Introduction to
Marketing Concepts
Prof. VIKAS M JADHAV
What is Business?
A business organization performs two key
functions i.e. producing goods or services and
making them available to the potential
customer for use.
Quality production and efficient marketing are
the key success factors in building sustainable
competative advantage.
What is Marketing?
Is it selling?
Is it reatailing?
Is it B2B?
Is it Services?
Is it CRM?
Is it Public Relations?
Is it Advertising?
Marketing
Marketing means understanding
and respomding to customer need.
Marketing
"Marketing is the set of human activities
directed at facilitating and consummating
exchanges. Philip Kotler
Marketing is the process involved in
identifying, anticipating and satisfying
consumer requirements profitably.
Marketing
Marketing is a social process by which
individuals and groups obtain what they need
and want through creating, offering and
exchanging products and services of value
with others.
Marketing Management
American Marketing Association (1985):
Marketing management is a process of
planning and executing conception, pricing,
promotion and distrubution of ideas, goods and
services to create exchange that satisfy
individual and organizational needs.
Marketing Management
Philip Kptler: Marketing Management is the
analysis, planning, implementing and
controlling of programme designed to bring
desired exchange with target audience for the
purpose of mutual gain. It relies heavily on the
adoption and coordination of product, price,
promotion and place for achieving effective
response.
Marketing Management
4Cs analysis of Marketing Management:
Customer
Company
Competitor
Collabrator
Marketing Management
4Cs analysis of Marketing Management:
Customer
Company
Competitor
Collabrator
MARKET
Sellers
Market Place
of Exchange
Buyers
MARKET
Market Place is the place where one goes for
shopping.
Virtual Market is digital/online market place.
Meta Markets is the convergance of supplier of
all complementary products and services that
are closely related to a product in consumers
mind.
Classification of Market
CONSUMER MARKETS are the markets for
products and services bought by individuals
for their own or family use.
INDUSTRIAL (B2B) MARKETS involve
the sale of goods between two buusinesses.
Features of Marketing
Marketing as process
Marketing is a System
Satisfactioon of consumer wants
Marketing is Goal oriented
Marketing is Customer oriented
Concepts of Marketing
The Exchange Concept
The Production Concept
The Product Concept
The Sales Concept
The Marketing (Consumer Orientation)
Concept
The Social Merketing Concept
The Relationship Marketing Concept
CORE MARKETING
CONCEPTS
Consumer v/s Customer
Consumer is the one who actually uses the
product.
Customer is the one who purchase the product.
CORE MARKETING
CONCEPTS
NEED: Needs are the basic human
requirements.
WANT: The above needs become wants when
they are directed towards specific objects that
might satisfy the need.
CORE MARKETING
CONCEPTS
DEMAND: An effective desire for a product
or service backed by ability and willingness to
buy it.
Types of Demand:
Negative Demand: Consumer dislike or avoid
the product.
CORE MARKETING
CONCEPTS
Latent Demand: Consumers may share a
strong need that cannot be satisfied by an
existing product.
Declining Demand: Consumers begin to buy
the product less frequently or not at all.
Irregular (Seasonal) Demand: Consumer
purchases vary on a seasonal, monthly,
weekly, daily or even hourly basis.
CORE MARKETING
CONCEPTS
Full Demand: Consumers are adequatly
buying all the products put into the
marketplace.
Overfull Demand: More Consumers would
like to buy the product that can be satisfied.
Unwholesome Demand: Consumers may be
attracted to products that have undesirable
social consequences.
STP
Segmentation
Target Market
Positioning
Selling v/s Marketing
Selling
Marketing
It emphasis on the product
It emphasis on consumer needs and
wants
Product Orientated- Company
manufactures the product first and
then decides to sell it.
Customer Oriented First find out
needs and wants of customers and
then decides how to sell deliver the
product.
Management is sales oriented
Management is profit oriented
Planning is for short term period
Planning is for long term period
Views business as a goods producing
process
Views business as customer satisfying
process
Emphasis is on sticking to existing
technology, for cost cutting
Emphasis is on innovation, so
customer will good quality product
Selling views customer as the last link Marketing views the customer as the
in Business
very purpose in Business
Marketing Mix (4Ps)
A mixture of several ideas and plans followed
by an organization to promote a particular
product or brand is called marketing mix.
Elements of marketing mix: 4Ps
Product
Price
Place
Promotion
7Ps
Apart from 4Ps of Marketing Mix, in Services
Marketing Mix its mix of 7Ps i.e.
People
Process
Physical Evidence
Four Cs of Marketing Mix
Koichi Shimizu in the year 1973 proposed four
Cs of Marketing Mix to replace 4Ps
Commodity
Cost
Channel
Communication
The Evolution of Marketing
Production Era
Sales Era
Marketing Era
Relationship
Marketing Era
Dr. Rosebloom
Production Era
Orientation:
Dominant
time period:
Business philosophy
focusing on
manufacturing
efficiency; demand
exceeds supply =
sellers market
Prior to the 1920s
Dr. Rosebloom
Sales Era
Orientation:
Dominant
time period:
Business philosophy
focusing on selling
existing products;
supply exceeds
demand = buyers
market
Prior to the 1950s
Dr. Rosebloom
Marketing Era
Orientation:
Dominant
time period:
Business philosophy
focusing on consumer
wants and needs; any
supply/demand
situation
Last half of 20th century
Dr. Rosebloom
Relationship Marketing Era
Orientation:
Dominant
time period:
Business philosophy
focusing on reinforcing
the customer-oriented
focus of the marketing
era
Last decade of 20th century
Dr. Rosebloom
