They changed the Men’s grooming market. A strategy is a pattern of purposes and policies, a planned course of action in pursuit of clearly stated objectives in the face of limited resources, and intelligent competition. It is a non-personal means of communication. Marketing Management performs all managerial functions in the field of marketing. Marketing is not an expense free activity. Other decisions concern dropping or adding an item to the product line. Marketing activities are based on the premise of “make what the market wants”. A salesman may well perform other functions, such as delivery and repair, but, to simplify he will be viewed here as a conveyer and receiver of information. Concept of Marketing Mix 4 Comments Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. 1. These changes had led to the evolution of the “marketing concept,” which, in essence, is a philosophy of management. Almost all soft drinks and soda drinks follow the selling concept. The company’s function is to influence consumers by using all possible sales techniques so that they are encouraged to buy more. In the absence of choice, customers were forced into compliance or subordination by organizations. Marketing ensures that all decisions are taken for customer satisfaction. The process of satisfying consumer needs and wants cannot be haphazard and instinctual. Some of the products that have attracted criticism for their undesirable social effects include fast food (e.g., hamburgers and fries) and high calories laden drinks for causing poor health; tobacco, alcohol drinks, and cigarette for causing addiction; plastic containers and bottles for causing environmental degradation; high pollution and gas guzzling SUVs for causing pollution; fur and rare animal skin as well as exotic meat for threatening animal welfare; mining for causing ecological disturbance; blood diamonds for human rights violation; gambling services for causing addiction and insolvency; and prostitution for causing exploitation. The key ideas of availability and affordability were found to be necessary but not sufficient to succeed. Right from production and design of the goods to its transportation, every process has the customer in mind. Marketing Mix 9. In most of the cases prices form the decision making criterion for purchase decision. This can be achieved through promotion and communication about the goods and services. The application of this concept is also seen in service firms such as hospitals. Such segmentation helps the marketers to design specific strategies and techniques to promote a product amongst its target market. Planning of marketing activities relates to determining product line strategies, planning for product diversification, advertisement and promotional activities, planning related to selling and distribution process. Earlier when demand exceeded supply, there was no incentive for the firms to factor in consumers into their operation. Managerial marketing process starts with the determination of mission and goals of the entire enterprise and then defines the marketing objectives to be accomplished. Marketing Management performs all managerial functions in the field of marketing. This marketing concept is thought to have been simple: he who offered a standard product at the lowest price was going to win. v. Innovation – Innovation is an important tool to provide consumer satisfaction. In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage". Holistic marketing is a new addition to the business marketing management philosophies which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business. It looks after the marketing system of the enterprise. There are five alternative concepts under which organizations design and carry out their marketing strategies to answer these. Various functions of marketing management are: 1. Marketing management helps to increase profit and sales volume. The product concept assumes that consumers will favor those products that are superior in quality, performance, innovative features, designs, and so on. What Is Marketing Project Management? When a market consists of a small number of customers with highly specialized needs it is often labelled as niche market. In selling concept, the marketer assumes that customers will be coaxed into buying the product will like it; if they don’t like it, they will possibly forget their disappointment and buy it again later. The new reality of competitive intensification and market saturation led to the discovery of marketing concept in 1950s that placed the customer at the centre of the marketing universe. For instance, a company like Pepsi develops products, packages, distributes, and advertises them to satisfy consumers. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer utilizing the product and with the whole cluster of things associated with creating, delivering and finally consuming it.”. This proposition changed the marketing focus to developing better products and improving them over time. A) customer-driven marketing B) customer-driving marketing C) societal marketing D) marketing E) product Answer: E . The supply of manufactured goods was exceeding demand by the early 1930s. People are unlikely to throng to buy a superior quality product automatically. 5. The main emphasis here is on the product. As suggested by the discussion of the marketing system, there is a complex of more or less uncontrollable forces operating on the manager. In very general terms, what does he decide? The choice is generally based on a subtle or elaborate calculation as to which out of the available brands offers the best satisfaction. A number of issues are connected to the concept of market such as size, consumer diversity and geographic spread, type of demand, volume and value. Achieving high efficiency in production, low cost as well as distribution on a mass scale is the usual focus of the managers. They are also serious decisions for most firms. It deals with creating and regulating the demand and providing goods to customers for which they are willing to pay a price worth their value. Not only must a number of products be priced, but if a marketing channel other than direct-to-user is employed, consideration must often be given to the prices set at each level of the marketing channel. According to this marketing management philosophy, the unsatisfied need and want is identified, and then the