Consumer marketing concept examples of companies. Evolution of marketing concepts. Production Improvement Concept

Topic No. 1. Concept and organization of marketing

1.1. Essence, goals, principles and functions of marketing

The concept of marketing, marketing goals. Marketing as a system of management, regulation and market research. The concept of need, need, demand, market. Market as a system of relationships between existing or potential sellers and buyers of any goods. Long-term and short-term marketing goals. Profit maximization. Expanding the company's market influence. Stabilization of the achieved position. Basic principles of marketing. Market and demand research, product range planning, pricing. Optimization of sales, storage, transportation of goods, sales promotion, creating a company image, organizing and conducting competition, combining and coordinating the company’s means and activities, forecasting. Comparison of the “traditional” and marketing approach of the company.

1.2. Evolution of Marketing Development

Prerequisites for the emergence of marketing. History of the emergence and development of marketing. “Wild market” and antimonopoly legislation. The emergence of a scientific theory that solves marketing problems. Distribution Science. Development of distribution theory, distribution tasks, transition to marketing. Features of the emergence of marketing in the Russian market, micromarketing, macromarketing, megamarketing. Reasons for creating a marketing service in an existing company. Difficulties in implementing marketing on the Russian market.

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Literature

Main literature:

1. Marketing by notes: practical Russian examples: Textbook / Ed. prof. L.A. Danchenok. - Chapter 1.

2. F. Kotler, G. Armstrong, J. Saunders, V. Wong Fundamentals of Marketing / Trans. from English – 2nd European. ed. – M.; St. Petersburg; K.: Williams Publishing House, 2000.

Additional literature:

1. Marketing: Textbook / Ed. A.N. Romanova. – M.: Banks and exchanges, UNITY, 1995.

2. Marketing / Ed. E.A. Utkina. – M.: TANDEM, publishing house EKMOS, 1998.

3. Kotler F. Marketing from A to Z. 80 concepts that every manager should know. – M.: “Olma-Press”, 2003.

4. Dixon P.R. Marketing management / Transl. from English – M.: ZAO “Publishing House BINOM”, 1998.

Internet sites:

Kotler identifies five main stages in the development of marketing theory, each of which represents an independent concept of marketing management in a company:

1. Marketing Concept One: Operational Improvement
2. The second marketing concept: product improvement
3. Marketing Concept Three: Focus on Selling the Product
4. Fourth Marketing Concept: Consumer Concept
5. The Spotty Concept of Marketing: Socio-Ethical Marketing

The 5 marketing concepts presented by Kotler fully describe historical development marketing theories. Before you consider detailed description For each marketing concept, we invite you to think about when and why marketing arose.

Brief historical background

Understanding the causes and prerequisites for the emergence of marketing helps to form right attitude to this science. Marketing arose along with the birth of the market. The emergence of crafts, the emergence of demand for goods, and the development of trade relations led to the need for methods that stimulate trade, help to talk about the product and sell the product. Marketing has always been a science that helps to compare market needs with production capabilities.

There are many theories about where marketing first emerged. In fact, it does not matter that it first appeared in Greece or Japan, what is important is the fact that marketing helped sellers understand the market and sell the product with maximum benefit for business.

It is believed that marketing emerged as an independent concept and science in the 18th-19th centuries, during the heyday of industrial evolution, significant social changes, the development of mass production, transport infrastructure and the emergence of the first media.

Production Improvement Concept

The evolution of marketing begins with the concept of production improvement or the production concept of marketing. Product improvement is the oldest marketing concept, but it is still effective in markets with low level competition.

The production concept of marketing management believes that consumers will choose a product that meets two criteria: widespread availability in the market and attractive retail price. Accordingly, the market leader will be the manufacturer who manages to build mass distribution of its product, set the most attractive price for the product and at the same time remain in the black.

As we understand it, this marketing concept places emphasis on high productivity, product uniformity and low cost. Accordingly, the main functions of the marketing department at this stage of the evolution of the marketing concept are:

• productivity increase
• reduction of costs for production and distribution of the product (which is partly possible with maximum homogeneity of the product)
• per product
• ensuring maximum product distribution

Product improvement concept

The next stage in the development of marketing is the concept of product improvement or product marketing concept. This type marketing is absolutely ineffective in the absence of large-scale distribution and. The concept often leads to unnecessary improvements to the product, excessively increasing the cost of the product to the customer, and reducing demand for the product.

