The document outlines various marketing concepts and elements, including the types of entities involved in marketing and key concepts such as exchange, production, product, selling, and marketing concepts. It emphasizes the importance of understanding consumer needs and creating value while incorporating societal responsibilities and integrated marketing practices. Additionally, it discusses the role of relationship marketing and differentiates between responsive, anticipative, and creative marketing strategies.

1. Dr. Aravind.T.S
www.aravindts.com
www.aravindts.com 1

2. THE SCOPE OF MARKETING
Marketers are involved with marketing
ten types of entities:
1. Physical Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
www.aravindts.com 2

3. A SIMPLE MARKETING SYSTEM
INDUSTRY
(A collection
of sellers)
MARKET
(A collection
of buyers)
COMMUNICATION
INFORMATION
GOODS & SERVICES
MONEY
www.aravindts.com 3

4. 5concepts of Marketing
 EXCHANGE CONCEPT
 PRODUCTION CONCEPT
 PRODUCT CONCEPT
 SALE CONCEPT
 MARKETING CONCEPT
www.aravindts.com 4

5. EXCHANGE CONCEPT
 Central idea in Marketing
 Exchange of product between seller and buyer
 Some firm operates with the belief that
business/marketing is simply a matter of giving a
product to someone in exchange of some money from
him .
VERY SHORTSIGHTED VIEW
www.aravindts.com 5

6. PRODUCTION CONCEPT
There is a category of firms which believes that
business can be managed by the
maximization of production and the
resultant lower unit cost .
‘MAXIMISE OUT PUT’ achieve a lower unit cost ;
and sell at a LOWER PRICE is their Mantra
www.aravindts.com 6

7.  The PRODUCTION CONCEPT holds that
consumers will prefer products that are widely
available and inexpensive
www.aravindts.com 7

8. PRODUCTION CONCEPT-FEATURES
High production efficiency
Low costs
Mass distribution.
Upgrading technology
www.aravindts.com 8

9. PRODUCTION CONCEPT
This concept makes sense in developing countries,
where consumers are more interested in obtaining the product
than in its features.
where a company wants to expand the market.
(This orientation has also been a key strategy of many Japanese
companies)
www.aravindts.com 9

10. PRODUCT CONCEPT
 Excellent product is the most important criterion for
the firms
 Obsessed with the product – quality and features
www.aravindts.com 10

11. The PRODUCT CONCEPT holds that consumers will
favor those products that offer the most quality,
performance, or innovative features.
www.aravindts.com 11

12. PRODUCT CONCEPT
Excellent quality
Super performance
Innovative features.
www.aravindts.com 12

13. PRODUCT CONCEPT
Product-oriented companies often design their products
with little or no customer input, trusting that their
engineers can design exceptional products.
www.aravindts.com 13

14. PRODUCT CONCEPT
A General Motors executive said years ago:
“How can the public know what kind of car they want
until they see what is available?”
(GM today asks customers what they value in a car and includes marketing people
in the very beginning stages of design)
www.aravindts.com 14

15. Diff.b/w Production & Product
 Production concept
seeks to win
Markets and Profits
via high volume of
production and low
unit cost
(quantitative)
 Product concept seeks
to achieve the same
result via product
excellence – improved
products, new
products, and ideally
designed products
,quality products
(Qualitative)
www.aravindts.com 15

16. Selling Concept
These firms believes that marketing’s major
concern is to aggressively push the products
and coax the customer to buy the offered
product.
www.aravindts.com 16

17. SELLING CONCEPT
The SELLING CONCEPT holds that
consumers and businesses, will ordinarily
not buy enough of the organization’s
products. The organization must therefore,
undertake an aggressive selling and
promotion effort.
www.aravindts.com 17

18. The Selling Concept
Under this concept the organization must undertake an aggressive
selling and promotion efforts to sell the products.
This concept assumes that consumers
must be coaxed into buying.
The company has to use selling and promotion tools to stimulate
buying.
High power Personal Selling , heavy Advertising ,large
scale sales Promotion ,heavy Price discounts
www.aravindts.com 18

19. The Selling Concept
The selling concept is practiced most
aggressively when they have overcapacity.
Their aim is to sell what they make rather than make
what the market want
www.aravindts.com 19

20. The Selling Concept
This theory assumes that customers who are coaxed into
buying a product will like it; and if they don’t, that
they won’t bad-mouth it or complain to consumer
organizations and will forget their disappointment and
buy it again.
(bad news travels fast, something marketers that use hard
selling should bear in mind)
www.aravindts.com 20

21. MARKETING CONCEPT
 The MARKETING CONCEPT holds that the key to
achieving its organizational goals consists of the
company being more effective than competitors
in creating, delivering, and communicating
customer value to its chosen target markets.
www.aravindts.com 21

