Content

•s Meaning of marketing
Unit- • Evolution of the marketing philosophies

1Introduction Basic principles of the production,

product, selling, marketing and holistic
marketing concepts.
•
• Meaning and tasks of marketing
management.
• Marketing challenges of the 21st century
and firm’s resources to the challenges.
• Concept, relevance and practices of
relationship marketing, green
marketing and e-marketing.
• Components of the marketing mix for
products and services.
1
 Unit 1 : Introduction

• Meaning of marketing:
Simply the activity of buying and selling of goods and services is
known as marketing, but it is not sufficient to define marketing as just
only the activity of buying and selling of goods and services. Because in
the modern age, marketing is not limited only to buying and selling.
There are two concepts of marketing by the analyzation of various views of
various scholars-
1. Old concept of marketing (focus only production of goods) :- According
to this concept, marketing is the economic process where the ownership of
goods and services are transferred from producer to consumers and their
value determines in terms of money price.
It means marketing is to supply goods and services from producer to
consumer and earn profit by selling them.
It is product oriented concept that ignores the value of customer’s
satisfaction, need, desire, behavior, purchasing capacity etc. According to this
concept, the purchased goods and services are acceptable by the customers.
Customers’ needs, interests are not considered but in fact, no one can
get success in this competitive environment by ignoring the value of
customers.
2. Modern Concept (Focus on customers) : Marketing is a continuous
process of identifying the target market of goods and services
according to the need, desires, hobby of the customer and always tries
to give the maximum satisfaction to the customers. It starts before
production and it does not complete after selling. It is a broad sense of
marketing that focuses on consumers.
Marketing means identifying the needs or wants of potential
customers and supplying the goods and services which can satisfy their
needs or wants.
 Conclusion
The continuously doing economic activites that are done before production
and after sale are known as marketing which can fulfill the customer’s need
and want. It is a dynamic process which starts from generating ideas to
produce goods according to the interest of customers and it doesn’t end until
even after the final sale. What to produce? How, when to produce? How much
price to determine? How to supply to ultimate customers etc are all concerned
with marketing.
- American Marketing Association
“Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.”
 Meaning of Marketing
Marketing in the pragmatic sense is composed of three key
activities:

Delivering
Converting the value to
Seeing the opportunity in buyers
to products through
opportunit and services the
y products &
services

Marketing is not only with attracting customers but also with retaining
customers.

6
Definition of Marketing
Philip Kotler
Marketing is a social process by which individuals and groups obtain what they
need and want through creating, offering and freely exchanging products and
services of value with others.
This theory focuses on the following five aspects of modern marketing:
1. Marketing is a social process and the knowledge of marketing can be used to meet various
social needs and solve various social problems.
2. Individuals and groups satisfy their needs and wants through the process of marketing.
3. Marketing creates satisfying products and services.
4. The products and services are exchanged for value in a transaction that provides mutual
benefits to sellers and buyers.
5. The exchange has to take place in a free-environment without any external imposition or
compulsion.

7
Definition of Marketing
Key points for
marketing
1. Marketing is a process
2. Marketing consists of activities
a. Product related b. Price related c. Place related d. Promotion
related
3. Marketing satisfies customer needs
4. Marketing facilitates exchange relationship
5. Marketing helps achieve objectives
Profit, Service, Growth, Survival, Leadership
6. Marketing occurs in a dynamic environment

Marketing is the process of planning and executing the

conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that
satisfy individual and organizational objectives. 8
Marketing Philosophies
Several marketing concepts have evolved over time that has guided marketers to plan
and
implement their activities. These business concepts have different focus, means and
ends.
They put different weight to the interests of organizations, customers and society.
Holistic
Productio
Concep
n
Societal t
Concept
Concep
t
Marketin Product
Custome
r
Concept
g Concep
t

Marketing Selling
Concept Concep
t
9
Marketing Philosophies Productio
n
(1950-1960)
Concept
The production concept believes that consumers will favor those products that
are widely available and low in cost.
Emerged in 1950
Tank factories that produced tanks started manufacturing automobiles and uniform
producers
started manufacturing readymade garments.
Influenced by the Keynesian Economics thought.
Keynesian economics is an economic theory of total spending in the economy and its effects on output and
inflation.

