Professional Documents
Culture Documents
Chapter 1
Marketing Definition:
Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy individual
and organizational goals.
Source: The American Marketing Association (AMA)
"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."
Kotler (2000)
1
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
2
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
5. Distribution
Study of distribution channel is important in marketing. For maximum sales and profit goods are required
to be distributed to the maximum consumers at minimum cost.
6. Promotion
Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in
accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of
marketing.
8. Marketing Control
Marketing audit is done to control the marketing activities.
Marketing Management
Chapter 1
Value is the consumers estimate of the products capacity to satisfy their requirements.
Exchange and Transactions
Exchange is the act of obtaining a desired product from someone by offering something in return. A
transaction involves at least two thing of value, conditions that are agreed to, a time of agreement and a
place of agreement.
Market
A market consist of all the existing and potential consumers sharing a particular need or want who might
be willing and able to engage in exchange to satisfy that need or want.
Thus, all the above concepts finally bring us full circle to the concept of marketing.
Importance Of Marketing:1.
2.
3.
4.
5.
6.
7.
8.
Marketing process brings goods and services to satisfy the needs and wants of the people.
It helps to bring new varieties and quality goods to consumers.
By making goods available at al places, it brings equipment distribution.
Marketing converts latent demand into effective demand.
It gives wide employment opportunities.
It creates time, place and possession utilities to the products.
Efficient marketing results in lower cost of marketing and ultimately lower prices to consumers.
It is vital link between production and consumption and primarily responsible to keep the wheel
4
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
and low cost of the products due to the large scales of production would be the right Marketing Mix for
the consumers.
But, they do not the best of customer patronage. Customers are in fact motivated by a variety of
considerations in their purchase. As a result, the production concept fails to serve as the right marketing
philosophy for the enterprise.
Product Concept
The product concept is somewhat different from the production concept.
The product concept holds that consumer does will favor those products that offer the most quality,
performance and features. Management in these product-oriented organizations focuses their energy on
making good products and improving them over time.
Yet, in many cases, these organizations fail in the market. They do not bother to study the market and the
consumer in-depth. They get totally engrossed with the product and almost forget the consumer for whom
the product is actually meant; they fail to find our what the consumers actually need and what they would
accept.
Sales Concept
The sales concept maintains that a company cannot expect its products to get picked up automatically by
the customers. The company has to consciously push its products. Aggressive advertising, high-power
personal selling, large scale sales promotion, heavy price discounts and strong publicity and public
relations are the normal tools used by organization that rely on this concept. In actual practice, these
organizations too do not enjoy the best of customer patronage.
The selling concept is thus undertaken most aggressively with unsought goods, i.e. those goods that
buyers normally do not think of buying, such as insurance, encyclopedias. These industries have perfected
various techniques to locate prospects and with great difficulty sell them as the benefits of their products.
Evidently, the sales concept too suffers from marketing myopia.
Marketing Concept
The Marketing concept was born out of the awareness that marketing starts with the determination of
consumer wants and ends with the satisfaction of those wants. The concept puts the consumer both at the
beginning and at the end of the business cycle. The business firms recognize that there is only one valid
definition of business purpose: to create a customer. It proclaims that the entire business has to be seen
5
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
from the point of view of the customer. In a company practicing this concept, all departments will
recognize that their actions have a profound impact on the companys to create and retain a customer.
Every department and every worker and manager will think customer and act customer.
The marketing concept holds that the key to achieving organizational goals consists in determining the
needs and wants of the target markets and delivering the desired satisfactions efficiently, than
competitors. In other words, marketing concept is a integrated marketing effort aimed at generating
customer satisfaction as the key to satisfying organizational goals.
It is obvious that the marketing concept represents a radically new approach to business and is the most
advanced of all ideas on marketing that have emerged through the years. Only the marketing concept is
capable of keeping the organization free from marketing myopia.
The salient features of the marketing concept are:
1.
2.
3.
4.
Consumer orientation
Integrated marketing
Consumer satisfaction
Realization of organizational goals.
6
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
Society
(Human welfare)
Company
(Profits)
Consumers
(Need/Want satisfaction)
Marketing Concept
The societal marketing concept calls upon marketers to balance three considerations in setting their
marketing policies namely firms profits, consumer want satisfaction and society interest.
Holistic Concept:Holistic Concept: this is the most recent concept of marketing which is based on the development, design
and implementation of marketing programs processes and activities from a broad integrated perspective.
It is the integration of internal marketing, integrated marketing, relationship marketing and performance
marketing concept.
7
Prof. Abhishek A Khadtare
Marketing Management
Chapter 1
(a) Internal Marketing Concept: This concept holds the idea to satisfy the internal people or employees
within the organization, so that they work for the satisfaction of the customers. The first step to satisfy the
customers is to satisfy the internal people first or to motivate them first.
(b) Integrated Marketing Concept: It refers to an approach where all the departments of the
organization work in a coordinated manner to support and serve the customers. Any single section cannot
serve the customers without the help of other sections. The customers satisfaction is achieved when all
the departments have the common goals and intention to serve the customers.
(c) Relationship Marketing Concept: It refers the long-term relationship with the customers. It
emphasizes on creating, maintaining and developing a long term value laden or value based relationship
with the target customers benefits and costs.
(d) Performance marketing: Holistic marketing incorporates performance marketing and understanding
the returns to the business from marketing activities and programs as well as their legal, ethical, social,
and environmental effects. Performance marketing thus includes: Financial accountability and Social
responsible marketing.
Products &
Senior Management
Other departments CommunicationsServices
Channels
Marketing Department
Internal
Marketing
Integrated Marketing
Holistic
Marketing
Performance
Sales revenue
Marketing
Brand & customer equity
Ethics
Relationship Marketing
Community
Environment
Customers Channel
Partners
Marketing Management
Chapter 1
Factory
Focus
Existing
Products
Means
Ends
Selling and
Profits through Sales volume
Promoting
Starting Point
Market
Focus
Means
Ends
Customer NeedsIntegrated
Profits through Customer Satisfaction
Marketing
Marketing Management
Chapter 1
the customer by mean of the product and the whole cluster of thing associated with creating delivering
and finally consuming it.
Selling
Selling starts with the seller, Selling
Marketing
Marketing starts with the buyers. Marketing
existing products.
Selling emphasizes on profit. It seeks to
customer
buyers.
Selling views business as a goods
customers.
Marketing views business as a customer
producing processes.
It over emphasizes the exchange aspect
satisfying processes.
It concerns primarily
without
6.
caring
for
the
value
the
needs
into
products
with
the
and
vale
mix.
Emphasizes
accepting
the
existing
of the customers.
Emphasiss on innovation of adopting the most
innovative technology.
production.
Sellers motives dominate marketing
communications.
10
Transportation,
8.
storage
and
other
Marketing Management
11
Chapter 1
task.
Different departments of the business
operate separately.
13
14.
The
firms
which
practice
selling
function.
Selling views the customer as the last
11
Prof. Abhishek A Khadtare