Wednesday, 26 October 2016

concept of marketing


The exchange orientation:

Marketing involve exchange of a product between a seller and a buyer usually based on money. But  modern marketing is not merely an exchange  operation . Marketing has now a much wider connotation. It covers search of unmet customer wants, formulation  of marketing strategies marketing mix ,creative selling and advertising, serving the customer and so on. all these other vital ingredients of marketing are conveniently forgotten  in exchange oriented marketing approach.

The product orientation: 

Management firmly believes that if the product has superb features , quality and performance, customer response is bound to be favorable and all promotion efforts are needless. This was the marketing philosophy till 1930.over-emphasis on product excellence may lead a marketer

To ignore many other aspect of customer needs and desires. Consumer for whom the product is meant may be ignored. This is  called  the phenomenon of marketing myopia or short- sightedness.

The production orientation: 

Company sells what it can make. The focus is on performance and cost . The product line is usually narrow. The price is based on production and distribution cost.

Technical   research enables   product   improvement and cost cutting in the production process. packaging is expected to protect  the  product and minimize cost. Credit is regarded as  a necessary evil. The producer is interested only to minimize bad debt losses. Promotion   is  adopted   only  to  give  emphasis  on  product features, quality and price. this concept can work only in a seller’s market. in a buyers’ market it  fails to retain market under keen competition. American luxury car market was captured by Japanese and European cars around 1980.

The sales orientation: 

Buyers market for many commodities brought about sales- orientation in marketing. It points out that a company cannot secure enough customer response to its products without high- pressure salesmanship, aggressive advertising and intensive sales promotion. Sales orientation gives emphasis on increasing sales volume even  at the cost of consumer satisfaction and service. Many marketers adopt this approach in selling unsought or unwanted goods. The selling concept is found in the sale of books insurance and also in auto sales. We also have selling concept at the time of election faithfully followed By all political parties. Sales orientation also exhibit marketing myopia.

The marketing concept: 

Marketing concept as a customer-oriented marketing philosophy of  the entire business organization has four premises

Customer orientation :- 

the  essence  of  modern  marketing concept is “the firm must take its marching order from the market and it must produce what the market needs.” All elements of  business  should be geared toward the customer satisfaction. corporate  plans, programmers  and operations  must be  focused around customer needs and desires.

Marketing information system:-  

the  marketing concept also emphasizes the role of information as the key to both customer satisfaction and profitability. customer demand can never be satisfied without integrated  marketing  programs  based  upon Adequate and accurate information about customer needs and competition. Information is a vital resource in planning-action-control process of management .

Integrated marketing activities:- 

systems approach adopts a unified view  of the  study of  marketing.  All marketing activities must be properly integrated and coordinated to accomplish a set objectives.

Dual objectives:- 

marketing concept advocates serving the consumers and maximizing profits at the same time. These objectives, though conflicting can be reconciled. Guaranteed route to profits  is through customer satisfaction. Profit is a by-product of supplying what the  customer wants. Marketing concept is a mere lip service for those firms who have not yet resolved this conflict.

The social marketing concept: the  social marketing concept is based on the following

  1. The marketer has to fulfill the customer demand and also to contribute to enrichment or quality of life .
  2. The marketer shall not offer a product to consumer if it is not in the best interests of consumers.
  3. The marketer will offer long-run consumer and public welfare.
  4. The integrated marketing plans and programmers shall duly consider consumer-citizen wants. social welfare and corporate needs i.e. sustained economic growth  without   ecological   imbalances   and  disturbances. In essence widened marketing concept will enable  marketing  management  to  create  and deliver not only material standard of living but also  healthy lie in the universe free from environmental degradation. 

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