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Marketing Concepts
Filed under MarketingJul 27Marketing Concepts
Market: The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships.
Marketing means managing markets to bring about profitable customer relationships.
However, creating these relationships takes work. Sellers must search for buyers, identify must first create a need-satisfying marketing offer (product). It must decide how much it will charge for the offer (price) and how it will make the offer available target consumers (place). Finally, it must communicate with the target customers about the offer and persuade them of its merits (promotion).
Marketing: Marketing is the business function that identifies customer needs and wants.
Creating customer value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customer satisfaction at a profit.
Many people think of marketing only as selling & advertising. But selling & advertising are only the tip of marketing. Marketing means managing markets to bring about exchanges and relationships for the purpose of creating value and satisfying needs & wants.
Today, marketing must be understood not in the old sense of making a sale – ‘’telling and selling” – but in the new sense of satisfying customer needs. If the marketer does a good job of understanding consumer needs; develops products that provide superior value; and prices, distributes, and promotes them effectively, these products will sell very easily. Thus, selling and advertising are only part of a larger ‘’marketing mix” – a set of marketing tools that work together to satisfy customer needs and build customer relationships.
Broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others. In a narrower business context, marketing involves building profitable, value – laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong relationships in order to capture value from customers in return.
Customer Needs, Wants, and Demands:
The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety: social needs for belonging and affection: and individual needs for knowledge and self – expression. These needs were not created by marketers: they are a basic part of the human makeup.
Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, French fries, and a soft drink. A person in Mauritius needs food but wants a mango. Rice, lentils, and beans. Wants are shaped by buying power, wants become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.
Marketing Management:
The analysis, planning, implementation and control of programs design to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
Marketing Management Concepts
Production
Product
Selling
Marketing
Societal
Production concept:
Management should focus on improving production and distribution efficiency. When the demand for a product exceeds the supply, management should looks for ways to increase production. When the products cost is too high, improved productivity is needed to bring it down.
Product concept:
Consumer will favour products that offer the most quality, performance and innovative features. Thus, an organization should devote energy to making continues product improvements.
Selling concept:
Consumers will not buy enough of the organizations products unless its under takes large-scale selling and promotion effort.
Existing Selling & Profits through
Factory products promoting sales volume
Selling:
Selling is also important function of marketing. It is the process where by goods and services finally flow to the customers who need them. Selling focuses on the needs of the seller.
Marketing concept:
Customer Integrated Profits through
Market needs marketing customer satisfaction
The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than to competitors.
Marketing means obtaining customers. Marketing focuses on the needs of the purchaser. Makes profits by creating long term customer relationships based on customer value and satisfaction.
Societal concept:
The societal marketing concept holds that the organization
Society
(Human welfare)
Consumers
(Want satisfaction)
Company
(Profits)
should determine the needs, wants and interests of target markets.
Marketing Mix (4 Ps):
Marketing mix includes the set of controllable, tactical marketing tools in the target market.
Ø Product means the goods and services combination the company offer to the target market. Ex: Nuts & Bolts, Spark plugs, Pens & Pencils etc.
Ø Price is the amount of money customers have to pay to obtain the product.
Ø Place includes company activities that make the product available to target consumers
Ø Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Ford spends money each year for advertising to tell consumer about the company and its product.
Product
Product variety
Quality & Design
Features
Brand name
Packaging & Services
Warranties & Returns
Price
List price
Discounts
Allowances
Payment period
Credit terms
Place
Channels
Coverage & Locations
Assortments
Inventory
Transportations
Logistics
Promotion
Advertising
Personal selling
Sales promotion
Public relations
Target
Customers
Marketing effort / Marketing control:
The company wants to design and put in to action the marketing mix that will best achieves its objectives in its target markets.
Planning
Develop strategic plans
Develop marketing plans
plementation
Carry out plans
( The company turns the plans
in to action )
Control
Measure results
Evaluate results
Take corrective action
Analysis