This document discusses various marketing concepts used by organizations, including the production concept, product concept, selling concept, marketing concept, and holistic marketing concept. It provides details on each concept, such as the production concept focusing on inexpensive mass-produced goods. The holistic marketing concept recognizes the interdependencies between marketing programs, processes, and activities. It has four components - relationship marketing, integrated marketing, internal marketing, and social responsibility marketing. The document also discusses fundamental marketing concepts like customer value, needs, wants, demands, and value delivery processes.

1. Company’s orientation towards the
marketplace :
The various concepts used by
organizations can be classified as
follows :
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Holistic marketing concept

2. Production concept
• Holds the view that mass distributed inexpensive products
are required to expand the market
e.g. Chinese products, take advantage of inexpensive
labour and low costs to dominate the market
Product concept
• Holds the view that products of good features and quality
will attract the market itself
• It might , but not on a long standing basis
• Unless the distribution, pricing, advertisements are correct
the concept will not work

3. Selling concept
• Holds the view that products should be aggressively sold /
promoted
• Hard sell is the method
• Used extensively by unsought goods
– e.g. insurance,
• Assumes that consumers will buy a product and
eventually like it and will not complain even if there is a
problem
• Sell more, to make more money and more profit

4. Holistic marketing concept
This concept is based on the development, design and
implementation of marketing programmes , processes and
activities that recognises their breadth and interdependencies.
This concept assumes that everything matters in marketing.
Four components of holistic marketing are :
– Relationship
– Integration
– Internal
– Social

5. Relationship marketing is the process of building a mutually
healthy and beneficial relationship between the marketer and
the prospect.
Four key constituents for marketing are : customers,
employees, marketing partners ( channel partners, suppliers,
distributors, dealers) and members of the financial
community(shareholders, investors, analysts).
The outcome of this relationship is building of a strong
marketing network. The operating principle of this network is
that,“build the network and profits will follow”

6. A growing number of organizations are customizing offers,
services and messages to suit individual needs. These
companies collect information on each customers past
transactions, demographics, psychographics , media and
distribution preferences. They hope to capture a large share
of each customer’s expenditures by building high customer
loyalty and focusing on customer lifetime value.
The ability of a company to deal with customers individually
has become possible because of advances in factory
customization, computers, internet, database marketing
software.

7. Integrated Marketing
The marketer has to devise the marketing programs to create,
communicate and deliver value to the consumers.
One traditional depiction of marketing is in terms of the
marketing mix.
It is a set of marketing tools that the firm uses to pursue
its marketing objectives in the target market.
McCarthy classified the mix into four broad groups, which he
called the 4 P’s of Marketing: Product, Price, Promotion, Place.

8. Product
 Product variety
 Quality
 Design
 Features
 Brand name
 Packaging
 Sizes
 Services
 Warranties
 Returns

9. Price
 List Price
 Discounts
 Allowances
 Payment period
 Credit terms

10. Promotion
 Sales promotion
 Advertising
 Sales force
 Public relations
 Direct marketing

11. Place
 Channels
 Coverage
 Assortments
 Locations
 Inventory
 Transport

12. From a sellers point of view, each of the component signifies a
tool to influence a buyer.
From a buyers view, each of this connotes a customer value.
Robert Lauterborn suggests that the seller’s 4 P’s correspond to
4 C’s as follows:
Four P’s Four C’s
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication

13. A special insight
In this context what needs to be understand is that the 4P’s have
to be added with two more Ps’.
6Ps’ make a holistic framework.
4P’s + 5th P (people) + 6th P (process).
People will have to be oriented towards the market place and
the processes will have to be constantly reviewed to ensure that
every business action is in sync with the market philosophy.
Only when this concept sinks into an organizational approach
will Holistic Marketing have truly been assimilated.

14. Two key themes of integrated marketing are:
1. Many marketing activities are strung together
to deliver value and customer satisfaction
2. All these activities are co-ordinated to get the
maximum effect.
An integrated marketing communications
strategy involves choosing communications
that reinforce and complement each other.

