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Basic Concepts of Marketing

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Basic Concepts of Marketing

  1. 1. BASIC CONCEPTS OF MARKETING Dr. Kamal Kishor Pandey Associate Professor TMIMT-College of Management Teerthanker Mahaveer University, Moradabad Dr. Kamal Pandey
  2. 2. Marketing is Embedded in Everything we do--- From the clothes we wear ,to the websites we click onto the Ad’s we see. Dr. Kamal Pandey
  3. 3. MARKETING "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably" Dr. Kamal Pandey
  4. 4. Sears, Levis, GM, SONY, Xerox, Tesla all have confronted newly empowered customers and new competitors and have to Rethink their business Models. “Change or Die” • Jack Welch Dr. Kamal Pandey
  5. 5. Dr. Kamal Pandey The future is not ahead of us. It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations. Philip Kotler on Marketing
  7. 7. “In the Factory We make cosmetics, In the store We sell hope.” -Charles Revson Dr. Kamal Pandey
  8. 8. Dr. Kamal Pandey Marketing Task Love and respect your customers. Create a community of consumers. Rethink the marketing mix. Celebrate common sense. Be true to the brand.
  9. 9. Dr. Kamal Pandey WHAT IS MARKETING ? The essence of Marketing is a transaction - an exchange- intended to satisfy human needs and wants. There are three elements in the marketing process : (A) MARKETERS (B)WHAT IS BEING MARKETED (C) TARGET MARKET
  10. 10. Dr. Kamal Pandey 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.”
  11. 11. Dr. Kamal Pandey Core Marketing Concepts • Target markets and market segmentation • Marketplace, market- space, met markets • Marketers & prospects • Needs, wants, demands • Product offering and brand • Value and satisfaction • Exchange and transactions • Relationship and networks • Marketing channels • Supply chain • Competition • Marketing environment • Marketing program
  12. 12. Dr. Kamal Pandey Core Marketing Concepts Figure : A Simple Marketing System
  13. 13. Dr. Kamal Pandey Forces Impacting the Task Environment Socio-cultural Environment Technological Environment Legal-Political Environment Natural Environment Demographics Economics
  14. 14. Dr. Kamal Pandey Core Marketing Concepts Figure : The Four P Components of the Marketing Mix
  15. 15. Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Company Orientations Towards the Marketplace Dr. Kamal Pandey
  16. 16. Dr. Kamal Pandey Company Orientations Societal Marketing Concept The orientation of the firm typically guides marketing efforts Marketing Concept Customer Concept Product Concept Selling Concept Production Concept
  17. 17. Dr. Kamal Pandey (1) THE PRODUCTION CONCEPT Produce Sell Consumers Company Produce more & more Practically sells itself
  18. 18. Dr. Kamal Pandey (2) THE PRODUCT CONCEPT Produce Quality Products Sell Consumers Practically sells itself,if it gives most quality for money Buyers admire well-made products and can appraise product quality and performance.
  19. 19. Dr. Kamal Pandey (3) SELLING CONCEPT • Consumers have normal tendency to resist. Produce Sell it Consumers Aggressive selling & promotion efforts Making sales becomes primary function and consumer satisfaction secondary .
  20. 20. Dr. Kamal Pandey (4) MARKETING CONCEPT • “ LOVE THE CUSTOMER ,NOT THE PRODUCT ” Consumers Produce it Market it Learn what they want(MR) Sell what they want(Satisfy needs of customers)
  21. 21. Dr. Kamal Pandey (5) THE SOCIETAL MARKETING CONCEPT • It is Marketing Concept (+) Society’s well being. • Balancing of following three considerations while setting marketing policies : -Customer’s want satisfaction -Society’s well being -Company’s profits
  22. 22. SERVICE CONCEPT • Customers buy services, not products • Service model of marketing instead of selling the title to the products. • Hindrance: Mindset of the customer and marketer, and their unwillingness to experiment with this model. • Can be easily applied in businesses like automobiles, carpeting, furnishing, and for most consumer durable items. Dr. Kamal Pandey
  23. 23. EXPERIENCE CONCEPT • Create an experience around the product to make it memorable. • Reaffirm it with cues at every customer interaction point. • Experiences are inherently personal for a customer. • An experience should be built around a well defined theme. Dr. Kamal Pandey
  24. 24. Experience Concept (Contd.) • Companies must introduce cues that affirm the nature of the experience to the guest . • Eliminate anything that diminishes, contradicts, or distracts from the theme. • Customers purchase memorabilia as a physical reminder of an experience . • The more senses an experience engages, the more effective and memorable it becomes. Dr. Kamal Pandey
  25. 25. Dr. Kamal Pandey Figure : Contrasts Between the Sales Concept and the Marketing Concept
  26. 26. Dr. Kamal Pandey THREE LEVELS OF MARKETING • Responsive Marketing • Anticipative Marketing • Need Shaping Marketing
  27. 27. Dr. Kamal Pandey RESPONSIVE MARKETING It is the form of marketing when some company defines an existing clear need and prepare an affordable solution. (Recognizing that women wanted to spend less time for cooking and cleaning, led to the invention of modern washing machine, microwave oven etc.)
  28. 28. Dr. Kamal Pandey ANTICIPATIVE MARKETING It is a form of marketing when a company recognize an emergent or latent need, and come out with an affordable solution. Evian, Perrier anticipated growing market for bottled drinking water Anticipative marketing is more risky than responsive marketing; companies may come into market too early or too late, or may even be totally wrong about thinking that such a market would develop.
  29. 29. Dr. Kamal Pandey NEED SHAPED MARKETING The broadest level of marketing occurs when a company introduces product that nobody asked for and often could not even conceive of. (e.g. Sony Walkman, Sony Compact Disc ) “ I don’t serve markets. I create them.” Late Akio Morita, founder and chairman of Sony,
  30. 30. References • Irving J. Rein, Philip Kotler, and Martin Stoller, High Visibility (Chicago: NTC Publishers, 1998). • Jay Conrad Levinson and Seth Grodin, The Guerrilla Marketing Handbook (Boston: Houghton Mifflin, 1994). • Sam Hill and Glenn Rifkin, Radical Marketing (New York: Harper Business, 1999). • Philip Kotler, Irving J. Rein, and Donald Haider, Marketing Places: Attracting Investment, Industry, and Tourism to Cities, States, and Nations (New York: Free Press, 1993). • Neil H. Borden, The Concept of the Marketing Mix, Journal of Advertising Research, 4 ( June): 2–7. • E. Jerome McCarthy, Basic Marketing: A Managerial Approach, 13th ed. (Homewood, IL: Irwin, 1999). • Levitt, “Marketing Myopia,” p. 50. • Frederick E. Webster Jr., “Defining the New Marketing Concept,” Marketing Management 2, no. 4 (1994), 22–31. Dr. Kamal Pandey
  31. 31. Dr. Kamal Pandey