ASSIGNMENT COVER PAGE

Course Code MKT-305

Course Title MARKETING MANAGEMENT

Identify the core concept of marketing and describe marketing
Assignment Topic
management philosophies with suitable examples.
Exam’s Name Midterm Examination, fall-2021

Student’s ID 2003101259

Student’s Name Mehbub Hossain Setu

Semester’s Name and
Tenth (10th) semester, Fall-2021
Year
Course Teacher’s
MKT- 305 - SALMA HONEY
Name and Designation
Department’s Name Business Administration

Date of Submission February 26, 2021

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1
ABSTRACT

The world has changed a ton during this thousand years it actually keeps
evolving. Therefore it sounds sensible, that along with these progressions promoting
faces a ton of difficulties which should be survived. That is the reason the second
motivation behind this paper is to characterize the difficulties for promoting in the
new thousand years. Both hypothetical contemplation will be applied to the chose
pragmatic cases from worldwide and Lithuanian business sectors.
Catchphrases: advertising, promoting directions, theory, thousand years challenges,
Starbucks, Coffee Inn, the USA, Lithuania.

INTRODUCTION

Introduction of a product, service or idea into the market is always followed by the
marketing effort, the functions and forms of which have been changing over the
decades. To follow these changes and overviewing the current position of art in
marketing philosophy and marketing challenges, the following structure of the papers
is offered in Figure 1. This research logic implies that the main research goal is to
review the marketing orientations (Dibb and Simkin, 2004; Lancaster and Reynolds,
2005; Blythe, 2005; Drummond and Ensor, 2005; Morgan, 1996; Kotler and
Armstrong, 2008; Pranulis et al, 1999, 2000, 2008) as constituted in the marketing
philosophy and to determine the marketing challenges (Sutton and Klein, 2003;
Blythe, 2005; Kashani, 2005; Brown, 2008; Kotler and Armstrong, 2008; Bishop,
2009) in the new millennium, which could be consequently applied and tested in
national (Lithuanian) and international markets.

Therefore, the paper also aims at applying the theoretical findings to the practical case
studies, namely comparing two coffee bars – one on the international level –
Starbucks; and another one from the Lithuanian market – Coffee Inn.

LITERATURE REVIEW ON MARKETING PHYLOSOPHY

Efforts of reviewing and modelling marketing elements, concepts and philosophical

Attitudes were numerous and effective. But with the new challenges causing hardles
in making marketing function more effective on macro and micro level of the
economy, a revision of marketing philosophy is always at place.

As indicated in Table 1, authors tend to use various terms for the elements of
marketing philosophy: a) ‘orientation’ (Dibb and Simkin, 2004; Lancaster and
Reynolds, 2005; Blythe, 2005; Drummond and Ensor, 2005); b) ‘philosophy’
(Morgan, 1996); c) ‘concept’ (Kotler and Armstrong, 2008).
 Table 1. Elements of marketing philosophy

Dibb and Simkin Lancaster and Blythe (2005) Drummond Morgan

(2004) Reynolds and Ensor (1996)
(2005) (2005)
1. Production 1. Production 1. Production 1. Production 1. Cost
orientation orientation orientation orientation philosophy
2. Financial 2. Sales 2. Product 2. Product 2. Product
orientation orientation orientation orientation philosophy
3. Sales 3. Marketing 3. Sales 3. Sales 3. Production
orientation orientation orientation orientation philosophy
4. Marketing 4. Customer 4. Financial 4. Sales
orientation orientation orientation philosophy
5. Customer 5. Societal 5. Marketing 5. Erratic
orientation marketing orientation philosophy
6. Competitor 6. Relationship 6. Marketing
orientation marketing philosophy
7. Interfunctiona 7. Social
l coordination marketing
philosophy

Source: compiled by the author.