Mass production and wide distribution coverage.

Directed at raising output levels, produce standardized product and sell at lower price.
Focus on building internal capabilities of the organization in terms of production and
selling. Use lower costs to cut prices and expand market sizes.

10
 Productio
n

Marketing Philosophies (1950-1960)

Concept

Starting Focu Means Ends

Point s
Low Price Profit through
Factor Mass
Mass production
y Production
Distribution efficiency

Currently Chinese companies are adopting this concept in order to penetrate

into the international markets with price advantages.
This concept was abandoned by many organizations when they realized that all
consumers do
not buy cheap products.
11
 Product
Concept

Marketing Philosophies (1950-1960)

The product concept believes that consumers respond to good quality

products
that are reasonably priced.
Emphasis on product quality, performance and features.
Little effort is required to sell the good quality products that are reasonably priced.
Long lasting products
Provide warranty for longer periods.
Heavy faith in the role of engineers in development of super products.
Gave birth to various products- West-End Watches, Mercedes Benz, Hi-Tech Shoes etc.

12
 Product
Concept

Marketing Philosophies (1950-1960)

Starting Focu Means Ends

Point s
High Quality
Innovation Profit through
Factor Product
Performanc quality
y Quality
e products

Although this concept was not so successful in consumer market, it still

has
importance value in marketing of machinery and heavy equipment.
This concept disregard customer needs and preferences.
13
 Selling
Concep

Marketing Philosophies (1960-1970)

t

The selling concept is based on the idea that people will buy more goods and
services if aggressive selling methods are used. It believes that people ordinarily
will not buy the organization’s product unless they are persuaded to buy.
Organization believes that there is a large number of customers and there is a whole range
of selling techniques available to attract the customers.
Organization can use another methods for selling if one methods fails.
Heavy emphasis on convincing and persuading the buyers about the super quality and fair
prices.
Selling concept has been successful in the field of political marketing.
Focused for selling unsought products which buyers do not normally thing of
buying. Life-insurance, encyclopedia, subscription of magazines.

14
 Selling
Concep

Marketing Philosophies (1960-

t
1970)

Starting Focu Means Ends

Point s
Aggressive Profit through high
Factor Products selling sales volume
y Heavy promotion

Selling concept is successfully implemented in political marketing and

marketing of unsought products. The Nepalese business sector today is
dominated by selling concept.
The basic problem with the selling concept is its assumptions that a majority of the buyers
who have been lured to buy the product would ultimately like the product. Those who do
not like the product would forget their disappointment with the product. 15
 Marketing
Marketing Philosophies Concept
(1970-2000)

The marketing concept believes that the key to achieving organizational

objectives lies in being more effective than competitors in integrating marketing
activities toward determining and satisfying the needs and want of the target
markets.
It is different as of previous slogan: “We sell what we
make.” Change the business slogan to: “We make what
we can sell.”
This concept emphasizes customer orientation and
coordination of marketing activities.
The mean adopted for achievement of organizational objective of profit differed among the
production, product and selling concepts as it consider buyers an important variable in the
business environment.
Managers focus on all activities at determining customer needs in the target market and earn
profit through customer need satisfaction.
16
“Think Customer”
 Marketing
Concept

Marketing Philosophies
(1970-
2000)

Starting Focu Means Ends

Point s
Profit through
Target Customer Integrated
customer
Market needs marketing
satisfaction

The marketing concept is a new way of thinking about organization’s entire

activities. The concept is based on the notion that the main task of the
organization is to know the needs, wants and value of the target market and
then delivering products that satisfy those needs and wants.
Problems: Customer desire versus spending realities, lack of marketing knowledge, new
features and services, lack of effective customer service, barriers to communication.
17
 Marketing
Marketing Philosophies Concept
(1970-2000)
Fundamental Principles of Marketing Concept

