Marketing Basics. Marketing Philosophies

1. Marketing Management
Philosophies
UTSAB SHRESTHA
MBA- SYMBIOSIS INTERNATIONAL UNIVERSITY
BUSINESS DEVELOPMENT SUPERVISOR- NEROLAC PAINTS
VISITING FACULTY, BBA- EXCEL COLLEGE, SCHEMS COLLEGE
VISITING FACULTY, MBA- WELHAMS COLLEGE

2. Topics to be covered
 Introduction to Marketing
 4Ps of Marketing
 The concepts of Marketing
 Difference bet- Sales and Marketing
 Marketing Management Philosophies

3. Introduction to Marketing
How MNCs like
Coca Cola, Toyota,
Unilever, Dell etc
has become a huge
brand ??
How Xiaomi and
Chinese
smartphones have
disrupted the
smartphone industry
How a Tamil Movie-
“Baahubali” became
a blockbuster ?
Good marketing is
no accident.
It is a result of
careful planning and
execution using
state of the art tools
and techniques.
It is both art and
science.

4.  Marketing is about identifying and meeting human needs and social
needs-
 “meeting needs profitably”
 According to American Marketing Association- “ Marketing is 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.
 Marketing management is the art and science of choosing target markets
and
 Getting, keeping and growing customers through
 Creating, delivering and communicating superior customer value.

5. 4Ps of Marketing
 Product
 Price
 Promotion
 Place

7. The concepts of Marketing
 What is marketed?
 Key customer markets
 STP
 IMC

8. STP

9. Difference bet- Sales and Marketing

10. Cases
 IMC Case study of Coca cola
 Case study of Xiaomi

11. Marketing Management Philosophies
 Product concept
 Production concept
 Selling concept
 Marketing concept
 Social Marketing concept

12. Product concept
 The product philosophy holds that the organization knows its product better than
anyone or any organization.
 The company knows what will work in designing and producing the product and
what will not work.
 For example, the company may decide to emphasize the low cost or high quality of
their products.
 This philosophy of only relying on the organization's skill and desires for the product
did not lead to poor sales.
 In much of the product philosophy era, organizations were able to sell all of the
products that they made. The success of the product philosophy era is due mostly to
the time and level of technology in which it was dominant.

13.  This orientation holds that consumers will favor those products that offer
the most quality, performance, or innovative features.
 Managers focusing on this concept concentrate on making superior
products and improving them over time.
 They assume that buyers admire well-made products and can appraise
quality and performance.
 However, these managers are sometimes caught up in a love affair with
their product and do not realize what the market needs. Management
might commit the “better-mousetrap” fallacy, believing that a better
mousetrap will lead people to beat a path to its door.

14. Production Concept
 This concept is the oldest of the concepts in business. It holds that
consumers will prefer products that are widely available and
inexpensive.
 Managers focusing on this concept concentrate on achieving high
production efficiency, low costs, and mass distribution.
 They assume that consumers are primarily interested in product
availability and low prices.

15.  Production concept lays emphasis on availability and affordability
of products. If these two elements are present in marketing, the
enterprise will succeed.
 Accordingly, marketing should aim at the reduction in the cost of
production and concentrate on mass production and distribution. This
concept holds that potential exchange would be realized when the
products are inexpensive and are widely available.
 However, this concept is not entirely true. Sometimes customers
don’t always buy products which are inexpensive and easily
available.

16. Selling concept
 This concept stresses on attracting and persuading customers to buy the
product by making aggressive selling and promotional efforts.
 Thus, the focus of business firms is to ensure the sale of products through
aggressive selling techniques
 The reason for the emergence of the selling philosophy was the ever-rising
number of goods available after the Industrial Revolution.
 Organizations became progressively more efficient in production, which
increased the volume of goods.

17.  With the increased supply, competition also entered production. These two events
eventually led to the end of product shortages and the creation of surpluses.
 It was because of the surpluses that organizations turned to the use of advertising and
personal selling to reduce their inventories and sell their goods.
 The selling philosophy also enabled part of the organization to keep focusing on the
product, via the product philosophy. In addition, the selling philosophy held that a sales
or marketing department could sell whatever the company produced.

18.  The Ford Motor Company is also a good example of the selling philosophy and why
this philosophy does not work in many instances. Ford produced and sold the
Model T for many years. During its production, the automobile market attracted
more competition.
 Not only did the competition begin to offer cars in other colors, the styling of the
competition was viewed as modern and the Model T became considered as old-
fashioned.
 Henry Ford's sons were aware of the changes in the automobile market and tried to
convince their father to adapt. However, Henry Ford was sure that his standardized
low-price automobile was what the public needed.
 Consequently, Ford turned to marketing techniques to sell the Model T. It continued
to sell, but its market share began to drop. Eventually, even Henry Ford had to
recognize consumer desires and introduce a new model.

19. Marketing concept
 According to this concept, customer satisfaction is the key to organizational success.
 It assumes that a firm can achieve its objective of maximizing profit in the long run only by
identifying and satisfying the need of present and prospective buyers in an effective way.
 Business firms don’t sell what they can make; rather they make and sell what customers
want.
This concept is based on the following pillars:
 To identify the market or customers who are selected as the target of marketing effort.
 To understand the needs and wants of customers in the target market.
 Developing products or services for satisfying the needs of the target customers.
 To ensure better satisfaction of needs of the target market as compared to competitors.
 To do all this at a profit.

20. Social Marketing concept
 Not only uses the same philosophy as the marketing concept, but also focuses
around the products benefit to the betterment of society as a whole. Greater
emphasis is put on environmental impacts, population growth, resource shortages,
and social services.
 The marketing concept has been criticized by some of the people because of the
challenges posed by social problems like environmental pollution, deforestation,
population explosion, inflation etc.
 This is because any activity which results in customer satisfaction but is harmful for
the interest of the society at large cannot be justified. Therefore, the firms must
perform the functions of marketing keeping in view the social welfare. For example.
No to plastic bags, recycled paper.

21. Food for thought
 Which Marketing Philosophy should an
organization implement ??