Even the Lithuanian authors, who wrote the first university book on marketing,
professors Pranulis, Pajuodis, Virvilaite and Urbonavicius (1999, 2000 and 2008)
have used the Lithuanian counterpart word ‘orientation’. Following this broad
tendency of the term ‘orientation’ usage, here, in this article, the choice of the
‘orientation’ term will be applied. The renowned American professors Kotler and
Armstrong (2008, pp.9-12) indicated that their choice of marketing management
orientations were as follows:

• the production concept,

• the product concept,
• the selling concept,
• the marketing concept.
• the societal marketing concept.

A similar opinion was expressed by a group of Lithuanian marketing professors,

where they classified marketing orientations as follows (Pranulis et al., 1999, 2000):
a) production The Marketing Philosophy and Challenges for the New Millennium 171
orientation,
b) product orientation,
c) selling orientation,
d) marketing orientation;
e) socialethical marketing orientation.

Because of the difficulty of incorporating all the various facets of marketing into a
single definition, Lancaster and Reynolds (2005) distinguished features of the subject
in the following statements (Lancaster and Reynolds, 2005, p.16):
 “Marketing is dynamic and operational, requiring action as well as planning.
 Marketing requires an improved form of business organisation, although this on
its own is not enough.
 Marketing is an important functional area of management, often based in a single
physical location. More importantly, it is an overall business philosophy that
should be adopted by everybody in the entire organisation.
 The marketing concept states that the identification, satisfaction and retention of
customers is the key to long-term survival and prosperity.
 Marketing involves planning and control.
 The principle of marketing states that all business decisions should be made with
primary consideration of customer requirements.
 Marketing focuses attention from production towards the needs and wants of the
market place.
 Marketing is concerned with obtaining value from the market by offering items of
value to the market. It does this by producing goods and services that satisfy the
genuine needs and wants of specifically defined target markets.
 The distinguishing feature of a marketing orientated organisation is the way in
which it strives to provide customer satisfaction as a way of achieving its own
business objectives.”

Figure 2. Proposed orientations in marketing philosophy

CORE CONCEPT: 8 CORE MARKETING CONCEPT

Philip Kotler, the eminent writer, defines modern marketing as, “Marketing is social
and managerial process by which individuals and groups obtains what they needs and
wants through creating and exchanging product and value with others.” Careful and
detailed analysis of this definition necessarily reveals some core concepts of
marketing, shown in Figure 4.

1. Needs:

Existence of unmet needs is precondition to undertake marketing activities. Marketing

tries to satisfy needs of consumers. Human needs are the state of felt deprivation of

some basic satisfaction. A need is the state of mind that reflects the lack-ness and

restlessness situation.

Needs are physiological in nature. People require food, shelter, clothing, esteem,

belonging, and likewise. Note that needs are not created. They are pre-existed in

human being. Needs create physiological tension that can be released by

consuming/using products.

2. Wants:

Wants are the options to satisfy a specific need. They are desire for specific satisfiers

to meet specific need. For example, food is a need that can be satisfied by variety of

ways, such as sweet, bread, rice, sapati, puff, etc. These options are known as wants.

In fact, every need can be satisfied by using different options.

Maximum satisfaction of consumer need depends upon availability of better options.

Needs are limited, but wants are many; for every need, there are many wants.

Marketer can influence wants, not needs. He concentrates on creating and satisfying

wants.

3. Demand:
Demand is the want for specific products that are backed by the ability and

willingness (may be readiness) to buy them. It is always expressed in relation to time.

All wants are not transmitted in demand. Such wants which are supported by ability

and willingness to buy can turn as demand.

Marketer tries to influence demand by making the product attractive, affordable, and

easily available. Marketing management concerns with managing quantum and timing

of demand. Marketing management is called as demand management.

4. Product:

Product can also be referred as a bundle of satisfaction, physical and psychological

both. Product includes core product (basic contents or utility), product-related features

(colour, branding, packaging, labeling, varieties, etc.), and product-related services

(after-sales services, guarantee and warrantee, free home delivery, free repairing, and

so on). So, tangible product is a package of services or benefits. Marketer should

consider product benefits and services, instead of product itself.

