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1465212398marketingconceptsandevolution PDF
1465212398marketingconceptsandevolution PDF
Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi
Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.
QUADRANT-I
1. Learning outcomes:
2. Introduction:
The marketing concept come out in the mid- 1950s and challenged the proceeding concepts.
For understanding the meaning of marketing, firstly understand the meaning of market .The
word Market is derived from the Latin word MARCATUS which means merchandise or trade
or a place where business is conducted. Marketing is not only a place of exchange but an
arrangement that provides an opportunity of exchanging goods and services for money.
In mid 1950s most firms were production oriented i.e. the manufacture emphasized only on
production of quality products and then looked for people to purchase them. With the passage
of time and technological advancement, the focus shifted to an effective sales force to find
that customers for their increasing output. After 1950s the marketing shifted to impressive
concern that the manufacturer first looks into consideration the customers wants and then
manufactured their goods according to their interest.
The American Marketing Association defines
“Marketing as the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.”
Marketing is a broader and comprehensive term and it includes set of activities and
important resources necessary to direct and facilitate the flow of goods and services from the
producer to the consumer. Marketing also availing the right goods and services to the right
people, at the right place and at the right time.
4. Core Concept of Marketing:
Philip Kotler explained the core concept of marketing in his book – “Marketing Management”
as,
According to him, every human being has endless needs and demands . There are many
products which can satisfy human wants and demands. These wants and demands can be
fulfilled by exchange of goods and services . Marketers try to increase demand by making
products more attractive , affordable and easily available .Market is a place where goods and
services exchanged. Marketing means all those activities that take place in relation to market
.Hence , the marketing is a social process by which individual and groups obtain what they need
and want through exchanging products and values with others.
5. Definitions of Marketing :
To understand the concept of marketing different authors define marketing in their own way .
Some definitions of Marketing are as follows:
5.1 According to Pyle,(Principles of Marketing) – “ Marketing comprises both buying and selling
activities.”
5.2 According to Tousley ,Clark and Clark ( Principles of Marketing ) – “Marketing consists of
those efforts which affect transfers in the ownership of goods and services and which provide
for their physical distribution.”
5.3 According to Paul Mazur – “ Marketing is the delivery of standard of living.”
5.4 According to William J. Stanton – “ Marketing is a total system of interacting business
activities designed to plan, price, promote and distribute want satisfying products and services
to present and potential customers.”
5.5 According to H.L. Hansen (Marketing )- “Marketing is the process of discovering and
translating consumer needs and wants into product and service specifications, creating demand
for these products and services and then in turn expanding the demand.”
6 Marketing Concepts :
To understand the meaning of modern marketing , one should be clear the meaning of marketing
concepts. Marketing concepts has two words: Marketing and Concepts. A concept is a
philosophy, an attitude and course of thinking. Marketing concept is the philosophy that guides
the activities of marketing.
Till 1930‟s , USA was facing shortage of production and at that time the general philosophy
of business was ,” produce as much as u can , because there is a limitless market “. In this
stage the main focus on increasing the production not the selling. Producers were busy to find
and implement the ways and means which increases production. That‟s why this stage is
called as production – oriented stage. The assumptions of this philosophy are :
Anything that can be produced can be sold.
To keep the cost of production is low
Produce only certain basic products.
This stage lies between the periods from Great Depression to the end of World War II.
During this stage the main problem was not production, but how to sell it. In this stage the
focus of businessmen was shifted towards sales and this stage is called as sales – oriented
stage. The main assumptions of this philosophy are:
Production of good quality product
Finding new buyers of the product
Convince the buyers through good selling tactics.
In this stage the needs of the consumer determined and then integrated efforts were taken to
produce the goods that satisfied these needs and wants. The main assumptions of the
philosophy are :
Only desired products by consumer should be produced,
Consumer is treated as a king of the market,
To integrate all activities to satisfy consumer wants.
Focus on long range profits rather than „quick sales‟.
In this stage focus not only consumer satisfaction but also for consumer welfare or social
welfare. The assumptions of social orientation philosophy are :
This is one of the oldest concept of Marketing. According to that concept, producer
believed that if the product is good and reasonably priced, it will be
most popular if no special marketing efforts are made. In other words, customer prefer
those products which are low priced and easily available.
According to Philip Kotler , “ the production concept hold that consumer will favour
those products that are widely available and low in cost management in production
oriented organization concentrate on achieving high production efficiency and
Distribution coverage.”
This concept is very useful in Banks , General Hospitals and Industries which producing
convenience products.
According to this concept , producer believed that by making superior products and
improving their quality , they will attract more customer. Superior products are always
prefer by the customer.
