BASICS OF

MARKETING
Subject Code 105
 Concurrent Evaluation
Sr. No. Parameter for Concurrent Evaluation Marks
1 MCQ (For first two chapters) 10
2 MCQ (For remaining three chapters) 10
3 MCQ (For all five chapters) 10
4 Class Participation 10
5 Case Study 10
Total 50
 Unit No: I
Introduction to
Marketing
 Introductionto Marketing: Definition & Functions of
Marketing- Scope of Marketing, Evolution of Marketing,
Core concepts of marketing – Need, Want, Demand,
Customer Value, Exchange,
 Customer Satisfaction, Customer Delight, Customer
loyalty,
 Concepts of Markets, Marketing V/S Market Competition,

Key customer markets, market places, market spaces,

Meta-markets, Digital Markets,
 Brick & Click Model. Impact of Globalization, Technology
and Social Responsibility on Marketing.
 New Consumer Capabilities, New Company Capabilities.
Functions of Marketing Manager.
 Linkage of Marketing functions with all functions in the
organization. Company orientation towards market place:
Product –Production - Sales – Marketing –Societal –
Relational,
 Holistic Marketing Orientation. Selling versus marketing.
 Concept of Marketing Myopia.
 Marketing Process, Understanding Marketing as Creating,
Communicating, and Delivering Value
 Need
Needs are basic human requirements.
Needs are things people must have to live, such
as…Food, Clothing ,Shelter, Water etc….
 Marketers did not create these needs; they are a basic
part of the human makeup. Marketers perspective need
can be ,
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants car whose operating costs
are low over a time, and not just a low initial price.)
3. Unstated needs (The customer expects good service from
the dealer.)
4. Delight needs (The customer would like the dealer to
include an air purifier or onboard GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her
as a savvy consumer.)
 Need Types Types of consumers needs

Stated Needs Person needs a phone.

Real needs Person needs a phone to remain connected to his friends,
family and colleagues, the real need be a phone with high
battery backup and not high camera resolution.

Unstated needs The consumer also expects warranty and other sorts of after
sales service when buying a phone which he might not say
explicitly.
Delight needs The consumer would like the phone manufacturer or the
dealer to give him some free accessories like phone case,
tempered glass.
Secret Needs These are the needs which the consumer feels reluctant to
admit; for example the consumer wants the phone for his
status symbol but he feels uncomfortable to admit that status
is important to him.
 Wants
 Wants are needs directed to specific objects/services that
might satisfy the need.
 Wants are things people would like to have, such as…a
bicycle, a CD player and toys.
 Other wants may be…

a car,

or a video game.
a television,
Do you know the difference between
wants and needs?
Choose the one that is a need.

a television food
Is this a want or a
need?
 Needs Wants

food toys
shelter CD player
clothes bicycle
medical care television set
car
Desire
DESIRE is something you would like to have
but is not necessary for survival.
You could live without fulfilling your desire.
Desires would be:
more money,
lower taxes
To be able to retire before I am too old to
enjoy it..
 Demand

Demand is the want for specific products backed

by an ability to pay.

Demand = Wants + Buying Power

 Types of Demand
1 ] Negative Demand:
The market is in a state of negative demand if; a
major part of the market dislikes the product
and may even pay a price to avoid it.

Eg:People have a negative demand for

Vaccination
Dental work
2]  No Demand

Target consumers may be uninterested in the product.

Ex – People have no demand for,
Farmers may not be interested in new farming
methods
College students may not be interested in a foreign
language course.
The marketing task is to find ways to connect
the benefits of the products to the person’s natural
needs and interests.
3] Latent Demand:
Many consumers may share a strong need that
cannot be satisfied by any existing products.
Latent demand for harmless cigarettes.
Safer neighborhood.
More fuel efficient cars.
The marketing task is to measure the size of
the potential market and develop effective
goods and services that would satisfy the
demand.
4] Declining Demand
A substantial drop in the demand for products.
Scooters, B & W TV sets, 2G.
The marketing task is to:
Analyze the cause of market decline.
Determine whether the demand can be re-
stimulated by changing target markets, changing
product features and developing more effective
goods.
To reverse the declining demand through creative
remarketing of the product.
5] Irregular Demand
Organizations face demand that varies on a
seasonal, daily or even hourly basis, causing
problems of idle capacity or overcrowded capacity.
Markets :- visited on weekends, not on weekdays.
Hospitals   :- OT’s booked for early weak
The marketing task is called Synchro Marketing
(alter pricing, promotion & other incentives)
6] Full Demand
Organizations face full demand when they are
pleased with there volume of business.
The marketing task is to:
Maintain the current level of demand in the
face of changing consumer preferences and
increasing competition.
Quality should be improved.
Continuously measure consumer satisfaction.
Eg: Maruti at the time of bookings made open.
7] Overfull Demands
Some organizations face a demand level that is higher then they can
or want to handle. 

