Marketing Concepts
Dr.Sita Mishra

Learning Objectives
 Understand the new economy.
 Learn the tasks of marketing.
 Become familiar with the major concepts
and tools of marketing.
 Understand the orientations exhibited by
companies.
 Learn how companies and marketers are
responding to new challenges.

The New Economy
– Increased buying power.
– Greater variety of goods and services.
– Increased information.
– Enhanced shopping convenience.
– Greater opportunities to compare product
information with others.

The New Economy
 Websites can provide companies with powerful
new information and sales channels.
 Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
 Companies can facilitate and speed up
communications among employees.
 Companies can have 2-way communication
with customers and prospects

The New Economy
 Companies can send ads, coupons, samples,
information to targeted customers.
 Companies can customize offerings and
services to individual customers.
 The Internet can be used as a communication
channel for purchasing, training, and
recruiting.
 Companies can improve logistics and
operations for cost savings while improving
accuracy and service quality.

What is Marketing
 Simple Definition: Marketing is managing
profitable customer relationships.
Goals:
 Attract new customers by promising
superior value.
 Keep and grow current customers by
delivering satisfaction.

The AMA managerial definition:
“Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create
exchanges that satisfy individual and
organizational objectives.”

Marketing Defined
 Kotler’s social definition:
“Marketing is a societal process by
which individuals and groups obtain
what they need and want through
creating, offering, and freely
exchanging products and services of
value with others.”

Core Marketing Concepts
 Needs, wants, •Product offering and
demands brand
 Target markets •Value and satisfaction
and market •Exchange and
segmentation transactions
•Relationship and
 Marketers & networks
prospects •Market

This is a Need

Needs - state of felt
deprivation
including physical,
social, and
individual needs.

Maslow’s Hierarchy of Needs

This is a Want
Wants – Needs
become wants
when they are
directed to
specific objects
that might satisfy
the need.

This is Demand
Wants Buying Power
“Demand”

Types of needs
 Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs

Need / Want Fulfillment
 Needs and Wants Fulfilled through a
Marketing Offer :
Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.

What Satisfies Consumers’ Needs and Wants?
Products
Anything that can be Offered to a Market to Satisfy a Need or Want

Persons Places Organizations
Information Ideas
Experiences Events Properties
Services
Activity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything

Four Levels of Competition
Generic competition
Form competition
Industry competition
Brand competition

Core Marketing Concepts
 Target markets & segmentation
– Differences in needs, behavior,
demographics or psychographics are
used to identify segments.
– The segment served by the firm is
called the target market.
– The market offering is customized to
the needs of the target market.

Marketplace, Marketspace,Metamarkets
The Marketplace is physical, as when one
goes for shopping in a store.
Marketspace is digital, as when one goes
shopping on the internet.
Metamarket is described as a cluster of
complementary products and services that
are closely related in the minds of
consumers but are spread across a diverse
set of industries.

Exchange & Transactions
 Exchange involves obtaining a desired product
from someone by offering something in return.
Five conditions must be satisfied for exchange
to occur. It is value-creating process.
 There must be at least two participants in the
process.
 Each party must offer something of value to
the other.
 Both parties must want to deal with each other.
 Both participants have the right to accept or to
reject the offer.
 Both groups must have the ability to
communicate and deliver on the mutual
agreement.

Transaction
 Transaction is a trade of values
between two or more parties.
It involves at least two things of
value, agreed-upon conditions, a
time of agreement, and a place of
agreement.

Relationship Marketing
 Relationship marketing aims to build
long-term mutually satisfying relations
with key parties, which ultimately
results in marketing network between
the company and its supporting
stakeholders.

Relationship Marketing
Four key constituents for marketing are:
 Customer
 Marketing Partners ( channel, suppliers,
distributors, dealers and agencies)
 Employee
 Members of financial community (shareholders,
investors)
The development of strong relationships requires
an understanding of the capabilities and
resources of different groups, as well as their
needs, goals and desires.

Marketing Mix

7 P’s in Services Marketing
3 additional P’s in services marketing
 People: Any person coming into contact
with customers can have an impact on
overall satisfaction.
 Process: Process(es) involved in providing
a service and the behaviour of people,
which can be crucial to customer
satisfaction.
 Physical evidence

Matching Mix Concepts (A & S)
 4 A’s 4 S’s
Acceptability Solution
Affordable Sense
Accessible Spread
Awareness Supports

PACS Matrix
 Product Acceptability Customer Sol Solution
Price Acceptable Cost Sense
Place Access Convenience Spread
Promo Awareness Communicate Support

SIVA approach
 Solution: How appropriate is the solution to the
customers problem/need
 Information: Does the customer know about the
solution, and if so how, who from, do they know
enough to let them make a buying decision
 Value: Does the customer know the value of the
transaction, what it will cost, what are the benefits,
what might they have to sacrifice, what will be their
reward?
 Access: Where can the customer find the solution.
How easily/locally/remotely can they buy it and take
delivery.
This model was proposed by Chekitan Dev and Don
Schultz

Marketing Channels
Marketing Channels-
To reach Target
market
Deliver messages to and
 Communication receive messages from
channels target buyers.
Includes traditional
 Distribution
channels media, non-verbal
communication, and
 Service channels
store atmospherics.

