1. Evolution of Marketing Concept
Production Concept Product Concept
I have produced something ,
Customers will accept it
Let me add few new
features to my product
Push the products in the
market by sales
Focus on what consumers
need or want
• Emphasis On
• Right products for
• Do everything
3. Production Concept
Believed That Consumers Prefer Available Goods
Focus Is On Efficient Production And Mass Distribution
This Orientation Makes Sense In Developing Countries
Efforts On Reducing Costs To Provide Inexpensive Goods
4. Product Concept
Focus Is On Making Superior Goods
Believed That Consumers Prefer Goods With Best Quality & Innovative
Importance Is Given To Improvising The Product
Less Focus On Consumers Need
Goods Sell Themselves
5. Selling Concept
Aggressive Selling And Promotion Effort
Sell More Stuff To More People And More Often
Used With Goods Which Buyers Usually Don’t Think Of Buying (Unsought Goods)
Such As Insurance
Sell What Is Made Not What Market Wants
Carries High Risk As Can Result Into Negative Word Of Mouth
6. Marketing Concept
Emerged In Mid 1950s
Find Right Product For The Customers
Focus Is On Creating, Communicating And Delivering Superior Customer Value
Build Profit Through Customer Satisfaction And Loyalty
Begins With Well Defined Market And Ends With Long Term Relationship
7. CHP: 1&5-7
Societal Marketing Concept
•Consumers favor products that are
available and highly affordable.
•Improve production and distribution.
•Consumers favor products that offer
the most quality, performance, and
•Consumers will buy products only if
the company promotes/ sells these
•Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
•Focuses on needs/ wants of target
markets & delivering superior value.
Review Marketing Management
8. Review: Marketing Management Philosophies
What can we make or do best?
How can we sell more aggressively?
What do customers
want and need?
What do customers want and need, and
how can we benefit society?
9. Review: Sales vs. Market Orientations
Outward Coordinated use
of all marketing
10. Difference between Marketing
Focuses n customer’s needs Focuses on Seller’s needs
Customer Enjoys Supreme importance Product enjoys supreme importance
Product Planning and development to match
products with markets
High pressure selling to sell gods already
Converts customer’s needs into products Converts products into cash
Profits through customer satisfaction Profits through sales volume
Consumers determine the price; price
Cost determines the price
It assumes: “Let the seller beware” (Caveat
It assumes: “Let the buyer beware” (Caveat
• Relationship Marketing Era
– Began in 1990s
– Carried customer orientation even further
– Focuses on establishing and maintaining
relationships with both customers and suppliers
– Involves long–term, value–added relationships
14. Build Mutually Satisfying Long Term Relationship
Key Parties Being Customers, Suppliers, Distributors
And Marketing Partners
Focus Is On Developing A Market Network Of
Customers, Employees, Suppliers, Retailers, Ad
Objective Is To Built Mutually Profitable Business
Relationship Which Will Make Profits To Follow
15. Relationship marketing
This is where the firm manages its relationship
with suppliers to customers in an effective
manner while considering long term benefits
rather than short term profits. Managing
relationships have 03 aspects.
16. • Customers- Customers include relationship with internal (inter
departmental relationships) and external customers (customers at market
place) of the product. Organization should attract customers who are
profitable and build long tern relationship with them by identifying and
satisfying their needs accordingly. Customer retention is given more
priority as attracting new customers is expensive.
• Partners( Channels, Suppliers, distributors, dealers & agencies) - This
includes every organization who are involved to delivering goods to
customers and it includes the suppliers as well. Organization should build
good long term relationship with suppliers and dealers as they play a major
role in making the goods available to customers. Failure in dealers or
suppliers can result in loss of customers and reputation of the organization
and firm should manage relationships effectively providing win-win
• Members of Financial Community(shareholders, investors, analysts) -
This is where the firm has to manage its relationship effectively with
people who provide finance for them. Basically it means managing
relationship with its shareholders and other fund providers and marketing
department should take necessary steps to achieve their objectives as well
(that is achieving high profits)
17. Less toxic products
More durable products
Products with reusable
or recyclable materials
Societal Marketing Orientation
Marketing that preserves or
enhances an individual’s and
society’s long-term best interests
18. Focus is on enhancing social welfare
Marketers consider the role that they are playing and
could play in terms of social welfare
Understanding broader concepts and ethical,
environmental, legal and social context of marketing
19. Socially responsible marketing
This is where the firm carries out its marketing
activities in a way that it fulfills its
responsibilities towards the society. Making
only profits will not let the company survive in
long run and they should be a good corporate
citizen and build good public image of the
company which will ultimately motivate
consumers to purchase goods.
