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MARKETING: THEDEVELOPMENT OF

CONCEPT

Dr. Manoj Mishra

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INTRODUCTION

To understand

Different marketing concepts

Marketing myopia Marketing Dynamics

Responses and adjustments of differentcompanies and marketers.

Significance of Marketing withexamples

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PRODUCTION ERADURATION:- Started with Industrial

revolution in 17 th century and continuedtill 1920s

NATURE OF MARKET:- Manufacturing was

given importance, and it was assumed thatall that is get produce gets sold. Productfeature was not a priority and emphasiswas on faster and efficient production atlow price.

TO CONCLUDE:- Market was sellersmarket and demand was more than supply

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Evolution Of Marketing

The concept of marketing came into focus with theindustrial revolution.

PRODUCTION ERAPRODUCT CONCEPTPRODUCTION CONCEPT

SALES ERA

SELLING CONCEPT

MARKETING ERAMARKETING CONCEPT

RELATIONSHIP ERA

SOCIETAL CONCEPT

HOLISTIC CONCEPT

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PRODUCTION CONCEPTDURATION:- EARLIEST CONCEPTNATURE OF MARKET:-

AVAILIBILITY ANDAFFORDIBILITY SAYS LAW SUPPLY CREATES ITS OWNDEMAND

TO CONCLUDE:- Narrow Focus

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PRODUCT CONCEPTDURATION:- seventeenth century 1920s

NATURE OF MARKET:- ContinuousImprovementQuality and PerformanceTO CONCLUDE:- Still Myopic Focus

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SELLING CONCEPT

DURATION:- Began in 1920s and lasted till mid1950s

NATURE OF MARKET:- With the production

process gaining efficiency, competition emerged.Business realized the importance of selling theirproducts using advertising, promotion anddistribution strategies.

TO CONCLUDE:- Depression of economy in late

1920s proved that producing goods was noteverything, a company has to sell them also.

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MARKETING CONCEPT

DURATION:- This era began in 1950s till1990s.

MAIN FEATURES:- Signifies Shift inbusiness, from product selling to customersatisfaction. Companies changed frompushing product down to customers, andbegan attempting to fulfill customersneeds according to their preferences.

TO CONCLUDE:- Marketing conceptstressed on needs and wants as focal

point.

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MARKETING CONCEPTMarketing includes a set of activities undertaken by firms, to

satisfyboth customer needs and their corporate goals. The marketing

concept,therefore, includes following :-(A) Customer OrientationFirm constantly need to change

and modify their product, to satisfy varying needs and

preferences of the customer.(B) Long Term ProfitabilityApart from generating profitsto sustain themselves, firm should engage in detailedanalysis of issues, such as market research, productdevelopment and promotion to reap long term profit

(C) Functional integrationThe market concept is not

limiting to market department alone. Proper coordinationmust exist between marketing department anddepartments such as Research and Development,Personnel, Finance and Manufacturing.

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SOCIETAL MARKETING

CONCEPT

DURATION:- This era began in 1990s till2007.

MAIN FEATURES:-

TO CONCLUDE:- IMPORTANCE OF NONCONSUMERS STRESSED.

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SOCIETAL MARKETING

CONCEPTFIRMS IN PROCESSING OF OFFERINGPRODUCTS TO PLEASE CUSTOMERS, FULFILLSOCIAL OBJECTIVES AS WELL. LONG RUNWELFARE.

Example:- Some social initiatives of TATA International(i) It has set up cooperatives to generate employment for women

in leather industry related work, at Indore and MadhyaPradesh.

(ii) It has set up ATA public school in Dewas, Madhya Pradesh.(iii) It makes a donation of finished leather every year, to leprosy

hospital for making shoes for the patients.

(iv) It has deer park at the leather factory in Dewas MadhyaPradesh fore environment protection and conservation(v) For energy conservation, it has one of Indias largest thermal

water heater system at the factory at Dewas, M.P.

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HOLISTIC MARKETING CONCEPT

INTERNAL MARKETING INTEGRATED MARKETING

PERFORMANCE MARKETINGRELATIONSHIP

MARKETING

HOLISTICMARKETING

MARKETING

DEPT

SENIORMANAGEMENT

OTHERDEPT

COMMUNICATION PRODUCT &SERVICE CHANNEL

PARTNERSCHANNELCUSTOMERS

ENVIRONMENTLEGAL

COMMUNITY

SALESREVENUE

BRAND &CUSTOMEREQUITY

ETHICS

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MARKETING MYOPIAConcept given by Theodore Levitt, had used

wordmyopia which means short sightedness arguesthat industries fail not because markets are

saturated but because of failure andshortsightedness of management

# Causes Of Its Occurrence

# Ways To Overcome

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MARKETING MYOPIA

Causes Of Its Occurrence :-# Belief of the company that if market of product

expands automatically, companies do not thinkimaginatively how to expand the market.

# The belief that theres no substitute for the

companies major product.# The belief that by producing in large quantities,

per unit output cost can be significantly reduced,forgetting the market, demand and supply.

# Preoccupation with the product that lends itself

to carefully controlled scientific experimentation,improving and manufacturing cost reduction.

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MARKETING MYOPIAWays To Overcome :-# Be customer lend not product

oriented.# Market orientation should permeatethroughout the organization.

# Managers need to be proactive andvisionary

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MARKETING

DYNAMICSTechnological advancement has result in adynamic market where product keeps

changing in terms of technology used. Todeal with this situation both the company

and marketers need to make certain

responses and adjustments.

COMPANY RESPONSE

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COMPANY RESPONSEAND ADJUSTMENT

Reengineering: Re-constructuring business

processes and related systems to improvebusiness performance.Outsourcing: To reduce costs, companies can

outsource non-core activities that would enable

them to give greater priority to relevant areas.E-Commerce: The internet can be used as a mediumtobuy and sell products. This can be used in formof business-to-business(B2B), business-to-customer (B2C) and customer-to-customer (C2C).

Benchmarking: Companies should try and meet levelof competence of the market leaders.

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MARKETER RESPONSEAND ADJUSTMENT

Customization: Companies are providing customized products tocustomers, after understanding their and wants. Example, PizzaHutoffers paneer pizza to suit the Indian palate

Building good relationship with customers: Existing customers help inmarketing the products, by communicating about them to potentialcustomers. Example, HDFC BankGives free foreign holiday to itscredit card holders.

Target Marketing: Different customer segment have been identifiedas target market. Various media such as the television, radio,internet, and print media are used for marketing purposes.Example, Max New York Lifeused Internet, television and printmedia.

Customer Database: Companies use data warehouse to create adatabase of their customer, using which they gain knowledge of

customer preference. They base their strategies and develop theirproduct, in tune with requirement of customer. Example,Carrefour, a global retailer, based its promotions on informationobtained from data warehouse.

COMP NY RE PON E

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COMPANY RESPONSEAND ADJUSTMENT

Suppliers: Companies should source their rawmaterial from limited numbers of suppliers, toensure an amicable relationship and reduceproblems associated with storage, economic

order quantity, etc.Global And Local Markets: companies are cateringboth the markets.

Decentralization: In changing times, responsibilityand power has moved away from top management,and moved down the line. Teamwork forms a partof organization culture.

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SUMMARY Concept of exchange Production era

Sales era

Marketing era

Societal marketing concept

Marketing Myopia

Company- marketer responses &adjustments