What is Marketing?• Simple Definition: Marketing ismanaging profitable customerrelationships.• Goals:1. Attract new customers.2. Keep and grow current customers.• Therefore; Is this a fair true definitionof Marketing?
• American Marketing Association (2007)defined Marketing as “the activity, setof institutions, and processes forcreating, communicating, delivering, andexchanging offerings that have valuefor customers, clients, partners, andsociety at large”.• But, How this definition was set up?
Evolution of Marketing ConceptProduction ConceptProduct ConceptSelling ConceptMarketing Concept
Marketing ConceptA Philosophy that achievingorganizational goals depends onKnowing the Needs and Wants oftarget market and delivering thedesired satisfaction better thancompetitors do.
Characterises of Marketing Concept• The marketing concept is not a seconddefinition of marketing. It is a managementphilosophy that guides an organization’soverall activities.• The marketing concept is not aphilanthropic philosophy, it should benefitthe organization as well as customers• This concept is a customer centric “senseand respond”.• Customer satisfaction is the major focusof the marketing concept.
• The purpose of Marketing concept is torivet the attention of marketingmanagers on serving broad class ofcustomers needs rather than on thefirms current product (Productionorientation) or on devising methods toattract customers to current product(Sales orientation).
Core Marketing Concepts• Needs, Wants, and Demands• Target Market, Segmentation andPositioning• Offerings and Brands.• Value and Satisfaction• Marketing Channels and Supply chain.• Competition• Marketing Environment.
New Marketing Realities• Network and Information technology• Globalization.• Deregulations.• Privatization.• Heightened Competition.• Industry Convergence.• Disintermediation.• Consumer buying power• Retail transformation.
• Hence, Marketing Orientation is a businessperspective that makes the customer the focalpoint of a company’s total operations.• Thus, to become a market-oriented business, it ishighly required to:1. Use Marketing intelligence to access to needsof customers, markets and competitors.2. Focus on Customers.3. Involve and support the entire workforce.4. Response to these needs.
• Is a firm that satisfies the immediate needsand wants of target markets always doingwhat’s best for consumers in the long run(Welfare)?• has emerged to enlightened marketing thatcompany should make good marketingdecisions by considering consumers’ wants,the company requirements, consumer long-runinterests and society’s long run interests.The Societal Marketing concept