Introduction to Marketing

and Marketing philosophies

Dr. Bandara Wanninayake
PhD (TBU – Czech), MBA (Colombo), Bsc. Mktg (Sp) – USJ, Dip. In mktg (UK), Dip. In. Acco .
Senior Lecturer
Dept. of Marketing Management
University of Kelaniya
Outline of Course Content
What is Marketing

?
 Definitions of marketing
• Marketing is the
social process by
which individuals
and groups obtain
what they need and
want through
creating and
exchanging
products and value
with others (Kotler)
 Definitions of marketing
‘The right product, in the right place, at the
right time, and at the right price’
(Adcock et al)

• Marketing is essentially about marshalling

the resources of an organization so that
they meet the changing needs of the
customer on whom the organization
depends (Palmer)
 Definitions of marketing

‘Marketing is the management process that

identifies, anticipates and satisfies
customer requirements profitably’
The Chartered Institute of Marketing
 Miss conceptions
• Selling vs. Marketing

– Ice burg theory

– Selling is superfluous
 Selling vs. Marketing
Marketing
1. Broader process of creating,
delivering and
communicating customer
values.
2. focus on developing and
maintaining customer
relationship
3. Focused on customer needs
and wants.
4. Involving large no. of
parties.
Selling
1. Process of transfer the
ownership of products under
predetermined financial
value.
2. No such a relationship.
3. Focused on seller needs and
wants.
4. Involving one buyer and
seller
 Marketing vs. Advertising
• What

• Why
 Role of marketing
• Marketing as a Philosophy

– Focus on the effectiveness

– Relating to the strategic management

 Role of marketing
• Marketing as a Business Function

– Involve with different function of marketing

– Focus on efficiency

– Relating to operational management

 Combination
Strategic Management
Effective Ineffective
Operational Management

Efficiency Thrive Die slowly

In
efficiency Survive Die quickly
 Marketing Management
Marketing Management is a process of
planning, executing the conception,
Pricing, promotion and distribution of
ideas, goods, services to create
exchangers that satisfy individual and
organizational goals.

- Philip Kotler -
 The Marketing Management
Process
Whole-Company
Whole-Company
Strategic
Strategic
Management
Management
Planning
Planning

Adjust Plans Marketing

as Needed Marketing
Planning
Planning

Control
ControlMarketing
Marketing Implement
ImplementMarketing
Marketing
Plan(s)
Plan(s)and
andProgram
Program Plan(s)
Plan(s) and
and Program
Program
 Marketable Entities
• Goods
• Services
• Experience
• Events
• Persons
• Places
• Properties
• Information
• Organization
• Ideas
 Markets
• What ?
Marketing Communication

Market offerings
Industry Market
(Collection of (Collection of
Marketers) Buyers)
Money

Marketing Information
 Markets
• Types of Markets according to needs
and characteristics of customers

– Consumer market
– Business market
– Global market
– Non profit and governmental market
 Markets
• Types of market according to
customer commitment to purchase
products
– Potential Market – sufficient level of interest
– Available Market – interest, income, access
– Qualified Available Market- interest, income,
access, qualification
– Target Market- all the above conditions and company
has selected to serve
– Actual Market – people who purchase product
continuously.
 Core Concepts of Marketing
1. Segmentation and target market
– What is segmentation
– What is target market

2. Market place, space and meta market

3. Marketers and prospects

 Core Concepts of Marketing
4. Needs, wants and demand
Needs Wants

1. Common to all people 1. Different one person to another

2. Limited 2. Unlimited
3. Primary 3. Secondary
4. Naturally created 4. Created by marketers
5. Cannot be changed from social 5. Can be changed from social
forces forces

- Conditions to convert wants into demand

 Core Concepts of Marketing
5. Products, bands and offerings

6. Value and Satisfaction

- What is value
- What is Satisfaction
 Core Concepts of Marketing
7. Exchange and transaction
– Methods of satisfying needs
– Necessary conditions for effective exchange

8. Relationship and network

9. Marketing Channels
 Core Concepts of Marketing
10. Supply Chain

11. Competition

12. Marketing Environment

13. Marketing Programme

 Marketing Programme
• Marketing Program consists of numerous
decisions on the mix of marketing tools to
use

• Marketing mix is the set of marketing tools

the firm uses to pursue its marketing
objectives in the target market.

• Marketing mix is product level marketing

strategy
Product level Marketing Strategy

The
Marketing
Mix

C
The Four Ps of the Marketing Mix

Product Place

C
Price Promotion
 Strategy Decision Areas
Organized by the Four Ps
Product Price Place Promotion
Product List price Channel Advertising
variety Discounts coverage Sales
Features Allowances Assortments Promotion
design Payment Locations
Quality Period Inventory Personal Selling
Accessories Credit terms Transporting Public Relations
size Geographic and Storing
Instructions Terms Locations of Direct Marketing
Warranty Stores Events and
Packaging Experience
Branding
Service
Elements of a Firm’s Marketing
Program
STP

Marketing
+ = Strategy
Marketing Marketing
Mix + = Plan
A Firm’s
Time-Related
Details and Control
+ = Marketing
Program
Procedures Other
Marketing
Plans
 Marketing Philosophies
• Production Concept

• Product concept

• Selling Concept

• Marketing Concept

• Societal Marketing Concept

• Customer Marketing Concept

• Holistic Marketing Concept

 Production Concept
• Assumption – customers will prefer
products that are widely available and
inexpensive
• Appropriate in excess demand condition
• Homogeneous products
• Large volume and high availability
• Focus on production efficiency
Why production concept become failure
  
• Henry Ford,  
 
"Doesn't matter  
 
what color car you 
want, as long as   it
 
is black."...  
• Dominant era:   
From mid C19th  toHe
  n
early C20th,   r
y
industrial revolution
 
  Fo
etc   r
d
 
 
 
 
 
 Product concept
• Assumption – customers will favor to
products that offer most quality,
performance and innovative features.
• Continues improvements of product quality
and features
• Differentiated products
• High cost
Why product concept become failure
 Selling Concept
Assumption - Customers will not buy enough of the
organizational products without push them to buy
organizational products.

Therefore, Organization undertake aggressive selling

and promotions
 Marketing Concept
Key to achieve organizational goals consists of the company
being more effective than competitors in creating, delivering
and communicating superior customer value to its chosen
target market
 Four Pillars of Marketing
Concept
• Target Market
• Customer Needs
– Stated needs
– Real needs
– Unstated needs
– Delight needs
– Secret needs

• Integrated marketing
• Profitability
 Societal Marketing Concept
• Societal Marketing Concept holds that the
organization’s task is to determine the
needs, wants and interests of target
markets and to deliver the desired
satisfaction more effectively and efficiently
than competitors in the way that preserves
or enhances the consumers and societies
well being.
 Customer Concept

Starting point
StartingFocus
point Means MeansEnds
Focus Ends

Individual Customer One to One Profitability through

Customer Needs Marketing capturing customer share
Wants loyalty and lifetime value
 Total market orientation
• A reactive market orientation

• A proactive market orientation

Holistic Marketing Concept
 Model for marketing
Philosophies
• Self Oriented – production, product and selling
• Competitor Oriented – more attention on
competitors and less attention on customers
• Customer Oriented – customer concept
• Market oriented – marketing concept
– Customer orientation
– Competitor orientation
– Inter functional coordination
 Model for marketing
Philosophies

Competitor orientation
Customer orientation

Low High

Low Self Competitor

Oriented Oriented
Customer Market
High Oriented oriented
 Evolving Views of Marketing’s
Role in the Company
• Marketing as an equal function
• Marketing as a more important function
• Marketing as the major function
• Customer as the controlling function
• Customer as the controlling function and
marketing as the integrative function.
Questions and Discussion