 Marketing task is De-marketing which requires finding ways to

reduce the demand temporarily or permanently.
 Steps involved in de-marketing:
 Raising prices.
 Reducing promotion and service.
 Eg: Quota system for new car registration/booking by a fixed
percentage annually.
8] Unwholesome Demand

Unwholesome demand for products will attract

organized effort to discourage their
consumption.
 Un-selling campaigns have been conducted
against cigarettes, alcohols, hard drugs,
handguns and pirated movies or music.
 Benefits
Benefits
=
Functional Benefits
+
Emotional benefits
 Functional benefits
 Functional benefits are based on a product attribute
that provides the customer with functional utility.

 The goal is to select functional benefits that have the

greatest impact with customers and support a strong
position relative to competitors.
 Functional benefits
 However, it is important to keep in mind that functional
benefits often fail to differentiate, can be easy to copy
and may reduce strategic flexibility.
 Examples of functional benefits include
 The phone capability of an I-Phone,
 The thirst-quenching offered by a bottle of water and
 The warmth of a wool sweater.
 Emotional benefits
Emotional benefits provide customers with a
positive feeling when they purchase or use a
particular brand.
They add richness and depth to the experience of
owning and using the brand.
Examples of emotional benefits include the
“feel-good” factor when purchasing groceries
carrying a fair-trade label or
when donating to charities such as the Heart &
Stroke Foundation.
 You’re a manager and you need a new car.

 Your first considerations are likely to be based upon functional

benefits: reasonable performance, 2.0 litre engine, fuel
economy, reliability, four doors, golf clubs must fit in the boot,
must have an iPod connector, must fit in your parking or garage
etc.
 You have a choice of around 12 Japanese, French, German,
English and Italian cars. All look much the same, have near
identical specifications and capabilities and will meet your
requirements admirably.
 Six of these cars are priced below $40,000, five are priced
below $50,000 and the BMW is $65,000. 
 How can the BMW brand command a premium price level when
on paper it has almost identical specifications and performance
as the other less expensive cars? 
 The difference lies not in superior functional benefits but in the
emotional and self-expressive benefit of having a clearly
identifiable high performance luxury brand that will sit in your
driveway and be the envy of neighbors and friends.
 When owners drive their BMW, they are rewarding themselves
with an emotionally engaging experience that satisfies their
desire to be part of an elite group of drivers and owners that seek
something different and better.
 Value
 Values are Perceived Benefits.
 Value relates to the worth of a commodity.
 Customer Value: It is the difference between the values
that customer gains by owing and using the product
versus the cost of obtaining the product.
 Value = Benefits perceived by the consumer /Cost of the
product or services.

 Cost= Monetary Cost + Time + Energy + Psychic

Cost
 Exchange

 Exchange is the act of obtaining a desired object from someone

by offering something in return.

 Exchange means a sharing of ‘value’ between two parties, called the

buyer and the seller.

 They need to transact business in a spirit of ‘near’ perfect

understanding of the product/services offered.

 This means that there should be an offer, agreement, formal

transaction and ultimately an exchange of mutual value. 
Exchange
 Exchange and Utility
 The criteria needed for an exchange to occur:
 Must have something of value to exchange
 Must be able to exchange
 Must want to exchange
 At least 2 people needed for an exchange to occur.

 Utility isthe satisfaction, value, or usefulness a user

receives from a good or a service.
Types of utility:

1. Form--production of the goods from raw material

increases its utility.
 EXAMPLE?? Baskin Robbins turns cream, sugar and milk
into ice cream.
2. Place--make product available where customers will buy
the product.
 EXAMPLE?? Free home delivery for Pizza.
3. Time--make product avasilable when customers want to
buy the product.
 EXAMPLE?? Retail outlets, open 24 hours a day, 365
days a year, has time utility compared to Retail outlets
which are open for specific time etc.
4. Possession--once you own the product, do what you want
with it, ie. eat it
 Market
Traditionally,
a “market” was a physical place
where buyers and sellers gathered to buy and
sell goods.

