Core Concepts of Marketing (Philip Kotler Summary)

Marketing Management is a social and managerial process by which individuals or firms obtain what they need or want through creating, offering, exchanging products of value with each other.

(1) NEED/ WANT/ DEMAND:

Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter.

Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/ tandoori chicken. Americans needs food- wants hamburger/ French fries.

Demand: Want for a specific product backed up by ability and willingness to buy. eg.- Need – transportation.

Want – Car (say, Mercedes)……but able to buy only Maruti. Therefore, demand is for Maruti.

Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in combination with societal influencers.

Demand influenced by making product :

  • APPROPRIATE
  • ATTRACTIVE
  • APPROACHABLE/ AFFORDABLE
  • AVAILABLE EASILY

To target consumers (4 P’s) – Product/ Promotion/ Price/ Place

(2) PRODUCTS- GOODS/ SERVICES/ PLACE.

Product is anything that can satisfy need/ want.

Product component-

  1. Physical Good.
  2. Service.
  3. Idea.

eg. Fast food- burger/ pizza.

Physical Good – material eaten.

Service – purchase of raw material/ cooking

Idea – speed of computer/ processing power.

Importance of product lies in

  • Owning them (minor)
  • Obtaining them (major).

Hence, products are really a via- media for services.

Hence, in marketing, focus is on providing/ satisfying service rather than providing products.

Marketing Myopia: Focus on products rather than on customer needs.

(3) VALUE/ COST/ SATISFACTION:

  • Decision for purchase made based on value/ cost satisfaction delivered by product/ offering.
  • Product fulfills/ satisfies Need/ Want.
  • Value is products capacity to satisfy needs/ wants as per consumer’s perception or estimation.
  • Each product would have a cost/ price elements attached to it.

Eg. – Travel from city A to city B.

Need – to reach B ( from A)

Method/ Products- Rail/ air/ road or train/ plane.

Satisfaction – Estimated in terms of time lead & travel comfort.

VALUE- Products capacity to satisfy.

COST- Price of each products.

(4) EXCHANGE/ TRANSACTION:

To satisfy need/ want, people may obtain the product through

  • Self Production
  • By force or coercion
  • Begging
  • Exchange

EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, the following conditions must be fulfilled.

  1. There must be at least two parties.
  2. Each party has something of value for other party.
  3. Each party is capable of communication & delivery
  4. Each party is free to accept/ reject the exchange offer.
  5. Each party believes it is appropriate to deal with the other party.

TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement is reached, we say a transaction has taken place.

a) Barter transaction.

b) Monetary Transaction.

  1. At least two things of value.
  2. Condition agreed upon.
  3. Time of agreement.
  4. Place of agreement.
  5. May have legal system for compliance.

Proof of transaction is BILL/ INVOICE.

TRANSFER: – It is one way. Hence, differ from Transaction.

NEGOTIATION: – Process of trying to arrive at mutually agreeable terms.

Negotiation may lead to

  • Transaction
  • Decision not to Transaction

(5) RELATIONSHIP/ NETWORKING:

Relationship marketing:- It’s a pattern of building long term satisfying relationship with customers, suppliers, distributors in order to retain their long term performances and business.

Achieved through promise and delivery of

  • high quality
  • good service
  • fair pricing, over a period of time.

Outcome of Relationship Marketing is a MARKETING NETWORK.

MARKETING NETWORK: It is made up of the company and its customers, employees, suppliers, distributors, advertisement agencies, retailers, research & development with whom it has built mutually profitable business relationship.

Competition is between whole network for market share and NOT between companies alone.

(6) MARKET:

A market consists of all potential customers sharing particular need/ want who may be willing and able to engage in exchange to satisfy need/ want.

Market Size = fn (Number of people who have need/ want; have resources that interest

others, willing or able to offer these resources in exchange for what

they want).

In Marketing terms: Sellers – called as “INDUSTRY”.

Buyers – referred to in a group as “MARKET”.

Types of Markets:

  1. Resource Market,
  2. Manufacturing Market,
  3. Intermediary Market,
  4. Consumer Market,
  5. Government market.

(7) MARKETERS/ PROSPECTS:

Working with markets to actualize potential exchanges for the purpose of satisfying needs and wants.

One party seeks the exchange more actively, called as “ Marketer”, and the other party is called “Prospect”.

Prospect is someone whom marketer identifies as potentially willing and able to engage in exchange.

Marketer may be seller or buyer. Most of time, marketer is seller.

A marketer is a company serving a market in the face of competition.

Marketing Management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

AMA- American Marketing Association.

It defines marketing management as the process of planning & executing the conception of pricing, promotion, distribution of goods, services, ideas to create exchanges that satisfy individual and organizational goals.

n Can be practiced in any market.

n Task of marketing management is to influence the level, timing, composition of demand in a way that will help the organization to achieve its objective. Hence, marketing management is essentially demand management.

