companies the advantage of selling the products very well in the market. The production and quantity of the production are keys to success in marketing activities. (b) The Product Concept – This concept holds that consumers favour products which offer the most quality, performance or innovative features. The product quality is an important part of most marketing strategies and is the key to success in marketing activities.
STUDY GUIDE BMMK5103 Marketing Management 16 (c) The Selling Concept – This concept holds that consumers and businesses will ordinarily not buy enough of the organisation’s products, therefore, the organisation must undertake aggressive selling and promotion efforts. (d) The Marketing Concept – This concept holds that the key to achieving organisational goals consists of the company being more effective than competitors in creating, delivering and communicating superior customer value to chosen target markets. (e) Societal Marketing Concept – This concept holds that the organisation’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers’ and the society’s well-being. (f) The Holistic Marketing Concept – This concept is based on the development, design and implementation of marketing programmes, processes and activities that recognise their breadth and interdependencies. Holistic marketing acknowledges that everything matters in marketing and that a broad, integrated perspective is often necessary. It includes relationship marketing, integrated marketing, internal marketing and performance marketing. 1.4 Customer Value The task of any business is to deliver customer value at a profit. In a hypercompetitive economy with increasingly informed buyers faced with abundant choices, a company can win only by fine-tuning the value delivery process and choosing, providing and communicating superior value. Value creation and delivery can be divided into three phases: (a) Choosing the value (segments the market, selects target market, develops “offering”). (b) Providing the value (product features, prices and distribution channels). (c) Communicating the value (sales force, Internet, advertising and communication tools). Michael Porter’s Value Chain identifies nine strategically relevant activities that create value and costs in a specific business (five primary and four support activities). These are as follows: (a) Primary activities : (i) Inbound logistics (material procurement).
STUDY GUIDE BMMK5103 Marketing Management 17 (ii) Operations (turn into final product). (iii) Outbound logistics (shipping and warehousing). (iv) Marketing (marketing and sales).
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