Economists describe a market as a collection of

buyers and sellers who transact over a
particular product.
Market
KEY CUSTOMER MARKETS
 Consumer Markets
Companies selling mass consumer goods and
services such as juices, cosmetics, athletic shoes.
Companies spend a great deal of time
establishing a strong brand image by developing
a superior product and packaging, ensuring its
availability, and backing it with engaging
communications and reliable service.
 Business Markets
 Companies selling business goods and services often face well-
informed professional buyers skilled at evaluating competitive
offerings.

 Business buyers buy goods to make or resell a product to others at a

profit.

 Business marketers must demonstrate how their products will help

achieve higher revenue or lower costs.
 Advertising can play a role, but the sales force, the price, and the
company’s reputation may play a greater one.
 Global Markets
 Companies in the global marketplace must decide which countries to
enter; how to enter each (as an exporter, joint venture partner, contract
manufacturer, or solo manufacturer) .

 how to adapt product and service features to each country; how to

price products in different countries; and how to design
communications for different cultures.

 They face different challenges like, cultural, language, legal and

political differences; and currency fluctuations.
Nonprofit and Governmental Markets
 Companies selling to nonprofit organizations with
limited purchasing power such as churches,
universities, charitable organizations, and
government agencies need to price carefully.

 Much government purchasing calls for bids, and

buyers often focus on practical solutions and favor
the lowest bid.
MARKETPLACE
MARKETPLACE –


The marketplace is physical, such as a store you shop in.

 MARKETSPACE
 MARKETSPACE-

The marketspace is digital, as when you shop on the Internet.

 METAMARKET
 Metamarket is a cluster of complementary products
and services closely related in the minds of consumers,
but spread across a diverse set of industries.

Example- The automobile Metamarket consists of

automobile manufacturers, new and used car
dealers, financing companies, insurance companies,
mechanics, spare parts dealers, service shops, auto
magazines, classified auto ads in newspapers, and
auto sites on the Internet.
 Marketing
 Marketing management as the art and science
of choosing target markets and getting,
keeping, and growing customers through
creating, delivering, and communicating
superior customer value.

 Marketing is about identifying and meeting

human and social needs.
Aim of Marketing
The aim of marketing is to acquire,
retain and satisfy customers.
Those firms (practices) which
understand the needs of their
customers and seek to satisfy them
tend to be more successful than those
which do not.
Scope of Marketing: -
 Marketers market 10 main types of entities:

 Goods -cars, refrigerators, televisions,

 Services-airlines, hotels, car rental, beauticians .

 Events- sporting events -Olympics & World Cup.

 Experiences-Adlabs Imagica, Essel World.

 Persons- David Beckham, Artists, musicians

Scope of Marketing: -
 Places-“Vibrant Gujrath”, Incredible India

 Properties- residential or commercial real estate.

 Organizations-Tata, SAIL, ITC

 Information- X-ray or an MRI-business is really health care

information technology.

 Ideas Social marketers are busy promoting such ideas as “Quit

smoking” and “Follow traffic rules.”
Functions of Marketing
 Following are the functions of marketing or marketing
management tasks.
1) Developing Marketing Strategies and Plans .
2) Connecting with Customers by creating value for its chosen
target markets and develop strong, profitable, long-term
relationships with them.
3) Building Strong Brands .
4) Shaping / designing the Market Offerings (products &
services) .
5) Delivering Value ie distributing products/ services.
6) Communicating Value .
7) Creating Successful Long-Term Growth by balancing needs
of various stakeholders .
Brick and Click Model
 Bricks and clicks is a business model by which a company
integrates both offline (bricks) and online (clicks) presences.

 Itis a integration in order to tap the customers for growing

the business.

 In this model brick resembles physical place/ while click

resemble a virtual place.

 This gives alternate choice of shopping.

 It helps to increase the loyalty.

Globalization
 Globalization is the process in which people,
ideas and goods spread throughout the world,
spurring more interaction and integration between
the world's cultures, governments and economies.
 New Marketing Realities
 Major Societal Forces & new customer capabilities
Today, major, and sometimes interlinking, societal forces have
created new marketing behaviours, opportunities, and challenges.
Here are those ones.

