Marketing Concepts

adopted by companies or marketers in relation to market Marketing concepts are the philosophies, beliefs or attitudes adopted by companies or marketers in relation to market their product. Some say they are consumer oriented, some say they value their customers and some say customers are their kings. Various types of marketing concepts: A. Traditional Concepts B. Modern Concepts 1. Exchange concept 1. Marketing concept 2. Production concept 2. Societal concept 3. Product concept 3.Holistic marketing concept 4. Selling concept

(a) The selling concept (b) The marketing concept Focus Ends Means Starting point Factory Existing products Selling and promotion Profits through sales volume (b) The marketing concept Target market Customer needs Integrated marketing Profits through customer satisfaction

Features of Modern Marketing Concepts Modern marketing is consumer oriented. It begins and ends with Consumers. It precedes & succeeds production. It is competition oriented. Its strategy is target marketing The distribution policy under modern marketing is direct marketing and direct selling.

Modern marketing relies on information. It emphasizes mutuality of benefit. Business networks. Emphasis on retaining customers Marketing on the net. Shifting from international to borderless world marketing. Innovation. Business Process Outsourcing. Branding shifting values.

Operational Model for Implementing the Philosophy of the Marketing Concept is the: Marketing Mix

Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix.

The Marketing Mix Consists of Four Basic Strategic Variables (the four “Ps”) Product Strategy Price Strategy Promotional Strategy Place Strategy (Channels of Distribution)

The role of marketing management is to mix or blend these four strategic variables in such a way as to meet the needs of... THE TARGET MARKET Product Price Promotion Place Target Market

Product Goods manufactured by organizations for the end-users are called products. Products can be of two types - Tangible Product and Intangible Product (Services) An individual can see, touch and feel tangible products as compared to intangible products. A product in a market place is something which a seller sells to the buyers in exchange of money.

Price The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa. Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers.

Place Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet.

Promotion Advertising. Word of mouth Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Like: Advertising. Word of mouth Lately three more P’s have been added to the marketing mix. They are as follows: Packaging- Attractive, transport, sale & exchange. People- to whom and through whom goods are being sold. Public relations- increase awareness through public relations (Customers, Govt., employees, retailers, wholesalers, press, ) Politics- (should go in accordance with rules & regulations made by law makers.)

Marketing Mix Product Place Target Market Price Promotion Product Variety Quality Design Features Brand name Packaging Size Services Warranties Returns Place Channels Coverage Assortments Locations Inventory Transport Target Market Price List price Discounts Allowances Payment period Credit terms Promotion Sales promotion Advertising Sales force Public relations Direct marketing

Utility/Importance of Marketing Mix Helps in understanding important tasks of marketing. Important tool of marketing programme. It promotes better utilisation of limited resources. Facilitates the meeting of different requirements of customers. It provides customer satisfaction. It helps in goal achievement. It facilitates communication. It helps in establishing relations with customers. It helps in developing new products.

Factors affecting marketing Mix Marketing Factors Marketing planning Brand policy Package policy Advertisement policy Distribution channels Physical distribution Policy Pricing policy Market research Product life cycle Market segmentation (Gender, price, income, interest, location, region etc) Market factors Consumer behaviour Competition Distribution pattern System. 4. Government control.

MARKETING MANAGEMENT

Acc. to Philip Kotler, “The analysis, planning, implementation and control of programmes designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organisational objectives.” It is the art & science of choosing the target markets and getting ,keeping and customers growing through creating, delivering and communicating superior customer value. Customer Satisfaction Profit maximization

Marketing Management tasks Converting negative demand into positive demand. Eg: air travel Conversional Marketing Transforming latent demand into actual demand. Eg: Nano car Developmental Marketing Remarketing To revitalize the product Eg: hi-tech products To monitor the demand level and maintain it Maintenance marketing

Marketing Environment The Company’s marketing environment consists of "the actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers”

Types of Marketing Environment Suppliers Demographic Economic Intermidiaries Micro Environment Macro Environment Competitors Technological Political Customers Publics Socio-cultural

Macro Environment 1.Demographic Environment 2.Economic Environment The statistical study of human population and its distribution. Eg age, gender, income, religion. 2.Economic Environment In order for an economy to exist there must be a ‘market’. A ‘market’ exists where consumers have money to spend and are willing to spend it. The economic environment is a significant force that affects the marketing of any organisation: eg unemployment, inflation, interest rates. It also influences business cycles such as: prosperity recession recovery. These impact on what people buy, when and how.

3.Socio-Cultural factors Marketers are faced with changing socio-cultural patterns, lifestyles, social values and beliefs. Changes that have significant marketing implications: Emphasis on quality of life. Changing gender roles. Attitudes towards health, nutrition and well-being. Impulse buying. Desire for convenience and a premium on time.

The five categories affecting political–legal influences on marketing: 4.Political factors The five categories affecting political–legal influences on marketing: Monetary and fiscal policies. Social legislation and regulations. Government relationships with individual industries. Legislation specifically related to marketing. The provision of information and the purchase of products.

5.Technological factors Technology has had an impact on our lifestyles, work, leisure, consumption patterns and economic well-being. Technology is a mixed blessing: it may improve our lives in one area while creating environmental and social problems in another.

Micro Environment 1.Customers To identify and anticipate the needs of the customers, a company should gather information about them. 2.Competitors Companies face competition from three main sources: Brand—from manufacturers of similar products. Substitute products—dissimilar products satisfying the same needs. Indirect—other firms trying to win customers purchasing power.

3.Suppliers Organisations which provide the firm with the items it needs to conduct business. For production of goods and services company requires lot of inputs. The firms and individuals who supply the inputs or resources needed by the company to produce goods and services are known as suppliers.

4.Marketing Intermediaries Defined as independent business organisations that directly assist the flow of products and services between a marketing organisation and its markets. Resellers—wholesalers and retailers: the middlemen. Facilitating organisations that provide transportation, warehousing, financing and other supportive services needed to complete the exchange between buyer and sellers. They complete the trade or channels of distribution.

5.Public Public comprises of consumers, labour unions, press & media, Govt. officials etc. These people affect directly or indirectly the marketing decisions of the company so before implementing any policy or procedure any company should take into consideration the view point of the above mentioned people.

Impact of Environment on Marketing Direct Impact Indirect Impact Consumers, shareholder, Suppliers, competitors, labour org and govt. officials (they affect plans, policies & strategies.) Economical, political, Socio-cultural and Technological factors. (They affect investment, org & structure)