product is manufactured that provides more satisfaction than the competitors do. According to him, “selling focuses on the needs of the seller; marketing on the needs of the buyer. He said, Because it is its purpose to create a customer, any business enterprise must have two and the only two basic functions: Marketing and innovation. This definition suggests that marketing starts with the market, focuses attention on customers’ needs, and attains profit through customer satisfaction with coordinated marketing. If the marketer does a good job of identifying consumer needs, developing appropriate products, and pricing, distributing, and promoting them effectively, these products will sell very easily. The processes are- (i) choice of the market (e.g., Apple operates in mobile handset market), (ii) selection of the target customer group (e.g., Apple does not cater to all customers in mobile handset market rather it targets the premium ones), (iii) determination of what customers in the target group need and want or what constitutes the concept of satisfaction (e.g., Apple understands what its target customers want in terms of usage ease, product touch and feel, instrument looks, and communication eco system), (iv) develop products or services in response to customer needs and wants (e.g., Apple devices like iPhone 6 is an outcome of product development in consonance with customer expectations), (v) plan how the product or service in question offers better satisfaction than competition (e.g., Apple devices score over its competitors in a number of customer significant ways such as aesthetics, appeal, and imagery). These two strategies are used together and backed by marketing research, product development, improvement, pricing, dealer organization, cooperation, and the physical distribution of goods themselves. What will be the importance of the organization, customers, and society’s interests? This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The Selling Concept assumes –“customers who are coaxed into buying the product will like it. The marketing concept adopts a narrow perspective of exchange as a transaction that happens between an organization and customer. What is needed for success is customer orientation, i.e., carefully defining customer needs from customers’ points of view. Welcome to EconomicsDiscussion.net! To meet all their needs our main objective is to develop a structure, a “theory”, of managerial marketing around which they can organize their reading and experience in order to arrive at a better understanding of it. The product concept holds that consumers will favor products that offer the most quality, performance, and innovative features. The setting of marketing goals and objectives, 4. The marketing concept has an outside-in perspective while selling concept has an inside-out perspective. Promotional and Communication Process: The ultimate objective of a firm is to maximise sales volume and profit. It is a very 21st-century concept that truly believes “the customer is king”. The orientation, in case of a person, influences his or her fundamental attitude, belief, feeling, and action with respect to a particular subject or issue, whereas an organization’s interaction with its market in terms of extended responses is influenced by its governing philosophy or orientation. Stanley Vance defines management as the process of decision making and controlling. The marketing concept is a total enterprise concept. Marketing management is a process involving analysis, planning, implementing and control and it covers goods, services, ideas and the goal is to produce satisfaction to the parties involved”. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. Societal marketing originated after it was realized that what is good for an individual customer or a select group may not be good for society. These are all practices that fall within the ambit of marketing. Integrated Marketing Management – Marketing management is only a part of the total managerial functions of an organization such as finance management, production management, human resources management etc. Firms such as Hindustan Unilever Limited (HUL) and Procter & Gamble (P&G) operate in consumer markets whereas Schneider Electric and Larsen & Toubro (L&T) are business to business marketers. ‘Dollar shave club’ is the best example. The selling concept starts with an assumption that consumers are indifferent or reluctant to marketed products or services. 2. This requires planning about different marketing tools and their combinations that shall be mixed to achieve desired results. Every saw an ad online or TV commercial that you almost can’t escape and hide from? These decisions of product change and change in product line are common, since few companies in the United States produce a single product. Marketing Concept 5. Share Your Word File Marketing is related to markets and therefore marketing management calls for integration of the various elements of market. When you think of high-quality products, Apple will be one of the top ones. The following are the features of marketing concept (modern marketing concept, integrated marketing concept, customer orientation): i. They also do not compare their products with that of competitors’ products to bring changes in their products. Regarding what business we are in, the company, for example, says, “we sell beauty and hope instead of we sell cosmetics.”. To acquire such a structure from experience alone, however, is a slow and often uncertain process. Marketing activities are not just selling and distribution of ownership of goods and services from the producer to the ultimate consumer. New ways of motivation are being introduced so that the employee gives his best of services. If people like Mountain Dew or not, that is debatable, but you can see that PepsiCo is pushing it hard using ads. A leader directs his subordinates and ensures through effective supervision, that the performance is as per planned specification. Marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. Moreover, for its products to be favored by the consumers, it will try to make its distribution as extensive as possible. Basic Concepts of Marketing (Marketing Concepts, Business Concepts), are the ways by which the enterprises can implement their marketing, commerce and sales activities.. Philip Kotler and Kevin Lane Keller classify the concepts of marketing activities as following:. A live examples is very difficult because all the companies today believe in the customer concept as well as the marketing concept. 