MARKETING CONCEPT

 Good Marketing is not an accident but the result of careful planning and execution

What is marketing?  The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product/service provided fits him/her and sells itself. Drucker  “…..a social & managerial process by which individuals & organisations obtain what they need and want through creating and exchanging products and value with others Kotler

What is a market?  “A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want” (Philip Kotler).

What is Marketing?  Marketing is meeting the needs profitably both of markets & customers.  The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. E.g. waiting lines and customer full restaurants, waiting period for the vehicles.

What motivates a customer to take action

 Needs: Basic human requirements  wants: Needs directed to specific objectives/services that might satisfy the need( want Coco Cola)  Demand: Want for a specific products backed by ability to pay(I have money, want to buy Coco Cola) Marketers should try to shape the want.company’s help the customer to learn what they want.e.g. Chips, soft drinks are party food, Chocolates for celebrations, diet food, fitness & weight loss programs etc.

 Exchange: Get something (product/service) by offering something in return.  Exchange is a value creating process because it leaves both parties better off.  Transaction: It is an exchange between two things of value on agreed conditions & time & place of agreement.

As far as Customers are concerned there are three elements to address  Customer value: Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product.  Customer satisfaction: The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations.

 Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

What is Marketed?  Goods  Services  Events  Experiences  Persons  Places  Properties  Organizations  Information  Ideas

Concept under which firms conduct marketing activities  1. Production Concept  2. Product Concept  3. Selling Concept  4. Marketing Concept  5. Social Marketing Concept

1. Production concept  Consumers will prefer products that are widely available & inexpensive.  Managers of production oriented business concentrate on achieving high production efficiency, low costs, mass distribution.

2. Product concept  Consumer will favor those products that offer the most quality, performance, innovative features.  Managers in these organizations focus on making superior products & improving them overtime,

4. Selling Concept  Consumers, if left alone, will ordinarily not buy enough of the organizational products.  The organization must therefore undertake an aggressive selling promotion.  The aim is to sell what company’s make rather than what the market wants.

5. Marketing Concept  Consumer-catered, sense & response philosophy.  The job is to find right products for your customers.  The key is to achieve organizational goals, consists of the company being more effective than competitors in creating, delivering & communicating superior customer value to its choosen target marketers.

6. Societal Marketing Concept  Organization's task is to determine the needs, wants and interest of target marketers to deliver the desired satisfactions more effectively & efficiently than competitors in a way that preserves or enhances the customer’s the consumer’s well being.

Marketing and customer value  Value & satisfaction  Value=Benefits/Costs.  Benefits=Functional benefits + Emotional benefits.  Costs: Monetary costs+ Time+Energy+psychio costs

Implications of Marketing  Who are our existing/potential customer?  What are their current/future needs?  How can we satisfy these needs?  Can we offer a product/service that the customer would value?  Can we communicate with our customers?  Can we deliver a competitive product or service?  Why should customer buy from us?