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Industry

( a collection
of sellers)

Market

( a collection of
buyers)

YOUNG AGE 14-30
FOR PEPSI

YOUNG AGE 12-35
years old for COKE

Goods/Services
Money
Information
Communication
Exchange and transaction process
ORGANISATION
Marketing
Department
Human
Resources
Department
Production
Department
R& D
Dept.
Finance
Department
REVENUE
GENERATION
DEPARTMENT
DABUR I NDI A BRANDS
HI NDUSTAN UNI LEVER BRANDS
RECKI TT AND BENCKI SER
Marketing is a continuous process ascertaining consumer needs
converting them in to products /Brands or services and moving them
to final consumers to satisfy their wants ,needs, desires with
emphasis on profitability through optimum use of resources
Suppliers

Raw
materials

Manufacturer
Market
intermediarie
s

Retailers

Vendors/
stockiest
Customer

is

King
Value Delivery Chain

Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering and freely exchanging products and services of
value with others

Social Definition


Marketing is 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 goals.

AMA Definition


Marketing Management is the Art and Science of choosing
target markets and getting, keeping and growing customers
through creating, delivering and communicating superior
customer value.

Kotler Definition
Concept of Marketing

Exchange concept
Production concept
Product concept
Selling concept
Societal Marketing concepts
Relationship market concept
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Marketing Management
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Production
Concept
Product
Concept
Selling
Concept
Marketing
Concept
Societal
Marketing
Concept
Management
Orientations
Concept of Marketing
The Production Concept. This concept is the oldest of the
concepts in business. It holds that consumers will prefer products
that are widely available and inexpensive. Managers focusing on
this concept concentrate on achieving high production efficiency,
low costs, and mass distribution. They assume that consumers
are primarily interested in product availability and low
prices. This orientation makes sense in developing countries,
where consumers are more interested in obtaining the product
than in its features.

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Concept of Marketing
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. Management might commit the better-
mousetrap fallacy, believing that a better mousetrap will lead
people to beat a path to its door.

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The Selling Concept. This is another common business orientation. It
holds that consumers and businesses, if left alone, will ordinarily not
buy enough of the selling companys products. The organization
must, therefore, undertake an aggressive selling and promotion
effort. This concept assumes that consumers typically sho9w buyi8ng
inertia or resistance and must be coaxed into buying. It also assumes
that the company has a whole battery of effective selling and
promotional tools to stimulate more buying. Most firms practice the
selling concept when they have overcapacity. Their aim is to sell what
they make rather than make what the market wants.

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Concept of Marketing
The Marketing Concept. This is a business philosophy that
challenges the above three business orientations. Its central tenets
crystallized in the 1950s. It holds that the key to achieving its
organizational goals (goals of the selling company) consists of the
company being more effective than competitors in creating,
delivering, and communicating customer value to its selected target
customers. The marketing concept rests on four pillars: target market,
customer needs, integrated marketing and profitability.

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Concept of Marketing
Marketing Selling
1.Marketing starts with the
customer ,present and potential and
focuses constantly on the need of
the buyer. Buyer is the centre of the
business universe. Activities follow
the buyer and his needs.
1.Selling starts with the seller. It
focuses on the need of the seller.
Seller is the centre of the business
universe. Activities starts with
sellers existing products.
2.Emphasis on identification of a
market opportunity and fulfilling
the needs of the customer.
2.Emphasis on saleable surpluses
available within the corporation.
3.Seeks to convert customer
needs into products.
3.Seeks to convert productinto
cash,concerns itself with the tricks
and techniques of getting the
customers to buy the product
available with the salesman in
exchange of cash.
4.View business as customer
satisfying process.
4.View business as a goods
producing process.
Marketing Selling
5.It is concern with the value
satisfaction customer should get
from the exchange.
5.Overemphasis the exchangeaspect
without caring for the value
satisfaction inherent in the exchange.
6.The firm makes a total product
offeringthat would match and satisfy
the identified needs of the customers.

6.The firm makes the product first and
then figure out how to sell it and make
profit.

7.Adopting more innovative
technology to provide better value to
the customer.

7.Emphasis on staying with the existing
technology and reducing the cost of
production.

8.If the enterprise has a customer
orientation-concerned more about his
needs,and make genuine efforts to
satisfy those needs ,then it is
practising Marketing.
8.If the enterprise has internal
orientation concerned more about itself
and its products and the need to dispose
off its products,then it is practicing
Selling.

