DR.

SHAKUNTALA MISRA NATIONAL

REHABILITATION UNIVERSITY
LUCKNOW

ACADEMIC SESSION: 2021-2022

BUSINESS PROMOTION & MANAGEMENT

TOPIC: MARKETING CONCEPT

SUBMITTED BY SUBMITTED TO
ANVESHA CHATURVEDI MRS. MALINI SRIVASTAVA

B.COM. LL.B. (HONS.) FACULTY OF LAW

4th SEMESTER DR. SHAKUNTALA MISRA

NATIONAL REHABILITATION

UNIVERSITY, LUCKNOW
 ACKNOWLEDGEMENT

In preparation of my assignment, I had to take the help and guidance of

some respected persons, who deserve my deepest gratitude. As the
completion of this assignment gave me much pleasure, I would like to
show my gratitude Mrs. Malini Srivastava Ma’am, for giving me a
good guideline for assignment throughout numerous consultations. I
would also like to expand my gratitude to all those who have directly and
indirectly guided me in writing this assignment
.
 TABLE OF CONTENT
 INTRODUCTION
 DEFINTION AND TERMINOLOGY
 MARKETING CONCEPT
 EXCHANGE CONCEPT
 PRODUCTION CONCEPT
 PRODUCT CONCEPT
 SELLING CONCEPT
 SOCIETAL MARKETING CONCEPT
 SUMMARY
 BIBLIOGRAPHY
 MARKETING CONCEPT

INTRODUCTION:

'Marketing is so basic that it cannot be considered as

separate function. It is the whole business seen from the point of view of its final
result, that is, from the customer's point of view'. - Peter Drucker. Marketing is
indeed an ancient art; it has been practiced in one form or the other, since the days
of Adam and Eve. Today, it has become the most vital function in the world of
business. Marketing is the business function that identifies unfulfilled needs and
wants, define and measures their magnitude, determines which target market the
organization can best serve, decides on appropriate products, services and
programmes to serve these markets, and calls upon everyone in the organization to
think and serve the customer. Marketing is the force that harnesses a nation's
industrial capacity to meet the society's material wants. It uplifts the standard of
living of people in society. Marketing must not be seen narrowly as the task of
finding clever ways to sell the company's products. Many people confuse
marketing with some of its sub functions, such as advertising and selling.
Authentic marketing is not the art of selling what you make but knowing what to
make. It is the art of identifying and understanding customer needs and creating
solutions that deliver satisfaction to the customers, profit to the producers, and
benefits for the stakeholders. Market leadership is gained by creating customer
satisfaction through product innovation, product quality, and customer service. If
these are absent, no amount of advertising, sales promotion, or salesmanship can
compensate. William Davidow observed: 'While great devices are invented in the
laboratory, great products are invented in the marketing department'. Too many
wonderful laboratory products are greeted with yawns or laughs. The job of
marketers is to 'think customer' and to guide companies to develop offers that are
meaningful and attractive to target customers. Already sea changes have been
taking place in the global economy. Old business road maps cannot be trusted.
Companies are learning that it is hard to build a reputation and easy to lose it. The
companies that best satisfy their customers will be the winners. It is the special
responsibility of marketers to understand the needs and wants of the market place
and to help their companies to translate them into solutions that win customers
approval. Today's smart companies are not merely looking for sales; they are
investing in long term, mutually satisfying customer relationships based on
delivering quality, service and value.

DEFINITIONS & TERMINOLOGY:

There are as many definitions of

marketing as many scholars or writers in this field. It has been defined in various
ways by different writers. There are varying perceptions and viewpoints on the
meaning and content of marketing. Some important definitions are:

 Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating, offering and
exchanging products of value with others.
 Marketing is the process by which an organization relates creatively,
productively and profitably to the market place.
 Marketing is the art of creating and satisfying customers at a profit.
 Marketing is getting the right goods and services to the right people at the
right places at the right time at the right price with the right communication
and promotion.
 Much of marketing is concerned with the problem of profitably disposing
what is produced.
 Marketing is the phenomenon brought about by the pressures of mass
production and increased spending power.
 Marketing is the performance of business activities that direct the flow of
goods and services from the producer to the customer.
 Marketing is the economic process by which goods and services are
exchanged between the maker and the user and their values determined in
terms of money prices.
 Marketing is designed to bring about desired exchanges with target
audiences for the purpose of mutual gain.
 Marketing activities are concerned with the demand stimulating and demand
fulfilling efforts of the enterprise.
 Marketing is the function that adjusts an organization’s offering to the
changing needs of the market place.
 Marketing is a total system of interacting business activities designed to
plan, promote, and distribute need satisfying products and services to
existing and potential customers.
  Marketing origination with the recognition of a need on the part of a
consumer and termination with the satisfaction of that need by the delivery
of a usable product at the right time, at the right place, and at an acceptable
price. The consumer is found both at the beginning and at the end of the
marketing process.
 Marketing is a view point, which looks at the entire business process as a
highly integrated effort to discovery, arouse and satisfy consumer needs

