Marketing concepts are the philosophies, beliefs or attitudesadopted by companies or marketers in relation to markettheir product. Some say they are consumer oriented, somesay they value their customers and some say customers aretheir kings.Various types of marketing concepts:A. Traditional Concepts B. Modern Concepts1. Exchange concept 1. Marketing concept2. Production concept 2. Societal concept3. Product concept 3.Holistic marketing concept4. Selling concept
(a) The selling conceptStarting Focus Means Ends point Existing Selling and Profits through Factory products promotion sales volume (b) The marketing concept Target Customer Integrated Profits through market needs marketing customer satisfaction
Features of Modern Marketing Concepts Modern marketing is consumer oriented. It begins and ends with Consumers. It precedes & succeeds production. It is competition oriented. Its strategy is target marketing The distribution policy under modern marketing is direct marketing and direct selling.
Modern marketing relies on information. It emphasizes mutuality of benefit. Business networks. Emphasis on retaining customers Marketing on the net. Shifting from international to borderless world marketing. Innovation. Business Process Outsourcing. Branding shifting values.
Operational Model for Implementing the Philosophy of theMarketing Concept is the:
Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix.
The Marketing Mix Consists ofFour Basic Strategic Variables (the four “Ps”)•Product Strategy•Price Strategy•Promotional Strategy•Place Strategy (Channels ofDistribution)
The role of marketing management is to mix or blend these four strategic variables in such a way as to meet the needs of... THE TARGET MARKETProduct Price Promotion Place Target Market
Product Goods manufactured by organizations for the end-users are called products. Products can be of two types - Tangible Product and Intangible Product (Services) An individual can see, touch and feel tangible products as compared to intangible products. A product in a market place is something which a seller sells to the buyers in exchange of money.
Price The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa. Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers.
PlacePlace refers to the location where the productsare available and can be sold or purchased.Buyers can purchase products either fromphysical markets or from virtual markets. In aphysical market, buyers and sellers canphysically meet and interact with each otherwhereas in a virtual market buyers and sellersmeet through internet.
Promotion Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Like: Advertising. Word of mouth Lately three more P’s have been added to the marketing mix. They are as follows: Packaging- Attractive, transport, sale & exchange. People- to whom and through whom goods are being sold. Public relations- increase awareness through public relations (Customers, Govt., employees, retailers, wholesalers, press, ) Politics- (should go in accordance with rules & regulations made by law makers.)
Marketing MixProduct PlaceProduct Variety ChannelsQuality Target Market CoverageDesign AssortmentsFeatures Price LocationsBrand name Promotion InventoryPackaging List price Sales promotion TransportSize Discounts AdvertisingServices Allowances Sales forceWarranties Payment period Public relationsReturns Credit terms Direct marketing
4C’sCustomer Cost Convenience Communication Solution (to customer)
Utility/Importance of Marketing Mix Helps in understanding important tasks of marketing. Important tool of marketing programme. It promotes better utilisation of limited resources. Facilitates the meeting of different requirements of customers. It provides customer satisfaction. It helps in goal achievement. It facilitates communication. It helps in establishing relations with customers. It helps in developing new products.
Factors affecting marketing Mix Marketing Factors Market factors 2. Marketing planning 2. Consumer behaviour 3. Brand policy 3. Competition 4. Package policy 4. Distribution pattern 5. Advertisement policy 6. Distribution channels System. 7. Physical distribution 4. Government control. 8. Policy 9. Pricing policy 10. Market research 11. Product life cycle 12. Market segmentation (Gender, price, income, interest, location, region etc)
Acc. to Philip Kotler, “The analysis, planning,implementation and control of programmes designedto create, build and maintain beneficial exchangeswith target buyers for the purpose of achievingorganisational objectives.”It is the art & science of choosing the target marketsand getting ,keeping and customers growing throughcreating, delivering and communicating superiorcustomer value. Customer Profit Satisfaction maximization
Marketing Management tasks Converting negativeConversional demand into positive demand. Marketing Eg: air travelDevelopmental Transforming latent demand into actual Marketing demand. Eg: Nano car To revitalize the product Remarketing Eg: hi-tech products Maintenance To monitor the demand level and maintain it marketing
Marketing EnvironmentThe Company’s marketing environmentconsists of "the actors and forces outsidemarketing that affect marketing managementsability to develop and maintain successfultransactions with its target customers”
Types of Marketing Environment Suppliers Demographic Intermidiaries Economic Micro MacroEnvironment Competitors Technological Environment Political Customers Publics Socio-cultural
Macro Environment1.Demographic Environment The statistical study of human population and its distribution. Eg age, gender, income, religion.2.Economic Environment In order for an economy to exist there must be a ‘market’. A ‘market’ exists where consumers have money to spend and are willing to spend it. The economic environment is a significant force that affects the marketing of any organisation: eg unemployment, inflation, interest rates. It also influences business cycles such as: prosperity recession recovery. These impact on what people buy, when and how.
3.Socio-Cultural factors Marketers are faced with changing socio-cultural patterns, lifestyles, social values and beliefs. Changes that have significant marketing implications: Emphasis on quality of life. Changing gender roles. Attitudes towards health, nutrition and well-being. Impulse buying. Desire for convenience and a premium on time.
4.Political factors The five categories affecting political–legal influences on marketing: Monetary and fiscal policies. Social legislation and regulations. Government relationships with individual industries. Legislation specifically related to marketing. The provision of information and the purchase of products.
5.Technological factors Technology has had an impact on our lifestyles, work, leisure, consumption patterns and economic well-being. Technology is a mixed blessing: it may improve our lives in one area while creating environmental and social problems in another.
Micro Environment1.CustomersTo identify and anticipate the needs of the customers, a company should gather information about them.2.Competitors Companies face competition from three main sources: Brand—from manufacturers of similar products. Substitute products—dissimilar products satisfying the same needs. Indirect—other firms trying to win customers purchasing power.
3.Suppliers Organisations which provide the firm with the items it needs to conduct business. For production of goods and services company requires lot of inputs. The firms and individuals who supply the inputs or resources needed by the company to produce goods and services are known as suppliers.
4.Marketing Intermediaries Defined as independent business organisations that directly assist the flow of products and services between a marketing organisation and its markets. Resellers—wholesalers and retailers: the middlemen. Facilitating organisations that provide transportation, warehousing, financing and other supportive services needed to complete the exchange between buyer and sellers. They complete the trade or channels of distribution.
5.Public Public comprises of consumers, labour unions, press & media, Govt. officials etc. These people affect directly or indirectly the marketing decisions of the company so before implementing any policy or procedure any company should take into consideration the view point of the above mentioned people.
Impact of Environment on Marketing Direct Indirect Impact ImpactConsumers, shareholder, Economical, political,Suppliers, competitors, Socio-cultural and labour org and govt. Technological factors.officials (they affect plans, (They affect investment, orgpolicies & strategies.) & structure)