Marketing Philosophies

03/06/25 Botla/Marketing/Philosophy
 Learning Outcome
• To understand marketing philosophies
• To understand company orientations

03/06/25 Botla/Marketing/Philosophy
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03/06/25 Botla/Marketing/Philosophy
 Marketing Philosophies (old)

• The Production Concept

• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Societal Marketing Concept

03/06/25 Botla/Marketing/Philosophy
 Company Orientations:
Evolution of Marketing

E
Production
V
Product O
L
Selling U
Marketing T
I
Societal Marketing (not in Kotler now) O
Holistic Marketing N

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 The Production Concept
• Emphasis is on improving production
process
• Assumption: Consumers will buy products
that are widely available and inexpensive
• Strategy: Invest in improving production
time and lowering production costs.
• Faster delivery leads to more customers.
• Moore’s law: Density of transistors double
every 18 months
• Chinese appliance maker Haier into US
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 The Product Concept
• Emphasis on product
• Assumption: Consumers will buy the highest
quality product, performance & innovation
• Strategy: Invest in research, product
development, and engineering.
• Adopted by companies at the forefront of
technology
• Produce a better quality product.
• Love affair with products: Tata Nano
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 The Selling Concept
Goal: Increase sales volume
• Assumes that customers would not purchase
products if left alone
• Strategy: Aggressively target customers through
advertisement, promotion and personal selling.
• Attract people through offers such as coupons,
sales, 0% finance charge.
• Persuade customer to buy rather than offer them
the products that best fit their needs and interests.
(Leads to success in the short-term.)
•
Push

03/06/25 Botla/Marketing/Philosophy
 Marketing Myopia
Theodore Levitt
• Focus on product, production, or sales could
lead to myopia
• Could lead to ignoring specific consumer
needs
• Could lead to ignoring important markets
https://www.youtube.com/watch?v=U7bv0Sq-gK4

• Mitticool - Mansukhbhai Prajapati, Gujarat

03/06/25 Botla/Marketing/Philosophy
 The Marketing
Concept
Goal: Address customers’ needs
and wants
• Assumes that companies can achieve competitive
advantage when the firm best gives the needs of
the consumer. Sense and respond
• Strategy: Identify customers’ needs, wants and
preferences and market effectively to address
those needs, wants, and preferences.
• Develop long-term relationship with customers
• Dell

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 Marketing Vs Selling (Levitt)

Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

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 The Societal Marketing
Concept
• Assumes that companies can achieve
competitive advantage when society’s well-
being is maximized
• Strategy: Identify customers’ needs, wants and
preferences and market effectively. In the
process, serve the needs of society and be a
good corporate citizen.
• Cause related marketing: Partnership with a
cause for mutual benefit.
• Lifebuoy Help A Child Reach 5

https://www.youtube.com/watch?v=UF7oU_YSbBQ

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 The Societal Marketing
Concept Demarketing
• Reducing demand for a company’s own
products, if that is in the best interest of
society
Example: Philip Morris U.S.A. advertising the
negative effects of smoking. The company has
a youth smoking prevention department headed
by a Senior Vice President; his role is to
prevent youth from starting to smoke and to
help those who smoke to give up smoking.

03/06/25 Botla/Marketing/Philosophy
 MAHATMA GANDHI’S
DEFINITION OF CUSTOMER
• A customer is not an outsider to our business. He is a definite part of it.
• A customer is not an interruption of our work. He is the purpose of it.
• A customer is doing us a favour by letting us serve him. We are not doing
him any favour.
• A customer is not a cold statistic; he is a flesh and blood human being with
feelings and emotions like our own.
• A customer is not someone to argue or match wits with. He deserves
courteous and attentive treatment. Wal-Mart Rule 1&2
• A customer is not dependent on us. We are dependent on him.
• A customer brings us his wants. It is our job to handle them properly and
profitably - both to him and us.
• A customer makes it possible to pay our salary, whether we are a driver,
plant or office employ

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 QUIZ
1. The ________ concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization’s products.
a. production
b. selling
c. Societal marketing
d. holistic marketing
2. Which concept speaks about customer orientation?
a. Marketing concept
b. Selling concept
c. Production concept
d. Product concept
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 Before Holistic Marketing…
• Holistic: Relating to or concerned with
complete systems rather than with individual
parts
• My doctor takes a holistic approach to disease.
• Ecological problems usually require holistic soluti
ons.

