Company’s orientation towards

a Marketplace

Evolution of earlier

marketing ideas

Types of Marketing Ideas in order of their evolution are as

follows:Production Concept

Product ConceptSelling Concept Marketing Concept

Holistic Concept

Production Concept

“Consumers prefer widely available and inexpensive products” -Production Concept-This concept is used for business expansion. Managers are

production oriented and focus on gaining high efficiency low cost and mass distribution

The concept is ideal for

companies like Lenovo and

Haier operating in China where inexpensive labor pool is

available

Product Concept

“Consumers prefer products with best quality performance and innovative features”

-Product Concept

Managers aim at making superior products and improving them over time.

Managers are sometimes caught in “Mousetrap Fallacy”.

They fail to realize that better products not necessarily be successful unless priced, distributed, advertised and sold properly.

Selling Concept

Purpose of marketing is to sell more stuff to more people often for more money in order to make more profit.

Aggressive selling and promotion campaign is a necessity according to selling concept

They aim at selling “what company

makes” and not “what customer wants”

Marketing Concept

”Sense and respond”

To achieve goals, it is necessary to be more effective than

competitor in creating, delivering and communicating superior customer values to

chosen Target Markets.

Marketer needs to find right product for its

customer and not vice versa like in selling

concept.

In

marketing more advanced, high level innovation is

possible if the focus is on customers latent needs.

Holistic Concept

is concept is based on the development, design, and implementation of marketing programs, processes, and

activities that recognize their breadth and interdependencies. It further has four major components.

Holistic Marketi

ng

Relationship marketing aims to build mutually satisfying long-term

relationships with key constituents in order to earn and retain their

business.

Key constituents for relationship marketing are

customers, employees, marketing

partners and members of the

financial community.

Ultimate outcome of relationship marketing is a unique company asset called a

MARKETING NETWORK, consisting of the company and its supporting stakeholders. The operating principle is simple: build an effective network of relationships with key

stakeholders, and profits will follow

Another important goal of relationship marketing is to place much more attention to Customer Retention

Integrated Marketing

Integrated marketing occurs when the marketer devises marketing activities and assembles marketing programs to

create, communicate, and deliver value for consumers such that the

whole is greater than the sum of its parts.

In integrated marketing, a marketer makes sure that all communications and efforts of the company are well integrated to increase the productivity of the overall system.

All marketing efforts must complement each other .

The company must also develop an integrated channel strategy. It should assess each channel option for its direct effect on product sales and brand equity, as well as its indirect effect through interactions with other channel options

Internal Marketin

g

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

Internal marketing requires vertical alignment with senior management and horizontal alignment with other departments, so everyone understands, appreciates, and supports the marketing effort.

Performance

Marketing

Performance marketing requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs and has two components.

FINANCIAL ACCOUNTABLITY where Marketers are increasingly asked to justify their investments in financial and profitability terms, as well as in terms of building the brand and growing the customer base

Because the effects of marketing extend beyond the company and the customer to society as a whole, marketers consider the ethical, environmental, legal, and social context of their roles and activities.

Updating the 4 Ps of Marketing

Thank you.This presentation was

created by Ashutosh Shukla, IIT Roorkee during an internship under

Prof: Sameer Mathur IIM Lucknow