Unit-1

Introduction to Marketing
❖ Market (Concept):
The concept of market is very important in marketing. The American Marketing Association
defines a market as the aggregate demand of the potential buyers for a product/ service. P.
Kotler defines a market as an area for potential exchanges. Thus, a market is a group of buyers
and sellers interested in negotiating the terms of purchase/sale for goods/ services.

The negotiation work may be conducted face-to-face at a certain place, e.g., a village mandi, or it
may be done through other means of communication such as correspondence, phone or cable or
it may be done through business middlemen, e.g., brokers and commission agents.

Exchange is the heart of commerce or marketing. Exchange is possible when there are two or
more parties who have something they desire to exchange for something else. Exchange may
take place with or without money. As a medium of exchange, money speeds trading. It may
also be affected through middlemen in commerce, e.g., trader or agent. Middlemen also
facilitate marketing operations.

Place Concept:
A market is a convenient meeting place for buyers and sellers to gather together in order to
conduct buying and selling activities, e.g., a spot, cash or physical market, wholesale or retail
market.

Market Concept:
A market is an area, small or large, in which price-making forces of demand and supply tend to
operate freely through modern means of communication such as phone, telex, correspondence,
etc., and where informed buyers and sellers can establish close and continuous contacts to carry
on exchange of goods and services without formal face-to-face meeting in such a market, price
uniformity can be easily established place-wise through transport and time-wise through
warehousing.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 1

 In this sense, we have a national or world market for many commodities. This is an economic
concept of the term ‘market’. In this sense, meeting place for exchange is not essential and it is a
matter of convenience only. For instance, a money market is a highly organised market for the
entire nation without any central meeting place for borrowers and lenders of money.

Demand Concept :
The term market is also used to represent customer demand. In this sense, market means people
with needs to satisfy, the money to spend and the will to spend money to satisfy their wants.
The human being is a wanting animal having never-ending, varied and ever-changing wants.
The process of want-satisfaction is continuous and under keen competition, sellers want to
create, capture and retain the market (consumer demand) for their goods. A seller may be
priced out of the market when his product has no demand. Every product has a life cycle. What
was popular yesterday may not be popular tomorrow.

❖ Types of Market :

Based on Geo Location:

• Local Market: This type of market is located in a small area like a small town or in a village.
People can buy and sell their daily needs goods here. Transportation of this type of product
can be costly.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 2

• Regional Markets: This kind of market types cover a wide range of area which can be
district, cities, and It is a bigger market than comparing to the local market.
• National Markets: This types of market cover the whole country and allow to transported
goods anywhere in the county as per requirement and prevent the goods to be transported
outside the boundaries of the country.
• International Market: when it comes to the international market goods and services can be
traded internationally and transported to the outside of the country. Here the demand can be
in bulk so that it can be transported.

Based on Time:
• Very Short Period Market: Here the price of the product depends on the demand. If demand
is high the price will be high and the demand is the low price will be less. i.e. Vegetable
market and flower market.
• Short Period Market: This is for a longer period than the very short period market, where
demand can be adjusted and the price can also be modified.
• Long Period Market: This types of market product supply can be changed based on the
market So, it depends on the market demand and changes the production as per need. The
price of the product can be different in different time periods because the price is set
according to demand and supply.

Based on the Transaction

• Spot Market: It is also called the cash market because here the product charges are being
paid in cash at the time of product delivery. So, here the credit system is not available.
• Future Market: This is the type of market where the credit system works. So, people are
being promised to be paid in the future. It is called the future market.

Based on the Competition / Market structure

1. Perfect competition
When we talk about the perfect competition market it means that there is a massive number of
buyers and sellers. When it comes to competition all the sellers in the market are smaller in
competition with each other. In these types of the market no big player to influence the market.
So each and every firm in this market are price takers. When we talk about the perfect
competition market few things come in mind. This is one of the reasons it is a theoretical
concept. The things can be as follow
• All the product in this market are completely identical
• Every firm and seller has only one motto of maximum profit.
• In this market, anyone can enter and exit at any time
• Here no one cares for customer perfection

2. Monopolistic Competition
This type of market is more practical which happens in the real world. When we talk about the
monopolistic competition a large number of buyers and sellers exist here. But they do not sell

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 3

the same product. Actually, all the product in this market types is a similar but slightly different
type of product.
Now here it comes the point of customer perfection because buyers can go for one over the
other product. But the seller can charge an extra amount for the product because they have
market power. Now at some point, the seller becomes the price setter. For instance, we can take
an example of toothpaste for Monopolistic Competition.