An organization
Target Market boundaries of its operation and follow a market
can do tailored
business strategy.
better if it
can
All activities of the organization focused
define the
Customer Orientation are on
determining activities
organizational and satisfying
are customer
customer needs.
oriented. All
All marketing activities are organizationally coordinated
Integrated Marketing under the marketing department. Product management,
marketing research, pricing, distribution, promotion etc.
For private business, the objective is profit, market
Objectives Achievement share, sales etc. For non-profit organizations, it is
surviving and attracting funds to provide service.
The marketing concept stresses that organizations can best
achieve 18
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling Concept Concept
Process

Orientations Produc Customer

t s needs
Tools and
wants
Approach

Planning

Pricing
19
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling Concept Concept
Process
First manufacturing First
Orientations and then selling determining
market
Tools prospects and
then
Approach manufacturing

Planning

Pricing
20
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling
Sales Concept Concept
Customer
Process
volumes needs
Orientations

Tools

Approach

Planning

Pricing
21
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling Concept Concept
Process
Aggressive Identifying needs
Orientations salesmanship Discovering demands
Advertisements Delivering satisfaction
Tools
Sales promotions Obtaining loyalty
Approach Transaction marketing* Maintaining
relationship
Planning

Pricing *Achieving quick sales without a

significant attempt to form a long 22
term customer relationship
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling Concept
Marketing function Concept of all
Integration
Process
wise marketing functions and
operation. processes to achieve
Orientations
Each department common marketing
Tools works goals.
independently.
Approach

Planning

Pricing
23
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling
Short Concept
term focusing Long term focusing
Concept
Process
on current products on future products
and competition. and potential
Orientations completion.
Tools

Approach

Planning

Pricing
24
Marketing Philosophies
Difference between Selling Concept & Marketing
Concept
Emphasis Marketing
Selling
Costs Concept
determines Customers determine
Concept
Process
price price
Orientations

Tools

Approach

Planning

Pricing
25
 Marketing Philosophies Custome
r
Concept
The customer concept believes that individual customer is the key to achieving
organizational objectives. All marketing activities are done to satisfy the needs of
individual customer.
Focus on needs and values of individual customer though one-to-one marketing.
Tailoring marketing program to the needs of individual customer, customized marketing
mix,
individualized promotion and distribution.
Capture larger share of each customer’s expenditure.
One to one marketing. Fulfill needs of specific individuals and locations.
Profit through customer loyalty and retention.

26
 Custome
r

Marketing Philosophies Concept

Starting Focu Means Ends

Point s
Customer needs Profit through high
Individual One-to-One
and customer share &
customer marketing
value loyalty

Organizations collect information about the profile of each customer. They

use e- ecommerce and the latest information technology.
This concept is useful to companies selling high value products. Such products need
periodic
replacement or upgrading. Airlines industry is an example.
27
Marketing Philosophies Societal

Concep
t
The societal marketing concept is an emerging concept which holds that
organizational objectives should be achieved through customer need satisfaction
in ways that protect the interests of the consumers and safeguard the well-being
of society.
Marketing is blamed for green-house effect leading to global rise in
temperature.

28
 Societal

Marketing Philosophies Concep

t
Marketing is blamed for green-house effect leading to global rise in
temperature.
•For depletion of ozone layers leading to a rise in the incidence of skin cancer.
•For resource shortages due to haphazard use of limited and non renewable
natural resources, such as oil, coal, forests etc.
For encouraging over consumption in the developed world while a large
population in the underdeveloped countries is suffering from hunger,
starvation, disease and premature death.
For social disharmony by projecting women as wrong symbols in
advertisements.
Therefore, the societal marketing concept assumes that along with the
consumers wants and interests, social interests too should be considered
that long-run social welfare
so could be 29
 Societal
Concep

Marketing Philosophies t

Starting Focu Means Ends

Point s
Protecting &
supporting consumer Profit through
Target Social
& social well- being customer
market needs
and social well-being

The societal marketing concept believes that the organization should deliver
the superior value product to the market that maintains or improves the
consumer’s and society’s well being.
The pressure groups, particularly environmentalist, consumerist and feminist, have
forced many companies to adopt the societal marketing concept.
30
 Societal
Concep

Marketing Philosophies t

Environmental quality Society

Employment (Social Well-
generation Meet being)
community needs

Product quality
Product safety
Honesty
Company
Consumer
(Profits/Other
rights
Consumers Goals)
(Need
Satisfaction)
31
 Holistic
Concep

