QUICK REVISION SERIES RAS MAINS
UNIT III :Part B- Management
Modern Concept of Marketing:
Modern concept of marketing concentrates majorly on consumer satisfaction. According to this concept, marketing starts from discovery of consumer needs and wants and ends with the satisfaction of those needs and wants.
Draw flow chart like this:
Survey of targeted market — Production according to costumer need– Integrated marketing- profit through customer satisfaction
Objectives of Marketing:
- It helps to focus on activities of an organisation on the needs and wants.
- Marketing plays a significant role in the development of an economy. Marketing helps to provide linkages between the business and consumption centres, accelerate the economic activity leading to higher income, more consumption and increased saving and investment.
Concept of Marketing mix:
In a marketing decision there are various controllable factors which can be influenced at firm level, the process of taking decision contains permutation and combination of variables. This combination of variable chosen by a firm to prepare its market offering is called the marketing mix.
A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the 1960
Four Marketing mix: product, price, place, promotion
- Product:
- A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods.
- A product has a certain life cycle that includes the growth phase, the maturity phase, and the sales decline phase. It is important for marketers to reinvent their products to stimulate more demand once it reaches the sales decline phase.
- Marketers must also create the right product mix. It may be wise to expand your current product mix by diversifying and increasing the depth of your product line.
- Price:
- The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition.
- When setting the product price, marketers should consider the perceived value that the product offers. There are three major pricing strategies, and these are:
- Market penetration pricing
- Market skimming pricing
- Neutral pricing
- Place:
- Placement or distribution is a very important part of the product mix definition.
- This comes with a deep understanding of target market. Understand them inside out and it will discover the most efficient positioning and distribution channels that directly speak with the market.
- There are many distribution strategies, including:
- Intensive distribution
- Exclusive distribution
- Selective distribution
- Franchising
- Promotion
- Promotion is a very important component of marketing as it can boost brand recognition and sales. Promotion is comprised of various elements like:
- Sales Organization
- Public Relations
- Advertising
- Sales Promotion
Marketing Mix 4C’s
The 4Cs marketing model was developed by Robert F. Lauterborn in 1990. It is a modification of the 4Ps model. It is not a basic part of the marketing mix definition, but rather an extension. Here are the components of this marketing model:
- Cost – According to Lauterborn, price is not the only cost incurred when purchasing a product. Cost of conscience or opportunity cost is also part of the cost of product ownership.
- Consumer Wants and Needs – A company should only sell a product that addresses consumer demand. So, marketers and business researchers should carefully study the consumer wants and needs.
- Communication – According to Lauterborn, “promotion” is manipulative while communication is “cooperative”. Marketers should aim to create an open dialogue with potential clients based on their needs and wants.
- Convenience – The product should be readily available to the consumers. Marketers should strategically place the products in several visible distribution points.
Expected questions:
- Modern concept of marketing?
- Objective of marketing.
- Concept of marketing mix
- Elements of marketing mix and definition.
Note: Strategy to earn extra marks:
1) write the name of the person who gave the definition of marketing mix. It will help to earn extra marks.
- In conclusion one can add that now there is shift from 4P’s to 4C’s now a days.