(Decision Areas in Marketing)

Marketing Philosophies
Marketing Mix
Marketing Plan
Session 2
 • The production concept
prevailed from the time of
the industrial revolution
until the early 1920's.
• Idea that a firm should
Production focus on those products
Concept that it could produce most
efficiently
• The creation of a supply of
low-cost products would in
and of itself create the
demand for the products.
 • Focuses on the actual product
in an effort to continuously
improve quality, performance,
and features.
• The product concept holds that
Product consumers will favour the
highest quality products with
Concept the greatest performance and
features. The focus of
management is on
continuously seeking out new
product improvements.

• May lead to marketing myopia

(the tendency to too narrowly
define the scope of one's
 Marketing
Myopia
• No market is saturated
only THINKING makes it
SO.
• Former Chairman of
Coca Cola, Robert
Goizueta asked the
company managers to
capture the Share of
Fluids taken by a
customer rather than
bothering about the
competition from Pepsi.
 Food for Thought
• Marketing is constant
watchfulness for
opportunities.
• To survive, the companies
themselves will have to plot
the obsolescence of what
now produces their
livelihood.
 • 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
Sales to practice the sales concept
(or selling concept), under
Concept which companies not only
would produce the products,
but also would try to convince
customers to buy them
through advertising and
personal selling. Even today,
many people use the word
"marketing" when they really
mean sales.
 • In response to these discerning
customers, firms began to adopt the
marketing concept, which involves:
• Focusing on customer needs before
developing the product
Marketing • Aligning all functions of the company
to focus on those needs
Concept • Realizing a profit by successfully
satisfying customer needs over the
long-term
• When firms first began to adopt the
marketing concept, they typically set
up separate marketing departments
whose objective it was to satisfy
customer needs.
Societal marketing
concept
• An organization's marketing
decisions should consider the
well-being of society as a whole.
• Some marketing experts stress
the societal marketing concept,
the view that an organization
should discover and satisfy the
needs of its consumers in a way
that provides for society's well-
being.
HOLISTIC MARKETING

Earlier concept of
product centric (make Find right customer
n sell) shifted to for your product
customer centric.

Holistic marketing is
based on the Everything
development, design & matters in the
development of holistic approach
marketing programs.
 INTERNAL INTEGRATED
MARKETING MARKETING

HOLISTIC
MARKETING

SOCIALLY
RESPONSIBLE RELATIONSHIP
MARKETING MARKETING
Holistic Marketing
Dimensions
 Selling and
Marketing
• Selling focuses on the needs of
the seller, marketing on the
needs of the buyer.
• Product should be the
consequence of marketing effort
and not vice versa however this
rule is violated regularly.
 Marketing and Sales Concepts
Contrasted
Starting
Focus Means Ends
Point
Selling Profits
Existing
Factory and through
Products Promoting Volume

The Selling Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction

The Marketing Concept 13

 Marketing and CRM
Orientations

• Relationship marketing process

emphasises on continuous
interactions between the firm
and the customer.
• Customers lifetime value (LTV),
which gets enhanced over a
period of time.

14
Characteristics of
Current Millennium

Connected World
• Customers expect global products
and services at local prices.

• Developments in
telecommunication will further
contribute to the emergence of
these universal concepts relating to
time and value maximization.
15
 Characteristics of Current
Millennium

Product Life Cycles will be far shorter

• Products will be standardised and
hence the opportunities to
differentiate will also no longer exist.
• The differentiator will be the ability of
the marketer to creatively customize
them to the customer.
• Interactive technologies come to the
marketers’ rescue.

16
 It is a set of
marketing tools
that the firm uses
Marketing to pursue its
marketing
Mix objectives

Concept coined
by Niel H
Borden
 Originally coined by Neil H Borden
Classified into four broad groups, by
E Jerome McCarthy

Product

4 P’s Price

Place

Promotion
Marketing Mix Components (4 Ps)
 Product

• Product Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Sizes
• Services
• Warranties
• Returns
 Price

• List price
• Discounts
• Allowances
• Payment period
• Credit terms
• Schemes
 Place

• Channels
• Coverage
• Assortments
• Locations
• Inventory
• Transport
• Technological
Platforms
 Promotion

• Sales promotion
• Advertising
• Sales force
• Public relations
• Direct marketing
• Digital marketing
• Events
 PEOPLE

• Most important
element of any service
• People add value to
an experience ,
– Training
– Personal selling
– Customer service.
 Process

• SOPs
• Service Quality
Parameters
 • Material part of the
service.
• No physical attributes to
the service.
PHYSICAL Customers depend on the
EVIDENCE Brochures
Paperwork
Furnishing
Infrastructure
Uniform
 Robert F. Lauterborn
proposed 4 C’s

Four P’s • Product – Customer

and solution
Four C’s • Price – Customer cost
• Place – Convenience
• Promotion -
Communication
 Winning Companies

Winning companies will be those that can

meet customer needs economically,
conveniently & with effective
communication
Marketing Plan Contents

• Executive summary
• Table of contents
• Situation analysis
• Marketing strategy
• Marketing tactics
• Financial projections
• Implementation controls
 Other
marketing plan
contents
• Marketing research

• Action plans and

timelines
Evaluating a
Marketing
Plan
• Is the plan
simple?
• Is the plan
complete?
• Is the plan
specific?
• Is the plan
realistic?