Lect2 12.9.14 (marketing concepts)

Marketing Lecture 2

12/09/2014

PGDPM

[email protected]

What does marketing Means to you?

‘Marketing’ means different things to different people

The Marketing Function is the Process of bringing Buyers and Sellers together

PRODUCERS

MARKETING

Marketing is Performed by All Organizations

CONSUMERS

Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

Marketing is not just about advertisement and Sales promotion

Marketing is a Philosophy

Way of doing a business

• The Industrial Revolution gave rise to large scale manufacturing, so this personal contact ended.

• With mass production came mass markets and mass distribution.

• Manufacturers were no longer able to offer a personalised service, and techniques of marketing were developed to fill this gap.

Evolution of Business Models and the role of Marketing

Societal

Mktg

MarketingSellingProductProduction

As business philosophy has evolved, so has the role of marketing…customer satisfaction is now

at the core of most successful corporations

Marketing Philosophies

Production Concept:

•The whole focus of the company is the production

•Give them better and cheaper products

•we can do this by :

•company improving

• production

•distribution

•Good method if:

•demand is higher than supply

•cost of producing is too high

Consumers wanted just basic transportation at an

affordable price

Ford Model T car

Marketing Philosophies

Product Concept:

•The whole focus is to improve the product features

make the product better

•The idea is that if we make it better they will keep buying it

•problem with this:

•May be the customers want something different

•other products may replace this product

Marketing Philosophies

Selling Concept:

•The company pushes promotion and advertising

•The idea is that the more we promote, the more they will buy

•we use this method to educate and tell the customers about

the product or service

•This is not a complete process. starts with the product then

they sell....unlike the marketing process

Marketing Philosophies

Marketing Concept: (this is the one we will use)

•this is a complete approach

•process:

•first find out the needs and wants of customers

•then develop and deliver the goods that will satisfy these

needs and want

•this process starts with the needs and wants and then builds

the product...unlike the selling concept

•most major successful companies use this concept

Marketing Philosophies

Societal Marketing Concept:

•This is the newest marketing philosophy

•It is the marketing concept with a conscience

•they think of what is good for society

•they think about environmental items

•they think about a better life for people

•they think about the world and social impact

Designing a Customer-Driven Marketing Strategy

Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance, or innovative

features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of target markets & delivering value better than

competitors

Company (Orientations, Philosophies, Concepts) Towards the Marketplace

Societal Marketing Concept

Focuses on needs/ wants of target markets & delivering value better than

competitors that preserves the consumer’s and society’s well-being

Thank you