Page 14 - DMGT408DMGT203_Marketing Management

Unit 1: Marketing: Scope and Concepts

Notes
Example: Air conditioners, Refrigerators, etc. have fluctuating demand.
6. Full Demand: This is a situation all companies aspire and work for. The task is to maintain
the level of demand and keep pace with the changing customer preferences and ever
increasing competition and monitor customer satisfaction.

Example: A situation where the no. of shirts produced by the manufacturers meets the
level of demand.
7. Excess Demand: At this demand level, the company is unable to meet the demand level.
The only option usually available is to find ways to decrease demand temporarily or
permanently. Generally, marketing seeks to discourage overall demand through
demarketing, either by increasing prices or reducing promotion and services. Selective
demarketing involves reducing demand from those markets that are less profitable.

Example: Popular models of cars, like Maruti Suzuki Swift, have excess demand.
8. Unwholesome Demand: This concerns managing demand for harmful products. The
marketing task is to make the public aware about the dangers and harmful effects caused
through misuse or over use of such products by using appropriate degree of fear appeals,
price hike, or reduced availability.

Example: Cigarettes and other nicotine products.
Self Assessment

State whether the following statements are true or false:

1. Marketing is a continuous relationship building process.
2. Concept of exchange is the central idea behind marketing.
3. Human needs are limited.

4. The situation where the customer is totally unaware about the existence of a product is
referred to as a negative demand situation.

1.2 Marketing Concepts

Since the later part of the 19th century, marketing has gradually evolved through various
marketing orientations. These stages in marketing evolution present a generalised picture and
a sufficiently significant number of companies have adopted the most modern marketing concept
or philosophy.
A marketing orientation (also called the marketing concept, or consumer focus) is one that
allows the wants and needs of customers and potential customers to drive all the firm's strategic
decisions. The firm's corporate culture is systematically committed to creating customer value.
In order to determine customer wants, the company usually needs to conduct marketing research.
The marketer expects that this process, if done correctly, will provide the company with a
sustainable competitive advantage.
This consumer focus can been seen as a process that involves three steps. First customer want are
researched, then the information is disseminated thoughout the firm and products are developed,
then finally customer satisfaction is monitored and adjustments made if necessary.

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