The product marketing management concept believes that consumers choose the highest quality product on the market that offers the best performance and efficiency. The concept is based on complete understanding of the consumer and absolute innovation, requiring high investments in R&D. The functions of the marketing department at this stage of evolution are: =

• detailed study of audience needs
• Creation
• constant study of new technologies and product improvement

Concentration on product sales

The third stage in the evolution of marketing is the transition to the sales concept of marketing. The concept of sales marketing is based on the technology of "hard selling" and arose during the period of glut in markets in the 1930s. This marketing concept does not take into account the long-term aspect of the company’s development, since the goal of “selling at any cost” leads to deliberate deception of the client and causes a refusal to re-purchase.

The essence of the sales theory of marketing is the following statement: the consumer will choose the product that will be sold to him best. This means that the main functions of the marketing department at this stage of development are:

• concentration on
• maximum incentive to trial product purchase
• programs to reduce inventory balances

Consumer concept

The fourth and most important stage in the development of marketing theory is the birth of the traditional marketing concept, often also called the marketing management concept. The concept of traditional marketing emerged in the 1950s and was the first customer-centric approach.

This marketing model is still used by many modern companies and consists of the following: the consumer will choose the product that best solves his needs for the product. This statement means that any company can ensure long-term success in the market if it can understand the key needs of customers and satisfy these needs better than anyone else. The functions of the marketing department at the stage of a customer-oriented approach are:

• concentration of efforts on studying consumer behavior, on understanding the real needs of the audience
• creating a higher value compared to competitors
• Creation

Social and ethical marketing concept

The most modern concept of marketing activity is the theory of social and ethical marketing or holistic marketing. The concept arose at the beginning of the 21st century with the growing popularization of the need to take care of environment, limited natural resources and the development of new standards of ethics and interaction in society. The main essence of the social theory of marketing:

• the consumer will choose a product that best solves his needs and at the same time improves the well-being of the entire society
• The company that becomes successful in the market is the one that understands the importance of close cooperation with all intermediaries involved in the development and sale of its product

Read more about modern marketing theory in the article: “Modern concept of social and ethical marketing”

Video lecture

This material is available in video lecture format:

The cardinalist (quantitative) approach to utility analysis is based on the idea of ​​​​the possibility of measuring various goods in hypothetical units of utility - utilities (from the English utility - utility

It should be emphasized that quantitative assessments of the usefulness of a particular product or set of products have an exclusively individual, subjective nature. The quantitative approach does not imply the possibility of objectively measuring the usefulness of a particular product in utilities. The same product may be of great value to one consumer and of no value to another. In the above example we're talking about, apparently, about a heavy smoker, since adding 1 cigarette to 2 apples significantly increased the utility of the product set. The quantitative approach also usually does not provide for the possibility of measuring the volumes of satisfaction received by various consumers Galperin V.M. Microeconomics. T.1. St. Petersburg, 2014. P. 104..

Economists have repeatedly tried to get rid of the term “utility,” which has some evaluative nature, and to find a suitable replacement for it.

The Italian-Swiss economist and sociologist V. Pareto proposed replacing the term “utility” with the neologism ophеlimitе, which he derived from the Greek YaptsElimpt, meaning the correspondence between a thing and a desire. The French economist C. Gide proposed using the term “desirability”, believing that it “does not presuppose that desire has moral or immoral traits, reasonable or unreasonable” Ibid..

The famous American economist and statistician I. Fisher also spoke out in support of the term “desirability”. “Utility,” he believed, “is the legacy of Bentham and his theory of pleasure and pain.” Fischer also pointed out the preference of the antonym “undesirability” compared to “uselessness.” (Used in our modern literature antonym “anti-usefulness”).

However, the term "utility" has survived its critics and is still used today.

So, in the quantitative theory of utility it is assumed that the consumer can give a quantitative assessment in utils of the utility of any product set he consumes. Formally, this can be written as a total utility function:

where TU is the total utility of a given product set; q a , q b , …, Q z - volumes of consumption of goods A, B, ..., Z per unit of time Galperin V.M. Op. op. P.109..

Assumptions about the nature of the total utility function are of great importance.

Marginal utility is the increase in the total utility of a commodity bundle with an increase in consumption of this product for one unit.