Marketing Philosophies t
Holistic marketing concept is a part of the series
on concepts of marketing and it can be defined as
a marketing strategy which considers the business as a
whole and not as an entity with various different
parts. According to holistic marketing concept, even if
a business is made of various departments, the
departments have to come together to project a
positive & united business image in the minds of the
customer.
Holistic marketing concept involves interconnected
marketing activities to ensure that the customer is
likely to purchase their product rather than 32
 Holistic
Concep

Marketing Philosophies t

Philip Kotler- “The holistic marketing concept is based on the development,

design and implementation of marketing programs, processes and activities that
recognizes their breadth and interdependencies.”

Efficiently and
effectively utilize
marketing resources
Practiced to promote and to meet customer
consumer and
societal welfare. Holi needs.

stic
Practiced to make all
members of the Practiced to develop
organization long term relationships
customer- oriented. with customers 33
 Holistic
Concep
Marketing Philosophies t

Starting Focu Means Ends

Point s Integrating marketing
Relationship
marketing Internal Goal achievement
Target All marketing
marketing Social through marketing
market matters
responsibility think

The holistic concept emerged mainly due to the social and technological
challenges that raised serious questions about the power of marketing to mold
and modify consumer needs and preferences in the 21st century.

34
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 35
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 36
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 37
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer Profit through customer
concept needs satisfaction satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 38
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer Profit through high customer
concept customer needs satisfaction share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 39
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs Protection of social
g well- beings
concept 40
Holistic Society Social needs Relationship, Social welfare Profit through social welfare
 Marketing Philosophies -
Comparison
Business Starting Main focus Means Offer to buyers Organizational goal
concepts point
Productio Factory Mass Low price Low priced products Profit through mass
n productio Mass production and
concept n distribution merchandising
Produc Factory Produc High quality Product quality Profit through long-lasting
t t Innovation and performance and high performance
concep quality Performanc guarantee products
t e
Selling Factor Products Aggressive selling and Promises of product Profit through high sales volume
concept promotion superiority and
extra benefits
Marketing Market Customer’s Integrated marketing Customer satisfaction Profit through customer
concept needs satisfaction
Customer Individual Customer One-to-one marketing Customer satisfaction Profit through high customer
concept customer needs share and loyalty
and
values
Societal Market Customer’s Integrated marketing Consumer welfare Profit through social welfare
marketin needs
g
concept 41
Holistic Society Social Relationship, Social welfare Profit through social welfare
 Components of Marketing Mix

Product Mix

Place/Distribution Marketin
g Mix Price Mix
Mix

Promotion Mix
42
Components of Marketing Mix
Product Mix

Product planning and development

Product quality

Variety

Design

Features

Branding

Packaging and labeling

Warranty

After sales service 43

Components of Marketing Mix
Price Mix

Competitors’ price
analysis

Pricing objectives

Price setting

Conditions of sale

Discounts, allowances
and commission

44
Components of Marketing
Mix
Promotion Mix

Advertising

Personal selling

Sales promotion

Public relations

Direct Marketing

45
Components of Marketing
Mix
Place Mix

Channel

Wholesaler

Retailer

Physical Distribution

Order processing

Warehousing

Material handling

Inventory
management
Transportation
Marketing Management
Customer needs and wants are fulfilled through an
exchange process.
An exchange process consists of considerable
efforts and skills and for the fulfillment of needs
and wants of one party (buyer) several activities are
to be performed by another party (seller) in an
organized way, which requires considerable
amount of skills with the providers.
Marketing management takes place when one
party thinks about the fulfillment of needs of
another party. Hence marketing management is
an organizational approach to marketing.
47
Marketing Management
American Marketing Association:
“Marketing management is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create exchanges
that satisfy individual and organizational goals.”
Cravens, Hills and Woodruff:
“Marketing management is the process of scanning the environment, analyzing
market opportunities, designing marketing strategies and then effectively
implementing and controlling marketing practices.”
Philip Kotler:
“Marketing management is the process of planning, implementing and controlling
marketing activities or practices to achieve the desired organizational goals.”
48
Marketing Management
Marketing management is the process of developing strategies and planning for
product or services, advertising, promotions, sales to reach desired customer
segment.

