Que: When I say marketing what comes to your mind first?

Ans: Consumer satisfaction

Evolution of marketing
This concept has evolved through three successive stages Production Era

Sales Era
Marketing Era

Production Era
Manufacturers in this stage focused on increasing output while assuming that customers would seek out and buy reasonably priced and well made product. Executives with background in engineering and manufacturing shaped the firms strategy. More emphasis on efficiency and cost control.

Sales Era
This concept evolved in early 1930s. During this stage managers realized that to sell the product a firm want to make some promotional activity. This era was characterized by aggressive selling and usage of unethical practices to sell products.

Marketing Era
This era begins in the mid of 1950s. Companies identifies the importance of customer needs and wants. Marketing activities were directed towards two goals Customer orientation and profitability.

Production Orientation
Some industries remain at the production orientation stage. Production Orientation Sales Orientation

Other companies have progressed only to the sales orientation stage.

Production Orientation Sales Orientation Marketing Orientation

Many companies have progressed to marketing orientation stage.

Early 1930s Mid 1950s

1990s

Marketing Management concepts

Production Concept Product Concept
Consumer favor products that are available and highly affordable. Improve production and distribution. Consumer favor products that offers the most quality, performance and innovative features. Consumer buy the product if company promotes/sells the product.

Selling Concept
Marketing Concept Societal Marketing Concept

Focuses on needs/wants of target market & delivering satisfaction better than competitors. Focuses on needs/wants of target market & delivering superior value. Societys well being.

Production Concept
Believes that consumers will prefer products that are

readily available at reasonable prices.

Improvement In production and distribution efficiency

was main focus for the managements.

The production concept, though useful in some

situations, resulted in marketing myopia i.e. this concept focuses narrowly on their own objectives lose sight of real objectives of customers needs satisfaction.

Product Concept
This concept believes that consumers will

automatically favor products that offers most quality, performance and innovative features. Thus the important is on product development.
Continuous improvements in product and quality

also lead to marketing myopia.

Selling Concept
This concept believes that left to themselves

consumers and business will not buy enough to satisfy the sellers volumes.
Thus constant sales promotion efforts have to be

made in order to reach the required sales volumes.

The sells concept is centered on the idea of high

pressure selling to maximize sales volume and hence profits.

Marketing Concept
Believed that instead of make and sell, companies

should sense and respond. So the job is not to find the right customer for your product but find the right product for your customer. There are two orientation that supports this concept: 1. Reactive market orientation: You see the need and you respond to with a product.
2. Proactive orientation: You see a future need and you respond with a product. So by the time the need arrives in the market and your product is there.

Characteristics of Marketing Concept

First identify the needs of a target segment of a market. Design the most effective product that best meets the

requirements of the consumer.

Unlike the selling concept, marketing concept focuses on

the needs of the customer.

Correctly identify the target market and target market

consumers needs.
Implement integrated marketing throughout all d

departments in the organizations.

Aim at profitably by creating superior customer value.

Societal Marketing Concept

Is the marketing concept ethical enough? Marketing has to be made humane and

ecological, hence the societal approach was introduced.

Care should be taken to minimize the

environmental deterioration, hunger, poverty and moral breakdown.

Hence needs to be satisfied in a manner which

enhances and preserves consumers society and societys well being.

Core Marketing Concepts

Needs, Wants & Demands Markets Products & services

Exchange, Transactions and relationship

Value, Satisfaction &quality

What are consumers Needs, Wants and Demands?

Needs: State of felt deprivation for basic items such as

food, clothing and social needs.

Wants: Forms that a human need takes as they are

shaped by culture and individual personality characteristics.

Demands: Human wants backed by buying power and

willingness to buy.

Customers needs, wants and what leads to demand?

Needs are basic human requirements. People need food,

cloths, air. Shelter for basic survival.

People also have strong need of recreation, education and

entertainment.

Needs becomes wants when they are directed to specific objects. That might satisfy their needs.

An Indian needs food but wants pizza while hungry Chinese may want noodles. Thus wants are shaped by socio-cultural factors. Demands are wants for specific products backed by ability to pay. People need transport, many people want a car but only few can form the demand for a Mercedes car.

Modern Marketing system

Suppliers Competitors
Environment

Company(Marketer)

Marketing Intermediaries

Environment

End User Market

Marketing Mix
Set of controllable, tactical. Marketing tools that the firm blends to produce the response it wants in the target market.

The 4Ps of Marketing

Product

Promotion

C
Price

Place

The Marketing Mix

To achieve companys objective a marketing program

based on the most suitable marketing mix will drawn up. Marketing mix is made up of following factors: Product: Goods and services offered by a company to target market, to satisfy needs and wants. The different physical attributes of p[products such as design, features, quality, brand name, usage etc. Price: Money value that consumer pay to buy a product or service. Discounts, allowances, payment periods, credit facilities.

Place: Physical distribution activities through which the product moves from the factory to the customer. Include aspects of channels, coverage, location, transport, inventory and logistics management. Promotion: Activities of personal selling, advertising ad communicating product benefits and attributes to target consumers to persuade them to purchase.

Marketing mix Promotion

Advertising

A successful product or

service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional mix consists of:

Personal selling Sales promotion

Promotional Mix

Public Relation Publicity Direct Marketing

Market segmentation
Dividing a market into distinct group of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.

Market Segment: A group of consumers who respond in a similar way to a given set of marketing efforts.

Levels of Market Segmentation

Segment Marketing

Individual Marketing

Segme ntation

Niche Marketing

Local Marketing

Segment Marketing
Identifiable group within a market with similar : Wants Purchasing Power Geographical Location Buying attitudes

Niche Marketing
Narrowly defined group whose needs are not well served
Distinct needs Specialization

Less competition Size, profit and growth Potential

Individual Marketing
Marketing according to individual customer

Customized marketing Cars/cloths Architects Software

Local Marketing
Marketing program serving Needs & Wants of local customers.

Purpose of Segmentation
1. Identifying groups of customers with similar needs.

2. Analyze their characteristics & buying behavior. 3. Providing products matching with needs.

4.Satisfying needs while meeting org. objectives.

Segmenting Consumer Markets

Demographic Variables Age Gender Family Size Income Occupation Education Psychographic Variables Geographic Variables Region City Rural and semi-urban areas Behavioral Variables Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude toward product

Socioeconomic classification
Life style

Personality

Raj

Amit

Ankul

Pradeep