Marketing concepts:
Firms vary in their perceptions about business, and their orientations to the market
place. This has led to the emergence of many different concepts of marketing.
Marketing activities should be carried out under some well-thought-out philosophy of
efficient, effective, and responsible marketing. There are six competing concepts
under which organisations conduct their marketing activity.

Exchange concept
The exchange concept of marketing, as the very name indicates, holds that the
exchange of a product between the seller and the buyer is the central idea of
marketing. While exchange does form a significant part of marketing, to view
marketing as more exchange will result in missing out the essence of marketing.
Marketing is much broader than exchange. Exchange, at best, covers the distribution
aspect and the price mechanism. The other important aspects of marketing, such as,
concern for the customer, generation of value satisfactions, creative selling and
integrated action for serving customer, are completely overshadowed in exchange
concept.

Production concept
It is one of the oldest concepts guiding sellers. The production concept holds that
customers will favour those products that are widely available and low in cost.
Managers of production-oriented organisations concentrate on achieving high
production efficiency and wide distribution coverage. The assumption that consumers
are primarily interested in product availability and low price holds in at least two types
of situations. The first is where the demand for a product exceeds supply. Here
consumers are more interested in obtaining the product than in its fine points. The
suppliers will concentrate on finding ways to increase production. The second
situation is where the product’s cost is high and has to be brought down through
increased productivity to expand the market.

The product concepts

The product concept holds that consumers will favour those products that offer quality
or performance. Managers in these product-oriented organisations focus their energy
on making good products and improving them over time. These managers assume that
buyers admire well-made product and can appraise product quality and performance.
These managers are caught up in a love affair with their product and fail to appreciate
that the market may be less “turned on” and may even be moving in different
direction. The product concept leads to “marketing myopia”, an undue concentration
on the product rather than the need. Railroad management thought that users wanted
trains rather than transportation and overlooked the growing challenge of the airlines,
buses, trucks, and automobiles. Slide-rule manufacturers thought that engineers
wanted slide rules rather than the calculating capacity and overlooked the challenge of
pocket calculators.

The selling concepts

The selling concept holds those consumers, if left alone, will ordinarily not buy
enough of the organization’s products. The organization must therefore an aggressive
selling and promotion effort. The concept assumes that consumers typically show
buying inertia or resistance and have to be coaxed into buying more, and that the
company has available a whole battery of effective selling and promotion tools to
stimulate more buying. The selling concept is practiced most aggressively with
“sought goods”, those goods that buyers normally do not think of buying, such as
insurance, encyclopaedias, and funeral plots. These industries have perfected various
sales techniques to locate prospects and hard-sell them on the benefits of their product.
Hard selling also occurs with sought goods, such as automobiles. Most firms practice
the selling concept when they have overcapacity. Their aim is to sell what they make
rather than make what they can sell. Thus selling, to be effective, must be preceded by
several marketing activities such as needs assessment, marketing research, product
development, pricing, and distribution. If the marketer does a good job of identifying
consumer needs, developing appropriate products, and pricing, distributing, and
promoting them effectively, these products will sell very easily. When Atari designed
its first video game, and when Mazda introduced its RX-7 sports car, these
manufacturers were swamped with orders because they had designed the “right”
product based on careful marketing homework. Indeed, marketing based on hard
selling carries high risks. It assumes that customers who are coaxed into buying the
product will like it; and if they don’t, they won’t bad-mouth it to friends or complain
to consumer organizations. And they will possibly forget their disappointment and buy
it again. These are indefensible assumptions to make about buyers. One study showed
that disappointed customers bad-mouth the product to eleven acquaintances, while
satisfied customers may good-mouth the product to only three.

The marketing concepts

The marketing concept holds that the key to achieving organizational goals consists in
determining the needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors. Theodore Levitt drew a
perceptive contrast between the selling and marketing concepts. Selling focuses on the
needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with
the seller’s need to convert his product into cash; marketing with the idea of satisfying
the needs of the customer by means of the product and the whole cluster of things
associated with creating, delivering and finally consuming it.