"Marketing management is 'the art and science of

choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value' (Kotler
and Keller, 2008: 5)."
The concept reviews the process used to determine what
products or services may be of interest to customers and the
strategy to use for marketing mix. It also explores the process of
understanding, creating and delivering value to targeted
business markets and customers.

49
Task of Marketing
Management
 Developing Marketing Strategies and Plans
 Create marketing information system
 Capturing Marketing Insights
 Connecting with Customers
 Building Strong Brands
 Shaping the Market Offerings
 Delivering Value
 Delivering and Communicating Value
 Creating Successful Long Term Growth
50
Task of Marketing
Management
Developing Marketing Strategies and Plans
Identify its potential long-run opportunities

51
Task of Marketing
Management
Create marketing information system
Marketing designs, delivers and uses an effective marketing information system. It consists of four
components.
1. Internal record system
2. Marketing intelligence system
3. Decision support system
4. Marketing research

52
Task of Marketing
Management
Capturing Marketing Insights
Closely monitor its marketing environment so it can continually assess market potential and forecast
demand.

53
Task of Marketing
Management
Connecting with Customers
Must consider how to create best value for its chosen target markets and develop strong, profitable,
long-term relationships with customers

54
Task of Marketing
Management
Building Strong Brands
Must understand the strengths and weaknesses of the brand as customers see it.
Must also pay close attention to competitors, anticipating their moves and knowing how to react
quickly and decisively.
http://brandirectory.com/league_tables/table/global-500-2018

55
Task of Marketing
Management
Building Strong Brands
Must understand the strengths and weaknesses of the brand as customers see it.
Must also pay close attention to competitors, anticipating their moves and knowing how to react
quickly and decisively.

56
Task of Marketing
Management
Shaping the Market Offerings
Offering product quality, design, features and packaging.
Wholesale price, retail prices, discounts, allowances and credit terms to gain a competitive advantage.
Provide leasing, delivery, repair and training as part of its product offering.

57
Task of Marketing
Management
Delivering Value
Properly deliver to the target market through different channel activities to make the product
accessible and available to target customers.
Must understand the various types of retailers, wholesalers and physical distribution firms and how
they make their decisions.

58
Task of Marketing
Management
Communicating Value
Adequate communication with the target market.
Needs to set up mass communication programs consisting of advertising, sales promotions in the
form of direct and interactive marketing as well as hire, train and motivate sales people.

59
Task of Marketing
Management
Creating Successful Long Term Growth
Must initiate new product development, testing and launching as part of its long term view.
The strategy should take into account changing global opportunities and challenges.

60
Marketing Challenges of 21st Century
• Customers are being more savvy or informative than the marketers.
• Customers are increasingly demanding better quality and reliability in the
products and services they buy.
• Customer wants, needs and expectations are changing more rapidly.
• New products and services are coming to market more quickly than in the
past.
• Competitors have introduced multiple brands and competition for sales is
intense.
• Medias are being more fragment and expensive.
• Global competition
• Significant impact of internet in business practices.
• Increased accountability of marketers towards customers.
 Marketing
Challenges
Marketing job has become very tough these days. Every marketer is facing challenges in the job.

Michael Porter has identified five marketing challenges of the firm’s competitive position.

62
Firm’s response to Marketing Challenges
• Developing marketing plans that are designed to build long-term profitability.
• Developing cogent arguments to protect or increase, the investment in marketing
when economic times were tough.
• The need for a framework that created a good balance within marketing strategy
between the needs of the customer and those of the organization.
• Developing effective strategies that engaged those outside of marketing that were
crucial to delivering to promise to consumers.
• Developing the right metrics to monitor progress and provide accountability.
• Motivating others to be passionate about data quality, as ‘fit for purpose’ data is vital in
direct, digital and CRM based marketing and for monitoring performance against
achieving the goals laid down in the marketing plan.

