Page 31 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes Marketing, as a concept, has evolved over a period of time and has witnessed changes and
modifications with the progress of civilization. It has augmented exchange with dominating
paradigms in marketing.
They are production concept, product concept, selling concept, marketing concept and
societal concept. People often confuse between selling and marketing.

While selling is more about product push, marketing is about identification and satisfaction
of customer need. While selling focuses on the interest of the seller, marketing takes a
more welfare view and focuses on consumer satisfaction. Customers and companies are
involved in an exchange process in marketing.

Customer value is the net of expected benefits of customers and cost involved in acquiring
the product or service. Benefits can be product benefits, brand or company benefits,
functional or performance benefits, service benefits and emotional or self-expressive
benefits.
Relationship marketing is based on the principle that current customers are the key to
long-term business success.

1.7 Keywords

Customer Satisfaction: Consumer satisfaction (goods or services) is the result of a subjective
comparison of expected and perceived attribute levels.
Marketing: A societal process, by which individuals and groups obtain what they need and want
through creating, offering and freely exchanging products and services of value with others.

The Marketing Concept: It proposes that the reason for success lies in the company's ability to
create, deliver and communicate a better value proposition through its marketing offer in
comparison to the competitors for its chosen target market.

The Product Concept: It has the proposition that consumers will favor those products that offer
the most attributes like quality, performance and other innovative features.
The Production Concept: It emerges out of the production orientation. The basic proposition is
that customers will choose products and services that are widely available and are of low cost.
The Selling Concept: It proposes that customers, be they individual or organizations will not
buy enough of the organization's products unless they are persuaded to do so through selling
effort.

The Societal Marketing Concept: It proposes that the enterprise's task is to determine the needs,
wants and intentions of the target market and to deliver the expected satisfaction more effectively
and efficiently than the competitors' in a way to preserve or enhance the consumer's and society's
well being.

1.8 Review Questions

1. Define marketing and explain the relevance of customers' needs and wants to the marketers.
2. 'Marketing starts with customers and ends with customers'. Do you agree with statement?
Give suitable justifications for your answer.
3. State how marketing concept is significantly different from production concept and selling
concept. Give the relevant examples from the current corporate environment.
4. Explain the importance of customer satisfaction.

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