Four concepts of marketing

Marketing concept

Origin of the word marketing or marketing

What is marketing?

Who is the father or guru of modern marketing?

Achieving consumer satisfaction is the objective of modern marketing. Note that the primary goal of marketing is to create customer value. It has some distinctive features. Marketing is simultaneously a social and managerial process. In this process, apart from social welfare, an exchange relationship is created between buyers. Marketing activities are always customer-oriented. Apart from achieving consumer satisfaction, marketing plays an effective role in improving the standard of living of consumers. The salient features of marketing are discussed below-

1. Social process: All products and services that are harmful and unsafe for society are not included in marketing. So it can be said that marketing is a social process. Because, through this, the overall welfare of the society and the needs and shortages of all classes of people living in the society are tried to be met.

2. Managerial Process: Planning, organizing, staffing, directing, sending, coordinating, and controlling programs are required to manage marketing activities effectively. These programs are included in managerial functions. Hence marketing is considered as a managerial process.

3. Exchange process: The relationship between the buyer and the marketer is created through the exchange process. The exchange of goods usually tries to satisfy consumer needs and wants. In this case, the buyer buys goods or services in exchange for money.

4. Consumer-oriented process: Marketing is necessary because there are consumers. Moreover, marketing activities are conducted around consumers. In the words of marketers, 'Consumer is not dependent on us. We are dependent on them. As all marketing activities are conducted to satisfy the wants and needs of consumers, it is called a consumer-oriented process.

5. Process of earning profit: The main goal of modern marketing is to earn profit by satisfying customers. No organization can survive in the market without earning profit. So organizations conduct marketing programs to earn profit.

6. Customer satisfaction: The existence of the organization depends on the satisfaction of the customers. So now the issue of customer satisfaction is being considered seriously. At present, famous companies are trying to attract customers by using the slogan 'We don't love our product, we just love our customers'. Because they know that a satisfied customer not only buys the product himself, but also encourages others to buy the product.

7. Improvement of the standard of living: At present, marketing is playing a special role in improving the standard of living of people by providing quality products or services according to the tastes, preferences, and needs of customers. The use of new products has ended the monotonous life of consumers. As a result, they can enjoy life by using modern and quality products.

8. Communication between buyer and seller: Due to marketing, the direct relationship between buyer and seller has started now. As a result, a seller can easily know about the mental state of the buyers, likes and dislikes affordability, product ideas, etc.

9. Coordination process: Satisfying customers is a challenging task. However, businesses strive to coordinate their activities to satisfy different customer segments. Eg: While 'Nescafe Coffee' is available in large-size packets for economically well-off people, 'Nescafe Mini Coffee' is available in the market for Rs.3 for those who are less economically well-off. In this case, the four elements of the marketing mix (product, price, place, promotion) need to be coordinated.

10. Dynamic process: Consumer's likes and dislikes, tastes, and habits are constantly changing. Marketing strategies are also changing to keep pace with this. For example: Consumers are now becoming enthusiastic about using the Internet. As a result, businesses are also advertising their products on the Internet. That is, businesses are maintaining their momentum by using marketing strategies to match consumer demand.

11. Existence of middlemen: The role of middlemen is immense in reaching the products to the consumers smoothly. It is very difficult to implement a marketing program without them. Therefore, the influence of various intermediaries such as wholesalers, retailers, representatives, agents, distributors, dealers, etc. can be seen in the marketing system.

12. Competitive situations: There is intense competition in marketing activities. In addition to improving product quality, companies want to stand out from their competitors through pricing and promotion strategies. There is fierce competition worldwide as to who can produce modern and efficient products.

13. Combination of functions: One of the most important characteristics of marketing is the combination of functions. For example: purchase of goods, sale, transportation, warehousing, staging, financing, distribution, after-sales service, etc. It should be noted that only after such tasks are completed, it is possible to reach the 'goods or services' to the consumers.

14. Process of creating utility: Different types of utility are created through product marketing. For example, proprietary utility is created through buying and selling goods, temporal utility through warehousing, and spatial utility through transportation.

15. Marketing is applicable: A common feature of marketing is that it is applicable. It isn't just about getting hypothetical information. An organization can achieve success by applying the theoretical knowledge and techniques of marketing to solve various practical problems.

