WEEK 2: INTRODUCTION
Marketing is the process of identifying, anticipating, and satisfying customer
needs and wants through the creation, communication, delivery, and exchange of
goods or services. It involves a mix of strategies and activities that aim to build
strong customer relationships and drive business growth.
Merits of Marketing
1. Customer Satisfaction: Marketing focuses on understanding customer
needs and delivering products or services that satisfy them.
2. Business Growth: Effective marketing drives sales, attracts new
customers, and helps retain existing ones, fostering business expansion.
3. Brand Awareness: It helps establish a company's presence in the market
by increasing visibility and recognition.
4. Innovation Encouragement: Marketing drives companies to innovate by
responding to customer feedback and market trends.
5. Economic Contribution: It boosts economic activity by stimulating
demand and creating job opportunities in various sectors.
6. Market Expansion: Marketing enables businesses to reach new markets,
both locally and globally.
7. Informed Customers: Through promotional activities, marketing educates
consumers about product features, prices, and benefits.
Demerits of Marketing
1. High Costs: Marketing campaigns can be expensive, especially for small
businesses, with costs for advertising, research, and promotions.
2. Risk of Misleading Information: Poorly executed marketing can result in
exaggerated claims, misleading customers, and damaging trust.
3. Consumer Manipulation: Some marketing strategies exploit emotional
triggers to influence consumer behavior unethically.
4. Overemphasis on Materialism: Aggressive marketing may promote
consumerism and encourage unnecessary purchases.
5. Environmental Impact: Mass production driven by marketing can lead to
resource depletion and waste.
6. Intense Competition: Marketing can create excessive competition,
potentially harming smaller businesses unable to match the advertising
budgets of larger firms.
7. Privacy Concerns: Digital marketing often relies on data collection,
raising concerns about consumer privacy and data security.
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MARKETING MANAGEMENT PHILOSOPIES
Marketing concepts refer to fundamental ideas and strategies businesses use to
identify, create, deliver, and communicate value to their target customers. These
concepts guide marketing practices and help businesses achieve their goals.
Here are the primary marketing concepts:
1. Production Concept
Focus: Efficiency in production and distribution.
Premise: Customers prefer products that are widely available and
affordable.
Application: Used in markets where demand exceeds supply or where cost
control is critical (e.g., basic consumer goods).
2. Product Concept
Focus: Quality, performance, and innovation.
Premise: Customers favor high-quality products with superior features.
Risk: May lead to "marketing myopia" if the business focuses too much on
the product and ignores customer needs.
3. Selling Concept
Focus: Aggressive sales and promotion efforts.
Premise: Customers need to be persuaded to buy products; left on their
own, they might not purchase.
Application: Common for unsought goods (e.g., insurance, funeral
services) or during high competition.
4. Marketing Concept
Focus: Customer needs and satisfaction.
Premise: Achieving business goals depends on understanding the needs
and wants of the target market and delivering value better than
competitors.
Key Elements: Customer-centric, integrated marketing, and achieving
profitability through satisfaction.
5. Societal Marketing Concept
Focus: Balancing customer satisfaction, company profit, and societal well-
being.
Premise: Businesses should make decisions that consider social and
environmental impact alongside profitability.
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Application: Sustainability initiatives, ethical marketing, and cause-related
marketing.
6. Holistic Marketing Concept
Focus: Integrated approach to marketing activities.
Components:
1. Relationship Marketing: Building long-term relationships with
customers, suppliers, and partners.
2. Integrated Marketing: Coordinating all marketing communications
and channels for a unified message.
3. Internal Marketing: Ensuring employees at all levels embrace and
deliver on the marketing strategy.
4. Social Responsibility Marketing: Emphasizing ethical and
sustainable practices.
Supporting Concepts and Tools:
Segmentation, Targeting, and Positioning (STP): Breaking the market
into segments, targeting the right audience, and positioning products to
meet their needs.
4Ps of Marketing: Product, Price, Place, and Promotion.
Digital Marketing: Using online tools and platforms to reach audiences.
Customer Experience (CX): Designing positive interactions across all
touchpoints.
Branding: Creating a unique identity for the product or business.
