Download Production Concept

What will we be learning..???
What is marketing?
Why is marketing important?
What is the scope of marketing?
Some fundamental marketing concepts.
Marketing Challenges in the Globalized economic scenario.
Promotion
What is
Marketing?
Definition Of Marketing
American
Marketing
Association
AMA : Marketing is an organizational
function and a set of processes for
creating,
communicating,
and
delivering value to customers and for
managing customer relationships in
ways that benefit the organization and
its stakeholders.
Dr. Philip Kotler
Kotler : “the science and art of
exploring, creating, and delivering
value to satisfy the needs of a target
market at a profit.
Simply put
Marketing is the delivery of customer
satisfaction at a profit.
Goals
Attract new customers by promising
superior value and keep and grow current
customers by delivering satisfaction.
A simple model of the marketing
process
Create value for customers &
build customer relationships
Understand the
marketplace &
customer needs
& wants
Design a
customer driven
marketing
strategy
Construct an
integrated
marketing
program that
delivers
superior value
Capture value from
customers in return
Build profitable
relationships &
create customer
delight
Capture
value from
customers to
create profits
& customer
equity.
VALUE AND SATISFACTION
 Value is the customers’ estimate of the
Product’s capacity to satisfy a set of goals
 Value is the ratio between what the
customer gets and what he gives (V=B/C)
 Customer gets benefits & assume costs
 WHEN :Customer
Expectance=Performance (satisfied)
 Customer Expectance>Performance (dis-satisfied)
 Customer Expectance<Performance (Highly satisfied)
Basic Terms:
Needs, Wants & Demands
Need:• Basic human requirements like food, clothing and shelter
• Can also include needs like education and recreation
• Find out types of needs
Want:• Need directed to specified object
• Is shaped by culture and individual
• Might satisfy the need
Demand:• Wants backed by purchasing power
Basic Terms:
Value & Satisfaction
Value:• Reflects perceived tangible & intangible benefits & costs
• Usually combination of quality, service and price
Satisfaction:• Customer’s comparative judgment of expectation and
perceived performance
Basic Terms:
Offering & Branding
Offering:• Needs are addressed by value proposition
• Set of benefits offered to satisfy needs
• Value proposition is made physical by an offering
Basic Terms:
Market
 Physical place
 Buyers and Sellers meet
 Transaction happens
 Key customer markets:1.
2.
3.
Consumer Market
Business Market
Global Market
What is
MARKETED…???
Goods
Services
People
Experience
Events
Properties
Organisations
NEWS PAPERS
BOOKS
Ideas
Who is Marketer…???
A
Marketer is someone who
seeks a Response from a
party , referred as
Prospect.
Marketer
 Skilled in stimulating demand.
 Responsible for demand
management, i.e., identify
the demand state and
determine plan for it.
 There are eight
Demand States of a consumer
which need to be identified.
Demand States
 Negative Demand: Customers dislike the product and
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
may even pay a price to avoid it.
Non-existent Demand: Customers may be unaware or
uninterested in the product.
Latent Demand: Consumers may have a strong need that
cannot be satisfied by an existing product.
Declining Demand: Consumers buy the product less
frequently or not at all.
Irregular Demand: Purchases vary on a seasonal,
monthly, weekly or even daily.
Full Demand: Customers buy in adequate amount
products available in market.
Overfull Demand: Many consumers would like to buy the
product that can be satisfied.
MARKETING MYOPIA
 Term coined by Theodore Levitt
 Refer to the short sightedness
 The marketer wants to sell the product and
services, without much focusing on the customer
demands/needs.
“Creativity is thinking up new things. Innovation is
doing new things.”
Theodore Levitt
Evolution of Marketing Concept
 This marketing philosophy has undergone a
thorough and gradual change since the great
Industrial Revolution that took place during the
latter-half of the 18th and first-half of the 19th
centuries.
 This gradual change can be traced under four periods
and captions namely, production orientation period,
sales-orientation period, customer-orientation
period and social orientation period.
Five Core Concepts of Marketing
1.
2.
3.
4.
5.
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Production Concept
 The idea that consumers will favor products that are
available & highly affordable & that the
organization should therefore focus on improving
production & distribution efficiency.
Product Concept
 The product philosophy was the dominant marketing
philosophy prior to the Industrial Revolution and
continued to the 1920s.
 The idea that consumers will favor products that offer
the most quality, performance, & features thereby
devoting a company’s energy to making continuous
product improvements.
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Make & sell concept
Focus on making superior products
No customer input
Less competitor product examination.
“ Marketing Myopia”
Selling Concept
 It began to be dominant around 1930 and stayed in
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widespread use until about 1950.
The idea that consumers will not buy enough of the
firms products unless it undertakes a large scale
selling & promotion effort.
Practiced most aggressively with unsought goods
eg, insurance, encyclopedias.
Focuses on creating sales-transactions rather than
long term profitable relationships.
“Political Relationships”
Marketing Concept
 The marketing era started to dominate around
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1950, and it continues to the present.
The marketing management philosophy that
achieving organizational goals depends on knowing
the needs & wants of target markets &
delivering the desired satisfactions better than
competitors.
Sense & respond philosophy.
Finding right products for customers
Customer-driving marketing – understanding
customer needs even better than the customers
themselves.
Contrast between Sales Concept &
Marketing Concept
Factory Products
Selling &Promoting
Profits through
sales volume
a. THE SELLING CONCEPT
Target
Customer
Market
Needs
Integrated
Profits through
Marketing customer satisfaction
b. THE MARKETING CONCEPT
Societal Marketing Concept
 Holds that marketing strategy should deliver
value to customers in a way that maintains or
improves both consumers & the societies wellbeing.
Society
(Human Welfare)
Consumers
(Want Satisfaction)
Societal
marketing
concept
Company
(Profits)
Thank You…!
That’s It For Today 