15. Internal Marketing
Holistic marketing incorporates internal marketing, ensuring that
everyone in the organization embraces appropriate marketing
principles, especially senior management.
Internal marketing should work at two levels :
One, between the various marketing functions like sales,
advertising, product management, marketing research must
work together. All these functions must be co-ordinated from
the customer’s point of view.
Next, the various other departments like production, finance, R
& D should also “think customer”. Marketing orientation must
become pervasive throughout the company.

16. Social Responsibility Marketing
Holistic marketing tells us the importance of understanding
broader concerns and the ethical and social issues in the
context of marketing actions.
One should approach issues with ‘humanistic marketing’ and
‘ecological marketing’
Social marketing concept holds that the marketing company
should deliver value to its target customer, in a way better than
competition does, by protecting social and environmental needs
and enhance social well being.
Cause related marketing, i.e. building market relationships with
a cause or causes for mutual benefit is what companies aspire
for.

17. Fundamental Marketing Concepts
• Needs ,wants, demands
• Value , satisfaction
• Segmentation, Target markets, Positioning
• Offerings, brands
• Marketing channels, Supply chain
• Competition
• Marketing Environment
• Planning

18. Needs, Wants, Demands
Needs are basic human requirements.
Wants are directed to specific objects that satisfy a need.
Demands are wants for specific products backed by ability to
Pay.There are five types of needs :
1.Stated Needs (customer says he wants an inexpensive car)
2.Real Needs ( customer wants a car whose operating cost is
low, not the initial price)
3.Unstated Needs (customer expects good service from dealer,
does not ask for it)
4.Delight Needs(customer would like to get extra fittings at no
cost)
5.Secret Need (customer wants to be seen a savvy consumer
owning the car)

19. Value , Satisfaction
Value reflects the perceived tangible and intangible benefits and
costs to the customers.
Value is a combination of quality, service and price (QSP) ,
called the ‘customer value triad’.
Value increases with quality and decreases with price.
Marketing constantly works on increasing and communicating
value to the consumers.
Satisfaction is the cumulative comparative judgements resulting
from the product’s perceived performance or outcome in
relation to his or her expectations. Satisfaction is directly
proportional to expectations and exceeds and decreases with it.

20. • Customer value
The Customer delivered value is the difference between
total customer value and total customer cost.
The total customer value is the bundle of benefits
customer expects from a given product or service.
Total customer cost is the bundle of costs customers
expect to incur in evaluating, obtaining, using and
disposing of the product or service.

21. Now we shall go to the section of how marketing creates value
for the consumer.
Marketing has to constantly create and deliver value to the
consumer.
Value , we saw in the previous chapter as , a sum total of
tangible and intangible perceived by the consumer for the price
that he pays.
Marketers must first choose the value delivery process and
communicate superior value by fine tuning the process

22. Value delivery process :
The delivery process has three stages , as is explained below
– First phase : choosing the value
This is the first phase of determining what should be the value
offered to the consumer.
• Homework before any product is marketed
• Segment the market, select the target and develop the
value positioning
• STP – seg, targeting, positioning is the essence of
marketing
– Second phase: providing the value
• Developing product, features, pricing, sourcing, making,
distributing the product

23. Third phase: communicating the value
Utilise sales force, promotion, advertising, mass
communication
Nirmallya Kumar, has proposed a 3 V approach to marketing
3V’s : Value segment
Value proposition
Value network
• Value segments – customers ( his/her needs)
• Value proposition – product / offering
• Value network - channel / method of delivering the
value

24. The concept of Value Chain :
• Michael Porter’s value chain is a tool for
creating more customer value
According to this model, every business
gets into nine value creating activities ,
out of which five are primary activities
and four are support activities

25. • Primary activities :
bringing materials (inbound logistics) ,
converting them into final products (operations)
shipping out final products (outbound logistics)
marketing (marketing and sales)
servicing (service)
• Support activities : procurement, HR, technology
development and firm infrastructure.
The firm constantly examines costs and performance in each of
these value creating activity and looks for ways to improve the
function. The firm analyses the competitors costs and
benchmarks against which to perform. It also establishes ‘ best
practices’ and makes them industry standards.

