1. Evolution of Marketing Concept
Production Concept Product Concept
Selling Concept
Marketing 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
promotion methods
Focus on what consumers
need or want

2. Production
Concept
• Emphasis On
Producing Goods
Product
Concept
• Producing
Quality Goods
Selling
Concept
• Aggressive
Selling &
Promotion
Marketing
Concept
• Right products for
Customers
Holistic
Marketing
Concept
• Do everything
possible
Orientation
Towards The
Market Place

3. Production Concept
Oldest 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
Features
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
Production Concept
Product Concept
Selling Concept
Marketing Concept
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
innovative features.
•Consumers will buy products only if
the company promotes/ sells these
products.
•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
Philosophies

8. Review: Marketing Management Philosophies
Production
Sales
Marketing
Societal
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?
Orientation Focus

9. Review: Sales vs. Market Orientations
Organization’s
Focus
Firm’s
Business
For
Whom?
Primary
Profit
Goal?
Tools to
Achieve
Selling
goods and
services
Everybody Maximum
sales
volume
Primarily
promotion
Inward
Sales
Orientation
Market
Orientation
Outward Coordinated use
of all marketing
activities
Customer
satisfaction
Specific groups
of people
Satisfying
wants and
needs
3

10. Difference between Marketing
and Selling
MARKETING SALES
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
produced
Converts customer’s needs into products Converts products into cash
Profits through customer satisfaction Profits through sales volume
Consumers determine the price; price
determines costs
Cost determines the price
It assumes: “Let the seller beware” (Caveat
Vendor)
It assumes: “Let the buyer beware” (Caveat
Emptor)

11. Selling is only the tip of the iceberg
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1-11
“There will always be a need for
some selling. But the aim of marketing is to
make selling superfluous. The aim of
marketing is to know and understand the
customer so well that the product or service
fits him and sells itself. Ideally, marketing
should result in a customer who is ready to
buy. All that should be needed is to make
the product or service available.”
Peter Drucker

12. Components Characterizing Holistic
Marketing

13. 13
• 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
Agencies, Etc.
Objective Is To Built Mutually Profitable Business
Relationship Which Will Make Profits To Follow
Relationship Marketing

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
situation.
• 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
2

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
activities
Social Responsibility
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
green marketing.
3. Abide by law- Company should respect the law of the country and
should not engage in law breaking activities in carrying out
marketing activities.
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
Internal Marketing

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
department.

25. Marketing Activities Are Employed To
Communicate & Deliver Value In A Co-
ordinated Manner
Use of Marketing Mix – The 4 Ps
Influence Trade Channels As Well Final
Consumers Using Offering Mix and
Communication Mix
Offering Mix – Product, Price and Services
Communication Mix – Advertising, Sales
Promotion, PR, Events & Experiences, Direct
Marketing and Personal Selling
Integrated Marketing

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
consumer)

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
Marketing
• “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
objectives.

30. Marketing
1
Exchange
A B
Delivering
value
Communicating
value
Creating value
Customer value
and beneficial
relationships

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
communications?
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?

32. New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and services
• A great amount of information about practically
anything
• Greater ease in interacting and placing and
receiving orders
• An ability to compare notes on products and
services
• An amplified voice to influence public opinion
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