mkg concept

8/12/2019 Mkg Concept

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The Marketing Concept

Evolving Perspectives


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Who makes what?

List B. CompaniesITC, Godrej, BHEL, Videocon, Voltas, HP, Britannia, L&T,Atlas, Bata, HLL, Wipro, Microsoft, P&G

List A. Products

1. Air Conditioners2. Hamam soap3. Washing machines4. Power generators5. Sunsilk shampoo6. Lux Soap7. Safety Locks8. Dove9. Refrigerators

10.Laptops

11. Biscuits12. Cement13. Office furniture14. Shoes15. Bicycles16. Computer Software17. Computer Hardware18. Cooking Oil19. Tooth Paste

20. Detergent Powder


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3

SECTION 2.1


The marketing conceptstates that

businesses must satisfy customers' needsand wants in order to make a profit.

The Basic Concept


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4

SECTION 2.1


Customersbuy a product.

Consumersuse the product.

Example:Parents who buy video games

from retailers are customers. The kids who

play the video games are the consumers.

Customers vs. Consumers


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5

SECTION 2.1


A marketis all potential customers who

share common needs and wants and whohave the ability and willingness to buy the

product.

What is a Market?


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What is a Market?

The set of actual

and potential buyers

of a product.

These people share

a need or want that

can be satisfied

through exchange

relationships.


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What Is Marketing?

Simple Definition: Marketing ismanaging profitable customerrelationships.

Goals:

1. Attract new customers by promisingsuperior value.

2. Keep and grow current customersby delivering satisfaction.


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What is Marketing?

American Marketing AssociationDefinition:

The process of planning and executingthe conception, pricing, promotion anddistribution of ideas, goods and servicesto create exchanges that satisfyindividual and organizational goals.


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Evolving Views of

Marketings Role

e. The customer as the controlling function and

marketing as the integrative function

Customer

Marketing

Production


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What does a Marketer Do?


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What does a Marketer Do?

Why Bike

(Analyze Needs)

Bike Type

(Produ ct Plan)

Which people?

(Segment)

What Quantity?

(Demand Forecast ing)

Where to Sell?

(Distr ibut ion)

What to Charge?

(Price)

What & how to inform?(Promot ion) Who all will compete(Analyze Compet itors)

What if problem?

(Warranty)


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Marketing, Defined

Business activities designed to

Plan

Price

Promote

Distribute(Place)

Want-satisfying products to target markets

to achieve

organizational objectives


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xc ange a e ear oMarketing

Between Organizations

and/or Individuals Marketers and Markets

Exchangethe essence of Marketing

Tangible/ Intangible

goods, Services, Ideas,

places, people


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Conditions of Exchange

Voluntary participation2 or More parties

Each has something of

value for the other party

Parties must

communicate


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Stages of the Evolutionof Marketing

Promote through

Sales and AdvertisingSales-Orientation

Stage

Increase Supply

Produce Efficiently

Product-Orientation

Stage

Market-Orientation

Stage

Long-Run

Customer Satisfaction


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Four Eras in the History of Marketing

Production Era Prior to 1920s

Production orientation

Business success often defined solely interms of production victories

Sales Era

Prior to 1950s

Customers resist nonessential goods andservices

Personal selling and advertisings task is to

convince them to buy


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Marketing Era

Since 1950s Marketing Concept Emerges

Shift from sellers to buyers market

Consumer orientation

Marketing Concept Companywide consumer orientation

Objective of achieving longrun success


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Marketing Concept

A business philosophy that makes Customer

Satisfaction as focal point of all the activities of

the business


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Marketing Management Philosophies

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept


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The Production Concept

The idea that consumer will favour products that

are available and highly affordable and that the

organisation should therefore focus on improving

production and distribution efficiency.


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The Product concept

The idea that consumers will favour products that

offer the most quality, performance, and features and

that the organisationshould therefore devote its energy

to making product improvement.


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Marketing and Sales Concepts Contrasted


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Societal Marketing Concept


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This Is a Need

Needs- state of felt

deprivationincluding physical,

social, and

individual needs.


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Maslows

Hierarchyof Needs


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This Is a Want

Wants- form that

a human needtakes, as

shaped by

culture andindividual

personality.


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Need / Want Fulfillment

Needs and Wants

Fulfilled through a

Market ing Offer : Some combination of

products, services,

information, or

experiences offered to amarket to satisfy a need

or want.

What Satisfies Consumers


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Products

Anything that can be Offered to a Market to Satisfy a Need or Want

Persons Places Organizations

IdeasInformation

What Satisfies Consumers

Needs and Wants?

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything


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Marketing Myopia

Sellers pay more

attention to the specific

products they offer than

to the benefits andexperiences produced

by the products.

They focus on the

wants and lose sight

of the needs.


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This Is Demand

Demand

Wants Buying Power


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Segmentation and Target Marketing

Market Segmentation:

Divide the market intosegments of customers

Target Marketing:

Select the segment tocultivate

#1 #2


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Customer Satisfaction

Dependent on the

products perceived

performance relative

to a buyersexpectations.


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Value and Satisfaction

Expectation Performance

810

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Expectation Performance

108


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Loyalty and Retention

FinancialBenefits

SocialBenefits

StructuralTies


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C t L lt & R t ti


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Customer Lifetime Value The entire stream of

purchases that the customer

would make over a lifetime of

patronage.

Share of Customer

The share a company

gets of the customerspurchasing in their

product categories.

Customer Loyalty & Retention


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Simple Marketing System

ndustry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


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Difference Between - Sales & Marketing ?

Salestryingto get the customer to want what the

companyproduces

Marketingtrying to get the company produce what the

customer wants

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