Marketer can satisfy needs and wants of the target consumers by product. It can be

broadly defined as anything that can be offered to someone to satisfy a need or want.

Product includes both good and service. Normally, product is taken as tangible object,

for example, pen, television set, bread, book, etc.

5. Utility (value), Cost, and Satisfaction:

Utility means overall capacity of product to satisfy need and want. It is a guiding

concept to choose the product. Every product has varying degree of utility. As per

level of utility, products can be ranked from the most need-satisfying to the least

need-satisfying.
Utility is the consumer’s estimate of the product’s overall capacity to satisfy his/her

needs. Buyer purchases such a product, which has more utility. Utility is, thus, the

strength of product to satisfy a particular need.

Cost means the price of product. It is an economic value of product. The charges a

customer has to pay to avail certain services can be said as cost. The utility of product

is compared with cost that he has to pay. He will select such a product that can offer

more utility (value) for certain price. He tries to maximize value, that is, the utility of

product per rupee.

6. Exchange, Transaction, and Transfer:

Exchange is in the center of marketing. Marketing management tries to arrive at the

desired exchange. People can satisfy their needs and wants in one of the four ways –

self-production, coercion/snatching, begging, or exchanging.

Marketing emerges only when people want to satisfy their needs and wants through

exchange. Exchange is an act of obtaining a desired product from someone by

offering something in return. Obtaining sweet by paying money is the example an

exchange.

7. Relationships and Network:

Today’s marketing practice gives more importance to relation building. Marketing

practice based on relation building can be said as relationship marketing. Relationship

marketing is the practice of building long-term profitable or satisfying relations with

key parties like customers, suppliers, distributors, and others in order to retain their

long-term preference in business.

A smart marketer tries to build up long-term, trusting, and ‘win-win’ relations with

valued customers, distributors, and suppliers. Relationship marketing needs trust,

commitment, cooperation, and high degree of understanding.

Relationship marketing results into economical, technical, social, and cultural tie

among the parties. Marketing manager is responsible for establishing and maintaining

long-term relations with the parties involved in business.

8. Market, Marketing, Marketer, and Prospect:

In marketing management, frequently used words are markets, marketing, marketer,

and prospects. A market consists of all potential customers sharing a particular need

or want who might be willing and able to engage in exchange to satisfy this need or

want.

Marketing is social and managerial process by which individuals and groups obtain

what they need and want through creating and exchanging product and value with

others.

Marketer is one who seeks one or more prospects (buyers) to engage in an exchange.

Here, seller can be marketer as he wants other to engage in an exchange. Normally,

company or business unit can be said as marketer.

Marketing Management Philosophies

There are five marketing concepts. A company should choose the right one according
to their and their customers’ needs.

1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Social Marketing Concept

Production Concept

This concept works on an assumption that consumers prefer a product which is

inexpensive and widely available. This viewpoint was encapsulated in Says Law
which states ‘Supply creates its own demand’. Hence companies focus on producing
more of the product and making sure that it is available to the customer everywhere
easily.

Increase in the production of the product makes the companies get the advantage of
economies of scale. This decreased production cost makes the product inexpensive
and more attractive to the customer.
A low price may attract new customers, but the focus is just on production and not on
product quality. This may result in a decrease in sales if the product is not up to the
standards.

This philosophy only works when the demand is more than the supply. Moreover, a
customer not always prefers an inexpensive product over others. There are many other
factors which influence his purchase decision.

Examples Of Production Concept Of Marketing Management Philosophies

 Companies whose product market is spread all over the world may use this
approach.
 Companies having an advantage of monopoly.
 Any other company whose product’s demand is more than its supply.

 Product Concept

This concept works on the assumption that customers prefer products of ‘greater
quality’ and ‘price and availability’ doesn’t influence their purchase decision. Hence
the company devotes most of its time in developing a product of greater quality which
usually turns out to be expensive.