States of “DEMAND could be:

  • Negative demand – Major market dislikes product, hence try to avoid. eg.- injections.
  • No Demand – Constant unaware and uninterested in product. eg.- segway.
  • Latent Demand – Need exists, not fulfilled by current products. eg.- ATM, mobile.
  • Declining demand – Demand decreases over period of time. eg.- pagers, scooters.
  • Irregular Demand – Seasonally. eg.- fans, raincoat.
  • Full Demand – Good volume of business. eg.- tooth paste, most of FMCG items.
  • Overfull Demand – Demand greater than ability to handle. eg.- VSNL sim card.
  • Unwholesome Demand – Unwholesome product. eg.- cigarettes, narcotic drugs.
About these ads
Comments
40 Responses to “Core Concepts of Marketing (Philip Kotler Summary)”
  1. Darius Hammer says:

    I and also my guys have already been digesting the nice hints located on your website then quickly I got a terrible feeling I never expressed respect to the site owner for them. Appreciation for being very helpful and also for considering variety of terrific tips millions of individuals are really eager to be aware of. Our own honest apologies for not expressing appreciation to sooner.

  2. Dimitriadis says:

    This really is an extremely exciting write-up to read. Thank you for writing this and please come up with more articles like this.

  3. Saista Nasir says:

    This is really a nice one…………….Thanks

  4. nambogo brenda says:

    Thank you very much and on with that spirit

  5. jamesbrown87 says:

    Good web site! I truly love how it is simple on my eyes and the data are well written. I am wondering how I could be notified whenever a new post has been made. I have subscribed to your RSS which must do the trick! Have a nice day!

  6. This is very informative. Keep writing articles like these.

  7. Charlie Dun says:

    This is Marketing Management explained beautifully…

  8. Ron says:

    This website certainly has all of the information and facts I needed about this subject and didn’t know who to ask.

  9. DANISH AQUIL says:

    good one frnd

  10. Mukund Bhavsar says:

    Everything is nice but still some important concepts need to add such as 80 – 20 concepts calculation of return on investment

  11. Florine says:

    Thanks for another great post. The place else may anyone get that type
    of info in such an ideal manner of writing? I’ve a presentation next week, and I am on the search for such info.

  12. Fantastic beat ! I would like to apprentice while you amend your site, how could i subscribe for
    a blog web site? The account aided me a acceptable deal. I had been a little bit
    acquainted of this your broadcast provided bright clear
    idea

  13. Florene says:

    all the time i used to read smaller posts that also clear their motive, and that is
    also happening with this piece of writing which I am reading here.

  14. Richard says:

    Really well explained Marketing Fundas… Thanks..

  15. Tracie says:

    I like the helpful information you provide in your
    articles. I will bookmark your weblog and
    check again here regularly. I’m quite certain I’ll learn
    a lot of new stuff right here! Best of luck for the next!

  16. Have you ever considered publishing an ebook or guest authoring on other websites?
    I have a blog based upon on the same topics you discuss and would really like to have you share some stories/information.

    I know my audience would value your work.
    If you’re even remotely interested, feel free to shoot me an email.

  17. Rakesh says:

    Kotler’s best explained best…

  18. Ric says:

    Concepts of Marketing.. Crisp and Clear… Thanks…

  19. shohan says:

    i is very nice for every student

  20. Rosalie says:

    Hi there, just became aware of your blog through Google, and found that it’s truly informative. I’m
    gonna watch out for brussels. I will be grateful if you continue this in future.
    A lot of people will be benefited from your writing.
    Cheers!

  21. Read More says:

    Your data is extremely intriguing.

  22. Aashna says:

    Thank you for this wonderful write up…

  23. Anonymous says:

    Nice info dude. Thanks !

  24. Gluten ist hinterhältig – Auch bei Sprue war es extrem wichtig, jenes auch in bestimmten
    Hugo Sekt n versteckte Gluten zu beachten.
    Corder ausfindig gemacht hat, hat für sich auch in
    Italien jetzt wieder. Zu lang mit Innovationen in der IT zu
    warten, heisst automatisch verpasste Chancen fuer Kosten- und
    auch Fehlerreduktion.

  25. Rukhsana says:

    thanks indeed valuable writing

  26. akhtaraziz says:

    thanks
    its help me

  27. md faiyaz ahmad khan says:

    thank you so much,

  28. Albert samweli says:

    I kindly like to thanks you for your helpful article. It’s very helpful not only for business man but also for tourism stakeholders. Be blessed

  29. Simply desire to say your article is as astonishing.
    The clearness in your post is just spectacular and i could assume you’re an expert on this subject.
    Well with your permission allow me to grab your RSS feed to
    keep updated with forthcoming post. Thanks a million and please carry
    on the rewarding work.

  30. I am sure this piece of writing has touched all the internet
    users, its really really fastidious paragraph on building
    up new blog.

  31. Someone necessarily assist to make significantly posts
    I would state. This is the very first time I frequented
    your web page and up to now? I amazed with the analysis you made to create this actual put up amazing.
    Excellent task!

  32. Hi friends, its fantastic article about educationand fully explained, keep it up all the time.

  33. Good post. I am experiencing many of these issues as well..

  34. stupident says:

    this is very helpful now i can do my assignments. Good post

Trackbacks
Check out what others are saying...
  1. Ankit says:

    This is awesome… One of the best on Philip Kotler’s marketing fundas..



Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 58 other followers

%d bloggers like this: