Core marketing concepts
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The document outlines the evolution of marketing philosophies from the 1940s to present. It began with a production orientation philosophy focused on high output and lower costs. This shifted to a sales oriented philosophy in the 1940s-1950s emphasizing promotion and selling to increase sales. In the 1950s-1970s, the focus transitioned to a customer oriented marketing concept centered around understanding customer needs. Most recently beginning in the 1970s, the philosophy has become societal/socially oriented, taking a holistic view that considers all stakeholders in society.
Core marketing concepts
- 2. NEEDS • Basic Human Requirement s for survival • Air, Food, Water, Clothing. WANTS • Directed to specific Objects that might satisfy the need • Food – Burger, Chappatis, Rice, Curry. DEMANDS • Wants for specific products backed by an ability to pay. Marketers do not create need: Needs preexist marketers. Marketers along with other societal factors, influence wants. Marketers might promote the idea that a Mercedes would satisfy a person’s need for social status. They do not however, create the need for social status.
- 3. PRODUCTION CONCEPT •Maximum out put. •Lower unit cost. •Lower selling price. •Production dominates the thinking and marketing is a mere appendage to it. •The production Concept fails to serve the right business philosophy for an enterprise. •QUANTITATIVE PRODUCT CONCEPT •Excessive stress on quality of products and features. •Winning the market via product excellence – improved products, new products, ideally designed and engineered products. •QUALITATIVE •MARKETING MYOPIA SELLING CONCEPT •Customers, if left alone, won’t buy enough of the organisation’s product. •The organisation must undertake excessive selling and promotion effort to sell the product. •Unsought goods. •Over pdn. Capacity. MARKETING CONCEPT •The concept emerged in mid 1950s, Instead of a product- centered, “make-and- sell” philosophy, business shifted to a customer- centered, “sense-and- respond” philosophy. •The job is not to find the right customers for your products, but to find the right products for your customers. HOLISTIC MARKETING CONCEPT • It is based on the development, design, and implementation of marketing programmes. •Holistic marketing recognises that everything matters and that a broad integrated perspective is often needed.
- 4. 1. Production Orientation Philosophy (Till 1940s) Good Products Good Sales • Production Philosophy • Product Philosophy
- 5. 2. Sales Oriented Philosophy (1940s to 1950s) Products Promotions Sales
- 6. 3. Customer Oriented Philosophy (1950s to 1970s) Customer Marketing Research Production Sales Promotion Sales Marketing Concept
- 7. 4. Societal/Social Oriented Philosophy (1970s Onwards) Customer Marketing Research R & D Production Sales Promotion Sales Holistic Marketing Concept