Fundamentals of Marketing

Fundamentals of Marketing

Soma Giri

Introduction

Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons

• “Marketing is management processes for identifying, anticipating and satisfying

consumers’ requirements profitably”

• “The activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients,

partners, and society at large

• “Satisfying needs and wants through an exchange process” – Philip Kotler

• “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 objectives.”

Exchange Process

PRODUCTION ERA Sale ERA Marketing ERA

1930 1950 Present

Industrial Revolution

Customer Experience

(1998 -Present)

Customers

Evolution of Marketing

The

F

irm

/ Co

mpa

ny

Product(to 1950s)

Production(to 1960s)

Selling(1950 - 1960s)

Marketing(1970 -

Present)

♠ Prevailed from the time of the industrial revolution until the early 1950's

♠ The idea that a firm should focus on those products that it could produce most

efficiently and that the creation of a supply of low-cost products would in and of

itself create the demand for the products.

♠ The key questions that a firm would ask before producing a product were:

♠ Can we produce the product?

♠ Can we produce enough of it?

♠ At the time, the production concept worked fairly well because the goods that were

produced were largely those of basic necessity and there was a relatively high level

of unfulfilled demand.

♠ The production concept prevailed into the late 1920's.

♠ Around this time (Mass Production), firms began to practice the sales

concept (or selling concept), under which companies not only would produce the

products, but also would try to convince customers to buy them through advertising

and personal selling. Before producing a product, the key questions were:

♠ Can we sell the product?

♠ Can we charge enough for it?

♠ The sales concept paid little attention to whether the product actually was

needed; the goal simply was to beat the competition to the sale with little regard to

customer satisfaction.

♠ Marketing was a function that was performed after the product was developed and

produced, and many people came to associate marketing with hard selling. Even

today, many people use the word "marketing" when they really mean sales.

♠ 1970s till 1980s

♠ Focus was the product and the effectiveness

♠ The development and research was at the forth front because of changed needs it

was important to produce the right things and to be innovative

♠ that means that the best product wins, which means getting the most sales

♠ Product concepts seeks to achieve result via product excellence. And emphasis on

quality assurance

♠ Myopia when organization love product its leads to marketing myopia because the

focus is on product rather the customers needs

♠ It starts with consumer want and ends with satisfaction of those wants

♠ It is rest on four pillars and they are target market, costumer need, integrated

marketing and profitability

♠ Profit through consumer satisfaction

What do customers want? Can we develop it while they still want it? How can

we keep our customers satisfied?

♠ In response to these discerning customers, firms began to adopt the marketing

concept, which involves:

Focusing on customer needs before developing the product

Aligning all functions of the company to focus on those needs

Realizing a profit by successfully satisfying customer needs over the long-term

♠ When firms first began to adopt the marketing concept, they typically set up

separate marketing departments whose objective it was to satisfy customer needs.

♠ Marketing Promotes Product Awareness to the Public

♠ Marketing Helps Boost Product Sales

♠ Marketing Builds Company Reputation

Old Marketing and New Marketing Concept

Old Concept or Production Oriented Concept

♠ Its stresses upto production

♠ Its all about physical distribution of good and service from producer to

consumer

♠ Its start after good produced and ends after good have been sold

♠ It does not provide any allied activity of marketing

♠ The ultimate object of marketing is to maximize the profit by maximize the

sales

New Marketing Concept or Customer Oriented Concept

♠ According to this concept customer is king, customer satisfaction is prime

object of an enterprise

♠ Need and want of customer must be identified properly and deeply

♠ Production accordance the need and wants

♠ All resources must utilized to the best extent so minimized the cost of

production

The Old Marketing Thinking

Perspective 1 :Connections with customers

The New Marketing Thinking

Be market and customer centered

Target selected market segments or

individuals

Focus on customer satisfaction and value

Develop customer relationships

Keep old customers

Grow share of customer

Serve profitable customers, “fire” losing

ones

Connect with customers directly

Develop customized products

Be sales and product centered

Practice mass marketing

Focus on products and sales

Make sales to customers

Get new customers

Grow share of market

Serve any customer

Communicate through mass

media

Make standardized products

The Old Marketing Thinking

Perspective 2 :Connections with Marketing Partners

The New Marketing Thinking

Enlist all departments in the cause of

customer satisfaction and value

Partner with other firms

Leave customer satisfaction and

value to sales and marketing

Go it alone

The Old Marketing Thinking

Perspective 3 :Connections with the World Around us

The New Marketing Thinking

Market locally and globally

Assume social and environment

responsibility

Market for non-profits

Conduct e-commerce in market places

Market locally

Assume profit responsibility

Market for profits

Conduct commerce in market

places

☺ Helping in Production Development

☺ More Social satisfaction

☺ Impact towards National Economy