core concepts of marketting

TerminologiesTerminologies

• Need, want and demand• Market• Business• Marketing• Concept

Need, want and Need, want and demanddemand

NeedNeed: Is: Is the state of felt deprivation. the state of felt deprivation.The state at which our inner self demand The state at which our inner self demand

some thing.some thing. For example: For example:

Basic needs= Foods, Shelter, Clothes & Basic needs= Foods, Shelter, Clothes & FMCGs etc.FMCGs etc.

Want: it is something that human get from different culture and personality.This can be say "Human wants is to satisfy their needs. Food is our "need. In this case, you can choose to have fast foods in western countries and hot cakes in countries like pakistan, it depends upon personalities and culture.

DemandDemand

Is from the human wants that Is from the human wants that are backed by the buying power.are backed by the buying power.

Have in mind that, "buying Have in mind that, "buying power" is a disposal income. power" is a disposal income. ExampleExample: a person want to : a person want to

purchase a motor car then he purchase a motor car then he will have the option of Suzuki, will have the option of Suzuki, Toyota and Honda then he will Toyota and Honda then he will decide according to his paying decide according to his paying

capacity.capacity.

MarketMarketA place where buyers and sellers A place where buyers and sellers

are meet for the purpose of are meet for the purpose of exchanging or doing transactions exchanging or doing transactions

for their own satisfaction.for their own satisfaction.

The set of all actual and potential The set of all actual and potential buyers of a product or servicebuyers of a product or service..

Example: like Asian market & European Example: like Asian market & European market.market.

BusinessBusiness

• Any legal activity that is done for the sake of profit at any level and at any cost.

• An economic system in which goods and services are exchanged for one another or money on the basis of their perceived worth.

• Example: cotton ginning miles, sugar miles.

MarketingMarketing• Satisfying customers with profitability.• Delivery of satisfaction to the customers.• Satisfying needs and wants through an

exchange process (Philip Kotler ). • The management process responsible for

identifying , anticipating and satisfying customer requirements profitably (Chartered Institute of Marketing ) .

• Example: marketing of Pepsi, nestle etc.

ConceptConcept

• It is an idea or technique that can be implemented for achievements of specific objectives and goals.

• An idea of something formed by mentally combining all its characteristics or particulars.

• Example: core concept of marketing.

Five core concepts of Five core concepts of marketingmarketing

• Production concept

• Product concept

• Selling concept

• Marketing concept

• Societal marketing concept

Five core concepts of Five core concepts of marketingmarketing

Core concepts

Production selling

product marketing

socitiel

Production conceptProduction concept

The idea that consumers will The idea that consumers will favour products that are available favour products that are available and highly affordable and that the and highly affordable and that the

organization should therefore organization should therefore focus on improving production and focus on improving production and

distribution efficiencydistribution efficiency..

Example of production conceptExample of production concept

HistoryHistory: : Honda has been the world's largest motorcycle Honda has been the world's largest motorcycle manufacturer since 1959 as well as the world's largest manufacturer since 1959 as well as the world's largest

manufacturer of internal combustion engines measured by manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion volume, producing more than 14 million internal combustion

engines each year engines each year ..

HondaHonda usually follows the production concept to satisfy usually follows the production concept to satisfy their customers & to achieve the company’s goals.their customers & to achieve the company’s goals.

(More you produce more you earn)(More you produce more you earn)

Product concepProduct conceptt

The idea that consumers will favor products The idea that consumers will favor products offers the most quality, performance and offers the most quality, performance and

features and that there organization should features and that there organization should therefore devote its energy to making therefore devote its energy to making

continues product improvementscontinues product improvements..

Example of product conceptExample of product concept

Nokia highly used the product concept Nokia highly used the product concept and provides variety of cell phones and provides variety of cell phones

having some thing new and innovative having some thing new and innovative in every new coming cell phone. in every new coming cell phone.

Selling conceptSelling concept

The idea that consumers will not buy The idea that consumers will not buy enough of the firm’s product unless it enough of the firm’s product unless it undertakes a large scale selling and undertakes a large scale selling and

promotion effortpromotion effort..

Example of selling concept Example of selling concept

Pepsi hires the cricket Pepsi hires the cricket stars for their promotional stars for their promotional activates for raising their activates for raising their

sales.sales.

Marketing conceptMarketing concept

The marketing management philosophy that The marketing management philosophy that achieving organizational goals depends on achieving organizational goals depends on

knowing the needs and wants of target knowing the needs and wants of target markets and delivering the desired markets and delivering the desired satisfactions to buyers better then satisfactions to buyers better then

competitors.competitors.

EExxaammppllee

The selling and marketing The selling and marketing conceptsconcepts

Factory existing product selling and promoting profits through sale volume

Starting focus means endspoint

Market costumer need integrated market profit through costumer satisfaction

Societal marketing Societal marketing conceptconcept

A principle of enlightened marketing A principle of enlightened marketing that holds a company should make that holds a company should make

good marketing decisions by good marketing decisions by considering consumers wants the considering consumers wants the

company’s requirement costumer’s company’s requirement costumer’s long term interests and society’s long long term interests and society’s long

run interests.run interests.

EExamplexample

Why strategies to be develpedWhy strategies to be develped

• To create goodwill.

• To make maximum profit.

• To make profitable relationship with costumers.

• Satisfying costumers as per companies objectives.

• To promote sales.

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