 Network information technology :The digital revolution has

created an Information Age that promises to lead to more accurate
levels of production, more targeted communications, and more
relevant pricing.

 Globalization: Technological advances in transportation, shipping,

and communication have made it easier for companies to market in,
and consumers to buy from, almost any country in the world.
 New Marketing Realities
 Deregulation: Many countries have deregulated industries to
create greater competition and growth opportunities. In the
United States, laws restricting financial services,
telecommunications, and electric utilities have all been loosened
in the spirit of greater competition.

 Retail transformation: Store-based retailers face competition

from catalogue houses; direct mail firms; newspaper, magazine,
and TV direct-to-customer ads; home shopping TV; and e-
commerce.
 Consumer buying power: via the Internet, consumers have
substantially increased their buying power. From the home,
office, or mobile phone, they can compare product prices and
features and order goods online from anywhere in the world 24
hours a day, 7 days a week, bypassing limited local offerings and
realizing significant price savings.
 Consumer information: Consumers can collect information in
as much breadth and depth as they want about practically
anything. They can access online encyclopaedias, dictionaries,
medical information, movie ratings, consumer reports,
newspapers, and other information sources in many languages
from anywhere in the world.
New Company Capabilities
 Marketers can use the Internet as a powerful
information and sales channel.

 Marketers can collect fuller and richer information

about markets, customers, prospects, and competitors.

 Marketers can tap into social media to amplify their

brand message.
New Company Capabilities
 Marketers can facilitate and speed external
communication among customers. Marketers can also
create or benefit from online and offline “buzz” through
brand advocates and user communities (e.g. Harley
owner’s group - HOG).

 Companies can make and sell individually differentiated

goods.
 Marketing
Dimensions of
Organisation
Production
VsTechnology
other orientation
Sales Marketing

Focus Effective R&D Sales Customer

utilisation of Transactions
Mechinery
Goal Optimal capacity Stay ahead thro’ Sales Market customer
utilisation Tech Bondagae

Strategy Economies of State of art Tech. Price Customer bonding

scale promotion

Mindset Need to push Push for the best Hook the What under our
production vol. product customer control can be
done to satisfy
customer needs
 65

Marketing Management
Philosophies
Production Concept •Consumers favor products that are
available and highly affordable.
Improve production and distribution.
•Consumers favor products that offer
Product Concept the most quality, performance, and
innovative features.

Selling Concept •Consumers will buy products only if

the company promotes/ sells these
products.
Marketing Concept •Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
Societal Marketing Concept •Focuses on needs/ wants of target
markets & delivering superior value.
 Societal Marketing Concept

The societal marketing concept holds that the

organization should determine the needs, wants
and interests of target markets.

Itshould then deliver the desired satisfactions

more effectively and efficiently than competitors
in a way that maintains or improves the relations
with consumer's and the society's well-being.
 Societal Marketing Concept

According to the societal marketing concept, the

pure marketing concept overlooks possible conflicts
between short-run consumer wants and long-run
consumer welfare.
Societal Marketing Concept
 Originally, most companies based their marketing
decisions largely on short-run company profit.

 Societal marketing concept calls upon marketers to

balance three considerations in setting their
marketing policies: company profits, consumer
wants and society's interests.
 Three Considerations of Societal Mktg Concept: -
SOCIETY (Consumers Well Being)

Societal
Marketing
Concept

CONSUMERS (Want Satisfaction) COMPANY (Profits)

Societal Marketing Concept

Consider the Coca-Cola Company. Most people

see it as a highly responsible corporation
producing fine soft drinks that satisfy consumer
tastes.

Yetcertain consumer and environmental groups

have voiced concerns that Coke has little
nutritional value, can harm people's teeth, contains
caffeine and adds to the litter problem with
disposable bottles and cans.
 Today’s bottled water industry. You may view
bottled water companies as offering a convenient,
tasty, and healthy product.
 Its packaging suggests “green” images of pristine
lakes and snow-capped mountains.
 Yet making, filling, and shipping billions of plastic
bottles generate huge amounts of carbon dioxide
emissions that contribute substantially to global
warming.
 Further, the plastic bottles pose a substantial
recycling and solid waste disposal problem.
 Thus, in satisfying short-term consumer wants, the
bottled water industry may be causing
environmental problems that run against society’s
long-run interests.
 Holistic Marketing Concept

 Holistic Marketing is a term used to describe a strategy that

enables you to look at your marketing efforts as a 'whole', which
in turn helps you develop an overall or 'holistic marketing' plan.