26. • All of these must be aligned to the core business
processes
• Today companies are partnering with suppliers and
distributors to create a superior value network or a supply
chain
The need for developing Core competencies
• Core business processes need resources – labour, power,
materials, machines, information
• Nurture resources to gain better competencies
• Outsource others to reduce overheads and concentrate on
the core

27. Holistic marketing framework
and customer value
Holistic marketing talks about three key
management questions on value.
Value exploration, Value creation, Value
delivery
Let us examine each in detail.

28. 􀂙 Value exploration
- Must integrate, cognitive space, competency of the
company and resource space of the organization
- Cognitive space : includes existing and latent needs
- Competency space : understanding scope of
business and physical and knowledge competencies
- Resource space : partners who can collaborate with
them

29. 􀂙 Value Creation
- Marketers must identify the following:
- Customer benefits
- Utilise core competencies
- Manage business partners
- To realign core competencies :
- Define the business concept
- Reshape the scope of business
- Position (re) the company’s identity in people’s
minds

30. 􀂙 Value Delivery
- Customer relationship : constantly
understand customer needs
- Internal resource management : single
family of software to link all business
processes
- Business partnership allows to manage
complex business relationships

31. Who Markets?
A marketer is someone who has a product, service to offer /
sell. He seeks response from the other party, a prospect, the
one who receives the message and decides to act upon it.
Marketers stimulate demand in the marketplace for their
company’s products; demand management is an important
function for any marketing department.
Marketers seek to influence the level of demand, time of
demand and composition of demand.

32. Eight states of demand are possible :
1. Negative demand : Consumers dislike the product
and may even pay a price to avoid it.
2. Non Existent demand : Consumes may be
unaware or uninterested in the product.
3. Latent demand : Consumers may share a strong
need that cannot be satisfied by an existing product.

33. 4. Declining demand : Consumers buy less frequently or not
at all.
5. Irregular demand: Consumer purchases vary on
occasional basis, seasonal, weekly, monthly.
6. Full demand : Consumers are adequately purchasing
expected levels of products
7. Overfull demand : More consumers want the product, but
can’t be satisfied
8. Unwholesome demand: Consumers are attracted to
products that have undesirable social consequences

34. What are the tasks of Marketing
management
• Developing marketing strategies and plans
• Capturing marketing insights
• Connecting with the consumers
• Building strong brands
• Shaping the market offerings
• Delivering value
• Communicating value
• Creating long term growth

35. Developing marketing strategies and plans
– Identify long and short term potentials
– Make strategic and tactical plans
• Capturing marketing insights
– Closely monitor marketing environment
– Gather information both at micro and macro levels
– Establish marketing information system, marketing
research system, marketing implementation system,
marketing control system

36. Connecting with the consumers
– Develop strong long term relationship with
customers
– Where , what , why they buy is to be understood
– Segment the market and identify the targets in each
group
Building strong brands
– Develop products with strong brand names
– Establish these brands, monitor them and keep
evaluating them

37. Understand competition
• Shaping the market offerings
– Product quality , design, shape, price, maintenance,
after sales service, discounts, schemes, credit terms
• Delivering value
– Determine channels of distribution
– Make it available within easy reach of the customers

38. Communicating value
– Develop and run marketing communications to
inform, persuade, remind consumers directly or
indirectly about the brands they sell
– Develop mass programmes, sales promotions, direct
selling, public relations, interactive marketing and
other activities
• Creating long term growth
– Initiate programmes to constantly monitor growth
– Product relaunches, new product development
,evaluating marketing programmes should be
constantly undertaken