the purchasing
power of the consumers for which the product is made.

8) Cashflow objective:-One of the important objectives of pricing is to

recover invested phones within stipulated period. Generally, you find Lower
prices for the cash sales and high prices for the credit sales. But this pricing
objectives could be implemented with good results only when the home has
Monopoly in the market.

9) Survival:-Survival strategy is preferred by firms dealing with it’s over

capacity, extreme and fresh competition or varying consumer behaviour. It is
also an important objective of pricing in certain organisations. It helps
companies Sail through rough waters and is hence a short term objective.

10)Product quality Leadership:-To achieve product quality leadership is

also one of the important pricing objectives. Firms producing products that are
better in quality than the competitor frequently try to become the product
quality leaders in the market. (or)

Many firms keep the price of their goods and services in accordance with
the Quality Perceived by the customers. Generally, the luxury goods create
their high quality, taste, and status image in the minds of customers for which
they are willing to pay high prices. Luxury cars such as BMW, Mercedes,
Jaguar, etc. create the high quality with high-status image among the
customers. 14

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Thus, every firm operates with the ultimate objective of earning profits and,
therefore, the price of a product must be set keeping in mind the cost incurred
in its production along with the benefits it offers for which people are ready to
pay extra. 15

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MARKETING
INTRODUCTION
Marketing is one of the most fundamental concepts associated with the
marketing process. Marketing mix represents an assemblage of tasks and sub
tasks which ultimately will help to satisfy the consumers requirements in such
a way as to enable the firm to attend its objectives in an optimum fashion.

Every business enterprise has to determine its marketing mix for the
satisfaction of needs of the customers.

Marketing mix represents the total marketing program of a firm. It involves

decisions with regard to product price place and promotion. This four elements
differ from firm to firm. Marketing mix as the linkage between a business firm
and its customers. Marketing mix is a dynamic concept with changes in market
conditions and the environment.

DEFINITION
“Marketing mix is the set of controllable variables that the firm can
use to influence the buyers response”.

---------------------PHILIP KOTLER---------------

MEANING
Marketing mix is the combination of different marketing variables being used
by a firm to market its goods and services. The marketing mix will naturally be
changing according to changing marketing conditions and changing
environmental factors (technical, social, economic and political) affecting each
market.

(16)

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(ELEMENTS OF MARKETING MIX/7 OR 4 P’S MARKETING)

Evolution has been the fundamental changes to the basic Marketing mix.
Where once there were 4 Ps to explain the mix, nowadays it is more commonly
accepted that a more developed 7 Ps adds a much needed additional layer of
depth to the Marketing Mix with some theorists going even going further.

THE MARKETING MIX

Simply put the Marketing Mix is a tool used by businesses and Marketers to
help determine a product or brands offering. The 4 Ps have been associated
with the Marketing Mix since their creation by E. Jerome McCarthy in 1960.
1) PRODUCT MIX
The Product should fit the task consumers want it for, it should work and it
should be what the consumers are expecting to get. (The product is the focus
of making and marketing efforts. The main aim of your product is customer
satisfaction. Before marketing the product, marketer must have a clear
understanding of his product.)
(17)

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a) product-line Product line is a group of product items that can satisfy the
same needs and wants, they have more or less similar features.
b) product- design Product design is an important factor in the sale of many
products. It appearance is away from our mentation and learning towards
greater simplicity in form and construction. The form, the colour and the line
of all the products are being planned to give greater proportion, beauty and
functional utility.
c) package Packaging is the general group of activities in designing the
containers or wrappers for the products. It protects the products provide
convenience to the consumers increase economy and communicates. Packages
protect the products, preserve freshness and flavour.

d) quality : The product quality standards are based on factors like colour,
texture, flavour, weight, finish, appearance, size, shrinkage, strength, shape,
moisture and other physical features depending on the nature of the product.
Product quality depends on proper design, engineering, choice of materials,
manufacturing process, workmanship and packaging.

e) labeling Labels are fixed to products to identify them under to describe

their ingredients, quantity, quality and other characteristics.

f) branding A brand is a symbol, a mark, a name, a communication which brings

about an identity of a given product. A brand is a product image, a quality, a
value, a personality. Products are identified and labeled with trademarks or
brands composed of letters, numbers, words and designs.

g) warranties Every manufacturer should determine as to who shall be

responsible for services to customers. It may be the responsibility of
manufacturer or distributor or wholesaler or retailer. Such a decision depends
on factors like nature of product the amount and type of service required and
the resources of the manufacturer.