 Inthe new marketing environment, companies wonder how to

operate & compete.
 Holistic Marketing Concept

 This concept is based on the development, design and

implementation of marketing programs, processes and activities
that recognize their breadth and inter-dependencies.

 Holistic Marketing recognizes that “everything matters” with

marketing - and that a broad integrated perspective is often
necessary.
 74

Holistic Marketing Dimensions

Differences between selling and marketing concepts

Selling Marketing
 Transaction based  Customer based

 Selling  Marketing views the

views customer as
a last link of the business. customer as the very
purpose of business.
 Sales Volume oriented.  Profit oriented.

 Views business as goods

producing process  Views business as
customer satisfying process
 Selling Marketing
 Short term  Long term

 Emphasize on using existing  Emphasize on using superior

technology and lower the cost. technology to provide value.

 Cost determines price  Price(consumer determines it)

determines cost.
 Works better in complex markets

 Works better in simple

markets  Each customer is different

 Each customer is same

 Selling Marketing
 Intuitive  Research Based

 Mass marketing approach  Mass customization

 Distribution function merely an  Distribution function is vital as

extension of production. it creates convenience.

 Seller dominates marketing  Buyer dominates marketing

decisions. decisions.

 No coordination among different  Closecoordination (integrated)

marketing tasks. among marketing tasks
 Marketing
 Myopic, myopia
as the word itself has its meaning
“short sightedness”.

 A short-sighted and inward looking approach to

marketing that focuses on the needs of the company
instead of defining the company and its products in
terms of the customers needs and wants.

 Itresults in the failure to see and adjust to the rapid

changes in their markets.
 Marketing myopia
 Example of  the firm and organization in the business of  railroads. As
per Myopic marketing theory this business did not stop growing
because the need for passenger and freight transportation declined.
That grew.
 It is  in trouble today not because that need was filled by others (cars,
trucks, airplanes, and even telephones) but because it was not filled by
the rail-roads themselves.
 They let others take customers away from them because they assumed
themselves to be in the railroad business rather than in the
transportation business.
 The reason they defined their industry incorrectly was that they were
railroad oriented instead of transportation oriented; they were product
oriented instead of customer oriented.
Functions of
Marketing
Manager
Work with top management
 The main function of marketing manager is to
work with top management. He is to assist the top
management in determining the marketing plans
and policies so that all the problems of the process
of planning may be removed and sound plans and
policies may be formulated.
 Supervise and coordinate business
activities
 A marketing manager has to establish effective co-ordination
among the business activities of purchase, sale, packing,
storage, transportation, advertisement, sales promotion, after
sale-services, etc.
Identify Potential Markets
 To create and increase the demand of the goods
and services produced by the enterprise, the
marketing manager has to identify new potential
markets and also has to maintain the relationships
among the existing markets for their enterprise and
its products.
Evaluate the Product
 In the technological arena, the needs and demands
of the customers changes time to time. Thus, it
becomes necessary for the marketing manager to
study all these changes and evaluate the product
periodically so that necessary modifications and
alterations may be made in the product.
Launch new product or services
 Toattract new customers and retain old customers,
marketing manager study needs and demands of
the market. According to it, he launches new
goods and services to satisfy the existing
customers and to attract new customers (or
consumers).
Select the Channels of Distribution
 The physical distribution of goods and services
through many channels viz. wholesalers, retailers,
etc. is decided by the marketing manager. the
needs of the firm, he selects the specific channel
and supplies the finished products from producers
to consumers.
Create a market plan
 According to the marketing nature of the firm, the
marketing manager creates an action plan to
determine when, how, where and by whom the
marketing activities viz. sales forecast,
advertisement, sales promotion, distribution of
products, etc. should be carried out to achieve
marketing goals.
Study the Economic and Political
Environment
 To survive and get success in the business, the
marketing manager not only has to study the
economic, social and the political environment of
the business enterprise but also has to follow the
government rules and regulations, social norms
and cultural values, regional treaties and global
alignment, economic rules and tax policies of the
government.
Components of Marketing
 Creating: process of collaborating with suppliers
and customers to create offerings that have values.

 Communicating: broadly, describing those

offerings, as well as learning from customers.