Marketing history

Marketing has reached its current stage today through an evolutionary process. Marketing advancement is closely related to economic development. Therefore, the growth of national and per capita income of a country, creation of employment opportunities, full utilization of resources, etc. highlight the progress of marketing. Robert A Bartels wrote in his book "The History of Marketing Thought", that between 1906 and 1911, the term Marketing began to be used in the United States. The evolution of marketing is briefly discussed below:

1. Era of Self-Sufficiency: In the first era of human civilization, every human being was self-sufficient and they produced their necessary products. At that time, they lived in groups in forests, mountain caves, or river banks. Lived by hunting. As a result, after meeting the demand, there is no surplus product for marketing. This period is also called the age of ancient civilization.

2. Era of exchange: At one stage of ancient civilization, after meeting their own needs, some people had a surplus of some products; on the other hand, some could not even collect the necessary products. As a result, surplus products were exchanged to fulfill mutual needs. This period is called the exchange period. Marketing started at this time.

3. Era of production: Profit opportunities are created through the exchange of goods. As a result, many produce more goods and try to profit by exchanging surplus goods. This situation has been created since 1860. Hence the period from 1860 to 1920 is called the manufacturing era. The Industrial Revolution began in England in the mid-eighteenth century. During this time various types of machines were invented for the production and delivery of goods. As a result, production is greatly increased. As a result of the development of the transportation system, goods are delivered to different regions of the world. It was during this time that marketing made great strides.

8. Era of sale: The period from 1920 to 1950 is called the era of sale. Production increases as production efficiency and the number of producers increases. At this time, the opportunity to purchase desired products is created for consumers. As a result, various sales promotion techniques were developed to attract consumers during this period. For example, adopting various strategies including advertising and personal selling in this era. The use of radio advertising for product promotion began widely around this time.

5. Era of marketing: The period from 1950 to 1970 is called marketing era. That is, the marketing era started in 1950 and it continued for about 2 decades. During this period consumers become aware of their needs, wants, and needs. Also, as rivalry expands, the development of labor and products starts with an accentuation on buyer fulfillment.

6. Era of social marketing / Marketing company era: The era of social marketing emerged after 1970 and lasted until 1990. So this period is called the social marketing era. Many people refer to this period as the marketing company era. During this time different elements of society started to be prioritized all over the world as a result the marketing philosophy also started to change. From this time, the marketing organizations started to pay attention to the welfare of the people living in the society besides making a profit. As a result, marketers tend to formulate their programs with utmost importance to ethics, environmental protection, law, and social context.

7. Era of relationship marketing: The era of relationship marketing started from 1990 to 2010. At this time, marketers become proactive in establishing good relationships with buyers and other parties. The main theme of relationship marketing is to create good relationships with customers and convert them into regular customers. In this case, efforts are made to create long-term relationships directly with the buyers in a very well-planned and prudent manner. Moreover, in addition to the existing customers, the search for new customers is also given importance in this field. It is during this period that the trend of brand familiarity among buyers increases tremendously.

8. Era of social networking / mobile marketing: The period from 2010 to the present time is called the era of social networking and mobile marketing. As a result of the introduction of Internet technology worldwide, there is a great change in the behavior and taste preferences of consumers. The era of social media or mobile marketing is the period of promoting products and services through various social media using internet technology?

What is customer satisfaction?

Customer satisfaction is a measure of how well a company or business meets or exceeds the expectations of its customers. It refers to the level of satisfaction or happiness that a customer feels with the overall experience provided by a product, service, or company.

Customer satisfaction is an important aspect of any successful business, as it is directly related to customer loyalty, retention, and overall profitability. Companies that prioritize customer satisfaction are more likely to retain existing customers, attract new customers through positive word of mouth, and ultimately generate higher revenue.

Marketing goals

The evolution of marketing

The evolution of marketing has undergone significant changes over the years. Here is an overall outline of its development:

Product Orientation: In the early days, businesses focused on manufacturing and product features. Marketing was limited to early advertising and promotion with an emphasis on product performance and quality.

Sales Orientation: As competition increased, businesses shifted their focus to sales and distribution. The goal was to sell as many as possible, often through aggressive sales tactics and personal selling.

