Marketing Introduction pt2

Marketing Introduction pt2

1. Philosophies

   • Production concept
     • Supply creates its own demand ie, sale will increase automatically with the increase in production and distribution facilities . One of the oldest and works only in few situations like management trying to reduce cost of production
   • Product concept
     • Sellers should improve the quality of production,improve performance and add more innovative featueres basically to attract customers by improving designs, performance & apperance
       • Drawback is marketing myopia in which marketer overlooked importance of other substitutes in market
   • Selling concept
     • focuses on the selling and promotional activities to attract more customers. The industries who sell products that customers not buy normally should learn this concept as the buyers do not like in product can spoil organization reputation
   • Marketing Concept
     • Focuses on the needs and wants and satisfaction more effectively than competitors
       • Difference b/w marketing & selling concept
         • Selling concept starts with production of goods, focuses on production and ends in getting profits and marketing concept starts with good market focus on customer needs and wants and ends in long term relationship with customer creation
   • Societal marketing concept
     • Focuses on the improvement of well-being of customer and whole society. The organization should analyze the needs and demand the target market and deliver superior value to customer . This is new as compared to other concepts

2. Difference between selling and marketign

   • Selling
     • Emphasis on product, company first produce product and then figure out how to sell, Management is sales volume oriented, planning is short run, needs of seller are stressed
   • Marketing
     • Emphasis on customer needs, First determines customer wants and figure out how to make & deliver products, Management profit oriented, planning long run, wants are stressed

3. Consumer and Industrial market

   • Consumer market
     • Consumer can obtain their needs or wants for personal and family consumption. This market has two parts-fast moving and surable market
   • Industrial/business market
     • Buyers purchase products like raw material, components, finished products, office supplies and maintenance and supplies

4. Marketing management

   • It is the process involves analysis planning implementation control, covers good services ideas, rests on the notion of exchange, satisfaction of parties involved

5. Marketing mix

   • It refers to the tatics or actions used by the company to promote the brands or products
     • 4Ps involved
       • Product, Price, place, promotion
         • Product
           • The items being sold which should give minimum level of performance or else the work on others elements can be wasted
         • Price
           • value put on the product that depends on cost of production, segment targeted, ability of the market to pay supply demand, host of other direct and indirect factors
         • Place
           • Point of sale. The main aim of it is to attract the consumer and make her easy to buy
         • Promotion
           • Activities undertaken to make the product or service known to user and trader. This can include advertising press reports incentives commissions