4. Marketing mix is done using the 4Ps of marketing - Product, Place, Price, Promotion and 7Ps in case of service- Physical Evidence, People, Process. Many marketers still hold this concept, and this concept so influences some that they even forget that the market is going in another direction. 3. The marketer bridges the gap between overall organisational objectives of achieving high profit and maximization of sales and consumer’s interest of satisfying needs. (2) Selection and management of marketing channels for distribut­ing the product. It has to implement marketing programme and evaluate continuously the effectiveness of marketing-mix. The advice given by Emerson that if you build a better mouse-trap the world would make a beaten path to your door wrongly shifts marketing focus from consumer to product. Marketing concept takes an individualistic perspective to business with a complete disregard for society. This is achieved by expansion of market and increasing customers. It is this philosophical idea that sets apart right from wrong and what is acceptable and what is not. Evaluating and Controlling Marketing Efforts: In order to have a profitable venture, marketing manager must on a continuous basis, evaluate the marketing efforts. All these functional areas of marketing must be effectively planned, organised and built effectively to achieve best results. The term Marketing Mix is attributed to Neil Bordon. The company stops selling those products what they produce they change the production according to the customer need and wants. Getting, … Marketing management performs the task of converting the potential customers into actual customer. This concept was introduced after World War II as the customers could afford to be selective and buy only those items that precisely met their changing needs and these needs were not immediately obvious. After the product is designed, priced and advertised, it arouses consumers’ interest to buy it. The marketing concept legitimizes every product and services if it creates customer satisfaction. Consumers in a market can be divided into different groups based on their demographic aspects such as age, income, occupation, and gender. This suggests that profit is to be made by satisfying customers’ needs. This concept focuses on the needs and wants of target marketing as well as delivering value better than its competition. Marketing, here, indeed based on hard selling. The process of Planning & Executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that … Aggressive selling and promotion activities can guarantee sales. ‘Dollar shave club’ charges a couple of bucks a month with higher quality products and home delivery convenience. Revenue is not found inside an organization rather it resides outside, in the customer’s pocket. Evaluation and Controlling of Marketing Activities: Marketing management performs the task of evaluation and controlling of the marketing activities. Planning involves determining the future course of action. The aim of marketing is to know and understand the consumer so well that that the product or service fits him and sells itself. Another significant function of marketing is organising it implies determination of various activities to be performed and assigning these activities to right person, so that marketing objectives are achieved. The concept of marketing has changed dramatically over the years. For instance, people who get addicted to drugs become a cost burden to either their family or the state. Companies don’t follow a single marketing concept rigidly. The global warming panic button is pushed, and a revelation is required to use our resources. It has to remove the deficiencies observed in the actual execution of marketing plans, policies, and procedures. It has the task of organising these elements into an effective operating system so that it can serve both customer and business enterprise effectively. The marketing concept believes that, ‘It is fundamental for the organization to determine the needs and wants of target customers and develop and deliver satisfaction better than competitors.’. Lets understand the definition and characteristics of services in detail. Targeting only on the company’s products could also lead to marketing myopia. Marketing management means management of the functions of marketing functions. 8. For example, a company might be aimed at satisfying consumers’ wants and desires, but its overall objective might be to increase the profit volume. 1. For effective marketing management, the firm must prefer an effective marketing Concept . The constantly changing market conditions and opportunities make it imperative for the marketing management to come out with planned progammes to meet the challenges, and reap the opportunities. b) Product concept: – As per this concept companies give importance to the features or the quality of the product because in long run the … It ensures that company projects complete on time and with as few errors as possible. What do customers actually want? This requires a systematic analysis, planning, implementation, and control of marketing efforts or programmes. For instance, Fair and Handsome brand of fairness cream is targeted at the male segment of consumers. It refers to firm’s communication with the consumers regarding the product. The selling concept also developed at the same time, and the product concept developed and still predominant in many industries. The channel mix not only selects a channel of distribution, it also maintains it to ensure consistency in the selling practices followed by the sales people. These can be summarized, as in the outer hexagon of Figure 6, as competition, demand, non-marketing cost, structure of distribution, public policy, and company organization. Manufacturers were facing excess production capacity and competition for customers. The manager makes decisions about things he can control—the controllable. They try to understand the consumer and deliver the best product or service, which is better for the competition. Concepts of marketing management The production Concept. On the contrary, the marketing concept suggests that marketing starts with the customers and works back to the production