1. Development of the Modern Marketing Concept Dr Brian Monger Copyright January 2013. This Power Point program and the associated documents remain the intellectual property and the copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These notes may be used only for personal study associated with in the above referenced course and not in any education or training program. Persons and/or corporations wishing to use these notes for any other purpose should contact MAANZ for written permission.

2. MAANZ International MAANZ International, is a Not for Profit, internet based professional and educational institute which has operated for over 25 years. MAANZ International offers Professional Memberships; Marketing Courses (Formal and Short) And Marketing Publications www.marketing.org.au Marketing In Black and White2

3. Dr. Brian Monger Brian Monger is the CEO of MAANZ International and a Professional marketer and consultant with over 40 years experience. He is highly active on social media – including Linked In, where he owns, manages and moderates groups with about 1 million members Marketing In Black and White3

4. Development of the Modern Marketing Concept When WW II ended, marketers found they could sell almost anything they could produce. In the late 1940's, after WW II, as goods became more readily available and competition intensified, some marketers adopted product orientation, while others followed a selling orientation. The assumption underlying product orientation is that buyers will buy the product that offers them the highest quality, the best performance, and the most features. 4

5. Development of the Modern Marketing Concept In the early 1950's, many marketers began to realise that they could sell more goods, more easily, if they produced only those goods they had pre-determined that buyers would buy. This philosophy, which was introduced initially, by General Electric, came to be known as the marketing concept. The key assumption underlying the marketing concept is that a company must determine the needs and wants of target markets, and deliver the desired satisfaction better than the competition.

6. Development of the Modern Marketing Concept The modern marketing concept is based on the premise that a marketer should make what it can sell, instead of trying to sell what it has made- focussing on the needs of the buyer rather than the seller – and leading to the need for the study of buyer behaviour. The assumption underlying selling orientation is that buyers are unlikely to buy a product unless they are actively and aggressively persuaded to do so.

7. Development of the Modern Marketing Concept Many marketing writers took up the concept and have promoted the modern marketing concept. Best known among them are: Philip Kotler Eugene McCarthy Theodore Levitt David A. Aaker Peter Drucker

8. The Societal Marketing Concept The societal marketing concept requires that marketers endeavour to satisfy the needs and wants of their target markets in ways that preserve and enhance the well- being of buyers and society as a whole. This requires a longer-term perspective which; is difficult for many practicing marketers, given that companies and shareholders are often seeking short-term profits. 8

9. Segmentation, Targeting and Positioning The focus of the marketing concept is buyer needs. In order to satisfy buyer needs, marketers must segment the market and position their products and services so that they are more attractive to buyers than competing brands. Market Segmentation is the process of dividing a market into subsets of buyers with common needs or characteristics. Positioning is developing a distinct image for the product or service in the mind of the buyer. 9

10. Modern Marketing Emphasises Customer Value, Satisfaction and Retention Modern marketing emphasise value and value creation, to benefit of the buyer, which translates to the marketing organisation Customer value is defined as the ratio between customer’s perceived benefits and the resources to obtain those benefits. Perceived value is both relative and subjective. 10

11. Customer Value, Satisfaction and Retention Customer Satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations. Customer retention is important because it is more expensive win new customers than keep existing ones. The concerns of value, customer satisfaction means marketing has evolved to a more relationship focus than was the case in the past.

12. For more information about MAANZ International and articles about Marketing, visit: www.marketing.org.au http://smartamarketing.wordpress.com http://smartamarketing2.wordpress.com. http://www.linkedin.com/groups/MAANZ- SmartaMarketing-Group-2650856/abouthttp://www.linkedin.com/groups/MAANZ- SmartaMarketing-Group-2650856/about Email: info@marketing.org.auinfo@marketing.org.au Link to this site - - http://www.slideshare.net/bmonger for further presentationshttp://www.slideshare.net/bmonger Marketing In Black and White12

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