Fundamentals of Marketing
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The document discusses the evolution of marketing from a production focus to a customer focus. It describes how marketing has shifted from solely focusing on production and sales to identifying and satisfying customer needs. The key aspects of modern marketing highlighted are understanding customers, aligning the entire company around customers, and profiting through long-term customer satisfaction rather than just sales. The new marketing concept emphasizes customer relationships, customized products, and considering social responsibility alongside profits.
Fundamentals of Marketing
- 1. Fundamentals of Marketing Introduction Soma Giri Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons
- 2. • “Marketing is management processes for identifying, anticipating and satisfying consumers’ requirements profitably” • “The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large • “Satisfying needs and wants through an exchange process” – Philip Kotler • “The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”
- 3. Exchange Process Industrial Revolution 1930 1950 Present PRODUCTION ERA Sale ERA Marketing ERA
- 4. Evolution of Marketing Product (to 1950s) Firm/ Company Production (to 1960s) Selling (1950 - 1960s) Marketing The (1970 - Present) Customer Experience (1998 - Present) Customers
- 5. ♠ Prevailed from the time of the industrial revolution until the early 1950's ♠ The idea that a firm should focus on those products that it could produce most efficiently and that the creation of a supply of low-cost products would in and of itself create the demand for the products. ♠ The key questions that a firm would ask before producing a product were: ♠ Can we produce the product? ♠ Can we produce enough of it? ♠ At the time, the production concept worked fairly well because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand. ♠ The production concept prevailed into the late 1920's.
- 6. ♠ Around this time (Mass Production), firms began to practice the sales concept (or selling concept), under which companies not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling. Before producing a product, the key questions were: ♠ Can we sell the product? ♠ Can we charge enough for it? ♠ The sales concept paid little attention to whether the product actually was needed; the goal simply was to beat the competition to the sale with little regard to customer satisfaction. ♠ Marketing was a function that was performed after the product was developed and produced, and many people came to associate marketing with hard selling. Even today, many people use the word "marketing" when they really mean sales.
- 8. ♠ 1970s till 1980s ♠ Focus was the product and the effectiveness ♠ The development and research was at the forth front because of changed needs it was important to produce the right things and to be innovative ♠ that means that the best product wins, which means getting the most sales ♠ Product concepts seeks to achieve result via product excellence. And emphasis on quality assurance ♠ Myopia when organization love product its leads to marketing myopia because the focus is on product rather the customers needs
- 9. ♠ It starts with consumer want and ends with satisfaction of those wants ♠ It is rest on four pillars and they are target market, costumer need, integrated marketing and profitability ♠ Profit through consumer satisfaction What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? ♠ In response to these discerning customers, firms began to adopt the marketing concept, which involves: Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying customer needs over the long-term ♠ When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs.
- 10. ♠ Marketing Promotes Product Awareness to the Public ♠ Marketing Helps Boost Product Sales ♠ Marketing Builds Company Reputation
- 12. Old Marketing and New Marketing Concept
- 13. Old Concept or Production Oriented Concept ♠ Its stresses upto production ♠ Its all about physical distribution of good and service from producer to consumer ♠ Its start after good produced and ends after good have been sold ♠ It does not provide any allied activity of marketing ♠ The ultimate object of marketing is to maximize the profit by maximize the sales
- 14. New Marketing Concept or Customer Oriented Concept ♠ According to this concept customer is king, customer satisfaction is prime object of an enterprise ♠ Need and want of customer must be identified properly and deeply ♠ Production accordance the need and wants ♠ All resources must utilized to the best extent so minimized the cost of production
- 15. Perspective 1 :Connections with customers The Old Marketing Thinking The New Marketing Thinking Be sales and product centered Be market and customer centered Practice mass marketing Target selected market segments or Focus on products and sales individuals Make sales to customers Focus on customer satisfaction and value Get new customers Develop customer relationships Grow share of market Keep old customers Serve any customer Grow share of customer Communicate through mass Serve profitable customers, “fire” losing media ones Make standardized products Connect with customers directly Develop customized products
- 16. Perspective 2 :Connections with Marketing Partners The Old Marketing Thinking The New Marketing Thinking Leave customer satisfaction and Enlist all departments in the cause of value to sales and marketing customer satisfaction and value Go it alone Partner with other firms Perspective 3 :Connections with the World Around us The Old Marketing Thinking The New Marketing Thinking Market locally Market locally and globally Assume profit responsibility Assume social and environment Market for profits responsibility Conduct commerce in market Market for non-profits places Conduct e-commerce in market places
- 18. ☺ Helping in Production Development ☺ More Social satisfaction ☺ Impact towards National Economy