20. 1. Being ethical- The Company should do the right thing in a right
manner in a way which results in less negative impacts to the
society. Mainly company should refrain from manipulating product
benefit and use ethical advertising to promote the product.
2. Environment friendliness- The firm should not harm the
environment in carrying out marketing activities and they should
participate in environment protection. This is basically known as
3. Abide by law- Company should respect the law of the country and
should not engage in law breaking activities in carrying out
4. Community- The firm should respect the values and beliefs of
society and should not carry out marketing activities which can
cause unreasonable disturbance to the society. Failure to do so can
result in protests and bans which will ultimately result in loss of
reputation and closure of operations.
21. Ensuring that everyone in the organisation
embraces appropriate marketing principles
Task of hiring, training and motivating
employees who want to serve customers well
No sense in promising excellent services
unless the employees are ready for it
Works at two levels – Marketing Research
and Marketing functions like advertising,
customer service, and product management
Marketing functions must be co-ordinated
from the point of view of the customer
22. Internal Marketing
• where the company focuses on internal
organization and carries out marketing
activities internally. This include 3 elements.
23. • Marketing department- Marketing department should consist
of people who understand wide aspects of marketing and they
should be able to carry out marketing function within the
marketing department by understanding the need of
department as whole and individual needs of the workers.
• Senior management- Senior management should be well aware
of the marketing concept and they should support the concept
by making decisions in favor of marketing for marketing to
occur within the organizations. Many organizations fail in
marketing due to lack of the commitment from the senior
management in making marketing as a strategic function.
• Other departments- In making marketing as a strategic
function other department should support the concept of
marketing and they should work collaboratively with
marketing department. As an example production department
should understand the needs of customers and produce goods
based on requirement which can be marketed by the marketing
25. Marketing Activities Are Employed To
Communicate & Deliver Value In A Co-
Use of Marketing Mix – The 4 Ps
Influence Trade Channels As Well Final
Consumers Using Offering Mix and
Offering Mix – Product, Price and Services
Communication Mix – Advertising, Sales
Promotion, PR, Events & Experiences, Direct
Marketing and Personal Selling
26. Integrated marketing
• Product, place , price and promotion of the
marketing plan are designed in an integrated
manner to give a holistic view to
marketing. Product has to be designed based on
customer needs and it should have the ability to
satisfy customer needs. The product offering has
to be communicated to the customer using
appropriate promotional methods and product
has to be made available to the customer making
it convenience for purchase. (Focus is on creating,
communicating and deliver values to the
27. Holistic Marketing - Benefits
• Helping achieve focus & direction
• Keeping customers happy & satisfied
• Attracting new business
• Professional company literature
• Professional image
• Differentiating from competitors
• Growing awareness of your business
• Creating the right environment for success
• Motivational support
28. Toyota Philosophy of Holistic
• “That every person can and should add value,
that we always have room to do better and
that when people believe in something they
are capable of powerful things then you will
find the "Secret to Your Success".
29. WHAT IS MARKETING MANAGEMENT ?
• Marketing Management is the analysis,
planning, implementation and control of
programs designed to create, build and
maintain beneficial exchanges and
relationships with target markets for the
purpose of achieving Organisational
31. Marketing in Nut shell
1. How can we spot and choose the right market segment(s)?
2. How can we differentiate our offerings?
3. How should we respond to customers who buy on price?
4. How can we compete against lower-cost, lower-price competitors?
5. How far can we go in customizing our offering for each customer?
6. How can we grow our business?
7. How can we build stronger brands?
8. How can we reduce the cost of customer acquisition?
9. How can we keep our customers loyal longer?
10. How can we tell which customers are more important?
11. How can we measure the payback from different types of marketing
12. How can we improve sales force productivity?
13. How can we establish multiple channels and yet manage channel conflict?
14. How can we get the other company departments to be more customer-oriented?