42122381 Marketing Management

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Que: When I saymarketing what comes

to your mind first?

Ans: Consumer

satisfaction


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Evolution of marketing

This concept has evolved through three successive

stages

Production Era

Sales Era

Marketing Era


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Production Era

Manufacturers in this stage focused on increasing

output while assuming that customers would seek out

and buy reasonably priced and well made product.

Executives with background in engineering and

manufacturing shaped the firms strategy.

More emphasis on efficiency and cost control.


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Sales Era

This concept evolved in early 1930s.

During this stage managers realized that to sell

the product a firm want to make somepromotional activity.

This era was characterized by aggressive selling

and usage of unethical practices to sell products.


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Marketing Era

This era begins in the mid of 1950s.

Companies identifies the importance of

customer needs and wants.

Marketing activities were directed towards two

goalsCustomer orientation and profitability.


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Production Orientation

Some industries remain at the productionorientation stage.

Production Orientation Sales Orientation

Other companies have progressed only to

the sales orientation stage.

Production

OrientationSales Orientation Marketing Orientation

Many companies have progressed to marketing

orientation stage.Early 1930s Mid 1950s 1990s


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Marketing Management concepts

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing

Concept

Consumer favor products that are available and

highly affordable. Improve production anddistribution.

Consumer favor products that offers the most

quality, performance and innovative features.

Consumer buy the product if company

promotes/sells the product.

Focuses on needs/wants of target market &delivering satisfaction better than competitors.

Focuses on needs/wants of target market &

delivering superior value.

Societys well being.


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Production Concept

Believes that consumers will prefer products that arereadily available at reasonable prices.

Improvement In production and distribution efficiency

was main focus for the managements.

The production concept, though useful in some

situations, resulted in marketing myopia i.e. thisconcept focuses narrowly on their own objectives

lose sight of real objectives of customers needs

satisfaction.


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Product Concept

This concept believes that consumers will

automatically favor products that offers most

quality, performance and innovative features. Thus

the important is on product development.

Continuous improvements in product and quality

also lead to marketing myopia.


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Selling Concept

This concept believes that left to themselvesconsumers and business will not buy enough to

satisfy the sellers volumes.

Thus constant sales promotion efforts have to bemade in order to reach the required sales

volumes.

The sells concept is centered on the idea of highpressure selling to maximize sales volume and

hence profits.


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Marketing Concept

Believed that instead of make and sell, companies

should sense and respond. So the job is not to find the

right customer for your product but find the right

product for your customer.

There are two orientation that supports thisconcept:

1. Reactive market orientation: You see the need

and you respond to with a product.

2. Proactive orientation: You see a future need and

you respond with a product. So by the time the

need arrives in the market and your product is

there.


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Characteristics of Marketing ConceptFirst identify the needs of a target segment of a market.

Design the most effective product that best meets therequirements of the consumer.

Unlike the selling concept, marketing concept focuses on

the needs of the customer.

Correctly identify the target market and target market

consumers needs.

Implement integrated marketing throughout all d

departments in the organizations.

Aim at profitably by creating superior customer value.


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Societal Marketing Concept

Is the marketing concept ethical enough?

Marketing has to be made humane and

ecological, hence the societal approach was

introduced.

Care should be taken to minimize the

environmental deterioration, hunger, poverty

and moral breakdown.

Hence needs to be satisfied in a manner which

enhances and preserves consumers society and

societys well being.


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Core Marketing Concepts

Needs, Wants& Demands

Products &

services

Value,Satisfaction

&quality

Exchange,

Transactions

and

relationship

Markets


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What are consumers Needs,

Wants and Demands?Needs: State of felt deprivation for basic items such as

food, clothing and social needs.

Wants: Forms that a human need takes as they are

shaped by culture and individual personality

characteristics.

Demands: Human wants backed by buying power and

willingness to buy.


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Customers needs, wants and

what leads to demand?Needs are basic human requirements. People need food,

cloths, air. Shelter for basic survival.

People also have strong need of recreation, education and

entertainment.

Needs becomes wants when they are directed to specific

objects. That might satisfy their needs.

An Indian needs food but wants pizza while hungry Chinese may

want noodles. Thus wants are shaped by socio-cultural factors.

Demands are wants for specific products backed by ability to

pay. People need transport, many people want a car but only

few can form the demand for a Mercedes car.


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Modern Marketing system

Suppliers

Competitors Company(Marketer)

Marketing

Intermediaries

End User Market

EnvironmentEnvironment


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Marketing Mix

Set of controllable, tactical. Marketing tools

that the firm blends to produce the response

it wants in the target market.


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The Marketing MixTo achieve companys objective a marketing program

based on the most suitable marketing mix will drawn up.

Marketing mix is made up of following factors:

Product:

Goods and services offered by a company to targetmarket, to satisfy needs and wants.

The different physical attributes of p[products such as

design, features, quality, brand name, usage etc.

Price:

Money value that consumer pay to buy a product or

service.

Discounts, allowances, payment periods, credit facilities.


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Place:

Physical distribution activities through which the productmoves from the factory to the customer.

Include aspects of channels, coverage, location, transport,

inventory and logistics management.

Promotion:

Activities of personal selling, advertising ad

communicating product benefits and attributes to target

consumers to persuade them to purchase.


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Marketing mix Promotion

A successful product orservice means nothing

unless the benefit of such

a service can be

communicated clearly to

the target market.

An organizations

promotional mix consistsof:

Promotional

Mix

Advertising

Personal

selling

Sales

promotion

Public

Relation

Publicity

Direct

Marketing


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Market segmentation

Dividing a market into distinct group of buyers who

have different needs, characteristics, or behaviors, and

who might require separate products or marketing

programs.

Market Segment:

A group of consumers who respond in a similar way to

a given set of marketing efforts.


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Levels of Market Segmentation

Segment-

ation

Segment

Marketing

NicheMarketing

LocalMarketing

IndividualMarketing


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Segment Marketing

Identifiable group within a market with

similar :

WantsPurchasing Power

Geographical Location

Buying attitudes


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Niche Marketing

Narrowly defined group whose needs are not well served

Distinct needs

Specialization

Less competition

Size, profit and growth

Potential


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Individual Marketing

Marketing according to individual customer

Customized marketing

Cars/clothsArchitects

Software


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Local Marketing

Marketing program serving Needs &Wants of local customers.


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Purpose of Segmentation

1. Identifying groups of customers with similar needs.

2. Analyze their characteristics & buying behavior.

3. Providing products matching with needs.

4.Satisfying needs while meeting org. objectives.


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Segmenting Consumer MarketsDemographic Variables

AgeGender

Family Size

Income

OccupationEducation

Geographic Variables

Region

City

Rural and semi-urban areas

Psychographic Variables

Socioeconomic classification

Life style

Personality

Behavioral Variables

Occasions

BenefitsUser status

Usage rate

Loyalty status

Readiness stage

Attitude toward product


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AmitAnkul

Pradeep

Raj

Documents

42122381 Marketing Management