According to Philip kotler , “ The product concept holds that consumer will favour those
products that offer the most quality performance and features . Management in these
product oriented organizations focus their energy on manufacturing good quality products
and improving them over time.
This concept is useful for specialized nursing homes, bakeries and Industries which are
producing electronic products.
8.3 Selling Concept :
According to that concept, the customer will not normally purchase the product unless
they are convinced through proper advertising , sales promotion and salesmanship efforts.
It shows that even the best products cannot have assured sales without the help of sales
promotion. So, a marketing concept points out that goods are not bought but they sold
with the help of salesmanship efforts, aggressive advertising and intensive sales
promotion . This concept change the attitude of marketers as sales – oriented. Some
important aspects of selling are:
It provides a human touch to business transactions.
It enhances the customer‟s confidence in the seller.
It provides prospective customers of the product.
This concept is practiced in the NGO‟s, college admissions, offices and political parties.
This concepts focus on the determination of the requirements of potential customers and
supplying product to satisfy their requirements. This concept highlights that the primary
task of every business enterprise is to study the needs, desires and values of potential
customers. The market concept focus on the four points :
Target market
Customer Needs
Integrated Marketing
Profit through Customer Satisfaction.
This is the traditional concept of marketing. According to this concept, marketing starts
when the production process is completed and ends when goods are sold. It has no
concern with the pre- production activities and after sales activities. Under this concept
the firms are more concerned with maximizing their profits by maximizing their sales.
According to American Marketing Association, “Marketing is the performance of
business activities that directs the flow of goods and services from producer to consumer
or user.”
8.6 Creation of Utility concept :
According to this concept marketing is the creation of different types of utilities in goods
and make them valuable.
For Example:
This is the new and broader concept of marketing. This concept focuses that the
organization should first determine the needs, wants and interests of the target markets. It
emphasized on producing goods and services which are beneficial for the society.
According to Philip Kotler, “ Societal marketing concept is customer- orientated concept
backed by integrated marketing aimed at generating customer satisfaction and long – run
customer welfare as the key to attaining long – run profitable volume.”
The organization shall offer long – run consumers and public welfare,
The mission of an organization is to create satisfied customers,
The organization will offer only those products to the customers which are beneficial
both to the consumers and the society.
According to this concept, marketing includes all those activities which create and
provide a better standard of living to the society. Consumers are motivated to
purchase new products that are easily available in the market. This concept is a
customer-oriented concept and is more close to the modern concept of marketing.
Acc .to Paul Mazur, “Marketing is the creation and delivery of standard of living to the
society.”
Acc. to Prof. Malcolm McNair, “Marketing is the creation and delivery of standard of
living to the society.”
6.Market Research No scope for market research. Top priority for market research.
8.Consumer welfare There is no place for consumer It is the main responsibility of the
welfare. marketer for consumer welfare.
10.8 Remarketing :
Remarketing is associated with the term “ faltering demand “ , which is invariably for
all kinds of products , services , places , organization etc. In this state, there is a decline
in demand for the products is possible, if no preventive action is taken to enhance the
target market.
11. Summary :
Marketing concepts emerged in mid 1950s and challenged the proceeding concepts.
Marketing as the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives. The core concepts of Marketing start from needs, wants and
demands and ends with market and marketers. Marketing concepts tells us about the
philosophy that guides the activities of marketing. These are customer oriented concepts
aimed at generating customer satisfaction .The starting stage of Marketing concepts is
Production Stage then proceeds for sales oriented, customer oriented and finally social
oriented stage. From these stages we know about the development of marketing concepts.
The traditional concept of marketing is totally different from the Modern concept of
Marketing. Modern concept of marketing focus on customer satisfaction and it is consumer
oriented process. It creates and delivers the standard of living to the society and aims at
earning profit only by satisfying the consumers. Whereas, the Traditional concept of
Marketing focus only on production of commodities. It was based on the idea that a consumer
would buy what the seller produces. It is the production Oriented concepts aims at earning
maximum profits and does not provide after sale services. There are also some new concepts
of marketing which enhances the new practices and opportunities for today‟s competitive
world. At last we can say that Marketing is seen as the task of creating, promoting, and
delivering goods services to consumers and businesses. Marketers are skilled in stimulating
demand for a company‟s products, but this is too limited a view of the tasks marketers
performs. Just as production and logistics professional are responsible for supply
management, marketers are responsible for demand management. Marketing managers seek
to influence the level, timing, and composition of demand to meet the organisation‟s goals
.Marketing concepts aims at serving customer demand by offerings right product, in right
amount at right place and to right customers.