3. Oligopoly
In this type of market, there are only a few numbers of firm or seller but the customer are much
larger than those firms. So here the seller has the market influence they set the price of the
product in this case the customer becomes the price taker. Also, the firm collaborates with each
other to compete with others. While the seller sets the price of the product they maximize their
profit. In this kind of market, it is more difficult to enter because the new firm finds itself quite
difficult to establish.
For example, we can say the cellular industry as an Oligopoly market, because there is a limited
provider which is actually, price setter, and consumers don’t have many options to choose
from.

4. Monopoly
When we talk about the monopoly competition there is only one seller/firm, so the single seller
controls the whole market and sets the price according to their need because it has the power of
the market. In this case, buyers do not have any other choice so they have to pay the price set by
the seller. So, in this competitive market customers do not have power and the market forces
become irrelevant. Actually, this type of market is rare in the real world.
For example, we can take Google which is a leader in the search market types, and Facebook
that plays a vital role in the social media space.

5. Monopsony
As compared to another competitive market this type of market does not have a large number
of buyers and sellers. Here is the only buyer to particular products and services. So, the
customer has all the power to set the price of those particular products and services. Here
consumer becomes the price setter and the firm becomes the price taker.

❖ Flow Structure of the Market :

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 4

❖ Marketing Concept :
The marketing concept is the belief that companies must assess the needs of their consumers
first and foremost. Based on those needs, companies can make decisions in order to satisfy their
consumers’ needs, better than their competition. Companies that hold this philosophy believe
that their consumers are the driving forces of their business. Nowadays, most companies have
incorporated the marketing concept. So if you were a new company, how would you know
what a customer would need and want?

First of all, let us define needs and wants. Needs are basic requirements for an individual to
survive. Some examples are water, food, shelter, etc. Obviously, the needs of consumers are
wide-ranging. Wants are the desire for something that an individual cannot live without. Some
examples are a bigger home, a brand new car, an iPad, and the like. Even though consumers’
needs are broad, wants can be very particular.

Consumers decide to buy based on both their needs and wants. Case in point, if they were
hungry, they would need food. If you base it simply on that, then any kind of food will do. Yet,
the consumer would have particular food in mind. Even though they can get a burger from
Burger King, what they might truly want is a half-pound grilled burger from a bar in their local
neighborhood. It is at this point that marketers would come in. Marketers acknowledge the
needs of consumers and use the consumers’ desire for what they want to steer them towards
specific products and services.

Marketing is a human activity directed at satisfying needs and wants through exchange
process.
-Philip Kotler
The process of planning and executing the conception, pricing, promotion, and distribution
of ideas , goods and services to create exchanges that satisfy individual and organizational
objectives.
-American Marketing Association (AMA)

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 5

 The marketing concept underscores:
• Identifying the market or targeting consumers;
• Understanding the needs and wants of the consumers in the target market;
• Creating products or services based on the consumers’ needs and wants;
• Satisfying the needs of consumers better than competitors; and
• Accomplishing all of these while earning a profit.

❖ Marketing Management (Concept)

Marketing management is 'the art and science of choosing target markets and getting, keeping,
and growing customers through creating, delivering, and communicating superior customer
value.'- Kotler and Keller

❖ Importance of Marketing
Do you know what your customers want? Do you think your customers trust your products?
When was the last time you saw a customer tweeting about your product or service? Was it a
complaint or compliment?
The answers to all these questions lie in marketing.

How you market your business determines if the enterprise will be successful or not. Marketing
is a tool used to create and maintain demand, relevance, reputation, competition and more.
Without it, your business is likely to close down due to lack of sales.

