LO 01: Role of marketing and how it interrelates

with other business units of an organisation

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Marketing Philosophies
▪ There are five alternative concepts under which organizations conduct their
marketing activities: the production, product, selling, marketing and societal
marketing concepts.

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The Production Concept
▪ The production concept holds that consumers will favour products that are
available and highly affordable, and that management should therefore focus on
improving production and distribution efficiency.
▪ This concept is one of the oldest philosophies that guides sellers. The production
concept is a useful philosophy in two types of situations.
▪ The first occurs when the demand for a product exceeds the supply. Here,
management should look for ways to increase production.
▪ The second situation occurs when the product's cost is too high and improved
productivity is needed to bring it down.

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The Product Concept
▪ Another important concept guiding sellers, the product concept, holds that
consumers will favour products that offer the most quality, performance and
innovative features, and that an organization should thus devote energy to making
continuous product improvements.
▪ Some manufacturers believe that if they can build a better mousetrap, the world
will beat a path to their door." But they are often rudely shocked.
▪ Buyers may well be looking for a better solution to a mouse problem, but not
necessarily for a better mousetrap.
▪ The solution might be a chemical spray, an exterminating service or something
that works better than a mousetrap.

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The Selling Concept
▪ Many organizations follow the selling concept, which holds that consumers will not
buy enough of the organization's products unless it undertakes a large-scale
selling and promotion effort.
▪ The concept is typically practised with unsought floods - those that buyers do not
normally think of buying, such as encyclopedias and funeral plots.
▪ These industries must be good at tracking down prospects and convincing them
of product benefits. The selling concept is also practiced in the non-profit area.
▪ A political party, for example, will vigorously sell its candidate to voters as a
fantastic person for the job. The candidate works hard at selling him or herself -
shaking hands, kissing babies, meeting donors and making speeches

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The Marketing Concept
▪ The marketing concept holds that achieving organizational goals depends on
determining the needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors do.
▪ Surprisingly, this concept is a relatively recent business philosophy.
▪ Many successful and well-known global companies have adopted the marketing
concept.
▪ IKEA, Marks & Spencer, Procter & Gamble, Marriott, Nordstrom and McDonald's
follow it Toyota, the highly successful Japanese car manufacturer, is also a prime
example of an organization that takes a customer- and marketing-oriented view of
its business.

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The Societal Marketing
▪ Concept The societal marketing concept holds
that the organization should determine the
needs, wants and interests of target markets.
▪ It should then deliver the desired satisfactions
more effectively and efficiently than competitors
in a way that maintains or improves the
consumer's and the society's well-being.
▪ The societal marketing concept is the newest of
the five marketing management philosophies.
The societal marketing concept questions
whether the pure marketing concept is
adequate in an age of environmental problems,
resource shortages, worldwide economic
problems and neglected social services.

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Holistic Marketing
▪ Holistic marketing is done for companies to consider
the entire business. In the implementation of holistic
marketing strategy, company has to analyse every
aspect of the business.

▪ Company effectively uses touch points to gain

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1.1.2 The concepts of brand positioning and management
and implementing process.
Brand Positioning
▪ At its simplest, brand positioning is the process of setting your business apart
from your competitors in a way that builds preference for you among your target
audience. Its goal is to associate your firm with an idea or category in the minds of
people who might buy your services.
▪ There are many different types of brand positioning strategies that vary based on
target audiences, marketing campaigns, and budgets.
▪ A well-received brand positioning strategy has the potential to build brand equity
and solidify its place as an established brand. Some companies employ multiple
strategies to increase the odds of a successful campaign.

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Brand positioning strategies
1. Name Brand Recognition : A well-established company will often use the weight of its own name brand
to extend to its products. Most often, a company with large name brand recognition can be recognized by its
logo, slogan, or colors. Companies such as Coca-Cola, Starbucks, Apple, and MercedezBenz are all iconic
while featuring multiple subsidiary products featured under the company name.

2. Individual Branding : Sometimes a larger company may produce products that carry their own weight
independent of the parent company. This strategy involves establishing the brand as a unique identity that
is easily recognizable. General Mills, for example, distributes Cheerios, Chex, Cinnamon
Toast Crunch, Kix, Total, Trix, and more—and that’s just the cereal division. The company also distributes
other major brands from every food group.

3. Attitude Branding : Ambiguous marketing can often go above the actual product itself in the case of
attitude branding. These brands all use strategies that bring to life personality and a customized experience
with products and services. NCAA, Nike, and the New York Yankees made Forbes list of “The World’s Most
Valuable Sports Brands 2015,” and are automatically associated with a certain style. Other brands, such as
Apple and Ed Hardy, also reflect a customer’s self-expression.

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4. “No-brand” Branding : A minimalist approach can speak volumes. No-brand products
are often simple and generic in design. The most successful company to establish this
marketing method is the Japanese company, Muji, which simply translates to “no label.”

5. Brand Extension : Brand extension occurs when one of your flagship brands ventures
into a new market. Say you have a shoe company that is now making jackets, athletic wear,
and fragrances. The brand name carries its own identity to your product mix.

6. Private Labels : Store brands—or private labels—have become popular at

7. Crowdsourcing : These brands are outsourced to the public for brand creation, which
allows customers the chance to be involved in the naming process, and effectively drives up
personal interest in a product.

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The Brand Positioning Process

Step 1. Start with overall business imperatives.

Step 2. Research target clients and competitors.

Step 3. Identify your differentiators.

Step 4. Craft your brand positioning statement.

Step 5. Implement your new positioning.

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1.1.3. External environment influences and
impacts upon marketing activity
▪ The external environment of marketing is comprising of those uncontrollable
forces outside of your organization. These forces that can influence your business
are uncontrollable because you do not have any control over them, but yet, you
can respond and adapt to their treats and influences with your controllable mix
element from your internal environment.
▪ The uncontrollable forces in the external environment are:
• Competition
• Government policies
• Natural forces
• Social and cultural forces
• Demographic factors
• Technological changes

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The uncontrollable forces in the external environment
▪ Competition: competition refers to the numbers of similar competitive product brands’
marketers in your industry, their size and market capitalizations.
▪ Governmental policies: the government policies refer to the laws and legality that guilds
the land, they go a long way to affect your business operations as a marketer.
▪ Natural forces: this refers to the physical environment; it comprises of the available or
lacks natural resources that can vacillated or hinder your production output.
▪ Social and cultural forces: the social and cultural forces refer to the structure and
dynamics of individuals and groups and their behaviors, believes, thought patterns and
lifestyles, friendship etc. many of these trends goes a long way to affect your marketing
operations.
▪ Demographic factors: demography refers to study of people, such as their age, sex,
marital status, occupation, family size etc.
▪ Technological changes: technology post much challenges to marketers, it affects the
kind of product that you as a marketer can offer, for instance, technology have changed
products like typewriting machines into a more proficient computer system.

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Thank you!

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