Fundamentals of Marketing
Below is the notes for the introduction of marketing management. Simple things you will need to learn are the following:
How Marketing Evolved
Definition of Marketing
Definition of Marketing Management
The Five Marketing Concepts
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
EVOLUTION OF MARKETS
Marketing as we know it today began in the 1920s with the birth of the “marketing orientation”. During the first stage of capitalism business had a production orientation. Business was concerned with production, manufacturing, and efficiency issues. By the mid 1950s a second stage emerged, the sales orientation stage. Business’ prime concern was to sell what its produced. By the early 1970s a third stage, the marketing orientation stage emerged as businesses came to realize that consumer needs and wants drove the whole process.
Marketing research became important. Businesses realized it was futile putting a lot of production and sales effort into products that people did not want. Some commentators claim that we are now on the verge of a fourth stage, one of a personal marketing orientation. They believe that the technology is available today to market to people on an individual basis (see personalized marketing, permission marketing, and mass customization). They feel it is no longer necessary to think in broad aggregated terms like market segments or target markets.
Definition of Marketing
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders What is Marketing Management?
Marketing management is the practical application of marketing techniques. 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 What is a Market?
All businesses operate in “markets”. But what is a market? And how can it be defined? [pic]
A market is the set of all actual and potential buyers of a product or service. This definition suggests that a market is the total value and/or volume of products that satisfy the same customer need. A public place where goods and services are traded purchased and sold.
• It is important to be careful about how a market is defined. The following key marketing processes rely on a relevant market definition: Measuring market share(
Measuring market size and growth(
Specifying target customers(
Identifyi(ng relevant competitors
Formulating a marketing strategy(
EVOLUTION OF MARKETING CONCEPTS
There are five competing concepts under which business and other organizations can conduct their marketing activity: 1. THE PRODUCTION CONCEPT
The customers will favor those products that are widely available and low in cost. Management in production –oriented organizations concentrates on achieving high production efficiency and a wide distribution coverage.
2.THE PRODUCT CONCEPT
The customers will favor those products that are widely available and low in cost that offer the most quality, performance, and features. Management in product –oriented organizations concentrates on making good products and improving them over the time.
3. THE SELLING CONCEPT
The customers, if left alone, will ordinarily not buy enough of Organization’s products. The organization must therefore undertake an aggressive selling and promotion effort.
4. THE MARKETING CONCEPT
The key to achieving organizational goals consists in determining the needs and wants of the target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
5. THE SOCIETAL MARKETING CONCEPT
The organizations’ task is to...