Since then however a combination of the effect of competition and the bargaining power of buyers have the forced the marketers to put the market’s needs first and their own second. These core concepts are: While over the long term these factors will share the nature of the uncontrollable forces, the manager is forced by such aspects as convenience and lack of adequate data to concern himself mainly with the immedi­ate uncontrollable item. The possibilities, as we have seen, are almost unlimited. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.. Businesses operate in a dynamic environment. Customers do not patronize a dissatisfying organization if they have an option. A satisfied customer will buy again and again, and he/she will speak high about the company, which will increase the company’s image and help attract new customers. Marketing management is a managerial process involving planning, organising, decision making, forecasting, directing, coordinating and controlling. The management process responsible for identifying , anticipating and satisfying customer requirements profitability. 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. Market analysis is the first essential step in determining where the firm seeks to market its product or service. To acquire such a structure from experience alone, however, is a slow and often uncertain process. To ensure customer satisfaction, a company should encourage customer complaints, since it is seen from different studies that 96% of unhappy customers never tell the company about their dissatisfaction. Moreover, for its products to be favored by the consumers, it will try to make its distribution as extensive as possible. Underlying these are, of course, the much more fundamental forces of techno­logical, social, political, and economic change. These are put to test at the point of purchase. Product planning involves new product development, product innovation, product diversification plan. The product concept ignores the role of other marketing activities. Social Marketing Concept The constraint of repeat business changes the marketing paradigm in favour of the customer. Due to the increasing importance and share of the service sector in the economies of most developed and developing countries the world economy is characterized as a service economy. It is marketing management that assists in building a lucrative relationship with the customers. Breaking down their needs and settling on such choices that fulfill those needs in a superior manner than contenders. 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. Aggressive selling and promotion activities can guarantee sales. The number of buyers in a market gives rise to its size, which can either be expressed in terms of volume (e.g., number of cars sold in India in a given year) or value (e.g., total car sales expressed in rupee terms). A leader directs his subordinates and ensures through effective supervision, that the performance is as per planned specification. v. Innovation – Innovation is an important tool to provide consumer satisfaction. The Societal Marketing Concept. Therefore, it is understood that in the product concept, the management fails to identify what business it is in, which leads to the marketing myopia – i.e., short-sightedness on the role of marketing. Consumers can be geographically located at different places, which can create differences in their needs and wants. Today most firms have adopted the marketing concept, but this has not always been the case. Share Your PPT File. Thus marketing management opened up different employment avenues thus creating employment opportunities. However, if you see the rise and shine of FORD motor company, then you will know that ford actually established the moving assembly line back in 1913 and that is a perfect example of Production concept in action. Management is the process of getting things done in an organised and efficient manner. 8. As suggested by the discussion of the marketing system, there is a complex of more or less uncontrollable forces operating on the manager. Marketing management helps in creation of new customers and retention of current customers. Do you want to add something more? Under the marketing concept, customer focus and value are the routes to achieve sales and profits. A consumer is basically fastidious and fickle minded. Which of the following marketing management concepts is most likely to lead to marketing myopia? Planning helps in accomplishment of objectives in a systematic manner. The key questions changed to − 1. Evaluation enables identification of effectiveness of marketing plans and actions. Promotion and advertisement is essential to provide information to the customers about the product, to attract new customers, to provide reminder to customers about the product and to continue purchase, to provide information about product improvement or introduction of new brand. This production concept is found to be applicable if two situations prevail. This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). 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 has to implement marketing programme and evaluate continuously the effectiveness of marketing-mix. The aim of marketing is to know and understand the consumer so well that that the product or service fits him and sells itself. All companies must choose the set of channels they think will be most effective. There are five alternative concepts under which organizations design and carry out their marketing strategies to answer these. Focus on customer needs – The needs of the consumer are studied and these become the basis of all product related activities such as designing, pricing, distribution, packaging etc. All growth in-casting have an important role for innovation in their marketing plans. It is a very 21st-century concept that truly believes “the customer is king”. A) customer-driven marketing B) customer-driving marketing C) societal marketing D) marketing ... An attractive idea must be developed into a _____. For many marketing companies product orientation turns out to be a trap. The marketing concept holds customer satisfaction as the key to achieving organizational goals. Second, understanding of marketing management will permit a better grasp of the role of marketing in economic development, which many countries are so earnestly seeking. Smoking is a major cause of a variety of health problems, which requires expensive treatment. Management focuses on improving production and distribution efficiency. But it involves a series of activities like research analysis, production, development and innovation, advertisement and promotion pricing decision, selling and distribution, customer relationship and after sales service. Even if a good quality product has been created for people to make a beaten path to firm’s door, many other enabling things will have to be done to make that happen. Marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. It has to remove the deficiencies observed in the actual execution of marketing plans, policies, and procedures. The Societal Marketing Concept puts human welfare on top before profits and satisfying the wants. In an organisation, marketing concept is used to examine the customer’s needs and make powerful decisions to satisfy those needs, increase the sales, make profits and stand among the opponents. A company must retain its old customers since attracting new customers is very difficult and costly. It calls for sustainable marketing, socially and environmentally responsible marketing that meets consumers’ and businesses’ present needs while also preserving or enhancing future generations’ ability to meet their needs. 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.”. Marketing involves various activities and these are inter-related and interdependent. The societal marketing concept . The concept of marketing management involves marketing and management. Satisfaction of consumers is the essence of the marketing concept. Marketing is related to markets and therefore marketing management calls for integration of the various elements of market. What will be the importance of the organization, customers, and society’s interests? First, it will help them obtain new insights from the experiences they will be acquir­ing on the job in the future. The process of dealing with the markets must be properly managed or else both effectiveness and efficiency of the process will get compromised. Production concept is probably the oldest business governing idea, which dates back to the period of short supply of goods. 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. Performance according to plan is duly assured by effective marketing control. Thus all the functional areas of an organization are integrated. Marketing activities are not just selling and distribution of ownership of goods and services from the producer to the ultimate consumer. These goods refer to the goods whose consumption results in incurring of costs by those who actually do not consume them. The belief that a better product is always bought by consumers actually turned out to be wrong. One of the categories of goods in economics is ‘demerit goods’. The marketing-mix is expected to sell more than competitors. Marketing Concept. The marketing concept is put into practice by shifting the focus of value creation process to market or customers. The production concept was common to firms during the early period of industrialization when different products were born. In this new evolved scenario, the old mantra of availability and affordability became ineffective. The inside pentagon of Figure 6 portrays the controllable ele­ments, the ones about which the marketing manager can decide. In this article, we talk about the Core Concepts of Marketing as put forward by Dr Philip Kotler. The selling concept can have disastrous consequences in the long term. The setting of marketing goals and objectives, 4. 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 marketer bridges the gap between overall organisational objectives of achieving high profit and maximization of sales and consumer’s interest of satisfying needs. Planning may be conducted on short term, medium term and long term basis depending upon the requirements. Marketing programme starts from the product concept and it does not end until customer wants are adequately satisfied. In this article, we will look at 1) the four P’s, 2) history of the marketing mix concept and terminology, 3) purpose of the marketing mix, 4) key features of the marketing mix, 5) developing a marketing mix, 6) key challenges, and 7) marketing mix example – Nivea.. It refers to firm’s communication with the consumers regarding the product. As Dr Kotler defines; Marketing Management is a social and managerial process by which individuals or firms obtain what they need or want through creating, offering, exchanging products of value with each other. Marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system. Concept of Marketing Mix 4 Comments Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. 2. 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. From social perspective, drugs are undesirable because their use causes addiction with a host of personal and family ramifications. Management and Marketing Management Marketing management has recently become an indispensable element in business structures.Through this program, it is intended to give a broad view of the basic concepts of this area, in order to instill the essential pillars in professional performance. Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts. 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. 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. Every saw an ad online or TV commercial that you almost can’t escape and hide from? The status of marketing people also changes, and marketing comes in the foreground of the company operation. Determine marketing opportunities which have to be capitalised. ‘Dollar shave club’ charges a couple of bucks a month with higher quality products and home delivery convenience. 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. Most of the products were sold due to excess demand and less supply in the market. Market is a complex concept, which makes working with the markets a challenging task. It is a marketing concept that believes that the success of a business depends on the marketing efforts that deliver a better value proposition than its competitors. This intensified competition and put pressure on firms to offer better quality products. The selling concept also developed at the same time, and the product concept developed and still predominant in many industries. The end of the marketing concept is to make profits through customer satisfaction. At the same time, it is necessary that employers are properly motivated. Marketing Concept is the philosophy that an organization should analyze the needs of their consumers and then make decisions to satisfy those needs, better than the competition. The term is named marketing mix… Assessing the Marketing Opportunities: Determination of marketing objectives and assessment of the marketing opportunities for the firm, is an important function of marketing management. Reluctance was observed on the part of the buyer to respond promptly to marketed products and services. 05- Societal Marketing Concept: It is the most advanced form of the marketing concept that is recently becoming popular throughout the world. Producing quality products does not necessarily guarantee its sale. A company can do this with market research, and hence, the role of market research plays a dominant role in marketing concept-oriented companies. A company’s modification of the nature of its offering is achieved through product and service decisions which are essentially of two types. All marketing activities are consumer centric. The buyer will be ready to pay for the goods if they have some value for him. They are also serious decisions for most firms. A general motors executive said years ago: ”How can the public know what kind of car they want until they see what is available?”. A business that is run on production oriented philosophy works with markets with the belief that product availability and affordability are key determinants of consumer buying. The success of an organization is directly related to the consumer satisfaction it provides. What is needed for success is customer orientation, i.e., carefully defining customer needs from customers’ points of view. In most of the cases prices form the decision making criterion for purchase decision. Almost all companies eventually fall into this concept. Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. Their products are so good that they set industry trends and standards. This helps to identify market opportunities. The absence of a strong philosophical core is likely to render a person inconsistent and confused. This led to a change in business orientation and product concept came into existence. First, people who could buy the product must be made aware and be informed about its superiority. In other words, the aim is to sell what the company makes rather than making what the market wants. Directing and Motivating the Employee: A good direction is a must for effective performance of marketing functions. 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. The selling orientation exclusively focuses attention on ways to push the product across with little or no regard for consumer interest. Assume, to simplify, that we are concerned only with the man­ufacturing level in a direct sense because the manager we are considering occupies a marketing management position there. Today, marketing is exchange of values between the seller and the buyer. After the product is designed, priced and advertised, it arouses consumers’ interest to buy it. The marketing concept suggests that a company should focus its attention on marketing rather than production and selling. 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. Typically the selling concept is practiced with unsought goods. This structure is culture- free and can be applied to any environment. Such segmentation helps the marketers to design specific strategies and techniques to promote a product amongst its target market. 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. People are not interested in products, rather they want a solution to their problems. Marketing strategy points out the level, mix, and allocation of marketing efforts in marketing action plans. Some important questions that need to be addressed include what product to make, its quality level, price to be charged, promotion elements, and how it will be made available. The Selling Concept makes poor assumptions. This can be discerned by studying the consumption basket of consumers situated at different locations. Market segmentation will enable us to select target markets on which we can concentrate our efforts. This search led to the discovery of selling concept. Humans have various ideas as to how life should be conducted. The marketing concept is a customer-centered “sense and responds” philosophy. Application of this concept in service firms such as hospitals is also criticized because it may cause deterioration in the firm’s service. It involves planning effective strategies to achieve the desired marketing objectives. It has to implement marketing programme and evaluate continuously the effectiveness of marketing-mix. Marketing ensures that all decisions are taken for customer satisfaction. For example, if marketing functions are not coordinated among themselves, the salesforce might heavily criticize marketing people for setting a very high sales target. With Figure 6 for perspective, we will first examine each of the controllables. The job is not to find the right customers for your product but to find your customers’ right products. Marketing management aims at providing innovative product and services to the customers. This means that a br… A company should choose the right one according to their and their customers’ needs. Planning is an important managerial function. Marketers continuously strive to incorporate new technology and mechanism in their product to provide more satisfaction to customers than before. 7. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. Importance 5. Marketing Management Definition Marketing is the process used to determine what products or services may be of interest to customers and the strategy to use in sales, communications and business development (Kotler et al. 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 great depression in America proved that producing enough goods or quality goods is no more a problem. It increases sales by holding contests, lotteries etc. You can click on each link to know more about each individual concept of marketing. This is achieved by expansion of market and increasing customers. "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself." Marketing management aims at efficient operation of marketing activities. For effective marketing management, the firm must prefer an effective marketing concept. The marketing concept starts with a well-defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produce profits by satisfying customers. Achieving high efficiency in production, low cost as well as distribution on a mass scale is the usual focus of the managers. A contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. Evaluation and Controlling of Marketing Activities: Marketing management performs the task of evaluation and controlling of the marketing activities. Coordination and conflict management are attained through contractual agreements among channel members. Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities. Thus, producers will be interested in increasing their outputs. Marketing management evaluates the effectiveness of marketing activities, to judge the efficiency of marketing personnel and the plans. As participating firms in a market went up so did the product availability. It motivates them to buy the goods. It is also necessary to deliver it to the consumers. The followers of selling orientation have the belief that ‘it is a belief that consumers will not purchase or purchase enough of an organization’s product unless their interest is stimulated and they are persuaded to buy.’. Internal marketing means successfully hiring, training, and motivating employees to serve the customers well and satisfy them. Organizations make a continuous endeavour towards planning, development and innovation of product and services so as to meet the changing demand, taste and preferences of the consumers. 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. Essentially, marketing planning is about determining strategy that requires detailing the steps that would be undertaken to achieve the set marketing goals. P. Drucker recognised the equal importance of innovative attitude and marketing concept. Marketing Management process involves the following: 1. It presents the product details to consumers through media. The non-controllable variables are social, technological, political, cultural and legal factors which affect the marketing strategies. Some readers will be students who intend to be in marketing management, others already are marketing manag­ers, and still others may be in related activities that bear on mar­keting management in either a managerial or a regulative capacity. New ways of motivation are being introduced so that the employee gives his best of services. The marketing objectives are set in accordance with the overall organisational objectives of profit maximization. It becomes a legitimate concern of businesses to discover what actually is critical to get the customers to keep coming back. It recognizes and considers the feelings, wants, liking and emotions of consumers. Examples of Marketing Concept of Marketing Management Philosophies The success of the marketing concept depends on the enterprise-wide adaptation of marketing culture. (2) Selection and management of marketing channels for distribut­ing the product. Structure. It deals with creating and maintaining demand for goods and services of the organization. In a similar vein, organizations need philosophy to guide their thinking and behaviour. Ideally marketing should result in a customer who is ready to buy.