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 Holistic Marketing
• The holistic marketing concept is based on the
development, design, and implementation of
marketing programs, processes, and activities that
recognize their breadth and interdependencies.
• Holistic marketing acknowledges that everything
matters in marketing
Four broad components characterizing holistic
marketing:
1. Relationship marketing
2. Integrated marketing
3. Internal marketing
4. Performance marketing

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 Holistic Marketing

03/06/25 Botla/Marketing/Philosophy
 Relationship Marketing
Customers

Employees

Marketing Partners

Financial Community

• Attracting new customer may cost five times as much as retaining an existing one
• Wal-Mart: Rule 1 and 2

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 Relationship Marketing
• Relationship marketing aims to build mutually satisfying long-term
relationships with key constituents in order to earn and retain their
business.
• Four key constituents for relationship marketing are customers,
employees, marketing partners (channels, suppliers, distributors,
dealers, agencies), and members of the financial community
(shareholders, investors, analysts).
• The ultimate outcome of relationship marketing is a unique company
asset called a marketing network, consisting of the company and
its supporting stakeholders—customers, employees, suppliers,
distributors, retailers, and others—with whom it has built mutually
profitable business relationships.
• The operating principle is simple: build an effective network of
relationships with key stakeholders, and profits will follow. Ex.
Nike
• CRM and PRM: IBM co-creates with customers and partners

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 Integrated Marketing
• Marketers devise marketing activities and assemble marketing
programs to create, communicate, and deliver value for customer
• All activities and programs in integrated manner to provide better
value
• The whole is greater than the sum of the parts
Key themes:
(1) many different marketing activities can create, communicate, and
deliver value, and
(2) marketers should design and implement any one marketing activity
with all other activities in mind.
Ex. GE: MRI medical systems – customers expects good installation,
maintenance, and training services along with the product
purchased.

03/06/25 Botla/Marketing/Philosophy
 Integrated
Marketing
• Integrated communication to reinforce and
complement each other (IMC)
• Integrated channel strategy to avoid conflict
and enhance product sales and brand equity.
Ex: Apple-Flipkart Week, Rs 20,000 buyback on iPhone X

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 Internal Marketing
• Internal marketing is the task of hiring, training, and motivating
able employees who want to serve customers well. AECS Nurses
• Infosys: value of the Company at 5.00 p.m. is zero
• Marketing is no longer the responsibility of a single department—it is
a company-wide undertaking that drives the company’s vision,
mission, and strategic planning. Everyone sells at IBM
• Marketing succeeds only when all departments work together
• When engineering designs the right products, finance furnishes the
right amount of funding, purchasing buys the right materials,
production makes the right products in the right time horizon, and
accounting measures profitability in the right ways.
• Interdepartmental harmony.
• Vertical alignment and horizontal alignment

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 Performance Marketing
Nonfinancial
Financial Returns
Accountability (Social Responsibility
Marketing)
Natural colours for Pots

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•
Performance Marketing
Performance marketing requires understanding the financial and
nonfinancial returns to business and society from marketing activities and
programs.
• Top marketers are increasingly going beyond sales revenue to examine the
marketing scorecard and interpret what is happening to market share,
customer loss rate, customer satisfaction, product quality, and other
measures.
• Companies are also considering the legal, ethical, social, and
environmental effects of marketing activities and programs.
• Equity: LVPEI 50% free(inc-subsidized) surgeries
• Carbon Footprint: TCS, reduce by 50% by 2020. Brand value of USD 10.391 b, in 2018, 10K Run

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 Questions?
• Discussed about company orientations
from production to product to sales to
marketing to societal marketing to holistic
marketing
• https://brandequity.economictimes.indiatim
es.com/news/industry/remembering-the-oth
er-ray/72129733

03/06/25 Botla/Marketing/Philosophy