Marketing and Socity

Principles of Marketing

Week 1
Marketing and the Society
 Marketing plays a role in informing and educating consumers as it identifies a

consumer need and seeks to explain how its products or services meet that

need.
 For customers with clearly defined needs, marketing provides a means of
learning about new products and what they do.
 It plays a role in managing consumer expectations relying on the consistency
that comes from brand loyalty and the fact that consumers rely on trusted
brands.
 Marketing is also used to make consumers aware of major changes such as
mergers and transfers in ownership that affect product offerings or seek to
improve quality.
Continued…..
 In addition, marketing plays an trade and industry role as it
promotes goods and services and targets prospective buyers.
 Higher sales for a business which result from successful marketing

strategies translate into expansion, job creation and higher tax
revenues for governments and, eventually, into overall economic
growth.
 Marketing also plays a role in helping marketers to understand

consumer behavior and produce advertising that is likely to
influence it.
What is Marketing
 Marketing, More than any other business function, deals with
customers
 Customer Value and satisfaction, core of modern marketing
 Goal of marketing is to
- Attract new customers by promising superior value
- Keep current customers by delivering satisfaction
 Sound marketing is critical to the success of any organization
 Large or small, for-profit or non profit, domestic and global

Marketing Defined
Definition 1: Marketing is a total system of business activities designed to
plan, promote, and distribute want satisfying products to target markets in
order to achieve organizational goals
Definition 2 : In broader context, Marketing is a social and managerial
process by which individual and groups obtain what they need and want
through creating and exchanging products and value with others
Definition 3 : Marketing is the process by which companies create value for
customers and build strong relations ships

Needs, Wants and Demands
 Basic concept underlying marketing is that human needs
 Human needs are states of felt deprivation
 Basic physical needs for food, clothing, warmth, and safety
 Social needs for belonging and affection
 Individual needs for knowledge and self expression
 Not invented by marketers
 Basic part of human make up
 Wants are the form taken by human needs as they are shaped by culture and
individual personality
 Wants are described in terms of objects that will satisfy needs
 People have almost unlimited wants but limited resources
 Products that provide the most value and satisfaction for their money
 When backed by buying power, wants become Demands
Market and Marketing
 The concept of exchange and relationship lead to the concept of market
Market
 Is the set of actual and potential buyers of a product or service
 Share similar needs and wants
 The size of market depends on the number of people who exhibit the
needs
 Have enough resources to engage in exchange
 Who are willing to buy or offer their resources
Marketing
 Means managing markets to bring about exchanges and relationship
 For the purpose of creating value and satisfying needs and wants
Importance and Scope of Marketing
Importance
 For a company or institution to grow, it must build strong customer
relationships.
 That’s where an effective integrated marketing plan comes in. With a
comprehensive, integrated marketing plan, you can effectively communicate
your mission, values and messages in ways that speak to your target
audience.
 Benefits of an effective integrated marketing plan include:
 A stronger, more consistent organization image
 Increased support from funding publics such as the legislature
 Greater loyalty among stakeholders
 The ability to attract and retain the best employees,
 The ability to establish partnerships within the community
 The ability to show supporters that our brand equity is a valuable
commodity
 Greater employee satisfaction including an increased sense of pride and
loyalty
Continued………….
Scope
 Marketing has a very wide scope it covers all the activities from
conception of ideas to realization of profits. Some of them as discussed as
below:
1. Product Planning: It includes the activities of product research,
marketing research, market segmentation, product development,
determination of the attributes, quantity and quality of the products.
2. Branding: Branding of products is adopted by many reputed enterprises
to make their products popular among their customer and for many other
benefits. Marketing manager has to take decision regarding the branding
policy, procedures and implementation programs.
3. Packaging: Packaging is to provide a container or wrapper to the
product for safety, attraction and ease of use and transportation of the
product.
4. Channels of Distribution: Decision regarding selection of most
appropriate channel of distribution like wholesaling, distribution and
retailing is taken by the marketing manager and sales manager.
Continued………
5. Sales Management: Selling is a part of marketing. Marketing is
concerned about all the selling activities like customer identification, finding
customer needs, persuading customer to buy products, customer service,
etc.
6. Advertising: Advertisement decisions like scope and time of
advertisement, advertisement message, selection of media, etc comes into
marketing.
7. Finance: Marketing is also concerned about the finance, as for every
marketing activity be it packaging, advertising, sales force budget is fixed
and all the activities have to be completed with in the limit of that budget.
8. After Sales services: Marketing covers after sales services given to
customers, maintaining good relationships with customers, attending their
queries and solving their problems.
Concept of Marketing
The term marketing concept holds that
achieving organizational goals depends on
knowing the needs and wants of target
markets and delivering the desired
satisfactions. It proposes that in order to
satisfy its organizational objectives, an
organization should anticipate the needs and
wants of consumers and satisfy these more
effectively than competitors.
Continued………….
1. The Production Concept
 Holds that consumer will favor products that are available and highly
affordable
 Management should focus on improving production and distribution
efficiency
 One of the oldest concept
 In some situation still useful
-When the product cost is too high
- When the demand for a product exceeds the supply
 Improve productivity to bring down cost (charge competitive prices)
 Look for ways to increase production
 Production concept can lead to marketing myopia
 Focusing too narrowly on their operations
 Losing sight of the real objective
Continued………
2. The Product Concept
 Holds that consumers will favor products that offer the most in quality
 Performance and innovative features
 Marketing strategy focuses on making continuous product improvements
 Important parts of most marketing strategies
 Can lead to obsession with technology
 Can also lead to marketing myopia
3. The selling Concept
 Followed by many companies (insurance)
 Holds that consumers will not buy enough of the firm’s products
-Unless it undertakes a large-scale selling and promotion effort
 Practiced when they have over capacity
 Typically practiced
-with unsought goods
- Practiced in the non-profit area (politicians)
 Carries high risk
 Aim is often to sell what the company makes rather than what the market wants
Continued……….
4. The Marketing Concept
 Holds that achieving organizational goals depends on knowing
- Needs and wants of target markets
- Delivering the desired satisfaction better than competitors do
 Customer focus and value are the paths to sales and profit
 Instead of make and sell philosophy
 It is sense and respond philosophy
 Views marketing not as hunting but as gardening
 Find right product for your customer
 Outside in perspective
Continued……….
5. The Societal Marketing Concept
 Questions whether the pure marketing concept overlooks possible conflicts
between short-run wants and consumer long-run welfare
 Holds that marketing strategy should deliver value to customers in a way
- That maintains or improves both consumer’s and society well being
 Such concerns and conflicts let to the societal marketing concept
 Marketers to balance three considerations in setting their marketing strategies
- Company profits, Consumer wants, Society’s interest

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Principles of Marketing

 For customers with clearly defined needs, marketing provides a means of

learning about new products and what they do.

 It plays a role in managing consumer expectations relying on the consistency

 Marketing is also used to make consumers aware of major changes such as

mergers and transfers in ownership that affect product offerings or seek to

 Higher sales for a business which result from successful marketing

 Marketing also plays a role in helping marketers to understand

 Customer Value and satisfaction, core of modern marketing

- Attract new customers by promising superior value

- Keep current customers by delivering satisfaction

 Sound marketing is critical to the success of any organization

 Large or small, for-profit or non profit, domestic and global

plan, promote, and distribute want satisfying products to target markets in

order to achieve organizational goals

Definition 2 : In broader context, Marketing is a social and managerial

through creating and exchanging products and value with others

Definition 3 : Marketing is the process by which companies create value for

customers and build strong relations ships

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