Marketing Selling
9.Consumer determines price; price
determines cost.
9.Costs determine price.
10.They are seen as vital services to be
provided to the customers keeping in
mind their convenience.

10.Transportation,storage and other
distribution functions are merely a part of
production function.

11.In firms practising marketing',
marketing is the central function of the
business; the entire company is
organised around the marketing function.
11.In firms practising selling,production
is the central function of the business.

12.Marketingviews the customer as the
very purpose of the business sees
business from point of view of the
customer.

12.Selling views the customer as the
last link in the business.

Societal Marketing Concept
The Societal Marketing Concept. This concept holds that the
organizations task is to determine the needs, wants, and
interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than competitors
(this is the original Marketing Concept). Additionally, it holds
that this all must be done in a way that preserves or enhances
the consumers and the societys well-being.
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Core Marketing Concepts

MASLOWS HIERARCHY OF NEEDS PYRAMID
What Can Be
Marketed?
Goods
Services
Places
Ideas
Events
Persons
Properties
Organizations
Information
Experiences


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What is being
marketed in this ad?
Role of Marketing
Organizational Resources

Effective match Specification
of
Target Market
Customer Satisfaction

Organizational
Aims/objectives
NATURE OF MARKETING
Marketing is customer oriented
Marketing is the delivery of value
Marketing is a net-work of relationships
Marketing as a separate discipline
Marketing is business
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To the Society
Protection against recession
A source of Employment
Welfare of Consumers and
Stakeholders

Importance of Marketing
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To the Marketers
Marketing Promotes Product
Awareness to the Public
Marketing Helps Boost Product
Sales
Marketing Builds Company
Reputation
Marketing helps to understand
changes in the market

Importance of Marketing
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Importance of Marketing
To the Consumer
Marketing creates utility
Possible to purchase from
any corner of the world
Marketing connects people
through Technology
A great opportunity of
choice

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TOP mgt
MIDDLE
MGT
FRONT LINE
PEOPLE
CUSTOMERS
CUSTOMERS
FRONT LINE
PEOPLE
MIDDLE
MGT
Top
Mgt
TRADI TI ONAL
ORGANI SATI ON
MODERN CUSTOMER
ORI ENTED ORGANI SATI ON
I MPLI CATI ONS FOR MARKETI NG
Advertisement can be used to emphasize either the
physiological benefits of a product, such as its nutritional
value, or its convenience as a means of satisfying these needs.
A food or drink manufacturer marketing a luxury product may
however find that, rather than appeal to the physiological need
for food and drink, it is preferable to identify his product with
the satisfaction one of Maslows higher needs.
He may appeal to belonging needs and display his product in a
social context.
Alternatively, he could appeal to esteem needs and suggest
that by serving the product to friends the social status of the
consumer will be enhanced.

Marketing Challenges
Via technology
With customers
With marketing
partners
With the world
Advances in computers,
telecommunications,
video-conferencing, etc.
are major forces
Databases allow for
customization of
products, messages
and analysis of needs
The Internet
Facilitates anytime,
anywhere connections
Facilitates CRM
Creates marketspaces

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Connecting
Marketing Challenges
Via technology
With customers
With marketing
partners
With the world
Selective relationship
management is key
Customer profitability
analysis separates
winners from losers
Growing share of
customer
Cross-selling and up-
selling are helpful
Direct sales to
buyers are growing

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Connecting
Marketing Challenges
Via technology
With customers
With marketing
partners
With the world
Partner relationship
management
involves:
Connecting inside
the company
Connecting with
outside partners
Supply chain
management
Strategic alliances

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Connecting
Marketing Challenges
Via technology
With customers
With marketing
partners
With the world
Globalization
Competition
New opportunities
Greater concern for
environmental and
social responsibility
Increased marketing
by nonprofit and
public-sector entities
Social marketing
campaigns

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Connecting
Developing Marketing Strategies & Plan
Capturing Marketing Insights
Connecting with Customers
Building strong brands
Shaping the market offering
Delivering Value
Communicating Value
Creating Long-Term Growth
Functions of Marketing

Marketing Research
Product Planning & Development
Product Pricing & Development
Product Pricing
Advertising & Publicity
Sales Promotion
After Sales Services
Test Marketing
Marketing Information

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