Introduction to

Marketing Concepts
Prof. VIKAS M JADHAV

What is Business?

A business organization performs two key

functions i.e. producing goods or services and
making them available to the potential
customer for use.
Quality production and efficient marketing are
the key success factors in building sustainable
competative advantage.

What is Marketing?

Is it selling?
Is it reatailing?
Is it B2B?
Is it Services?
Is it CRM?
Is it Public Relations?
Is it Advertising?

Marketing

Marketing means understanding

and respomding to customer need.

Marketing

"Marketing is the set of human activities

directed at facilitating and consummating
exchanges. Philip Kotler
Marketing is the process involved in
identifying, anticipating and satisfying
consumer requirements profitably.

Marketing

Marketing is a social process by which

individuals and groups obtain what they need
and want through creating, offering and
exchanging products and services of value
with others.

Marketing Management

American Marketing Association (1985):

Marketing management is a process of
planning and executing conception, pricing,
promotion and distrubution of ideas, goods and
services to create exchange that satisfy
individual and organizational needs.

Marketing Management

Philip Kptler: Marketing Management is the

analysis, planning, implementing and
controlling of programme designed to bring
desired exchange with target audience for the
purpose of mutual gain. It relies heavily on the
adoption and coordination of product, price,
promotion and place for achieving effective
response.

Marketing Management

4Cs analysis of Marketing Management:

Customer
Company
Competitor
Collabrator

Marketing Management

4Cs analysis of Marketing Management:

Customer
Company
Competitor
Collabrator

MARKET

Sellers

Market Place
of Exchange

Buyers

MARKET

Market Place is the place where one goes for

shopping.
Virtual Market is digital/online market place.
Meta Markets is the convergance of supplier of
all complementary products and services that
are closely related to a product in consumers
mind.

Classification of Market

CONSUMER MARKETS are the markets for

products and services bought by individuals
for their own or family use.

INDUSTRIAL (B2B) MARKETS involve

the sale of goods between two buusinesses.

Features of Marketing

Marketing as process
Marketing is a System
Satisfactioon of consumer wants
Marketing is Goal oriented
Marketing is Customer oriented

Concepts of Marketing

The Exchange Concept

The Production Concept
The Product Concept
The Sales Concept
The Marketing (Consumer Orientation)
Concept
The Social Merketing Concept
The Relationship Marketing Concept

CORE MARKETING
CONCEPTS

Consumer v/s Customer

Consumer is the one who actually uses the
product.
Customer is the one who purchase the product.

CORE MARKETING
CONCEPTS

NEED: Needs are the basic human

requirements.

WANT: The above needs become wants when

they are directed towards specific objects that
might satisfy the need.

CORE MARKETING
CONCEPTS

DEMAND: An effective desire for a product

or service backed by ability and willingness to
buy it.
Types of Demand:
Negative Demand: Consumer dislike or avoid
the product.

CORE MARKETING
CONCEPTS

Latent Demand: Consumers may share a

strong need that cannot be satisfied by an
existing product.
Declining Demand: Consumers begin to buy
the product less frequently or not at all.
Irregular (Seasonal) Demand: Consumer
purchases vary on a seasonal, monthly,
weekly, daily or even hourly basis.

CORE MARKETING
CONCEPTS

Full Demand: Consumers are adequatly

buying all the products put into the
marketplace.
Overfull Demand: More Consumers would
like to buy the product that can be satisfied.
Unwholesome Demand: Consumers may be
attracted to products that have undesirable
social consequences.

STP

Segmentation
Target Market
Positioning

Selling v/s Marketing

Selling

Marketing

It emphasis on the product

It emphasis on consumer needs and

wants

Product Orientated- Company

manufactures the product first and
then decides to sell it.

Customer Oriented First find out

needs and wants of customers and
then decides how to sell deliver the
product.

Management is sales oriented

Management is profit oriented

Planning is for short term period

Planning is for long term period

Views business as a goods producing

process

Views business as customer satisfying

process

Emphasis is on sticking to existing

technology, for cost cutting

Emphasis is on innovation, so
customer will good quality product

Selling views customer as the last link Marketing views the customer as the
in Business
very purpose in Business

Marketing Mix (4Ps)

A mixture of several ideas and plans followed

by an organization to promote a particular
product or brand is called marketing mix.
Elements of marketing mix: 4Ps
Product
Price
Place
Promotion

7Ps

Apart from 4Ps of Marketing Mix, in Services

Marketing Mix its mix of 7Ps i.e.
People
Process
Physical Evidence

Four Cs of Marketing Mix

Koichi Shimizu in the year 1973 proposed four

Cs of Marketing Mix to replace 4Ps
Commodity
Cost
Channel
Communication

The Evolution of Marketing

Production Era
Sales Era
Marketing Era

Relationship
Marketing Era
Dr. Rosebloom

Production Era
Orientation:

Dominant
time period:

Business philosophy
focusing on
manufacturing
efficiency; demand
exceeds supply =
sellers market
Prior to the 1920s

Dr. Rosebloom

Sales Era
Orientation:

Dominant
time period:

Business philosophy
focusing on selling
existing products;
supply exceeds
demand = buyers
market
Prior to the 1950s

Dr. Rosebloom

Marketing Era
Orientation:

Dominant
time period:

Business philosophy
focusing on consumer
wants and needs; any
supply/demand
situation
Last half of 20th century

Dr. Rosebloom

Relationship Marketing Era

Orientation:

Dominant
time period:

Business philosophy
focusing on reinforcing
the customer-oriented
focus of the marketing
era

Last decade of 20th century

Dr. Rosebloom