Mathematically, the marginal utility of a product is the partial derivative of the total utility of the product set by the volume of consumption of the I-th product:

Geometrically, the value of marginal utility (the length of the segment ON) is equal to the tangent of the slope of the tangent to the TU curve at point L. Since the TU line is convex upward, with an increase in the volume of consumption of the i-th product, the slope of this tangent decreases and, consequently, the marginal utility of the product decreases. If at a certain volume of its consumption (in our figure Q” A) the total utility function reaches a maximum, then at the same time the marginal utility of the product becomes zero.

Total and marginal utility

The principle of diminishing marginal utility is often called Gossen's first law, named after the German economist G. Gossen (1810-1859), who first formulated it in 1854. This law contains two provisions. The first states a decrease in the utility of subsequent units of a good in one continuous act of consumption, so that, at the limit, complete saturation with this good is achieved. The second states a decrease in the utility of the first units of the good with repeated acts of consumption Bakanov M.I., Sheremet A.D. Theory economic analysis. M., 2014. P.215..

However, the principle of diminishing marginal utility is by no means universal. In many cases, the marginal utility of subsequent units of a good first increases, reaches a maximum, and only then begins to decline. This dependence is typical for small portions divisible benefits. The second puff of a cigarette smoked in the morning may have greater utility for the amateur than the first, and the third more than the second.

Thus, the principle of diminishing marginal utility, or Gossen's first law, is valid only if the second partial derivative of the total utility function is negative. However, since the consumer buys on the market not individual acts of consumption (in our example, puffs), but certain goods (in our example, cigarettes), we can assume that for goods traded on the market, Gossen’s first law is satisfied.

At the optimum (maximum utility for given consumer tastes, prices and income), the utility extracted from the last monetary unit spent on the purchase of any product is the same, regardless of what particular product it was spent on. This position is called Gossen's second law). Of course, a consumer may regret a purchase even if it satisfies equality. This will mean that “during the time from purchase to repentance for it” the sign for this product has changed to the opposite.

There are five main marketing concepts on the basis of which commercial services of enterprises conduct their activities: improvement of production, improvement of goods, intensification of commercial efforts, “consumer” marketing, social and ethical marketing.

Historically, the concept of production improvement, or production, was the first to arise. It is based on the predisposition of consumers to widespread and affordable goods, which requires constant improvement of technology and production organization, increasing volumes and reducing production costs. At the same time, all attention is focused on internal production capabilities, which makes it possible to saturate the market with any product or service. This approach is quite justified when demand significantly exceeds supply or when the cost of producing a unit of goods is quite large and needs to be reduced through mass production of products. The connection between the manufacturer and the market is carried out in this case according to the scheme

The concept of production improvement was used by most enterprises former USSR. This was due to the fact that demand for almost all goods significantly exceeded supply and enterprises were forced to constantly increase production volumes. This approach did not always ensure that the real needs of the population were taken into account, but due to mass production it made it possible to produce relatively cheap goods. The collapse of the USSR, the transition to market relations, and the saturation of the market with “colonial” goods led to the fact that the products of many domestic manufacturers became uncompetitive, primarily due to high prices due to disruption of the mass production of individual products and their inconsistency with the requirements of the buyer.

When implementing the concept of improving production at a printing enterprise, this technique can be used. The same publication is produced in two versions: a gift edition with excellent printing and numerous illustrations, and a regular text version. Naturally, the prices of the publications will vary, but the total sales volume may significantly exceed that which would have been achieved if the publication had been produced in one version.

The concept of product improvement, or product improvement, assumes that consumers will favor products that are of the highest quality at reasonable and affordable prices.

Based on this concept, the company's efforts are primarily focused on the continuous improvement of manufactured products. The vulnerability of the concept is that it is impossible to endlessly improve the same product. Almost every need can be satisfied with a new substitute product.

The concept of product improvement was used quite widely by enterprises in the printing industry in the recent past, when the so-called “scarce market” operated and it was believed that good book it will find its reader, it just needs to be published.

However, even today this concept is often used when publishing translated publications. When making a decision in this case, the main thing is that this book (regardless of the subject - fiction or scientific and technical) was in great demand in other countries.

The concept of intensifying commercial efforts, or the sales concept, was a natural result of the development of production and product concepts, which, paying maximum attention to increasing production and improving the product, practically did not engage in a thorough study and formation of the market. In such conditions, sooner or later, the problem of sales will definitely become aggravated, when the enterprise tries to sell already produced goods by all means and methods available to it. Consequently, in practice, the implementation of the sales concept is essentially associated with the imposition of a purchase. Moreover, the seller strives to conclude a deal at all costs, and satisfying the needs of buyers is a secondary point for him.

