the fundamentals relating to the attitude that led to the development of various marketing concepts, a description of various concepts, their merits and demerits

1. Semi-Literate MarketingMinistry of Micro, Small and Mini Industries,Mangalore B.V.Raghunandan, SVS College, Bantwal

2. Women Entrepreneurs Compulsion of Circumstances, LijjatPappad Free Time for Women of Grown-up Children Handicraft, Art, Embroidery, Tailoring Home Industry like Agarbathis, Beedi Rolling, Match Box Manufacturing, Cookery Items, Eatables like Fried Items

3. Small Shops In Front of the House No Real Estate Cost Zero Labour Cost Combining with Domestic Work Seller cum Consumer Flexibility in timing, work etc

4. Corporate Entry Corporates doing Marketing Service Better Price Realisation Better Financing and Larger Distribution Network Marketing by Amway Consumer-cum-Distributor model of Hindustan Unilever-Streeshakti Readymade Garments Manufacturing Working from Home Model Rural Marketing

5. Benefits Lost Localised Innovation Differences in Quality Higher Cost Unhealthy Chemicals and Preservatives Corporate Domination Local and Small Industrial Units face the Threat

6. Beginning of Marketing Begins before production Assessing the size of the market Stability of demand Purchasing ability of consumers Level and nature of competition Scope for expansion Distribution options

7. Distribution Models Direct Distribution: From our home or to the home of consumers Distribution through agents Distribution through retailers: from home or to home Distribution through wholesalers Distribution through and under a corporate brand

8. Selection of Distributors Financial Integrity Personal Integrity Establishment of the distributor Turnover and level of business of the distributor Location of the distributors’ esstablishment Growth potential

9. Marketing Concepts: Genesis Personal attitude Religious beliefs Type and nature of market Type of consumers Market maturity Consumer movement Legal framework

10. Personal Attitude Value system Short-term benefit Vs long-term benefit Honesty Hypocrisy Pro-societal attitude towards self-interest Kindness and charitable nature Bothering about consequences

11. Religious Belief Certain religions preach protection of employee welfare and consumer welfare Fear of God Belief in a system of punishment After-life fear Fear of nature of incarnation Blending religion and society

12. Type and Nature of Market Monopoly market Regulated market like ration shops Technical content involved Professional service Uninformed customers Highly habituated customers Strong brand loyalty

13. Type of Consumers Indifferent consumers Floating nature of consumers Illiterate consumers Language of printing Uninformed consumers Busy consumers Families having lack of unity of command

14. Market Maturity Well established market New market Type of consumers Level of government regulation Level of competition Trade association

15. Consumer Movement Restriction on malpractices Ensuring quality Avoiding misleading advertisements More product information on the package Conforming to standards Enabling litigation and getting relief Consumer education

16. Legal Framework Most powerful and the basis for consumer protection Slow but effective as a deterrent Competition Commission Industrial Standards like BIS Restrictions regarding production, package, marketing and price control

17. Concepts in Marketing Production Concept Product Concept Selling Concept Marketing Concept Societal Concept

18. Production Concept Legal Monopoly Natural Monopoly Financial Monopoly Monopoly by Patent Government Ownership Near Cost Price Subsidised Prices

19. Benefits of Production Concept Cost is kept to the minimum No wasteful expenditure on advertisement and sales promotion No money and efforts are wasted on meeting competition Brand loyalty is not created No product differentiation

20. Demerits of Production Concept Creation of shortages No new investment in expanding capacity No efforts on Research & Development No benefit to the consumer coming out of higher scales of operation Human labour is wasted in waiting time and standing in queues Affecting Government Finance

21. Product Concept Country specific attitude like Germany and Japan Technology oriented approach Serendipity Belief in Research & Development Best belief of customer service through ignoring customers and concentrating on product development

22. Benefits of Product Concept Better Products Lesser Cost More Importance to Product Planning & development R&D Less money is spent on creating a market Always ahead of competition

23. Demerits of Product Concept More product failure Less importance to market surveys An attitude of superiority on the part of product developers Lesser attention to the study of consumer psychology

24. Sales Concept Using travelling salesmen When totally new products are introduced Customers otherwise will not buy the products The purpose is to break the resistance and scale up the market for high end markets Once the demand is created, ordinary channels can be used

25. Benefits of Sales Concept Personal touch to demand creation Clarification of doubts and reservations Demonstration of the product is possible Good salesman can make the right approach A detailed discussion about the utility of the product will compel the customer to buy the product

26. Demerits of Sales Concept Interference into their private time Very little suitable time Wrong salesman will create the negative effect Expenses of salesmen will be very high Lack of a nearby shop to service is a big disadvantage

27. Marketing Concept Customer is always right Market survey is always a prelude to production Lot of importance is given to understanding changing needs of the consumers More importance to Research & Development Advertisement & Sales Promotion

28. Benefits of Marketing Concept More attention to customer requirement Regular conduct of market surveys More investment on R & D Better after-sales service Obtaining regular feedback from customers Marketing will precede production

29. Demerits of Marketing Concept Too much money wasted on advertisement and other marketing expenses Too much of sales promotion Customer opinion is valued more than the real welfare of the customers like marketing harmful products like cigarettes and alcoholic drinks

30. Societal Concept It holds that the marketing should be in tune with the societal well-being of the people Harmful products will not be marketed even when the consumers want them Care is taken not to damage the environment either through package or through any other marketing activities

31. Benefits of Societal Concept Society at large benefits Environment is protected The welfare of the consumers is protected in the long run Wasteful products are not produced and marketed Wasteful marketing expenses like advertisement are avoided

32. Demerits of Societal Concept Products packed in environment friendly material are a failure either due to a higher cost or lesser convenience The firm will get its place in academic circle and intellectual circle, but not in the market place Very often, environment protection and societal well-being are provided only a lip service

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