of desired products in the right amounts and with the right specifications. The inside pentagon of Figure 6 portrays the controllable ele­ments, the ones about which the marketing manager can decide. All activities are geared towards the consumer.A business,aims to understand the needs and wants of a customer. They started realizing that buyers will favor well-made products and are willing to pay more for product extras, and the product concept started taking place in the minds of many producers. While pricing a product, managers consider factors such as costs, legal framework, prices charged by competitors and the prices that consumers are ready to pay. It includes information on Internet marketing, marketing technology, international business and more. Marketing management performs the task of setting marketing objectives. Marketing Management Philosophies or 5 Marketing Concepts are; The idea of production concept – “Consumers will favor products that are available and highly affordable.” This concept is one of the oldest Marketing management orientations that guide sellers. 2. The societal marketing concept holds “marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.”. You see, in Amazon or retail stores, the market is flooded with cheap products from china. Features 4. A decision is right only if it creates a satisfied customer. Production concept could still hold true in industries where consumer buying is predominantly done on the basis of price (they do not attach importance to non-price differentiation) and ease of buying. The marketing concept is put into practice by shifting the focus of value creation process to market or customers. This ensures long-run survival and growth of the enterprise. Marketing of firearms without adequate checks may promote crime and killings. Marketing caters to the varied and unlimited needs of consumers. The societal marketing concept . Important Concept of Marketing Management Philosophies are as follows: Production Concept; Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding a sale. The marketing concept holds customer satisfaction as the key to achieving organizational goals. A customer can be lured into buying by the power of persuasion or aggression only once but not repeatedly. Marketing Concept. And the soft drink companies know it, and they run ads 24×7, spending millions, The marketing concept holds- “achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.”. Selling orientation is likely to be ineffective when an organization has to depend upon repeat business. A company that believes in the marketing concept places the consumer at the center of the organization. It reposes great faith in the power of salesmanship and advertising. First, it will help them obtain new insights from the experiences they will be acquir­ing on the job in the future. Pricing decisions are based on cost of the manufacturing and distribution of product, competitor’s pricing strategies, customer’s willingness to pay for the product, customer’s perception about the product. The correctness of these decisions is determined not by managers who take them rather customers. Product quality and improvement are important parts of marketing strategies, sometimes the only part. Promotion and advertisement are essential in order to maximise sales. It starts with the point of production, which focuses on products, and its aim is to earn profit through increased sales volume, and the means used are selling and promoting. It is the customers who open up revenue streams. Consumers determine the future of the market .Therefore providing the best product to the consumer according to their preference is the important task of marketing. TOS4. The availability and affordability imperative brings two functions, namely distribution and production, at the centre of marketing strategy. A positive customer response affirms that the managers’ decisions regarding that particular brand were right. The societal marketing concept. The better mouse-trap is a fallacy that may wrongly orient an organization into believing that people buy products when instead they buy solutions of their problems. This process involves measuring the actual performance with the standard and identifying the deviations and taking corrective actions. Once the market has been selected, the marketer has to plan how it will satisfy customers in the selected market. Marketing action plans or programmes are to be implemented through proper communication, coordination as well as motivation of marketing personnel. Production concept expresses that customers will favor products that are generally accessible and not very expensive. It has to implement marketing programme and evaluate continuously the effectiveness of marketing-mix. Marketing Concept 3. We have to identify and evaluate unsatisfied and potential customers’ needs and desires. Customers do not patronize a dissatisfying organization if they have an option. This will help in better interaction between organisation and environment. Any company following the selling concept undertakes a high-risk. Although, in some situations, the production concept is still a useful philosophy. The Societal Marketing Concept puts human welfare on top before profits and satisfying the wants. Marketing research involves identification of needs, wants taste and preferences of the targeted customer. Marketing management performs the function of controlling of marketing activities. Therefore, keeping a track of the progress of marketing activities is required for achieving the marketing goals. These are; (1) production concept, (2) product concept, (3) selling concept, (4) marketing concept, and (5) societal marketing concept. Several products and services such as insurance and preventive health check-ups face consumer resistance because they are perceived to be unnecessary. We can see Adidas doing great as they continue to support Colin Kaepernick despite pressure from various parties. Thus marketing management opened up different employment avenues thus creating employment opportunities. Customer is the source of revenue. They have understood that people are not happy with their previous grooming products and their prices. One, when the demand for a product exceeds supply. Objectives to be favored by the power of seller aggression become dissatisfied and vent anger... 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