63
Relationship Marketing
• Relationship marketing has the aim of building mutually
satisfying long term relations with key parties –customers,
suppliers, distributers in order to earn and retain business.
• Relationship marketing’s focus is not on immediate sales,
rather it is directed at building a large group of satisfied
and loyal customers. Customers retention and winning
back lost consumers are the key strategy in relation
marketing .
• In a competitive market , it is not enough to build
relationship only with customers, it is equally important to
establish relationship with the vendors , intermediaries,
and other influence group as well as the stakeholders.
Relationship Marketing-Key Points
• The relationship marketing has emerged from 1980’s.
• It has shifted attention from short term transaction and immediate profits toward a process
of creating customer value through building long term relationships with customer.
• Sales focus Vs Marketing mix.
• Directed towards building a large group of satisfied and loyal customers
• Customer retention and winning back of lost customer.
• Long term efforts in delivering value.
• Win-win relationship
• Directed at building strong economic, technical and social relationships.
• Creating valuable marketing network.
Relationship marketing has the aim of building mutually satisfying long term relations with key
parties-customers suppliers, distributors- in order to earn and retain business.
65
 Relationship
Marketing
Dimensions of relationship marketing
Relationship marketing has three dimensions:
1. The view of companies about customers is changing. The emphasis is
shifting from transaction based marketing to relationship based marketing.
2. In addition to their relationship with customer's companies are
increasingly concerned about their enduring relationship with suppliers,
middlemen, stakeholder and other influences groups. The focus is also on
internal marketing where all employees are trained and motivated to
work for customer satisfaction.
3. A strategy to bring the three key elements- quality, customer service and
marketing activities-to work together in order to produce synergistic effects
for the benefit of the customers and external agencies.
 Relationship Marketing
• Relationship marketing is the practice of building long-term satisfying relations with key parties-
customers, suppliers and distributors- in order to retain their long-term preference and business.
• If properly implemented, relationship marketing may result in strong economic, technical and social
ties among the parties.
• It can also cut down on transaction costs and time.

67
Relationship
Marketing
Relationship Building Process
Prospects
People who have interest in
the product and ability to
pay for it. They are likely to
buy the product

68
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Prospects who buy a product
for the first time. They
can be brand switchers.

69
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Repeat Customers
First time customers who repeatedly buy the product.
They experienced satisfaction with first time purchase.
They have potential to become loyal customers.

70
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Repeat Customers
Clients
Repeat customers who are treated specially and
knowledgeable by the organization. They are loyal
and satisfied customers. They buy products for a
longer period of time.

71
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Repeat Customers
Clients
Members
Clients who join
membership
programme to
take
advantage of
benefits. Customer
clubs are organized.

72
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Repeat Customers
Clients
Members
Advocates
Members recommend
the
organization and its products to others.
who

enthusiast
ically

73
Relationship
Marketing
Relationship Building Process
Prospects
First Time Customers
Repeat Customers
Clients
Members
Advocates
Partners
Advocates who work together actively for
mutual benefits with the organization.

74
 Relationship
Marketing
Strategies for Relationship Marketing

Quality Economi
Assuranc c
e Benefits
Promise and Frequency
deliver marketing
Relationshi
programm
high quality p e.
products at fair Marketing Club
hello worldprices members
Technical Social
hip
Benefits Benefits
program.
Developing Electronic Data Gift to
Increa
customer
se
Interchange (EDI)
social
75
bonds
 Relationship
Marketing
Practices of Relationship Marketing in Nepal

HOME
WORK

76
 Green
Marketing
Green marketing refers to the process of selling products and services based on
their environmental benefits.
• Part of societal marketing concept.
• Environmental friendly.
• Potential customer will view a product or services “greenness” as a benefit.
• Customer will pay more for green products.
• Address ecological problem or make balance.
• Address environmental problems due to mass
production, mass marketing and
mass
consumption.
• Environmental friendly processes and practice.

77
Green
Marketing
Marketing of products taking into considerations the ecological issues is
popularly known as Green Marketing.

