MARKETING CONCEPTS OR PHILOSOPHIES

Ø  IBPS SO MAINS/MARKETING  2019 LECTURE 2
MARKETING CONCEPTS OR PHILOSOPHIES
CONTENTS:

1. EXPLAINED VARIOUS CONCEPTS
2. DIFFERENCE BETWEEN SELLING AND MARKETING
3. IMPORTANT MCQ FOR COMPETITIVE EXAM
   
   

Ø  PRODUCTION CONCEPT

• OLDEST CONCEPT.
• CONSUMER PREFER PRODUCTS WHICH ARE WIDELY AVAILABLE AND INEXPENSIVE
• CONCENTRATE ON:-

1. HIGH PRODUCTION EFFICIENCY
2. LOW COST
3. MASS DISTRIBUTION
4. COULD RESULT IN MARKETING MYOPIA
5. USED WHEN THEY WANT TO EXPAND MARKET

Ø  THE PRODUCT CONCEPT

1. FAVOR PRODUCT OFFERING:-
2. MOST QUALITY
3. PERFORMANCE
4. OR INNOVATIVE FEATURES
5. CONTINUOUS IMPROVEMENT IN PRODUCT AND QUALITY ARE ESSENTIAL

• MOUSE STRAP FALLACY

Ø  THE SELLING CONCEPT

• THE SELLING CONCEPT
• THE SELLING CONCEPT BELIEVES THAT CONSUMERS WILL NOT BUY ENOUGH OF THE COMPANY’S PRODUCTS UNLESS IT UNDERTAKES PRESSURE SELLING TACTICS AND HEAVY PROMOTION EFFORTS.

1. BUYERS ARE BELIEVED TO HAVE A BUYING INERTIA
2. APPROACH IS APPLICABLE IN CASE OF UNSOUGHT GOODS LIKE LIFE INSURANCE,VACUUM CLEANER,FIRE FIGHTING EQUIPMENT.
3. ALSO APPLICABLE FOR THE FIRMS HAVING OVER CAPACITY
4. GOAL IS TO SELL WHAT THEY PRODUCE THAN WHAT THE CONSUMER WANTS
5. NUMEROUS SALES TECHNIQUES SUCH AS CLOSING,PROBING AND QUALIFYING WERE DEVELOPED DURING THIS PERIOD.

Ø  MARKETING CONCEPT

• MARKETING CONCEPTS

1. PLACES THE CONSUMER AT THE CENTER OF THE ORGANIZATION. ALL ACTIVITIES ARE GEARED TOWARDS THE CUSTOMER. FOCUS ON CUSTOMER’S NEEDS AND WANTS AND DELIVERING THE DESIRED SATISFACTION IN A BETTER WAY.
2. TAKES OUTSIDE IN PERSPECTIVE. STARTS WITH A WELL DEFINED MARKET,FOCUS ON CUSTOMER NEEDS AND INTEGRATES ALL THE MARKETING ACTIVITIES THAT AFFECT THE CUSTOMERS.
3. BUILDS LONG TERM CUSTOMER RELATIONSHIP ON CUSTOMER VALUE AND SATISFACTION.
4. HIGHLIGHT THE PULL STRATEGY

Ø  DIFFERENCE

Ø  SELLING

1. CONCERNED WITH THE SELLER’S NEEDS
2. CORE OF THE BUSINESS ACTIVITY IS SELLER
3. CONVERTS EXISTING PRODUCT INTO MONEY
4. BUSINESS IS GOODS PRODUCING PROCESS
5. MARKETING MIX PLANNED AS PER SELLER’S NEEDS

Ø  MARKETING

1. CONCERNED WITH BUYER’S NEEDS
2. BUYER IS CORE OF THE BUSINESS ACTIVITY
3. CONVERTS CUSTOMER NEEDS INTO PRODUCTS
4. BUSINESS IS A CUSTOMER SATISFYING PROCESS
5. PLANNED ACCORDING TO CUSTOMER'S REQUIREMENT

• THE CUSTOMER CONCEPTS

1. SHAPE SEPARATE OFFERS ,SERVICES AND MESSAGES TO INDIVIDUAL CUSTOMERS BASED ON THEIR INDIVIDUAL PREFERENCES
2. ONE TO ONE MARKETING
3. EARNING PROFITS THROUGH BUILDING HIGH CUSTOMER LOYALTY AND FOCUSING ON CUSTOMER LIFE TIME VALUE.

