Page 19 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes money in advance and wait for five to ten years before they could become proud owners. It
is only after the entry of Maruti cars, with Japanese collaboration, that things started changing.
Premier Auto and Hindustan Motors experienced major setbacks, sales declined and
ultimately there were hardly any willing buyers. In the beginning, Maruti found it difficult
to meet the demand and buyers willingly booked the car and waited for delivery. Bajaj
Auto faced a similar situation as customers had many choices of two-wheelers. The position
now appears as if almost every auto manufacturer is desperately trying to please customers.
Customers have strong preferences for certain features and price ranges. Maruti has even
started selling second-hand, reconditioned, and reliable cars from its outlets to customers
looking for such deals, is order to expand its hold on the market.

Self Assessment

Fill in the Blanks:
5. It is generally seen that companies offering financial services use……….…concept more.
6. Production concept was primarily used at the advent of ………………………..
7. Selling is more………………oriented and marketing is more……………oriented.

8. Most insurance companies still follow the ……………………..orientation.
1.3 Holistic Marketing Approach

There have been major changes in almost every sphere of human activity over the last decade,
like implication being that this requires fresh marketing thinking, a fresh approach to business,
and this calls for a holistic marketing approach. This new thinking relies upon marketing
research to define market segments, their size, and their needs. To more completely satisfy
those needs, marketers need to have a more complete and cohesive approach to internal
marketing, targeted marketing, relationship marketing, be visibly socially responsible, and
make decisions about the controllable elements of the marketing mix.

1.3.1 Marketing Mix

Marketing mix is a major concept in modern marketing and involves practically everything that
a marketing company can use to influence consumer perceptions favourably towards its products
or services so that consumer and organisational objectives are attained. Marketing mix is a
model of crafting and implementing marketing strategy. Prof. Neil H. Borden first used the
term "marketing mix" in 1949 to include in the marketing process factors such as distribution,
advertising, personal selling, and pricing. Borden claims that the phrase came to him while
reading James Culliton's description of the activities of a business executive: (An executive) "a
mixer of ingredients, who sometimes follows a recipe as he goes along, sometimes adapts a
recipe to the ingredients immediately available, and sometimes experiments with or invents
ingredients no one else has tried."
[Wikipedia: James Culliton, The Management of Marketing Costs, Research Division, Harvard
University (1948)].

There are virtually dozens of marketing mix tools. However, Prof. E. Jerome McCarthy classified
the "Marketing Mix Variables" in terms of 4 Ps: Product, Price, Place (distribution) and Promotion.
These 4 Ps represent the tactical controllable factors and vary in case of different products and
target markets. This classification is believed to be quite popular in marketing circles across the
world.

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