MARKETING – AN INTRODUCTION

Class 1
Overview
• What is Marketing?

• Core Concepts

• Marketing Management

• Marketing Management Philosophies

• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept and
• Societal Marketing Concept
Some facts about marketing
• BOSTON, MA - February 27, 2012 - Following 3.8 percent
growth in 2011, global advertising spending is expected to
grow by 4.9 percent in 2012 to $465.5 billion, according
to the latest Global Advertising Forecast from Strategy
Analytics.

• Although total US advertising spending is expected to

increase by less than the global rate, at 2.7 percent this
year - to $152.1bn – it is a significant improvement on the
0.6 percent growth in 2011. The US also underperforms
Europe as a whole, which is expected to grow by 3.7
percent to $136.3bn in 2012.
Quote…

• Marketing is too important to be left to the marketing

department.” ~ David Packard
Introduction
Today’s successful companies at all levels have one thing
in common:
1). All successful companies are:
a). Strongly customer focused - P&G
b). Heavily committed to marketing - NCell

To be successful an organization motivates everyone in the

organization to produce superior value for their customers,
leading to high levels of customer satisfaction.
What is Marketing?
1. Creating customer value and satisfaction are at the very
heart of modern marketing thinking and practice.

“The aim of marketing is to know and understand the

customer so well the product or service fits him and
sells itself.” ~ Peter F. Drucker”

1. A very simple definition of marketing is that it is the

delivery of customer satisfaction at a profit.

“Sound marketing is critical to the success of every

organization. ”
Marketing Defined
• Many people think of marketing only as selling and
advertising.

• Marketing is no longer “telling and selling.”

• Marketing’s new sense is concerned with satisfying customer
needs.
Some Definitions…
• Marketing is defined as a social and managerial process
by which individuals and groups obtain what they need
and want through creating and exchanging products and
value with others.

• Marketing is a process by which companies create value

for customers and build strong customer relationships in
order to capture value from customer in return.
 P&G’s Tide Story
Can you develop a relationship with a
laundry detergent brand?
The Marketing Process
• A simple model of the marketing process:
• Understand the marketplace and customer needs and
wants.
• Design a customer-driven marketing strategy
(4 Ps – Marketing Mix).
• Construct a marketing program that delivers superior
value.
• Build profitable relationships and create customer
delight.
• Capture value from customers to create profits and
customer quality.
Marketing Management
• Marketing management is defined as the analysis,
planning, implementation, and control of programs
designed to create, build, and maintain beneficial
exchanges with target buyers for the purpose of achieving
organizational objectives.
Marketing Management Philosophies
• There are five alternative concepts under which
organizations conduct their marketing activities:
• Production
• Product
• Selling
• Marketing and
• Societal Marketing Concepts
The Production Concept
The production concept holds that consumers will favor
products that are available and highly affordable and that
management should, therefore, focus on improving
production and distribution efficiency. This is one of the
oldest philosophies that guides sellers.

The production concept is useful when:

1. Demand for a product exceeds the supply.
2. The product’s cost is too high and improve
productivity is needed to bring it down.
The Product Concept
The product concept states that consumers will favor
products that offer the most quality, performance, and
features, and that the organization should, therefore,
devote its energy to making continuous product
improvements.

1. Some manufacturers mistakenly believe that if they

“build a better mousetrap, consumers will beat a path to
their door just for their product.
2. The product concept can also lead to “marketing
myopia,” the failure to see the challenges being
presented by other products.
 The Selling Concept

Many organizations follow the selling concept. The selling

concept is the idea that consumers will not buy enough of the
organization’s products unless the organization undertakes a
large-scale selling and promotion effort.

1. This concept is typically practiced with unsought goods

(those that buyers do not normally think of buying).
2. To be successful with this concept, the organization must be
good at tracking down the interested buyer and selling them
on product benefits.
3. Industries that use this concept usually have overcapacity.
Their aim is to sell what they make rather than make what
will sell in the market.
4. There are not only high risks with this approach but low
satisfaction by customers.
The Marketing Concept
The marketing concept holds that achieving organizational
goals depends on determining the needs and wants of
target markets and delivering the desired satisfactions
more effectively and efficiently than competitors do.
Marketing Vs. Selling Concept
The marketing and selling concepts are often confused. The primary differences are:

1. The selling concept takes an “inside-out” perspective (focuses on existing

products and uses heavy promotion and selling efforts).

2. The marketing concept takes an “outside-in” perspective (focuses on customer

needs, values, and satisfactions).

3. Many companies claim to adopt the marketing concept but really do not unless
they commit to market-focused and customer-driven philosophies.

1. Customer-driven companies research current customers to learn about their

desires, gather new product and service ideas, and test proposed product
improvements.
2. Such customer-driven marketing usually works well when there exists a clear need
and when customers know what they want.
3. When customers do not know what they want, marketers can try customer-driving
marketing--understanding customer needs even better than customers themselves
do, and creating products and services that will meet existing and latent needs now
and in the future.
The Societal Marketing Concept
The societal marketing concept holds that the organization should determine
the needs, wants, and interests of target markets. It should then deliver the
desired satisfactions more effectively and efficiently than competitors in a
way that maintains or improves the consumer’s and the society’s well-being.

1. The societal marketing concept is the newest of the marketing philosophies.

2. It questions whether the pure marketing concept is adequate given the wide
variety of societal problems and ills.
3. According to the societal marketing concept, the pure marketing concept
overlooks possible conflicts between short-run consumer wants and long- run
consumer welfare
4. The societal concept calls upon marketers to balance three considerations in
setting their marketing policies:
1. Company profits.
2. Customer wants.
3. Society’s interests.
5. It has become good business to consider and think of society’s interests
when the organization makes marketing decisions.
Thank you!