MARKETING CONCEPTS-IMARKETING CONCEPTS-I There are There are 77 competing concepts under which organizations competing concepts under which organizations

conduct marketing activities:conduct marketing activities: The The PRODUCTION CONCEPTPRODUCTION CONCEPT holds that consumers will holds that consumers will

prefer products that are widely available and inexpensive.prefer products that are widely available and inexpensive.* Marketing can be managed by managing production.* Marketing can be managed by managing production.* The concept holds that consumers would, as a rule, * The concept holds that consumers would, as a rule, support those products that are produced in great volume support those products that are produced in great volume at a low unit cost.at a low unit cost.* This concept assume that the low cost will automatically * This concept assume that the low cost will automatically bring all the customers to their doors.bring all the customers to their doors.* Customers are motivated by a variety of considerations * Customers are motivated by a variety of considerations in their purchases, besides price.in their purchases, besides price.* As a result the production concept fails to serve as the * As a result the production concept fails to serve as the right marketing philosophy for an enterprise.right marketing philosophy for an enterprise.

Production Capabilities

Manufacture Product Customers

The The PRODUCT CONCEPTPRODUCT CONCEPT holds that consumers will favor those holds that consumers will favor those products that offer the most quality, performance, or products that offer the most quality, performance, or innovative features.innovative features.* The product concept is different from the production * The product concept is different from the production concept.concept.* The production concept seeks to win markets and profits via * The production concept seeks to win markets and profits via high volume of production and low unit cost.high volume of production and low unit cost.* The product concept seeks to achieve the same result via * The product concept seeks to achieve the same result via product excellence, improved products, new products, ideally product excellence, improved products, new products, ideally designed, engineered products and quality assurance.designed, engineered products and quality assurance.* Organizations that subscribe to the product concept assume * Organizations that subscribe to the product concept assume that consumers would automatically vote for products of high that consumers would automatically vote for products of high quality.quality.They concentrated on product excellence, they spend their They concentrated on product excellence, they spend their time and money on research and development, and bring out time and money on research and development, and bring out many new products. Yet in many cases they fail in the many new products. Yet in many cases they fail in the marketplace.marketplace.

Production Capabilities

Manufacture Innovative Product

Customers

The The SELLING CONCEPTSELLING CONCEPT holds that consumers and businesses, holds that consumers and businesses, will ordinarily not buy enough of the organization’s products. will ordinarily not buy enough of the organization’s products. The organization must therefore, undertake an aggressive The organization must therefore, undertake an aggressive selling and promotion effort.selling and promotion effort.

Selling Concept ToolsSelling Concept Tools:-:-* Heavy Advertising* Heavy Advertising* High power personal selling* High power personal selling* Large scale sales promotion* Large scale sales promotion* Heavy price discounts* Heavy price discounts* Strong publicity* Strong publicity* Public Relations* Public Relations

Production Capabilities

Manufacture Innovative Product

Aggressive Selling

Customer

The The MARKETING CONCEPTMARKETING CONCEPT holds that the key to achieving its holds that the key to achieving its organizational goals consists of the company being more organizational goals consists of the company being more effective than competitors in creating, delivering,effective than competitors in creating, delivering, andand communicating customer value to its chosen target markets.communicating customer value to its chosen target markets.* The marketing concept was born out of the awareness that * The marketing concept was born out of the awareness that a business should start with the determination of consumer a business should start with the determination of consumer wants and end with the satisfaction of those wants.wants and end with the satisfaction of those wants.* The concept puts the consumer at both the beginning and * The concept puts the consumer at both the beginning and the end of the business cycle.the end of the business cycle.* In a company practising this concept, all departments will * In a company practising this concept, all departments will recognize that their actions have a profound impact on the recognize that their actions have a profound impact on the companys ability to create and retain a customer. Every companys ability to create and retain a customer. Every department and every worker and manager will think department and every worker and manager will think customer and act customer.customer and act customer.

Customer Needs

Potential Market Opportunities

Marketing Products and Services

Customers

The The SOCIETAL MARKETINGSOCIETAL MARKETING concept holds that the concept holds that the organization’s task is to determine the needs, wants, and organization’s task is to determine the needs, wants, and interests of the target markets and to deliver the desired interests of the target markets and to deliver the desired satisfactions more effectively than competitors in a way satisfactions more effectively than competitors in a way that preserves the consumers’ and society’s well-being. that preserves the consumers’ and society’s well-being.

TheThe SERVICE CONCEPTSERVICE CONCEPT - Customers buy services, not - Customers buy services, not products. Therefore marketers should adopt a service products. Therefore marketers should adopt a service model of marketing instead of selling the title to the model of marketing instead of selling the title to the products.products.

* Customers buy products for the services that they * Customers buy products for the services that they provide.provide.

Ex Ex :- 1)When a customer buys a car – he is buying the :- 1)When a customer buys a car – he is buying the service of transportation.service of transportation.

2) When a customer buys an air conditioner – he 2) When a customer buys an air conditioner – he is essentially buying cool atmosphere.is essentially buying cool atmosphere.

The The EXPERIENCE CONCEPTEXPERIENCE CONCEPT – – The marketer should The marketer should create an experience around the product to make it create an experience around the product to make it memorable and reaffirm it with cues at every customer memorable and reaffirm it with cues at every customer interaction point.interaction point.

* An experience occurs when a company intentionally * An experience occurs when a company intentionally uses services as the stage, and goods as props to uses services as the stage, and goods as props to

engage individual customers in a way that engage individual customers in a way that creates a creates a memorable event.memorable event.

* Products and services are external to the customer.* Products and services are external to the customer.

* Experiences are inherently personal, existing only in the * Experiences are inherently personal, existing only in the mind of an individual who has been engaged on an mind of an individual who has been engaged on an emotional, physical, intellectual, or spiritual level.emotional, physical, intellectual, or spiritual level.

* No two people can have the same experience. Because * No two people can have the same experience. Because each experience derives from the interaction between each experience derives from the interaction between the staged event and the individuals state of mind.the staged event and the individuals state of mind.

MARKETING CONCEPTS-IIMARKETING CONCEPTS-II

The Core Concepts of The Core Concepts of MarketingMarketing

NeedsNeeds

WantsWants

DemandsDemands

ProductsProducts

ValueValue

CostCost

SatisfactionSatisfaction

ExchangesExchanges

TransactionsTransactions

RelationshipsRelationships

MarketsMarkets

MarketingMarketing

MarketersMarketers

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