Market focus:

No company can operate in every market and satisfy every need. Nor can it even do a
good job within one broad market: Even mighty IBM cannot offer the best customer
solution for every computer need. Companies do best when they define their target
markets carefully. They do best when they prepare a tailored marketing program for
each target market.

Customer orientation:

A company can define its market carefully and still fail at customer-oriented thinking.
Customer-oriented thinking requires the company to define customer needs from the
customer point of view, not from its own point of view. Every product involves trade-
offs, and management cannot know what these are without talking to and researching
customers. Thus, a car buyer would like a high-performance car that never breaks
down, that is safe, attractively styled, and cheap. Since all of these virtues cannot be
combined in one car, the car designers must make hard choices not on what pleases
them but rather on what customers prefer or expect. The aim, after all, is to make a
sale through meeting the customer’s needs. Why is it supremely important to satisfy
the customer? Basically, because a company’s sales each period come from two
groups: customers and repeat customers. It always costs more to attract new customers
than to retain current customers. Therefore, customer retention is more critical than
customer attraction.

Coordinated marketing:

Unfortunately, not all the employees in a company are trained or motivated to pull
together for the customer. Coordinated marketing means two things. First, the various
marketing functions-sales-force, advertising, product management, marketing
research, and so on- must be coordinated among themselves. Too often the sales-force
is mad at the product managers for setting “too high a price” or “too high a volume
target”, or the advertising director and a brand manager cannot agree on the best
advertising campaign for the brand. These marketing functions must be coordinated
from the customer point of view. Second, marketing must be well coordinated with the
other departments. Marketing does not work when it is merely a department; it only
works when all employees appreciate the effect, they have on customer satisfaction.

Profitability:

The purpose of the marketing concept is to help organizations achieve their goals. In
the case of private firms, the major goal is profit; in the case of non-profit and public
organizations, it is surviving and attracting enough funds to perform their work. Now
the key is not to aim for profits as such but to achieve them as a by-product of doing
the job well. This is not to say that marketers are unconcerned with profits. Quite the
contrary, they are highly involved in analyzing the profit potential of different
marketing opportunities. Whereas salespeople focus on achieving sales-volume goals,
marketing people focus on identifying profit-making opportunities.

The societal marketing concepts

In recent years, some people have questioned whether the marketing concept is
appropriate organizational philosophy in an age of environmental deterioration,
resource shortages, explosive population growth, world hunger and poverty, and
neglected social services. The question is whether companies that do an excellent job
of sensing, serving, and satisfying individual consumer wants are necessarily acting in
then best long-run interests of consumers and society. The societal marketing concept
holds that the organization’s task is to determine the needs, wants, and interests of
target markets and to deliver the desired satisfactions more effectively and efficiently
than competitors in a way that preserves or enhances the consumer’s and the society’s
well-being. The societal marketing concept calls upon marketers to balance three
considerations in setting their marketing policies, namely, company profits, consumer
want satisfaction, and public interest. Originally, companies based their marketing
decisions largely on immediate company profit calculations. Then they began to
recognize the long-run importance of satisfying consumer wants, and this introduced
the marketing concept. Now they are beginning to factor in society’s interests in their
decision-making. The societal marketing concept calls for balancing all three
considerations. A number of companies have achieved notable sales and profit gains
through adopting and practicing the societal marketing concept.

SUMMARY
Marketing starts with the customers and ends with customers. Meaning thereby,
marketing starts with the identification of needs and wants of customers and ends with
satisfying it with product or services. Marketing has its origin in the fact that humans
are creatures of needs and wants. Need and wants create a state of discomfort, which is
resolved through acquiring products that satisfy these needs and wants. Most modern
societies work on the principle of exchange, which means that people specialize in
producing particular products and trade them for the other things they need. They
engage in transactions and relationship building. A market is a group of people who
share a similar need. Marketing encompasses those activities involved in working with
markets, that is, the trying to actualize potential exchanges. Marketing management is
the conscious effort to achieve desired exchange outcomes with target markets. The
marketer’s basic skill lies in influencing the level, timing, and composition of demand
for a product, service, organization, place, person or idea. Marketing can be vital to an
organization’s success. In recent years numerous service firms and non-profit
organisations have found marketing to be necessary and worthwhile.
 BIBLIOGRAPHY
 http://www.ddegjust.ac.in/studymaterial/pgdapr/pgdapr-105.pdf
 https://www.investopedia.com/terms/m/marketing.asp