MARKETING: THE DEVELOPMENT OF CONCEPT

Dr. Manoj Mishra

INTRODUCTION
To understand Different marketing concepts Marketing myopia Marketing Dynamics Responses and adjustments of different companies and marketers. Significance of Marketing with examples

DURATION :- Started with Industrial revolution in 17 th century and continued till 1920s NATURE OF MARKET :- Manufacturing was given importance, and it was assumed that all that is get produce gets sold. Product feature was not a priority and emphasis was on faster and efficient production at low price. TO CONCLUDE :- Market was sellers market and demand was more than supply

PRODUCTION ERA

Evolution Of Marketing
The concept of marketing came into focus with the industrial revolution.

PRODUCTION ERA

PRODUCT CONCEPT PRODUCTION CONCEPT

SALES ERA
SELLING CONCEPT

MARKETING ERA
MARKETING CONCEPT

RELATIONSHIP ERA
SOCIETAL CONCEPT HOLISTIC CONCEPT

PRODUCTION CONCEPT
DURATION :- EARLIEST CONCEPT NATURE OF MARKET :AVAILIBILITY AND AFFORDIBILITY SAYS LAW SUPPLY CREATES ITS OWN DEMAND TO CONCLUDE :- Narrow Focus

PRODUCT CONCEPT
DURATION :- seventeenth century 1920s NATURE OF MARKET :- Continuous Improvement Quality and Performance TO CONCLUDE :- Still Myopic Focus

SELLING CONCEPT
DURATION :- Began in 1920s and lasted till mid 1950s NATURE OF MARKET :- With the production process gaining efficiency, competition emerged. Business realized the importance of selling their products using advertising, promotion and distribution strategies. TO CONCLUDE :- Depression of economy in late 1920s proved that producing goods was not everything, a company has to sell them also.

MARKETING CONCEPT
DURATION :- This era began in 1950s till 1990s. MAIN FEATURES :- Signifies Shift in business, from product selling to customer satisfaction. Companies changed from pushing product down to customers, and began attempting to fulfill customers needs according to their preferences. TO CONCLUDE :- Marketing concept stressed on needs and wants as focal point.

Marketing includes a set of activities undertaken by firms, to satisfy both customer needs and their corporate goals. The marketing concept, therefore, includes following :(A) Customer Orientation Firm constantly need to change and modify their product, to satisfy varying needs and preferences of the customer. (B) Long Term Profitability Apart from generating profits to sustain themselves, firm should engage in detailed analysis of issues, such as market research, product development and promotion to reap long term profit (C) Functional integration The market concept is not limiting to market department alone. Proper coordination must exist between marketing department and departments such as Research and Development, Personnel, Finance and Manufacturing.

MARKETING CONCEPT

SOCIETAL MARKETING CONCEPT

DURATION :- This era began in 1990s till 2007. MAIN FEATURES :-

TO CONCLUDE :- IMPORTANCE OF NON CONSUMERS STRESSED.

FIRMS IN PROCESSING OF OFFERING PRODUCTS TO PLEASE CUSTOMERS, FULFILL SOCIAL OBJECTIVES AS WELL. LONG RUN WELFARE.
Example :- Some social initiatives of TATA International
(i) It has set up cooperatives to generate employment for women in leather industry related work, at Indore and Madhya Pradesh. (ii) It has set up ATA public school in Dewas, Madhya Pradesh. (iii) It makes a donation of finished leather every year, to leprosy hospital for making shoes for the patients. (iv) It has deer park at the leather factory in Dewas Madhya Pradesh fore environment protection and conservation (v) For energy conservation, it has one of Indias largest thermal water heater system at the factory at Dewas, M.P.

SOCIETAL MARKETING CONCEPT

HOLISTIC MARKETING CONCEPT

MARKETING DEPT SENIOR MANAGEMENT COMMUNICATION OTHER DEPT PRODUCT & CHANNEL SERVICE

INTERNAL MARKETING

INTEGRATED MARKETING

SALES REVENUE

HOLISTIC MARKETING RELATIONSHIP MARKETING

BRAND & CUSTOMER EQUITY ETHICS

PERFORMANCE MARKETING

COMMUNITY CUSTOMERS CHANNEL LEGAL ENVIRONMENT

PARTNERS

MARKETING MYOPIA
Concept given by Theodore Levitt, had used word myopia which means short sightedness argues that industries fail not because markets are saturated but because of failure and shortsightedness of management # Causes Of Its Occurrence # Ways To Overcome

MARKETING MYOPIA
Causes Of Its Occurrence :# Belief of the company that if market of product expands automatically, companies do not think imaginatively how to expand the market. # The belief that theres no substitute for the companies major product. # The belief that by producing in large quantities, per unit output cost can be significantly reduced, forgetting the market, demand and supply. # Preoccupation with the product that lends itself to carefully controlled scientific experimentation, improving and manufacturing cost reduction.

MARKETING MYOPIA
Ways To Overcome :# Be customer lend not product oriented. # Market orientation should permeate throughout the organization. # Managers need to be proactive and visionary

MARKETING DYNAMICS
Technological advancement has result in a dynamic market where product keeps changing in terms of technology used. To deal with this situation both the company and marketers need to make certain responses and adjustments.

Reengineering: Re-constructuring business processes and related systems to improve business performance. Outsourcing: To reduce costs, companies can outsource non-core activities that would enable them to give greater priority to relevant areas. E-Commerce: The internet can be used as a medium to buy and sell products. This can be used in form of business-to-business(B2B), business-tocustomer (B2C) and customer-to-customer (C2C). Benchmarking: Companies should try and meet level of competence of the market leaders.

COMPANY RESPONSE AND ADJUSTMENT

Customization: Companies are providing customized products to customers, after understanding their and wants. Example, Pizza Hut offers paneer pizza to suit the Indian palate Building good relationship with customers: Existing customers help in marketing the products, by communicating about them to potential customers. Example, HDFC Bank Gives free foreign holiday to its credit card holders. Target Marketing: Different customer segment have been identified as target market. Various media such as the television, radio, internet, and print media are used for marketing purposes. Example, Max New York Life used Internet, television and print media. Customer Database: Companies use data warehouse to create a database of their customer, using which they gain knowledge of customer preference. They base their strategies and develop their product, in tune with requirement of customer. Example, Carrefour, a global retailer, based its promotions on information obtained from data warehouse.

MARKETER RESPONSE AND ADJUSTMENT

COMPANY RESPONSE AND ADJUSTMENT

Suppliers: Companies should source their raw material from limited numbers of suppliers, to ensure an amicable relationship and reduce problems associated with storage, economic order quantity, etc. Global And Local Markets: companies are catering both the markets. Decentralization: In changing times, responsibility and power has moved away from top management, and moved down the line. Teamwork forms a part of organization culture.

SUMMARY
Concept of exchange Production era Sales era Marketing era Societal marketing concept Marketing Myopia Company- marketer responses & adjustments