So why is marketing important? Check out these 9 reasons why you really do need it.

1. Marketing Is an Effective Way of Engaging Customers

It’s important for your business to engage its customers. Marketing is a tool to keep the
conversation going.Engaging customers is different from pushing your offers. Engaging
involves furnishing your customers with relevant information about your products and your
business as well. It’s all about creating fresh content.
Tell your customers what they don’t know. Let it be interesting and worth their time. Social
media is one of the best platforms where you can engage your customers. Some organizations
use short videos and other humor-laden tricks to engage their customer base. By engaging your
customers, marketing gives them a sense of belonging.

2. Marketing Helps to Build and Maintain the Company’s Reputation

The growth and life span of your business is positively correlated to your business’s reputation.
Hence, it’s fair to say your reputation determines your brand equity. A majority of marketing
activities are geared towards building the brand equity of the company.
Your business’s reputation is built when it effectively meets the expectations of its customers.
Such a business is considered a responsible member of the community. The customers become

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 6

proud to be associated with your products. Marketers use effective communication, branding,
PR and CSR strategies to ensure that a business’s reputation is maintained.

3. Marketing Helps to Build a Relationship between a Business and Its Customers

Businesses need to build a relationship of trust and understanding with their customers. How
does marketing establish this relationship?
Marketing research segments should be based on demographics, psychographics, and
consumer behavior. Segmentation helps the business meet the needs of its customers hence
gaining their trust. The product team ensures the business delivers what’s promised at the right
time. This makes the customers brand loyal.
Loyal customers will have the confidence to buy more products from you. The trust and
understanding between the business and its customers make your commercial activities more
fruitful.

4. Marketing Is a Communication Channel Used to Inform Customers

Marketing informs your customers about the products or services you’re offering them.
Through marketing, the customers get to know about the value of the products, their usage and
additional info that might be helpful to the customers. It creates brand awareness and makes
the business stand out.
There’s stiff competition in the market and you need to be a constant voice to convince the
customers. Inform your customers of discounts and other competitive tricks you intend to use.
Through communication, marketing helps your business become a market leader. This
post explains more about how to gain a competitive advantage.

5. Marketing Helps to Boosts Sales

Marketing utilizes different ways to promote your products or services. Once a product has
been advertised, it’s already on the radar and this increases your chances of selling it.
Customers may want to try your products or services and this will trigger a purchase decision.
When customers are happy about your products or services, they become your brand
ambassadors without your knowledge. They will spread the word and your sales will start to
increase. Ensure you offer high-quality products and services to complement your marketing
efforts.

6. Marketing Aids in Providing Insights about Your Business

Every marketer understands the need for targeting the right audience. However, you must have
the right content to share with such an audience. Your marketing strategies can help you
establish what business messaging will convince the target audience. At this point, you have to
test different messages and see what works.
Once you have tested different sets of messaging on the target audience, you will find a viable
baseline for your marketing efforts. It acts as a metric and provides the insight needed to make
you avoid guesswork.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 7

7. Marketing Helps Your Business to Maintain Relevance
Every marketer understands the need for disrupting a potential consumer’s opinion about other
products. But don’t make a mistake of taking this chance for granted.
Most businesses assume that they will always remain the client’s favorite brand because up to
now the client has never complained. This is the wrong mindset. You need to find ways to
remain at the top of the client’s mind. Every relationship needs to be maintained. Marketing
helps your business to maintain a good relationship with customers by making you remain
relevant. Don’t focus on gaining new customers before addressing the need to retain the present
ones.

8. Marketing Creates Revenue Options

During the startup phase, your options are sparse since you’re mostly cash-strapped. This limits
your options. As your marketing strategies generate more customers and revenue
opportunities, you’ll begin having options. Having options is comparable to having a nice war
chest.
Having options will give you the courage you need to penetrate new markets. You will have the
freedom to start letting go of customers who are too demanding to your sanity and well-being.
Without marketing, you will be forced to continue working with clients who you have
outgrown and are paying you peanuts.

