Satya Prakash Ranjan

Asst. Prof. (Marketing) Taksila Business School Greater Noida

Marketing emerged during Industrial revolution (19th Century) as a separate field of expertise due to changes in the patterns & intensity of the then economic activities.

Traditional School: Macro functions institutions commodities approach Marketing concentrated on the sales & purchase of products (Goods & Services) Modern School: Marketing thought moving from Macro functions institutions commodities approach to a Micromarketing management paradigm.

Production orientation era 1900 - 1950 Product orientation era 1940 1950* Sales orientation era 1950 - 1970 Market orientation era 1970 till date

From Marketing Myopia to Marketing Hypermetropia

Says law Supply created its own demand. i.e. Consumer will prefer those products that are widely available and inexpensive. Characteristics; Few product lineup Pricing based on production & distribution Limited promotional efforts Packaging just for product protection THE PRODUCTION CONCEPT

Start of competition gives the rise of featured product. i.e. Consumer will favour those products that offers most; Quality Performance & Innovative feature.
THE PRODUCT CONCEPT

During this period production exceeds demand i.e. The Consumers & business if left alone, will not buy enough of the organization products. Thus Organization has to undertake aggressive selling & promotion effort. Characteristics; Establishment of Sales Department Advertising & Sales promotion strategy started Packaging gaining attention Pricing was determined based on Competitors THE SELLING CONCEPT

Product centered business shifted to customer centered. i.e. make & sell philosophy changes to sense & respond philosophy. Characteristics; Emergence of Marketing Research Growth of specialized marketing companies Customization started Personalized communication started Continue.

Reactive Marketing Orientation Proactive Marketing Orientation Total Marketing Orientation The Holistic Marketing Orientation

o o o o o

Relationship Marketing Internal Marketing Integrated Marketing Social Responsibility Marketing Radical Marketing THE MARKETING CONCEPT

Reactive Market Orientation: Understanding & meeting customers expressed needs. Proactive Market Orientation: Researching & imagining latent needs of customer through probe & learn process. Total Marketing Orientation: Companies that practice both reactive & proactive market orientation. Holistic Market Orientation: It is based on the development, design and implementation of marketing programs, processes and activities that recognizes their breadth & interdependencies

Relationship Marketing: Building mutually satisfying long term relationship with key parties in order to earn and retain their business. Integrated Marketing: Mixing & matching marketing activities to maximize their individual and collective efforts. Internal Marketing: The task of hiring, training & motivation of able employees who wants to serve customer well. Social Responsibility Marketing: Understanding the ethical, environmental, legal and social context of marketing activities and programs.

It is an art and science of stretching limited resources, staying in close contact with customer and creating more satisfying solution to customer needs.

Fig. 1
Marketing Department Senior Other Management Departments Communications Goods & Services Channels

Internal Marketing Holistic Marketing Social Responsibility Marketing

Ethics Environment Legal Community

Integrated Marketing

Relationship Marketing
Customer Channel Partner

Fig. 2
Marketing Mix

Target Market Products

Product variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Others

Price
List Price Discounts Allowances Payment period Credit terms

Promotion
Sales promotion Advertising Sales force Public relation Direct marketing

Place
Channels Coverage Assortments Locations Inventory Transport

Value is the combination of QSP. Q = Quality S = Service P = Price QSP = Customer Value Triad. Value increases with Q & S Value Decreases with P

Four Ps
(Sellers Point of View)

Four Cs
(Buyers Point of View)

Product Price Place Promotion

Customer Solution Customer Cost Convenience Communication

Changing Technology Globalization Deregulation Privatization Customization Disintermediation Customer Empowerment Heightened Competition Industry Conversance Retail Transformation

DO IT YOURSELF!!!

Developing marketing strategies and plans Capturing marketing insight Connecting with customers Building strong brands Shaping the market offerings Delivering value Communicating value Creating long term growth

Exchange is getting desired product from someone by offering something in return. Five condition to satisfy an Exchange: Two or more parties should be there The exchange should be valuable Parties are able to communicate & deliver Parties are free to accept or reject the offer The exchange should be beneficial Transaction is trade of value. Have two dimension i.e. Time & Place. (Act as a Contract) Transfer is offering something without any return

Products i.e. goods & services Events Experiences Persons Places Properties Organizations Information Ideas

Negative Demand Dislike of product Nonexistent Demand Unawareness of product Latent Demand Demand not satisfied with existing products Declining Demand Decrease in purchase Irregular Demand Purchase is conditional Full Demand Purchase of all available products Overfull Demand Purchase by more consumer Unwholesome Demand Purchase of undesired products

Stated Needs: Real Needs: Unstated Needs: Delight Needs: Secret Needs:

Communication Goods/Services Industry Money Market

Information

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