22. MARKETING CONCEPT
The marketing concept holds that the key to
achieving organizational goals consists of the
company being more effective than its
competitors in creating, delivering, and -communicating
customer valueto its chosen target markets.
www.aravindts.com 22

23. MARKETING CONCEPT
• “Selling focuses on the needs of the seller; Marketing
on the needs of the buyer. Selling is preoccupied with
the seller’s need to convert his product into cash;
Marketing with the idea of satisfying the needs of the
customer by means of the product and the whole
cluster of things associated with creating, delivering
and finally consuming it.”
• (Theodore Levitt – Harvard Business school)
www.aravindts.com 23

24. SOCIETAL MARKETING CONCEPTS
• This concept calls upon marketers to build social and
ethical considerations into their marketing practices
• societal marketing concept, which 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
www.aravindts.com 24

25. Holistic Marketing
Every thing Matters
www.aravindts.com 25

26. •Marketing Dpt
•Senr.Management
•Other Dpt
•Communication
•Product & Service
•Channels
•Ethics
•Legal
•Environment
•Community
•Customers
•Channels
•Partners
www.aravindts.com 26

27. Integrated Marketing
 The Marketers task is to devise activities and assemble
fully integrated marketing programs to create,
communicate, and deliver value for consumers.
Many different marketing activities are employed to
communicate and deliver value
All marketing activities are coordinated to maximize
their joint effort .
www.aravindts.com 27

28. Design and
Implementation of any
one Marketing activity is
done with all other
activities in Mind.
www.aravindts.com 28

29. Marketing Mix
 MacCarthy Marketing
Mix
Product
•Product variety
•Quality
•Design
•Features
•Brand Name
•Packaging
•Sizes
•Services
•Warranties
•Returns
Price
•List price
•Discounts
•Allowances
•Payments Periods
•Credit terms
Promotion
•Sales Promotion
•Advertising
•Sales force
•Public relation
•Direct Marketing
Place
•Channels
•Coverage
•Assortments
•Locations
•Inventory
•Transport
www.aravindts.com 29

30. Internal Marketing
 Ensuring that everyone in the
organisation embraces appropriate marketing
principles, especially senior management
www.aravindts.com 30

31.  Smart marketers – “ Marketing activities with in the
company can be as most important as , or even more
than ,marketing activities directed out side the
company”
www.aravindts.com 31

32. Social Responsibility Marketing
Marketers plays an important
roll in social welfare
Eg :- Donating a percentage of
revenues to a specific cause
based on the revenue .
ITC note book
www.aravindts.com 32

33. Relationship marketing
 Key goal of this marketing is to develop deep ,
enduring relationship with all people or
organizations that could directly or indirectly affect
the success of the firm’s marketing activities
 Aims:- Mutually satisfying long-term relationship with
the key parties –
 Customers
 Suppliers
 Distributers
 Other marketing partners
www.aravindts.com 33

34. Responsive marketing, Anticipative marketing,
and Creative marketing.
A Responsive marketer finds a stated need
and fills it
An Anticipative marketer looks ahead to the
needs that customers may have in the near future.
A Creative marketer discovers and produces
solutions that customers did not ask for, but to
which they enthusiastically respond.
www.aravindts.com 34

35. Creative marketing
Sony exemplifies a creative marketer because it has
introduced many successful new products that
customers never asked for or even thought were
possible .
Sony goes beyond customer-led marketing: It is a
market-driving firm, not just a market-driven firm.
AkioMorita, founder-Sony corporation,
proclaimed that he doesn’t serve markets; he creates
markets.
www.aravindts.com 35

36. Company’s Sales come from two groups:
New customers
Repeat customers
Estimates shows that attracting a new customer can
cost five times as much as pleasing an existing one.
And it might cost 16 times as much to bring the
new customer to the same level of profitability as
that of the lost customer.
Customer retention is thus more
important than customer attraction.
www.aravindts.com 36

37. Needs
Wants
Demands
Products
Value
Cost
Satisfaction
Exchanges
Transactions
Relationships
Markets
Marketing
Marketers
1
2
3
4
5
6
www.aravindts.com 37

38. Marketing Channels
 Communication channel :- Deliver and receive
messages from target buyers (Mass media,
advertisement , bill board , posters , e mail, CDs,
Fliers, audiotapes etc)
 Distribution channels :-to display ,sell, or deliver the
physical products or service(s) to the buyer or user
.(Wholesalers ,retailers, and agents)
 Service channels to carry out transaction with
potential buyers (Warehouse, transportation co.,
banks, insurance co., that facilitate transactions.
www.aravindts.com 38

39. Marketing management
End of session 2
Thank you
www.aravindts.com 39