9. Marketing Helps the Management Team to Make Informed Decisions

Every business is confronted with problems such as to what, when, for whom and how much to
produce. A complex and tedious process determine your business’s survival. As a result,
businesses heavily rely on marketing mechanisms to make these decisions.
Why should you rely on marketing mechanisms? These mechanisms serve as a reliable link
between your business and society. They cultivate people’s mind, educate the public and
convince them to buy.

❖ Scope of Marketing
• Create Awareness
• Studies Customer wants
• Product Planning
• Advertising
• Pricing Polices
• Distribution
• Selling
• Packaging
• After Sales Service
• Collect the Feedback

❖ What can be marketed?

what is marketed?’ According to Kotler, marketing people are involved with ten types of
entities.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 8

1. Goods:
Physical goods constitute the major part of a country’s production and marketing effort.
Companies market billions of food products, and millions of cars, refrigerators, television and
machines.
2. Services:
As economies advance, a large proportion of their activities is focused on the production of
services. Services include the work of airlines, hotels, car rental firms, beauticians, software
programmers, management consultants, and so on. Many market offerings consist of a mix of
goods and services. For example, a restaurant offers both goods and services.
3. Events:
Marketers promote events. Events can be trade shows, company anniversaries, entertainment
award shows, local festivals, health camps, and so on. For example, global sporting events such
as the Olympics or Common Wealth Games are promoted aggressively to both companies and
fans.

4. Experiences:
Marketers create experiences by offering a mix of both goods and services. A product is
promoted not only by communicating features but also by giving unique and interesting
experiences to customers. For example, Maruti Sx4 comes with Bluetooth technology to ensure
connectivity while driving, similarly residential townships offer landscaped gardens and
gaming zones.
5. Persons:
Due to a rise in testimonial advertising, celebrity marketing has become a business. All popular
personalities such as film stars, TV artists, and sportspersons have agents and personal
managers. They also tie up with PR agencies for better marketing of oneself.
6. Places:
Cities, states, regions, and countries compete to attract tourists. Today, states and countries are
also marketing places to factories, companies, new residents, real estate agents, banks and
business associations. Place marketers are largely real estate agents and builders. They are using
mega events and exhibitions to market places. The tourism ministry is also aggressively
promoting tourist spots locally and globally.
7. Properties:
Properties can be categorized as real properties or financial properties. Real property is the
ownership of real estates, whereas financial property relates to stocks and bonds. Properties are
bought and sold through marketing.

Marketing enhances the need of ownership and creates possession utility. With improving
income levels in the economy, people are seeking better ways of saving money. Financial and
real property marketing need to build trust and confidence at higher levels.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 9

8. Organizations:
Organizations actively work to build image in the minds of their target public. The PR
department plays an active role in marketing an organization’s image. Marketers of the services
need to build the corporate image, as exchange of services does not result in the ownership of
anything. The organization’s goodwill promotes trust and reliability. The organization’s image
also helps the companies in the smooth introduction of new products.

9. Information:
Information can be produced and marketed as a product. Educational institutions,
encyclopedias, non-fiction books, specialized magazines and newspapers market information.
The production, packaging, and distribution of information is a major industry. Media
revolution and increased literacy levels have widened the scope of information marketing.

10. Idea:
Every market offering includes a basic idea. Products and services are used as platforms for
delivering some idea or benefit. Social marketers widely promote ideas. Maruti Udyog Limited
promoted safe driving habits, need to wear seat belts, need to prohibit children from sitting
near the driver’s seat, and so on.

❖ Difference between Marketing & Selling

Marketing Selling

Its customer oriented approach Its production oriented Approach

It focus on the need of customer It focus on transfer of title of good from seller
to buyer
It aims to earn profit through customer It aims to maximize the profit through increase
profits through customer satisfaction in sales volume
Its s wider terms & includes selling also Its only part of marketing process

It emphasises on development of product It emphasises on bending the customers

according to customers’ needs according to product
Integrated Approach Fragmented Approach

❖ Core marketing Concept :

Philip Kotler, the eminent writer, defines modern marketing as, “Marketing is social and
managerial process by which individuals and groups obtains what they needs and wants
through creating and exchanging product and value with others.” Careful and detailed analysis
of this definition necessarily reveals some core concepts of marketing.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 10

1. Needs:
Existence of unmet needs is precondition to undertake marketing activities. Marketing tries to
satisfy needs of consumers. Human needs are the state of felt deprivation of some basic
satisfaction. A need is the state of mind that reflects the lackness and restlessness situation.
Needs are physiological in nature. People require food, shelter, clothing, esteem, belonging, and
likewise. Note that needs are not created. They are pre-existed in human being. Needs create
physiological tension that can be released by consuming/using products.

