Principles of
Marketing
BBA 3rd
Marketing in Historical
perspective or
Evolution of Marketing or
Marketing Philosophies
PRODUCT SOCIETAL
CONCEPT MARKETING
CONCEPT
KEY
MARKETING
PHILOSOPHIES
MARKETING
MARKETING
PRODUCTION CONCEPT
CONCEPT
CONCEPT
SELLING
CONCEPT
The Production Concept
..Holds that consumers will favor
products that are available and
affordable.
– Implies work towards mass production and
low cost
– Oldest orientation
– Still useful in two situations
• Demand exceeds supply
• Products cost is too high
The Product Concept
…Assumes customers favor products
that offer the most in quality,
performance, and features.
– Implies firm should strive to
continually upgrade product and
product features.
The Selling Concept
…The idea that customers will not
buy enough of the organization’s
products unless the organization
undertakes a large scale selling
and promotion efforts.
Sell what you make rather than
make what customer demands.
Inside-out perspective: Assumes
people need to be sold on whatever
it is the firm has decided to offer.
1st: Decide what to produce;
2nd: Figure out how to get people to
buy what you have.
– Implies lots of selling/promotional
activities are needed to move
product
After WWII
Shortages in goods ended.
Economy changed from a seller’s market
to a buyer’s market.
– Seller’s market: marketplace
characterized by a shortage of goods
and/or services.
– Buyer’s market: marketplace
characterized by an abundance of goods
and/or services.
The Marketing Concept
…Holds that achieving organizational
goals depends upon determining the
needs and wants of target markets
and delivering the desired
satisfactions more effectively and
efficiently than do competitors.
Marketing Concept
Components
Means of achieving goals
determine needs and wants
implies research and/or appropriate
assumptions
Target markets
implies clear target groups: people
whose needs/want you will try to fill
Satisfaction
Competitors acknowledged
Marketing Era
With a continually increasing buyer’s
market, marketing would no longer be
regarded as a supplemental activity
performed after completion of the
production process.
The marketer would play a lead role in
product planning.
Marketing and selling would no longer be
synonymous terms.
Selling
A company makes a product and then uses
various selling methods to persuade customers
to buy it.
Marketing
Company finds out what the customer wants
and develops a product to satisfy those wants
while yielding a profit.
Marketing Concept Vs.
Selling Concept
Marketing Concept: Selling Concept:
Begin with Begin with what firm
customer needs wants to produce
Develop 4 Ps in Given products,
light of customer persuade customers
needs to buy
“Have what you “Get rid of what you
can get rid of” have.”
SOCIETAL MARKETING CONCEPT:
….a way that maintains or improves the
consumer’s and the society’s well-
being.
Typical thinking in 1990
– Marketer must act in a socially
responsible manner.
– External environment’s influence on
firm’s marketing program.
Society
Society
(Human
(Human Welfare)
Welfare)
Societal
Societal
Marketing
Marketing
Concept
Concept
Consumers
Consumers Company
Company
(Satisfaction)
(Satisfaction) (Profits)
(Profits)
Evolving Views of
Marketing’s Role
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
a. Marketing as an b. Marketing as a more
equal function important function
Production i on
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Fi
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o
Pr
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Marketing Customer
re
Hu ur
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ur an
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so
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ma ces
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a ke
so m
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re Hu
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c. Marketing as the d. The customer as the
major function controlling factor
Production
Marketing
Customer
re
Hu ur
so
ma ces
c e
n
n
na
Fi
e. The customer as the controlling
function and marketing as the
integrative function
t o p
s s
et ’ r e
L th e
i