2) PRICE MIX

This refers to your pricing strategy for your products and services and how it
will affect your customers. You should identify how much your customers are
prepared to pay, how much mark-up you need to cater for overheads, your
profit margins and payment methods, and other costs. To attract customers
and retain your competitive advantage, you may also wish to consider the
possibility of discounts and seasonal pricing. (18)

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(Price is the money value of a product or service paid by the customer. Price
influences the demand and supply of products in the market. The price
determination should be in accordance with the other elements of marketing
mix. Price is a powerful instrument in which both the buyers and sellers are
keenly interested. In money economy, without prices there can't be marketing.
Only when the buyer and seller agree on price, there can be exchange of goods
and services leading to transfer of ownership.)

a) skimming The seller such a relatively high price when the product is
introduced and then lowers the price over time.

b) penetration The product is introduced at low prices initially and the prices
increased subsequently with increase in demand and market share.

c) terms of credit credit, by expanding the market can make new forms of
production economically worthwhile. The modern business is built up and
expansion is based on the credit. Credit is the breath of modern marketing
efforts. No firm can think of surviving without credit. It is a means of sales
promotion.

d) terms of delivery delivery of the goods to the dealers, middlemen and

customers is also of vital importance. Clear cut policies are to be spelt out
regarding the terms of delivery has to quantity, time and place of delivery and
the conditions of valid delivery.

e) margin It refers to the difference between the final price paid by the
consumer and the total cost incurred in making available to him the product or
service.

3 PLACE

 The product should be available from where your target consumer finds it
easiest to shop. Place is where your products and services are seen, made, sold
or distributed. Access for customers to your products is key and it is important
to ensure that customers can find you.( Place is defined as a state of providing
the right product, in the right place, at the right time for the consumers. For
this purpose, middlemen are appointed who are also known as 'channel of
distribution' .These channels consist of wholesalers, retailers and
manufacturers). (19)

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a) transportation Selection is to be made of the most efficient economical
Rapid and dependable mode of transport are the firm's products taking into
account rail, roads, motor trucks, inland waterways, pipelines, air or Railways
Express and post parcel. The basic question is who shall assume the cost of
transportation from the manufacturer to the wholesaler and the wholesale to
the retailer.

b) warehousing warehousing has it own place in distribution of goods that

creates time utility by adjusting supply and demand, preserving or conditioning
the product and obtaining more favourable demand and market price.

c) inventory levels The inventory requirements are dependent on economic

conditions, weather conditions, new or improved products and amount of
advertising and sales promotion. Amount of inventory involves determining
the variety of products, models, sizes, types or colours of each product to
manufacture.

d) channels of distribution Plans and policies are related with the

determination of the number of middlemen to be used, the number of
distributors and dealers to be employed on one hand, and the franchise
agreement stipulating the applications of manufacturers and the
intermediaries and the legal implications involved in their relationships, on the
other.

4. PROMOTION

Promotional mix is a communication mix which deals with the personal and
impersonal persuasive communication about the product or service of the
manufacturer. Personal communications relate to face to face meeting
between the sale force of the company and the clientele. Impersonal
Communications include advertising, sales promotion and public relations.

a) personal selling it is a direct or personal method of selling the products. In

other words, personal selling is direct selling, face to face interaction with one
or more prospective purchasers for the purpose of making presentations,
answering questions and procuring orders.

(20)

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b) advertising Any paid form of non-personal presentation and promotion of
Ideas, goods or services by an identified sponsor. For examples, it includes,
newspapers, magazines, outdoor posters, banners, direct mail, Radio, TV,
internet etc.

c) sales promotion A variety of short-term incentives to encourage a trial or

purchase of a product or service. For examples, samples, exhibitions,
demonstrations, coupons, premiums, contests for consumers, gifts, sales
contests, discounts, testing etc.

d) public relation It include building good relations with the public by obtaining
favourable publicity, building a good corporate image or avoiding unfavourable
publicity.

PRODUCT PRICE PLACE PROMOTION

Product Skimming, transportation Personal selling

line,design

Package,labelling, penetrating warehousing advertising

brand Terms of credit Inventory levels Sales promotion

quality Terms of delivery Channels of Public relation

distribution

warranties margin

In the late 70’s it was widely acknowledged by Marketers that the Marketing
Mix should be updated. This led to the creation of the Extended Marketing Mix
in 1981 by Booms & Bitner which added 3 new elements to the 4 Ps Principle.
This now allowed the extended Marketing Mix to include products that are
services and not just physical things.

(21)

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5) PEOPLE  All companies are reliant on the people who run them from
front line Sales staff to the Managing Director. Having the right people is
essential because they are as much a part of your business offering as the
products/services you are offering.