Marketing Channels
Marketing Display or
Channels deliver the
physical products
 Communication or services to the
channels buyer / user.
 Distribution
channels
 Service channels

Marketing Channels
Marketing Carry out
Channels transactions with
potential buyers by
 Communication facilitating the
channels transaction.
 Distribution
channels
 Service channels

Marketing Management Philosophies
Societal Marketing Concept
Marketing Concept
Selling Concept
Product Concept
Production Concept

Production Concept
 Consumers will favour those products
that are widely available and low in cost.
 Therefore increase production and cut
down costs.
 And build profit through volume.

The Production Concept
A customer can have any colour he likes for
his car so long as it's black’
Henry Ford

Product Concept
 Consumers will favour those products
that offer the most quality, performance,
or innovative features.
 Therefore, improve quality, performance
and features.
 This would lead to increased sales and
profits.

Marketing Myopia
 Management’s failure to recognize a company’s
scope of business.
 Sellers pay more attention to the specific products
they offer than to the benefits and experiences
produced by the products.
 They focus on the “wants” and lose sight of the
“needs.”

The Selling Concept
 Consumers , if left alone , will not buy
enough of company’s products.
 Therefore, promote sales aggressively.
 And,build profit through quick turnover.

The Marketing Concept
 The key to achieving organizational goals
consist in determining the needs and wants
of target markets and delivering the desired
satisfactions more effectively and efficiently
than competitors.
 And build profit through customer
satisfaction and loyalty.

Marketing and Sales Concepts Contrasted

The Societal Marketing Concept
 The societal marketing concept holds that the
organization’s task is to determine the needs,
wants, and interests of target markets and to
deliver the desired satisfactions more
effectively and efficiently than competitors in a
way that preserves or enhances the
consumer’s and the society’s well being.
- It addresses conflicts between
consumer’s and firm’s short run wants and
long term welfare.

Societal Marketing Concept

The Holistic Marketing Concept
 It is based on the development, design and
implementation of marketing programmes,
processes and activities that recognises
their breadth and interdependencies. Four
components are:
 Relationship marketing
 Integrated marketing
 Internal marketing
 Social responsibility marketing

Marketing Senior Other
deptt Deptt Communications Products & Channels
Mgt
Services
Internal
Marketing Integrated
marketing
Holistic
Marketing
Social
Relationship
Responsibility
Marketing
Marketing
Ethics Community Customers Partners
Environment Channels
Legal

Marketing System

Marketing System
 Marketing is concerned with the flow of
goods and services from the points of
production to the points of consumption.
There is a systematic arrangement of
these functions of marketing to move the
goods and services to the needy
persons.
 This system is essential to the creation
of time, place and possession utilities.

Marketing System
 A dynamic marketing system must be willing
to undertake the following specific activities :
1. Define
market area. 2.
Research consumer wants and needs.
3. Develop and redevelop product / service.
4. Select, train, motivate and control
human
resources.
5. Develop sales approach and advertising
support.

WHAT IS MARKET ?
 A market consists of all the potential customers
sharing a particular need or want who might be willing
and able to engage in exchange to satisfy that need or
want.
 Potential Market (have sufficient level of interest in a
market offer)
 Available Market (who have interest, income and
access to a particular offer)
 Target Market or Served Market (a co. can go for
serving whole available market or can concentrate on
certain segments)
 Penetrated Market (set of buyers who are buying the
co.’s product)

Marketer & Prospect
– A marketer is someone seeking a
response (attention, a purchase, a
donation) from another party, called
the prospect.
– If two parties are seeking to sell
something to each other, we call both
of them marketers.

STATE OF DEMAND AND
MARKETING TASK
State of demand Marketing task
 Negative Demand •Conversional Mktg.
 No Demand •Stimulational Mktg.
 Latent Demand •Developmental Mktg.
 Falling Demand •Remarketing
 Irregular Demand •Synchro-marketing
 Full Demand •Maintenance Mktg.
 Overfull Demand
•De-marketing
 Un-wholesome
Demand •Counter-marketing

How Business and Marketing are Changing/
Marketing themes in the new economy
 Changing Technology
 Globalization
 Customer Empowerment
 Customization
 Customer relationship marketing
 Customer lifetime value
 Target marketing
 Integrated marketing communication
 Channels as partners
 Every employee a marketer

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.

Shifts in Marketing Management
 From Marketing does the marketing to
Everyone does the marketing
 From organizing by product units to
organizing by customer segments
 From making everything to
buying more goods and services from outside
 From using many supplier to
working with fewer suppliers in a partnership
 From relying on old market positions to
uncovering new ones
 From focusing on shareholders to
focusing on stakeholders

Shifts in Marketing Management
 From emphasizing tangible assets to
emphasizing intangible assets
 From building brands through advertising to
building brands through integrated communication
 From offline to online
 From mass market to target market
 From focusing on profitable transactions to
focusing on customer lifetime value
 From focus on gaining market share to
focus on building customer share
 From being local to being “Glocal”

Other Concepts in Marketing
 Green marketing
 Sustainable marketing
 Neuro marketing
 Ambush marketing
 Viral marketing
 Buzz or stealth marketing
 Permission marketing
 Herd concept in marketing
 Contextual marketing and so on…………