Market Orientation: By the mid-20th century, businesses began to adopt a market-oriented approach. They began to consider consumer needs, preferences, and market research to guide their marketing strategies. Emphasis was placed on understanding customers and providing value to meet their needs.

Relationship Marketing: Relationship marketing gained prominence in the 1980s and 1990s. Businesses have realized the importance of building long-term relationships with customers, focusing on customer retention and loyalty. This approach involves personalized marketing, customer service, and customer relationship management (CRM) systems.

Integrated Marketing: With the rise of digital technology and the Internet, marketing has become more integrated across channels. Companies started using multiple marketing channels like television, print, radio, and online platforms to reach their target audience. Integrated marketing campaigns aim to deliver a consistent message and brand experience across these channels.

Digital Marketing: The advent of the internet and digital technology has revolutionized marketing. Digital marketing techniques such as search engine optimization (SEO), social media marketing, email marketing, content marketing, and influencer marketing have gained prominence. Businesses can now reach larger audiences, track campaign performance, and engage with customers in real-time.

Personalization and data-driven marketing: As technology improves, businesses begin to use customer data to personalize marketing efforts. Big data analytics, AI, and machine learning allow companies to collect and analyze vast amounts of customer data, enabling targeted and personalized marketing campaigns. This approach aims to deliver relevant content and offers to individual customers based on their preferences and behavior.

Experiential Marketing: In recent years, there has been an increasing focus on creating memorable and immersive experiences for customers. Experiential marketing aims to engage customers emotionally and create a deeper connection with the brand. This approach often involves events, interactive campaigns, virtual reality experiences, and user-generated content.

Purpose-Driven Marketing: Today, consumers are increasingly attracted to brands that align with their values and demonstrate commitment to social and environmental causes. Purpose-driven marketing focuses on promoting the brand's mission, values, and positive impact on society. It involves campaigns focusing on sustainability, corporate social responsibility, and ethical practices.

Influencers and User-Generated Content: The rise of social media has given rise to influencer marketing and user-generated content. Influencers with significant followings on platforms like Instagram, YouTube, and TikTok collaborate with brands to promote their products or services. User-generated content, where consumers create and share content related to a brand, has also become a powerful marketing tool.

Value creation process in marketing

The value creation process in marketing refers to the activities and strategies undertaken by businesses to create and deliver value to customers. It includes understanding client needs and inclinations, creating items or administrations that address those issues, and successfully conveying the incentive to target clients. Here are the key steps in the value creation process:

Market Research: It involves gathering information about customer needs, wants, preferences, and buying behavior. It helps businesses understand their target market and identify value-creation opportunities.

Segmentation and Targeting: Based on market research, businesses divide the market into distinct groups of customers with similar characteristics and needs. They then select one or more target segments to focus their marketing efforts on.

Product Development: Businesses design and develop products or services that meet identified customer needs. This includes considering factors such as features, quality, price, packaging, and branding.

Incentive: An incentive is the exceptional blend of advantages and worth that a business offers to its objective clients. It explains why customers should choose their product or service over competitors' offerings.

Advertising Blend: The showcasing blend comprises of the 4Ps: Item, Value, Spot, and Advancement. Businesses decide on these elements to effectively reach and satisfy their target customers. For example, they determine the right pricing strategy, distribution channels, and promotional activities.

Communication: Businesses use various marketing communication channels such as advertising, public relations, social media, and direct marketing to inform, persuade, and remind customers about their products or services. Clear and compelling messaging is crucial to effectively communicating the value proposition.

Customer Experience: The value creation process extends beyond the purchase. Providing a positive customer experience throughout the customer journey is essential to building customer loyalty and repeat business. These include aspects such as pre-purchase interactions, the actual product or service experience, and post-purchase support.

Continuous Improvement: Successful businesses continuously monitor customer feedback, market trends, and the competitive landscape to identify opportunities for improvement. They refine their value proposition, improve their products or services, and adapt their marketing strategies to stay relevant and meet evolving customer needs.

The marketing era

The marketing era refers to a period in business history characterized by a shift in focus from product-oriented strategies to customer-oriented strategies. It is usually associated with the mid-20th century, especially the 1950s and 1960s. During this time, businesses recognized the importance of understanding and meeting customer needs to achieve success.