Examples Of Product Concept Of Marketing Management Philosophies

 Companies in the technology industry.

 Companies having an advantage of monopoly.

Selling Concept

Production and product concept both focus on production but selling concept focuses
on making an actual sale of the product. Selling Concept focuses on making every
possible sale of the product, regardless of the quality of the product or the need of the
customer. The main focus is to make money. This philosophy doesn’t include
building relations with customers. Hence repeated sales are very less. Companies
following this concept may even try to deceive the customers to make them buy their
product.

Companies which follow this philosophy have a short-sighted approach as they ‘try to
sell what they make rather than what market wants’.

Examples Of Selling Concept Of Marketing Management Philosophies

  Companies with short-sighted profit goals. This often leads to marketing
myopia.
 Fraudulent companies.
Marketing Concept

Selling Concept cannot let a company last long in the market. It’s a consumers market
after all. To succeed in the 21st century, one has to produce a product to fulfil the
needs of their customers. Hence, emerged the marketing concept. This concept works
on an assumption that consumers buy products which fulfil their needs. Businesses
following the marketing concept conduct researches to know about customers’ needs
and wants and come out with products to fulfil the same better than the competitors.
By doing so, the business establishes a relationship with the customer and generate
profits in the long run.

However, this isn’t the only philosophy that should be followed by all the businesses.
Many businesses still follow other concepts and make profits. It totally depends on the
demand and supply and the needs of the parties involved.

Examples Of Marketing Concept Of Marketing Management Philosophies

 Companies in perfect competition.

 Companies who want to stay in the market for a long time.

Societal Marketing Concept

Adding to the marketing concept, this philosophy focuses on society’s well-being as

well. The business focuses on how to fulfil the needs of the customer without
affecting the environment, natural resources and focusing on society’s well-being.
This philosophy believes that the business is a part of the society and hence should
take part in social services like the elimination of poverty, illiteracy, and controlling
explosive population growth etc.

Holistic Marketing Concept

Holistic marketing is a new addition to the business marketing management

philosophies which considers business and all its parts as one single entity and gives a
shared purpose to every activity and person related to that business. A business, like a
human body, has different parts, but it’s only able to function properly when all those
parts work together towards the same objective. Holistic marketing concept enforces
this interrelatedness and believes that a broad and integrated perspective is essential to
attain the best results.

CONCLUSIONS

In the changing market environment with changing customer behaviour and seeking
business opportunities, companies face marketing challenges on a daily basis. In the
process of
theoretical research, a modified model of marketing orientations, which form the
marketing
philosophy, was proposed, comprising eight major orientations, where market
orientation and the
holistic marketing orientation are split into further sub-orientations. The other task for
the author
was to review and structure marketing challenges in the new millennium and test
these issues in
two cases of coffee-bars sector on international (Starbucks) and national (Coffee Inn
in
Lithuania) markets.
Starbucks and Coffee Inn both follow similar marketing orientations. Starbucks
follows
social-ethical marketing orientation as a basis of business, while Coffee Inn is being
still guided
by the marketing orientation. Both companies sell an experience, rather than just
coffee and
image is very important for the customers of these companies as they are mainly
young people
(20-40 years of age, Miksys, 2008). Both companies use viral marketing techniques,
though
Coffee Inn can create closer relationships with its customers, because it is able to react
to
changes quicker. Loyal customers could be called the biggest strength and
competitive advantage
of these companies as they do not compete on price, just by creating exceptional
atmosphere.

REFERENCES

https://www.academia.edu/3845844/Five_Marketing_Management_Philosophies

https://www.coursehero.com/file/pctlgd9/5-marketing-management-philosophies-
The-production-philosophy-an-organization/

https://www.feedough.com/marketing-management-philosophies-five-marketing-
concepts-with-infographics/

file:///C:/Users/Jh
%20Hridoy/Downloads/Marketing_Management_The_Millennium_Edition.pdf

https://core.ac.uk/download/pdf/6535414.pdf