Ø  THE SOCIETAL MARKETING CONCEPT

• THE SOCIETAL MARKETING CONCEPT
• HIGHLIGHT THE NEEDS AND WANTS OF A TARGET MARKET AND DELIVERY OF BETTER VALUE MORE THAN ITS COMPETITORS IN SUCH A WAY THAT MAINTAINS OR IMPROVES THE CONSUMER AND SOCIETY’S WELL BEINGS.
• CALLS ON MARKETER TO BALANCE THREE CONSIDERATIONS IN SETTING THEIR MARKETING POLICIES:

a)    COMPANY PROFITS

b)    CONSUMER WANTS

c)    SOCIETY’S INTERESTS OR HUMAN WELFARE

• LIKE A PRODUCT IS MANUFACTURED AT LOW PRICE AND GOOD QUALITY BUT CREATES POLLUTION,MAY GIVE CUSTOMER SATISFACTION BUT NOT SOCIETAL WELFARE
• THE SOCIETAL MARKETING CONCEPTS
• PHILIP KOTLER,” THE SOCIAL MARKETING CONCEPT IS A MANAGEMENT ORIENTATION THAT HOLDS THE KEY TASK OF THE ORGANIZATION TO DETERMINE THE NEEDS AND WANTS TO THE TARGET MARKET AND TO ADOPT THE ORGANIZATION TO DELIVERING THE DESIRED SATISFACTION MORE EFFECTIVELY AND EFFICIENTLY THAN ITS COMPETITORS IN WAY THAT PRESERVES OR CHANCES THE CUSTOMER’S AND SOCIETY’S WELL BEINGS.

Ø  THE HOLISTIC MARKETING CONCEPT

Ø  THE HOLISTIC MARKETING CONCEPT

• IS BASED ON THE DEVELOPMENT,DESIGN,IMPLEMENTATION OF MARKETING PROGRAMS, PROCESSES THAT RECOGNIZE THEIR BREADTH AND INTERDEPENDENCE. IT ACKNOWLEDGES THAT EVERYTHING MATTERS IN MARKETING.
• RELATIONSHIP MARKETING:-

·         AIMS TO BUILD MUTUALLY SATISFYING LONG TERM RELATIONSHIP WITH CUSTOMERS IN ORDER TO EARN AND RETAIN THEIR BUSINESS.

a)    INTEGRATED MARKETING:-DEVISE MARKETING ACTIVITIES PROGRAMS TO CREATE, COMMUNICATE AND DELIVER VALUE FOR CONSUMERS SUCH THAT THE WHOLE IS GREATER THAN SUM OF ITS PARTS. TWO KEY THEMES ARE THAT:-

b)    MANY DIFFERENT MARKETING ACTIVITIES CAN CREATE, COMMUNICATE AND DELIVER VALUE AND

c)     SHOULD DESIGN AND IMPLEMENT ANY ONE MARKETING ACTIVITIES WITH ALL OTHER ACTIVITIES IN MIND.

d)    INTERNAL MARKETING: THE TASK OF HIRING, TRAINING AND MOTIVATING ABLE EMPLOYEE WHO WANT TO SERVE CUSTOMERS WELL.

e)    PERFORMANCE MARKETING:- UNDERSTANDING THE FINANCIAL AND NON-FINANCIAL RETURNS TO BUSINESS AND SOCIETY FROM MARKETING ACTIVITIES AND PROGRAMS.

Ø  IMPORTANT POINTS FOR MCQ

• PRODUCTION CONCEPT SUGGEST THAT THE ORGANIZATION SHOULD EARN PROFIT THROUGH VOLUME OF PRODUCTION
• SATISFACTION OF CUSTOMER NEED IS THE AIM OF MARKETING CONCEPTS
• SOCIETAL CONCEPT SUGGEST THAT A BUSINESS SHOULD EARN PROFIT THROUGH CONSUMER SATISFACTION AND SOCIAL WELFARE
• PRODUCT CONCEPT FOCUSES ON PROVIDING THOSE PRODUCTS WHICH ARE WIDELY AVAILABLE AT AFFORDABLE COST