 Delivering:Getting those offerings to the

consumer in a way that optimizes value
Marketing Process
Marketing process can be divided into two parts:
 Creating Values for customers
 Capturing Values in Returns
Marketing Process
Creating Value for customers:
 Understand the market place
 Design a market strategy (Segment and Target)
 Construct Integrated marketing programme (Four
Ps of Marketing Mix)
 Built Profitable relationship and create delight
Marketing Process
Capturing Values in Return
 Creating Customer Satisfaction and delight
 Capture Customer lifetime value
 Increase Market share and share of customers
 96

Difference Between - Sales & Marketing ?

Sales
trying to get the customer for the company
products.
Marketing
trying to get the company product
that customer wants
 The Production Concept:
 The "production concept" prevailed from the time of the
industrial revolution until the early 1920's. The production
concepts was the idea that a firm should focus on those
products that it could produce most efficiently and that the
creation of a supply of low-cost products would in and of
itself create the demand for the products. The key questions
that a firm would ask before producing a product were:
 Can we produce the product?
 Can we produce enough of it?
The Production Concept:
 At the time, the production concept worked fairly well
because the goods that were produced were largely those of
basic necessity and there was a relatively high level of
unfulfilled demand.
 Virtually everything that could be produced was sold easily by
a sales team whose job was simply to execute transactions at a
price determined by the cost of production. The production
concept prevailed into the late 1920's.
 The Product Concept:
 This orientation holds that consumers will favor those
products that offer the most quality, performance, or
innovative features. 
 Managers focusing on this concept concentrate on making
superior products and improving them over time. They
assume that buyers admire well-made products and can
appraise quality and performance.  
 However, these managers are sometimes caught up in a love
affair with their product and do not realize what the market
needs.  
Selling Concept
 Emphasis is on the product
 Company manufactures the product first.
 Management is sales volume oriented.
 Planning is short run oriented in terms of todays products and
markets.
 Stresses needs of seller.
 Views business as a good producing process.
 Emphasis on staying with existing technology and reducing costs.
 Cost determines price.
 Selling views customers as a last link in business.
The Sales Concept (Evolution)
 By the early 1930's however, mass production had become
commonplace, competition had increased, and there was little
unfulfilled demand. Around this time, firms began to practice
the
 "Sales concept" (or selling concept), under which companies
not only would produce the products, but also would try to
convince customers to buy them through advertising and
personal selling.
The Sales Concept: (Evolution)

 Before producing a product, the key questions were:

 Can we sell the product?
 Can we charge enough for it?
 The sales concept paid little attention to whether the
product actually was needed; the goal simply was to beat the
competition to the sale with little regard to customer
satisfaction.
 Marketing was a function that was performed after the product
was developed and produced, and many people came to
associate marketing with hard selling. Even today, many
people use the word "marketing" when they really mean sales.
Marketing Concept
 Emphasis on customer needs and wants.
 Company first determines customers needs and wants and then
decides how to deliver a product to satisfy these wants.
 Management is profit oriented.
 Planning is long run oriented in terms of new products, tomorrows
markets & future growth.
 Stresses needs and wants of buyers.
 Consumer determines Price & Price determines Cost.
 Marketing views the customer as the very purpose of the business.
The Marketing Concept: (Evolution)

 After World War II, the variety of products increased and hard
selling no longer could be relied upon to generate sales. With
increased discretionary income, customers could afford to be
selective and buy only those products that precisely met their
changing needs, and these needs were not immediately
obvious. The key questions became:
 What do customers want?
 Can we develop it while they still want it?
 How can we keep our customers satisfied?
The Marketing Concept: (Evolution)

 Inresponse to these discerning customers, firms began to

adopt the "marketing concept", which involves:
 Focusing on customer needs before developing the product
 Aligning all functions of the company to focus on those needs
 Realizing a profit by successfully satisfying customer needs over
the long-term
The Marketing Concept: (Evolution)

 When firms first began to adopt the marketing concept, they

typically set up separate marketing departments whose
objective it was to satisfy customer needs. Often these
departments were sales departments with expanded
responsibilities. While this expanded sales department
structure can be found in some companies today, many firms
have structured themselves into marketing organizations
having a company-wide customer focus. Since the entire
organization exists to satisfy customer needs, nobody can
neglect a customer issue by declaring it a "marketing problem"
- everybody must be concerned with customer satisfaction.