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Basic Concepts of Marketing
1. BASIC CONCEPTS OF MARKETING
Dr. Kamal Kishor Pandey
Associate Professor
TMIMT-College of Management
Teerthanker Mahaveer University, Moradabad
Dr. Kamal Pandey
2. Marketing is Embedded in Everything we do---
From the clothes we wear ,to the websites we click
onto the Ad’s we see. Dr. Kamal Pandey
3. MARKETING
"Marketing is the management process
responsible for identifying, anticipating
and satisfying customer requirements
profitably"
Dr. Kamal Pandey
4. Sears, Levis, GM, SONY, Xerox, Tesla all
have confronted newly empowered customers
and new competitors and have to Rethink
their business Models.
“Change or Die”
• Jack Welch
Dr. Kamal Pandey
5. Dr. Kamal Pandey
The future is not ahead of us. It has
already happened. Unfortunately, it
is unequally distributed among
companies, industries and nations.
Philip Kotler
on
Marketing
6. WHAT IS MARKETED
• GOODS
• EVENTS
• PERSONS
• PLACES
• ORGANISATIONS
• INFORMATION
• IDEAS
Dr. Kamal Pandey
7. “In the Factory We make cosmetics, In
the store We sell hope.”
-Charles
Revson
Dr. Kamal Pandey
8. Dr. Kamal Pandey
Marketing Task
Love and respect your customers.
Create a community of
consumers.
Rethink the marketing mix.
Celebrate common sense.
Be true to the brand.
9. Dr. Kamal Pandey
WHAT IS MARKETING ?
The essence of Marketing is a transaction - an
exchange- intended to satisfy human needs and
wants. There are three elements in the
marketing process :
(A) MARKETERS
(B)WHAT IS BEING MARKETED
(C) TARGET MARKET
10. Dr. Kamal Pandey
Marketing Defined
• Kotler’s social definition:
“Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating, offering,
and freely exchanging products and
services of value with others.”
11. Dr. Kamal Pandey
Core Marketing Concepts
• Target markets and market
segmentation
• Marketplace, market-
space, met markets
• Marketers & prospects
• Needs, wants, demands
• Product offering and
brand
• Value and satisfaction
• Exchange and
transactions
• Relationship and
networks
• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing program
13. Dr. Kamal Pandey
Forces Impacting the Task Environment
Socio-cultural Environment
Technological Environment
Legal-Political Environment
Natural Environment
Demographics
Economics
14. Dr. Kamal Pandey
Core Marketing Concepts
Figure :
The Four P Components
of the Marketing Mix
15. Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive
Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations Towards the
Marketplace
Dr. Kamal Pandey
16. Dr. Kamal Pandey
Company Orientations
Societal Marketing Concept
The orientation of the firm typically guides
marketing efforts
Marketing Concept Customer Concept
Product Concept Selling Concept
Production Concept
17. Dr. Kamal Pandey
(1) THE PRODUCTION CONCEPT
Produce
Sell
Consumers
Company
Produce more & more
Practically sells itself
18. Dr. Kamal Pandey
(2) THE PRODUCT CONCEPT
Produce
Quality
Products
Sell
Consumers
Practically sells itself,if
it gives most quality for
money
Buyers admire well-made products and can
appraise product quality and performance.
19. Dr. Kamal Pandey
(3) SELLING CONCEPT
• Consumers have normal tendency to resist.
Produce
Sell it Consumers
Aggressive selling &
promotion efforts
Making sales becomes primary function and
consumer satisfaction secondary .
20. Dr. Kamal Pandey
(4) MARKETING CONCEPT
• “ LOVE THE CUSTOMER ,NOT THE PRODUCT ”
Consumers
Produce it
Market it
Learn what they
want(MR)
Sell what they want(Satisfy
needs of customers)
21. Dr. Kamal Pandey
(5) THE SOCIETAL MARKETING
CONCEPT
• It is Marketing Concept (+) Society’s well
being.
• Balancing of following three considerations
while setting marketing policies :
-Customer’s want satisfaction
-Society’s well being
-Company’s profits
22. SERVICE CONCEPT
• Customers buy services, not products
• Service model of marketing instead of selling
the title to the products.
• Hindrance: Mindset of the customer and
marketer, and their unwillingness to
experiment with this model.
• Can be easily applied in businesses like
automobiles, carpeting, furnishing, and for
most consumer durable items.
Dr. Kamal Pandey
23. EXPERIENCE CONCEPT
• Create an experience around the product to
make it memorable.
• Reaffirm it with cues at every customer
interaction point.
• Experiences are inherently personal for a
customer.
• An experience should be built around a well
defined theme.
Dr. Kamal Pandey
24. Experience Concept (Contd.)
• Companies must introduce cues that affirm the
nature of the experience to the guest .
• Eliminate anything that diminishes,
contradicts, or distracts from the theme.
• Customers purchase memorabilia as a physical
reminder of an experience .
• The more senses an experience engages, the
more effective and memorable it becomes.
Dr. Kamal Pandey
26. Dr. Kamal Pandey
THREE LEVELS OF MARKETING
• Responsive Marketing
• Anticipative Marketing
• Need Shaping Marketing
27. Dr. Kamal Pandey
RESPONSIVE MARKETING
It is the form of marketing when some
company defines an existing clear need and
prepare an affordable solution.
(Recognizing that women wanted to spend less
time for cooking and cleaning, led to the
invention of modern washing machine,
microwave oven etc.)
28. Dr. Kamal Pandey
ANTICIPATIVE MARKETING
It is a form of marketing when a company recognize
an emergent or latent need, and come out with an
affordable solution. Evian, Perrier anticipated
growing market for bottled drinking water
Anticipative marketing is more risky than responsive
marketing; companies may come into market too early
or too late, or may even be totally wrong about
thinking that such a market would develop.
29. Dr. Kamal Pandey
NEED SHAPED MARKETING
The broadest level of marketing occurs when a
company introduces product that nobody asked for
and often could not even conceive of.
(e.g. Sony Walkman, Sony Compact Disc )
“ I don’t serve markets. I create them.”
Late Akio Morita, founder and chairman of Sony,
30. References
• Irving J. Rein, Philip Kotler, and Martin Stoller, High Visibility (Chicago:
NTC Publishers, 1998).
• Jay Conrad Levinson and Seth Grodin, The Guerrilla Marketing Handbook
(Boston: Houghton Mifflin, 1994).
• Sam Hill and Glenn Rifkin, Radical Marketing (New York: Harper
Business, 1999).
• Philip Kotler, Irving J. Rein, and Donald Haider, Marketing Places:
Attracting Investment, Industry, and Tourism to Cities, States, and Nations
(New York: Free Press, 1993).
• Neil H. Borden, The Concept of the Marketing Mix, Journal of Advertising
Research, 4 ( June): 2–7.
• E. Jerome McCarthy, Basic Marketing: A Managerial Approach, 13th ed.
(Homewood, IL: Irwin, 1999).
• Levitt, “Marketing Myopia,” p. 50.
• Frederick E. Webster Jr., “Defining the New Marketing Concept,”
Marketing Management 2, no. 4 (1994), 22–31.
Dr. Kamal Pandey