Before the marketing era, the manufacturing era dominated business practices. The primary focus was to maximize production efficiency and reduce costs. Companies operated under the assumption that if they could produce products efficiently, customers would naturally buy them. However, as markets became more saturated and competition increased, it became clear that simply producing products was not enough to guarantee sales.

The marketing era introduced the concept of the marketing mix, which consists of the four Ps: product, price, promotion, and place (distribution). Businesses are beginning to emphasize market research and analysis to better understand consumer preferences, needs, and desires. They begin to tailor their products, pricing strategies, and advertising and distribution channels to target specific market segments. This customer-centric approach aims to create value for customers and build long-term relationships.

In the marketing era, companies adopted a more proactive approach to promotion and advertising. They invest in market research; branding and advertising campaigns to create awareness differentiate themselves from competitors and convince consumers to choose their product or service. During this time the use of mass media such as television, radio, and print advertisements became common.

Lifestyle Marketing

Lifestyle marketing is a marketing approach that focuses on promoting a product, brand, or service by associating it with a specific lifestyle or set of values that resonates with a target audience. Instead of emphasizing only product features and benefits, lifestyle marketing aims to create a connection between the brand and the consumer's desired lifestyle.

The basic idea behind lifestyle marketing is to position a product as an essential part of a certain lifestyle or identity. By doing this, marketers aim to create an emotional bond with consumers and increase brand loyalty. Lifestyle marketing often relies on storytelling, imagery, and experience to convey a desired lifestyle and evoke a strong emotional response from the target audience.

To effectively implement lifestyle marketing, companies analyze their target market's demographics, interests, behaviors, and desires to identify their lifestyles. This lifestyle can be related to fitness, adventure, luxury, sustainability, creativity, or any other specific theme. The marketing strategy is then designed to align the brand's messaging, visuals, and activities with that particular lifestyle. Brands employing lifestyle marketing can use a variety of strategies, including:

Brand Positioning: Creating a brand image that aligns with desired lifestyles through advertising, branding elements, and messaging.

Influencer Partnerships: Collaborating with influencers or individuals who embody the desired lifestyle and have a strong following to promote the brand.

Content Marketing: Creating engaging and relevant content that resonates with the target audience's lifestyles and interests. This can incorporate blog entries, recordings, and virtual entertainment content, from there, the sky is the limit.

Experiential Marketing: Creating real-life experiences or events that allow consumers to engage with the brand and its lifestyle. These may include pop-up shops, workshops, festivals, or sponsored events.

Social Media Presence: The use of social media platforms to showcase the brand's lifestyle through compelling visuals, stories, and user-generated content.

Community Building: Building a sense of community around the brand and its lifestyle by creating forums, online groups, or organizing gatherings for like-minded people.

Four concepts of marketing

Several key marketing concepts guide businesses in their efforts to create, communicate, and deliver value to customers. Here are four basic concepts of marketing:

Product Orientation: This concept focuses on the product itself. It emphasizes the quality, features, and benefits of the product or service offered. Companies adopting a product orientation believe that customers will choose products that have superior quality and performance. The focus is on internal capabilities and manufacturing efficiency.

Sales Orientation: This concept emphasizes personal selling and promotional activities to persuade customers to purchase a product or service. Businesses adopting a sales orientation typically have aggressive sales strategies and focus on generating high sales volumes. The goal is to convince customers to buy through persuasive tactics and aggressive marketing strategies.

Market Orientation: Market orientation is a customer-centric approach that focuses on understanding and satisfying customers' needs and wants. Companies adopting this concept conduct market research, gather customer insights, and use that information to develop products, services, and marketing strategies that meet customer needs. The goal is to create long-term customer satisfaction and build strong customer relationships.

Social Marketing Orientation: This concept goes beyond customer satisfaction and emphasizes the well-being of society as a whole. It considers not only the wants and needs of customers but also the wider social impact of marketing activities. Companies adopting a social marketing orientation consider environmental sustainability, ethical considerations, and social responsibility in their decision-making processes.

It is worth noting that these concepts are not mutually exclusive and many companies adopt a combination of these approaches based on their specific business goals, industries, and target markets.