(People refer to the staff and salespeople who work for your business,
including yourself. When you provide excellent customer service, you create a
positive experience for your customers, and in doing so market your brand to
them. In turn, existing customers may spread the word about your excellent
service and you can win referrals. Give your business a competitive advantage
by recruiting the right people, training your staff to develop their skills, and
retaining good staff.)

6) PROCESSES the delivery of your service is usually done with the customer

present so how the service is delivered is once again part of what the
consumer is paying for.

Process refers to the processes involved in delivering your products and

services to the customer. It is also about being 'easy to do business with'.

Having good process in place ensures that you:

 repeatedly deliver the same standard of service to your customers

 save time and money by increasing efficiency.

7) PHYSICAL EVIDENCE It is a device needed to support the appearance of a

product, thus directly showing the quality of products and services provided to
consumers.

Is there an 8th P?
In some spheres of thinking, there are 8 Ps in the Marketing Mix. The final P is
Productivity and Quality. This came from the old Services Marketing Mix and is
folded in to the Extended Marketing Mix by some marketers so what does it
mean?
The 8th P of the Marketing Mix:
 Productivity & Quality - This P asks “is what you’re offering your
customer a good deal?” This is less about you as a business improving your
own productivity for cost management, and more about how your company
passes this onto its customers.
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MARKET CONCEPTS
Market concepts/types of market concepts/strategies of marketing

INTRODUCTION
Goods and services do not move automatically from the producers to the
users. There is a definite mechanism that brings about exchange of goods and
services against money or Money's worth for the mutual benefit namely
satisfaction to the consumers and surplus to the producers and manufacturers.
Marketing is the belt that connects the two major Wheels of any economy
namely, Producers and Consumers. Marketing is the creation of utilities as
goods and services get value addition by the time there reach the consumers.
That is why, in economic jargon marketing refers to all the activities involved in
the creation of place, time, possession and awareness utilities.

DEFINITION

Marketing is analysing, organising, planning and

controlling of the firm's customer impinging resources,
policies, activities with a view to satisfy the needs and
wants of chosen customer groups at a profit.

-----------------------PHILIP KOTLER--------------------

MEANING
The term market originated from latin word marcatus having a verb mercari
implying merchandise ware traffic, trade or a place where business is
conducted.

INTRODUCTION
The Marketing concept is the philosophy that firms should analyse the needs
of their customers and then make decisions to satisfy those needs, better than
the competition.

(23)

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DEFINITION (24)

Marketing concept is “an integration of marketing activities

directed towards customer satisfaction”.

----------------------PROF.ROBERT---------------------

MEANING

Marketing concept is a philosophy, attitude, or a course of business thinking. In

other words, Marketing concept refers to the philosophy of marketing has
adopted by a firm. In away, it is the concept of business itself.

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1) PRODUCTION CONCEPT the production concept holds that consumer will
favour products that are available and highly affordable therefore
management should focus on improving production and distribution efficiency.
This concept is one of the oldest. The production concept is useful in two
situations. When the demand for a product exceeds the supply, management
should look for ways to increase production and when the product's cost is too
high, improved productivity is needed to bring it down.

GOOD PRODUCT GOOD SALES

2) PRODUCT CONCEPT The production concept holds that consumer will favor
products that are available and highly affordable therefore management
should focus on improving production and distribution efficiency. This concept
is one of the oldest. The production concept is useful in two situations. When
the demand for a product exceeds the supply, management should look for
ways to increase production and when the product's cost is too high, improved
productivity is needed to bring it down.

3) SELLING CONCEPT Selling concept hold that consumers will not buy enough
of the organisation's product unless it undertakes a large scale selling and
promotion effort. The concept is practiced with an sought goods eg
Encyclopaedia or insurance. Firm practice the selling concept when they have
over capacity. Their aim is to sell what they make rather than to make what
the market wants. Such marketing carries high risks. It focuses on creating
sales transactions rather than on building long-term, profitable relationships
with customers. it assumes that customers forget the disappointments and buy
the products again . Most studies show that dissatisfied customers do not buy
again. (25)

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4) MARKETING CONCEPT The marketing concept holds- “achieving

organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do”.
The marketing concept is a customer-centered “sense and responds”
philosophy. The job is not to find the right customers for your product but to
find the right products for your customers.

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5) SOCIETAL CONCEPT  questions whether the pure marketing concept

overlooks possible conflicts between consumer short-run wants and consumer
long-run welfare.
The societal marketing concept holds “marketing strategy should deliver value
to customers in a way that maintains or improves both the consumer’s and
society’s well-being”.
This concept states that organisations should first identify the interests, needs
and wants of target markets, then design effective strategies to fulfill their
requirements, and apply these strategies in such a way that along with
customer satisfaction the society's improvement is also achieved.
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. (26)

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(27)

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