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Marketing Management

Orientation

Marketing management is the art and


science of choosing target and building
profitable relationships with target
customers.
To carry out these activities, marketing
managers have to take marketing efforts.
What philosophies should guide these
marketing efforts? What weight should be
given to the interests of the organization,
customers and the society?

There are five alternative concepts under


which organization conduct their
marketing activities. Such as are
i) The production concept
ii) The product concept
iii) The selling concept
iv) The marketing concept
v) The societal marketing concept
vi) The Holistic marketing Concept

The production concept


It holds that consumers will favor the
products that are available and highly
affordable.
Management should focus on improving
production, low costs and distribution
efficiency.

It is appropriate in two
situations
When the demand for a product exceeds the
supply.
When the products cost is too high and
improved productivity is needed to bring it
down.
When a company wants to expand the
market.
This orientation makes sense in developing
countries such as China.

Criticism
The production concept can lead to
marketing myopia.
Companies adopting this concept run a
major risk of focusing too narrowly on their
own operations and losing sight of the real
objective-satisfying customers needs.

The product concept


The product concept holds that consumers will
favor products that offer most in quality,
performance and innovative features.
Therefore the organization devote its energy to
making continuous product improvement.
Managers in these organizations focus on
making superior products and improving them
over time.

A product concept leads the company to


strive constantly to improve the quality of
its product and to add new features that
are technically feasible without finding out
whether or not consumers really want
these features.

A product concept often lead to marketing


myopia that is a focus on the product
rather than on the consumer needs it
presumes to satisfy.
A new or improved product will not
necessarily be successful unless it is
priced, distributed, advertised and sold
properly.

The selling concept


The idea that consumers will not buy
enough of the organizations products
unless the organization undertakes a
large-scale selling and promotion effort.

This concept is typically practiced with unsought


goods.
Most firms practice the selling concept when
they face overcapacity.
Their aim is to sell what they make rather than
what the market wants.
They earn profit through sales volume.
The marketers primary focus is selling the
product that it has unilaterally decided to
produce.

Criticism
It focuses on creating sales transaction
rather than on building long term,
profitable customer relationships.
It views marketing as hunting

The marketing concept


The marketing holds that achieving
organizational goals depends on
determining the needs and wants of target
markets and delivering the desired
satisfactions more effectively and
efficiently than competitors do.

The marketing concept starts with a well defined


market, focuses on customer needs and integrates
all the marketing activities that affect customers.
This concept is consumer-oriented, market-driven,
value-driven, integrated and goal-oriented.
It earns profits by creating long-term customer
relationships based on customer value and
satisfaction.
The job is not to find the right customers for your
products, but to find the right products for your
customers.

Customer driven companies research


current customers deeply to learn about
their desires, gather new product and
service ideas and test proposed product
improvements.
Such customer driven marketing usually
works well when a clear need exists and
when customers know what they want.

Criticism
In many cases, customers do not know
what they want or even what is possible.
Customers are not expert enough for the
solution.

The societal marketing concept


The societal marketing concept holds that
the organization should determine the
needs, wants and interests of the target
markets and deliver the desired
satisfaction more effectively and efficiently
than do competitors in a way that
maintains or improves the consumers and
societys well-being.

This concept balances the companys


interests, customers interests and
societys interests.
Now companies are beginning to think of
societys interests when making their
marketing decisions.

The societal marketing concept calls upon


marketers to build social and ethical
considerations into their marketing
practices.
They must balance and juggle the often
conflicting criteria of company profits,
consumer want satisfaction and public
interest.

The Holistic Marketing Concept


The concept is based on the development, design and implementation of
marketing programs, processes and activities that recognizes their breadth and
interdependencies.
Holistic marketing concept recognizes that everything matters with marketing.
Four components of holistic marketing are relationship marketing, integrated
marketing, internal marketing and social responsibility marketing.