2. Wants:
Wants are the options to satisfy a specific need. They are desire for specific satisfiers to meet
specific need. For example, food is a need that can be satisfied by variety of ways, such as sweet,
bread, rice, sapati, puff, etc. These options are known as wants. In fact, every need can be
satisfied by using different options.

Maximum satisfaction of consumer need depends upon availability of better options. Needs are
limited, but wants are many; for every need, there are many wants. Marketer can influence
wants, not needs. He concentrates on creating and satisfying wants.
3. Demand:
Demand is the want for specific products that are backed by the ability and willingness (may be
readiness) to buy them. It is always expressed in relation to time. All wants are not transmitted
in demand. Such wants which are supported by ability and willingness to buy can turn as
demand.

Marketer tries to influence demand by making the product attractive, affordable, and easily
available. Marketing management concerns with managing quantum and timing of demand.
Marketing management is called as demand management.

4. Product:
Product can also be referred as a bundle of satisfaction, physical and psychological both.
Product includes core product (basic contents or utility), product-related features (colour,
branding, packaging, labeling, varieties, etc.), and product-related services (after-sales services,
guarantee and warrantee, free home delivery, free repairing, and so on). So, tangible product is
a package of services or benefits. Marketer should consider product benefits and services,
instead of product itself.
Marketer can satisfy needs and wants of the target consumers by product. It can be broadly
defined as anything that can be offered to someone to satisfy a need or want. Product includes
both good and service. Normally, product is taken as tangible object, for example, pen,
television set, bread, book, etc. However, importance lies in service rendered by the product.
People are not interested just owning or possessing products, but the services rendered by
them. For examples, we do not buy a pen, but writing service.
Similarly, we do not buy a car, but transportation service. Just owning product is not enough,
the product must serve our needs and wants. Thus, physical product is just a vehicle or medium

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 11

that offers services to us. As per the definition, anything which can satisfy need and want can be
a product. Thus, product may be in forms of physical object, person, idea, activity, or
organisation that can provide any kind of services that satisfy some needs or wants.

5. Utility (value), Cost, and Satisfaction:

Utility means overall capacity of product to satisfy need and want. It is a guiding concept to
choose the product. Every product has varying degree of utility. As per level of utility, products
can be ranked from the most need-satisfying to the least need-satisfying. Utility is the
consumer’s estimate of the product’s overall capacity to satisfy his/her needs. Buyer purchases
such a product, which has more utility. Utility is, thus, the strength of product to satisfy a
particular need.

Cost means the price of product. It is an economic value of product. The charges a customer has
to pay to avail certain services can be said as cost. The utility of product is compared with cost
that he has to pay. He will select such a product that can offer more utility (value) for certain
price. He tries to maximize value, that is, the utility of product per rupee.

Satisfaction means fulfillment of needs. Satisfaction is possible when buyer perceives that
product has more value compared to the cost paid for. Satisfaction closely concerns with
fulfillment of all the expectations of buyer. Satisfaction releases the tension that has aroused due
to unmet need(s). In short, more utility/value with less cost results into more satisfaction.

6. Exchange, Transaction, and Transfer:

Exchange is in the center of marketing. Marketing management tries to arrive at the desired
exchange. People can satisfy their needs and wants in one of the four ways – self-production,
coercion/snatching, begging, or exchanging. Marketing emerges only when people want to
satisfy their needs and wants through exchange. Exchange is an act of obtaining a desired
product from someone by offering something in return. Obtaining sweet by paying money is
the example an exchange.

7. Relationships and Network:

Today’s marketing practice gives more importance to relation building. Marketing practice
based on relation building can be said as relationship marketing. Relationship marketing is the
practice of building long-term profitable or satisfying relations with key parties like customers,
suppliers, distributors, and others in order to retain their long-term preference in business.
A smart marketer tries to build up long-term, trusting, and ‘win-win’ relations with valued
customers, distributors, and suppliers. Relationship marketing needs trust, commitment,
cooperation, and high degree of understanding.
Relationship marketing results into economical, technical, social, and cultural tie among the
parties. Marketing manager is responsible for establishing and maintaining long-term relations
with the parties involved in business.
Network is the ultimate outcome of relationship marketing. A marketing network consists of
the company and its supporting stakeholders – customers, employees, suppliers, distributors,

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 12

advertising agencies, colleges and universities, and others – whose role is considered to be
essential for success of business. It is a permanent setup of relations with stakeholders. A good
network of relationships with key stakeholders results into excelling the marketing performance
over time.

8. Market, Marketing, Marketer, and Prospect:

In marketing management, frequently used words are markets, marketing, marketer, and
prospects. A market consists of all potential customers sharing a particular need or want who
might be willing and able to engage in exchange to satisfy this need or want. Marketing is social
and managerial process by which individuals and groups obtain what they need and want
through creating and exchanging product and value with others.

Marketer is one who seeks one or more prospects (buyers) to engage in an exchange. Here,
Seller can be marketer as he wants other to engage in an exchange. Normally, company or
business unit can be said as marketer. Prospect is someone to whom the marketer identifies as
potentially willing and able to engage in the exchange. (In case of exchange between two
companies, both can be said as prospects as well as marketers). Generally, consumer or
customer who buys product from a company for satisfying his needs or wants can be said as the
prospect.

❖ 4P’s of Marketing:
The origin of the concept, also known as Marketing Mix, goes back to 1960 when
McCarthy introduced it in his book Basic Marketing: A Managerial Approach.

The 4 Ps are used by companies to identify some key factors for their business, including
what consumers want from them, how their product or service meets or fails to meet those
needs, how their product or service is perceived in the world, how they stand out from their
competitors, and how they interact with their customers.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 13

 Product – The first of the Four Ps of marketing is product. A product can be either a
tangible good or an intangible service that fulfills a need or want of consumers. Whether
you sell custom pallets and wood products or provide luxury accommodations, it’s
imperative that you have a clear grasp of exactly what your product is and what makes
it unique before you can successfully market it.

Place – Often you will hear marketers saying that marketing is about putting the right
product, at the right price, at the right place, at the right time. It’s critical then, to
evaluate what the ideal locations are to convert potential clients into actual clients.
Today, even in situations where the actual transaction doesn’t happen on the web, the
initial place potential clients are engaged and converted is online.

Price – Once a concrete understanding of the product offering is established we can start
making some pricing decisions. Price determinations will impact profit margins, supply,
demand and marketing strategy. Similar (in concept) products and brands may need to
be positioned differently based on varying price points, while price elasticity
considerations may influence our next two Ps.

Promotion – We’ve got a product and a price now it’s time to promote it. Promotion
looks at the many ways marketing agencies disseminate relevant product information to
consumers and differentiate a particular product or service. Promotion includes
elements like: advertising, public relations, social media marketing, email marketing,
search engine marketing, video marketing and more. Each touch point must be
supported by a well positioned brand to truly maximize return on investment.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 14

 ❖ Marketing Philosophies
Marketing concepts or marketing management philosophies refer to the philosophies utilized
by the businesses to direct their marketing efforts. Mainly, marketing concepts denote the
philosophies a business uses to define and accomplish the needs of its customers, serving both
the consumer and the company. The same philosophy cannot be helpful for all types of
businesses. So, different types of businesses use different marketing management philosophies
or marketing concepts.
There are mainly five marketing management philosophies but nowadays a new concept or
philosophy is added to the existing ones.
1. Holistic Marketing Concept
2. Societal Marketing Concept
3. Marketing Concept
4. Selling Concept
5. Product Concept
6. Production Concept

Production Concept:
This concept is based on an idea that inexpensive and widely available products generate more
sales because customers prefer those. This is quite similar to the Say’s Law which states ‘Supply
creates its own demand’. So, companies produce the product on a large scale and make sure
that it is easily available everywhere to the customer.
The large scale of production of the product helps the companies to avail the economies of scale
which lead to inexpensive products and thus attracting more customers. The drawback of this
concept is that it focuses only on production but not on the product quality which in the long
run may cause decreased sales if the product is not up to the mark.
This philosophy is only applicable when the demand exceeds the supply. Again, a customer is
not always attracted to an inexpensive product because his/ her purchase decision may be
influenced by other factors.

Applicability of this Concept:

• Companies who have a worldwide market for their products may apply this concept.
• Companies enjoying a monopoly advantage may use this concept.
• Any company whose product’s demand exceeds its supply may follow it.

Product Concept:
This concept is based on an idea that customers prefer quality products whatever may be their
price and availability. According to this concept, companies concentrate on developing a better
quality product which is usually expensive.
The drawback of this concept is that it focuses only on the product quality but not on other
factors like usability, availability, price, etc. So, it may fail to attract those customers whose
attentions are on the other mentioned factors.
Applicability of this Concept:
• Companies belonging to the technology industry may apply this concept.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 15

• Companies enjoying a monopoly advantage may use this concept.

Selling Concept:
Selling Concept is only concerned with selling the product whatever may be the quality of the
product and need of the customer. The chief motive is making money, not developing a
relationship with the customers. So, there is less possibility of repeated sales. Companies
applying this philosophy can even deceive the customers to sell their products. The drawback
of this concept is that it lacks foresightedness because the companies focus on selling what they
produce instead of focusing on the need of the market.

Applicability of this Concept:

• Companies only concerned with short-term profits follow this concept which may lead
to marketing myopia, a situation where a company focuses only on selling a product instead of
fulfilling customer needs.
• Dishonest or illegal companies may apply this concept.

Marketing Concept:
A company following selling concept cannot have long-term existence in the market because it
cannot fulfill customers’ needs. Companies have to make products fulfilling their customers’
needs to be successful in today’s era. So, the marketing concept came into existence. This
concept is based on an idea that customers buy the products accomplishing their needs.
Companies based on marketing philosophy perform customer-researches to know their needs
and wants and make products to meet the same better than their competing companies. In this
way, the company builds a customer relationship, becomes profitable and earns goodwill. But
still, many companies follow other philosophies and generate profits. The choice of the concept
is totally dependent on the demand, supply, and the engaged parties’ needs.
Applicability of this Concept:
• Businesses engaged in perfect competition may follow this concept.
• Businesses who want long-term existence in the market can apply this concept.

Societal Marketing Concept:

The societal marketing concept is based on the marketing concept just adding the philosophy of
social welfare with it. Companies concentrate on fulfilling their customers’ needs as well as
contributing to social welfare without polluting or affecting the environment and natural
resources. According to this concept, company or business being a part of the society
has corporate social responsibilities such as eliminating illiteracy, poverty, controlling
alarming population growth, ensuring better health and treatment facilities, helping victims of
different natural calamities like flood, cyclone, excess cold, draught, etc.
Applicability of this Concept:
• Many big reputed companies like banks, TV channels, telecommunication companies, etc.
follow this concept.

Holistic Marketing Concept:

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 16

 The holistic marketing concept is newly added to the existing marketing management concepts.
According to this concept, a business and its different parts are one single entity and have a
common goal, aligned and integrated activities to achieve that goal. This concept focuses on
meeting customer needs in a better and consistent way as well as performing the social
responsibilities. The holistic marketing concept is very important for brand building,
consistency, efficiency, and effectiveness.
Applicability of this Concept:
• Many big reputed companies like banks, TV channels, telecommunication companies, etc. are
now applying this concept. Business people should have a clear and complete idea about the
basic concepts of Marketing Management to achieve long-term success.

FOBC-Atmiya University/Unit-I/ Compiled by-Dr. Vishal Khasgiwala Page 17