Management

Concepts & Practices(ECE)

Subject Code – MB790

Unit - 2
Core Concepts of Marketing
 Unit 2: Core Concepts of Marketing
1. Core concepts of marketing,
2. Marketing mix,
3. Market Segmentation- bases of segmentation,
4. segmentation patterns and procedures,
5. Targeting and Positioning,
6. Buyer behavior
7. Consumer and Industrial buyers.
 Marketing Terminologies
1. Need
2. Want
3. Demand
4. Product / Service
5. Brand
6. Value
7. Satisfaction
8. Exchange
9. Relationship
10.Market
 Marketing Terminologies
1. Need - State of felt deprivation including physical,
social, and individual needs.

2. Want - Form that a human need takes, as shaped

by culture and individual personality.

3. Demand - Wants + Buying Power = Demand

4. Product / Service - A product can be a service or

an item offered for sale. It can be physical or virtual
or cyber form. Every product is made at a cost and
each is sold at a price.
 Marketing Terminologies….
5. Brand - Unique design, sign, symbol, words, or a
combination of these, employed in creating an image
that identifies a product and differentiates it from its
competitors.

6. Value - The premium that accumulates to a brand

from customers who are willing to pay extra for it.

7. Satisfaction - how products or services supplied by a

company meet or surpass a customer's expectation.
 Marketing Terminologies….
8. Exchange - the act of obtaining a desired object from
someone by offering something in return

9. Relationship - Marketing actions try to create,

maintain, grow exchange relationships.

10. Market - A market is any place where sellers of

particular goods or services can meet with buyers of
those goods and services.
 What can be Marketed?
Goods: Physical goods constitute the bulk of production and marketing efforts.
Services: Banking service, insurance service, IT service, event management
service.
Events: Time-based events such as trade shows, artistic performances, and the
Olympics.
Experiences: Theme park, Fitness center, Yoga, Meditation
Persons: Celebrity marketing is a major business.
Places: Cities, states, regions, and whole nations compete actively to attract
tourists.
Properties: Are intangible rights of ownership (real property: real estate) or
(financial property: stocks and bonds).
Organizations: Actively work to build a strong, favorable and unique image in the
minds.
Information: Can be produced and marketed as a product. (Schools, universities)
Ideas: Every market offering includes a basic idea.
 Evolution of Marketing
• NO MARKETING ACTIVITY - Self sufficiency stage

• BARTER SYSTEM - Exchange Oriented stage

• THE PRODUCTION CONCEPT- Production oriented stage

(1869-1930)

• THE SELLING CONCEPT - Sales oriented Stage (1930-1950)

• THE MARKETING CONCEPT –Market oriented stage(1950-

1960).

• HOLISTIC MARKETING CONCEPT - Consumer Oriented stage

 Marketing Concept Vs. Selling Concept

Starting Point Focus Means Ends

The Marketing Concept

Customer Integrated Profits from
Market
needs marketing satisfied customers

The Selling Concept

Sell and Profits through

Factory Product
Promote it sales volume
 Core Concepts of Marketing
 Need – food ( is a must )
 Want – Branded Products ( translation of a need as per
our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel
 Customer - Anyone who is in the market looking at a
product / service for attention, acquisition, use or
consumption that satisfies a want or a need

11
 Marketing ?
 knowing the needs and wants of target markets and
delivering the desired satisfaction better than competitors.

 Marketing is all about creating a pull, sales is all about

push.

 Marketing is all about managing the four P’s –

 product
 price
 place
 promotion

12
 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost

13
 Marketing Mix
The set of controllable, tactical marketing tools that the
firm blends to produce the response it wants in the
target market.
• Product: Variety, features, brand name, quality,
design, packaging, and services.
• Price: List price, discounts, allowances, payment
period, and credit terms.
• Place: Distribution channels, coverage, logistics,
locations, transportation, and inventory.
• Promotion: Advertising, sales promotion, public
relations, and personal selling.