The concept of "consumer" marketing, or market, is that the condition for the success of an enterprise is to identify the needs and requirements in target markets and provide the desired customer satisfaction in ways that are more effective and more productive than those of competitors. The company integrates and coordinates its activities with the expectation of ensuring the interests of customers, making a profit precisely by creating and maintaining consumer demand.

For a clearer understanding of the essence of the concept of “consumer” marketing, it is advisable to compare it with the concept of intensifying commercial efforts. The two concepts are no doubt quite similar, but marketing solves a much broader range of problems.

Commercial sales efforts are about focusing on the needs of the seller, while marketing is about focusing on the needs of the buyer. Commercial sales efforts are concerned with the seller's needs to convert his product into cash, while marketing is concerned with satisfying the customer's needs through the product and the range of factors involved in the creation, delivery and ultimately consumption of that product.

It would not be an exaggeration to say that all the latest trends in development public consciousness in Russia, in the gradual understanding of the principles of the formation of a socially oriented market mechanism, are completely consonant with the social and ethical concept of marketing, which is characterized by the following most typical and mandatory requirements.

1. The main purpose of the enterprise must be to satisfy the reasonable, healthy needs of consumers in accordance with the humane interests of society.

2. The enterprise must be constantly searching for opportunities to create new products that better satisfy the needs of customers. It must be prepared to systematically introduce improvements to products in accordance with the interests of customers.

3. An enterprise must refuse to produce and sell goods that are contrary to the interests of consumers in general, and especially if they can cause harm to the consumer and society as a whole.

4. Consumers, relying on their own actions and public opinion, should support only those enterprises that expressly show concern for satisfying the normal healthy needs of the carriers of effective demand.

5. Consumers, caring about maintaining and improving the quality of life, will not buy goods from enterprises that use environmentally “unclean” technologies, even to produce goods that society needs.

6. The enterprise must create and implement such social and economic development programs that not only serve the interests of the enterprise itself and its workforce, but are also useful for social development region in which the enterprise operates.

Obviously, fulfilling these requirements is only possible if the enterprise is completely independent in economic terms, operates in a competitive market, and its management is based on humane, moral and ethical principles that allow overcoming collective egoism.

The social and ethical concept of marketing differs from the “ordinary” concept of marketing in that the goal of the first is to ensure the long-term well-being of not only an individual enterprise, but also society as a whole. Therefore, when marketing management at the enterprise level, it is necessary to take into account at least four points: the needs of the buyer (consumer); vital interests of the consumer; interests of the enterprise; interests of society.

The choice of a particular concept by an enterprise in the printing industry should be determined by the goals and objectives of its activities in the market in the coming period. It should be noted that each marketing concept has merits and can ensure success in real market conditions. Therefore, they cannot be opposed. Rather, on the contrary, to achieve success, you need to learn how to create combinations of these concepts to strengthen your position in the competition. The choice of concept is largely determined by the enterprise’s available resources (financial, labor and material).

Example

In 2002, the new Audi A 8 model was presented to Russian VIP clients. Here is what Vardan Dashtoyan, director of the Moscow Audi Center-North, said about it even before its appearance on the market: This is a completely different car: with a new body, engine, transmission, but the main thing is that for the first time in a luxury car there will be a CVT along with all-wheel drive. This is our trump card in terms of security and functionality. Our analysts believe that one of the advantages for promoting Audi is that this brand is not yet associated with anything in people’s perceptions. For example, BMW is associated with the concept of “sporty”, and Mercedes - “pretentious”. No Audi yet. But buyers most often prefer it for reasons such as driving pleasure and ease of control, good maneuverability, the presence of advanced technologies, a feeling of freedom and comfort. Many also take into account the high level of security and specifications, in particular, four-wheel drive. Therefore, we are thinking of positioning the brand as “progressive”, “sporty” and “sophisticated”. As for the new A8, we expect an increase in its sales in Russia in volumes comparable to the BMW “seven.”

Example

3/4 of Moscow beauty salons were created as an image project, designed for a narrowly limited circle of clients (well-to-do people from the “high society”). In such salons, very high prices are set and significant funds are invested in renting premises in the city center, expensive interiors, and purchasing cosmetics from the world's leading manufacturers. Much less attention is paid to the selection of qualified personnel, because for clients of “elite” salons it is important not just and not so much to receive a service, but to receive it in this particular salon. Consumers cannot really estimate the cost of labor spent on the production of a service, and in fact pay only for the image.