Green Marketing calls for business organizations and consumers to show

environmental consciousness by modifying business and consumption
behavior favoring green products and practices.
78
Green
Marketing
Practices of Green Marketing
Environmental awareness – polythene bags, plastic packaging, water bottles and glass and tin containers,
old vehicles etc.
Customer associations around the world have become very active to pressurize governments and businesses to
adopt more environmental friendly business practice.
Resource conservation– Renewal resources & Non-renewal resources.
The society today emphasizes on using more of the renewal resources and conserving the non-renewal
resources for the future generations.
Recycled products – The pressure on non-renewal resources has greatly been reduced through
recycling of
plastics, iron, cooking oil, paper and many other products.
Green products – Use of excessive fertilizers, genetically modified grains, fruits and vegetables and
use of
pesticides on plants has harmed the general health of people.
79
E-Commerce (Internet Marketing/E Marketing
E commerce is the marketers effort to inform, communicate , promote and sell its products
& services through the internet.
a
n

80
E-Marketing/Internet Marketing

E-commerce basically is a type of business model that

connects firms and customer over an electronic
network in conducting various business related
activities. Today almost every product or service
related transaction can be done via e-commerce.
As per Mr. Anton, Director of Singer Ltd., Sri Lanka “ E-
commerce has indeed been an impetus to
globalization. In this part of the world, most big
companies and a fair amount of smaller companies
have their own websites and are actively engaged in
the transactional aspects of e-commerce, both within
the country and overseas.”
E commerce is the marketers effort to inform, communicate , promote and sell its products
and services through the internet.

E-Commerce (Internet
Marketing/E Marketing

82
 Categories of Electronic Commerce
Categories Meaning Examples

1. Business to This type of e-commerce www.hilltake.com.np sells

consumer(B2C) E- involves retailing products water tanks, water pumps,
commerce and services directly to geysers to individual
individual shoppers. consumers.
2. Business to This type of electronic Milpro.com is Milacron
business(B2B) E-commerce commerce involves in Inc.’s web auction site that
selling of goods and is used for selling cutting
services among businesses. tools, grinding wheels, and
metal working fluids to
more than 100,000 small
machining businesses.

3. Consumer to This type of electronic www.hamrobazar.com, a

consumer(C2C) E- commerce involves Nepali website, allows
commerce consumers selling directly people to sell their goods
to consumers to other consumers by
posting about their product
and service in the website.
E-Commerce (Internet Marketing/E Marketing
E Business uses three types of networks for conducting business operations:

Internet: The global network through which a firm or an individual can contact, access and share
information, order for products and services and sell products and services to other users of the
internet.

Intranet: This is an in-company network that allows employees to access and share information with
each other in order to improve the company’s performance.

Extranet: This is a network of the company with its suppliers, distributors, and major customers
facilitating exchange of information, execution of orders, transactions and payments.

84
 Features of E-commerce
Individual communication:-Through e-commerce an
organization can make direct relation with customer as a
result customer can be selected carefully.
No middleman:- E-commerce do not entertain any type of middleman;
it is also direct marketing, so goods and services can be distributed
through direct relation as a result goods will be cheaper.
Data depository :- Internet is data bank. Plenty of data stored through
internet and according to requirement it can be used and transfer.
 Good relationship:- E-commerce can make and maintain intimate
and good relation with customer and stakeholders. And long term
relation can be maintained with profitable customers.
Board Questions
1. Define holistic marketing concept. 1
2. Explain the marketing challenges of the 21st century and form's responses to these challenges. 5
3. Write about E-Marketing. 1
4. Write the concept of core marketing. 1
5. What is relationship marketing? How does relationship marketing help to customer development process? Explain.
5
6. How is marketing defined in modern days? 1
7. Give two examples of green marketing in Nepal. 1
8. Name three modern marketing concepts. 1
9. Point out the various marketing concepts that have been evolved over a period of time. 1
10. Conceptualize the term "Relationship Marketing'. 1
11. Give the meaning of marketing in one sentence. 1
12. What is marketing myopia? Explain in one sentence. 1
13. Explain any three emerging concepts of marketing. 1
14. Give the meaning of marketing mix in one sentence. 1
15. What is marketing? Discuss the core marketing concept. 5
16. Define marketing in one sentence. 1
17. Point out the core marketing concepts. 1
18. What is marketing? 1
19. Point out the components of marketing mix. 1
20. Differentiate consumer and customer. -1 89
90