flowchart LR P[Production<br/>Concept] --> PR[Product<br/>Concept] PR --> S[Selling<br/>Concept] S --> M[Marketing<br/>Concept] M --> SM[Societal<br/>Marketing] style P fill:#FFEBEE,stroke:#C62828 style SM fill:#E8F5E9,stroke:#2E7D32
69 Marketing: Concept and Approaches
69.1 What is Marketing?
Marketing is “the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large” — the American Marketing Association’s 2017 definition (kotler2021?). Philip Kotler, the father of modern marketing, defined it more compactly as “meeting needs profitably”.
Three working ideas anchor the discipline:
- Marketing creates value — it is not the same as selling.
- It involves an exchange — both parties give up something and receive something.
- It serves customers, but must also serve the firm and society.
69.2 Core Marketing Concepts
TipKotler’s Core Marketing Concepts
| Concept | Working content |
|---|---|
| Needs | Basic human requirements (food, shelter) |
| Wants | Specific objects that satisfy needs (Indian curry vs sushi) |
| Demand | Wants backed by ability and willingness to pay |
| Offerings | Combination of products, services, information, experience |
| Value and satisfaction | Benefits delivered minus costs incurred |
| Exchange and transaction | Trading something of value for something else |
| Markets | Set of actual and potential buyers |
69.3 Evolution of the Marketing Concept
Five sequential philosophies of marketing evolved over the twentieth century (kotler2021?):
TipFive Marketing Philosophies
| Philosophy | Era | Working content |
|---|---|---|
| Production concept | Before 1930s | Focus on efficient production; “any colour as long as it’s black” — Henry Ford |
| Product concept | 1930s–40s | Focus on quality, features, performance |
| Selling concept | 1940s–50s | Focus on aggressive selling and promotion |
| Marketing concept | 1950s onwards | Focus on customer needs and integrated marketing |
| Societal marketing concept | 1970s onwards | Add society’s long-run welfare (sustainability, ethics) |
A holistic marketing concept (Kotler 2003) integrates four components: internal, integrated, performance and relationship marketing.
69.4 Selling vs Marketing
TipSelling vs Marketing
| Dimension | Selling | Marketing |
|---|---|---|
| Starting point | Existing product | Customer need |
| Focus | Pushing the product | Satisfying the customer |
| Time horizon | Short-term | Long-term |
| Goal | Volume | Profit through customer satisfaction |
| Methodology | Persuasion and pressure | Integrated marketing mix |
| End | Sale | Long-term relationship |
69.5 Marketing Mix — The 4 Ps and the 7 Ps
E. Jerome McCarthy (1960) classified marketing decisions into 4 Ps: Product, Price, Place, Promotion. Booms and Bitner (1981) added three for services: People, Process, Physical evidence — making the 7 Ps. The 4 Cs (Lauterborn 1990) re-frame the 4 Ps from the customer’s view: Customer solution, Customer cost, Convenience, Communication.
TipThe 7 Ps of the Marketing Mix
| P | Working content |
|---|---|
| Product | What is offered — features, quality, design, brand, packaging |
| Price | What customer pays — list price, discounts, terms |
| Place | Where and how the customer accesses — channels, location, logistics |
| Promotion | How the customer is reached and persuaded — advertising, PR, sales force, digital |
| People | Employees and customers themselves |
| Process | Service-delivery system |
| Physical evidence | Tangible cues — store ambiance, packaging |
69.6 Marketing Functions
TipMajor Functions of Marketing
| Function | Working content |
|---|---|
| Marketing research and analysis | Customer, competitor, trend |
| Product development | New products, modifications |
| Pricing | Price-setting and adjustment |
| Distribution | Channel selection, logistics |
| Promotion | Advertising, PR, personal selling, sales promotion, digital |
| Customer-relationship management | Acquisition, retention |
| Branding | Identity, positioning, equity |
69.7 Modern Marketing Approaches
TipModern Marketing Approaches
| Approach | Working content |
|---|---|
| Relationship marketing | Long-term customer relationships |
| CRM (Customer Relationship Management) | Tech-enabled relationship management |
| Social marketing | Behaviour change for social good |
| Green / Sustainable marketing | Environmental responsibility |
| Digital marketing | Online and mobile channels |
| Content marketing | Inbound, value-led content |
| Experiential marketing | Memorable customer experience |
| One-to-one / Mass-customisation | Tailored to individual customer |
| Permission marketing | Customer consent first (Seth Godin 1999) |
| Inbound marketing | Attract, not interrupt |
69.8 Marketing 1.0 to 5.0 — Kotler’s Evolution
Kotler outlined a generational progression:
TipMarketing 1.0 to 5.0
| Generation | Era | Focus |
|---|---|---|
| Marketing 1.0 | Industrial age | Product-centric; functional features |
| Marketing 2.0 | Information age | Customer-centric; satisfaction and emotional connection |
| Marketing 3.0 | Values-driven | Human-centric; values and spirituality |
| Marketing 4.0 | Digital age | Online + offline integration; participation |
| Marketing 5.0 | Technology for humanity | AI, IoT, AR/VR; serving people |
69.9 Importance of Marketing
TipWhy Marketing Matters
| Stakeholder | Why marketing matters |
|---|---|
| Firm | Revenue generation; competitive advantage |
| Customer | Greater choice, value, satisfaction |
| Society | Higher living standard; innovation; employment |
| Economy | Mass production, scale, efficient allocation |
69.10 Exam-Pattern MCQs
NoteEight-question set
Q1. “Marketing is meeting needs profitably.” This compact definition is attributed to:
A. Theodore Levitt B. Philip Kotler C. E. Jerome McCarthy D. Peter Drucker
Answer: B. Philip Kotler.
Q2. Match each marketing concept with its era:
| Concept | Era | ||
|---|---|---|---|
| (i) | Production | (a) | 1950s onwards |
| (ii) | Selling | (b) | Before 1930s |
| (iii) | Marketing | (c) | 1970s onwards |
| (iv) | Societal | (d) | 1940s–50s |
A. (i)-(b), (ii)-(d), (iii)-(a), (iv)-(c) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(c), (ii)-(a), (iii)-(d), (iv)-(b) D. (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
Answer: A.
Q3. McCarthy’s 4 Ps of marketing are:
A. Profit, Promotion, Price, Productivity B. Product, Price, Place, Promotion C. People, Process, Physical, Promotion D. Profit, People, Place, Performance
Answer: B. Product, Price, Place, Promotion.
Q4. Match each P with its working content:
| P | Content | ||
|---|---|---|---|
| (i) | Product | (a) | Channels, location, logistics |
| (ii) | Place | (b) | Service-delivery system |
| (iii) | Process | (c) | Features, quality, design, brand |
| (iv) | Physical evidence | (d) | Tangible cues — store ambiance, packaging |
A. (i)-(c), (ii)-(a), (iii)-(b), (iv)-(d) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(b), (ii)-(c), (iii)-(d), (iv)-(a) D. (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
Answer: A.
Q5. Which of the following is not a difference between selling and marketing?
A. Selling starts with the product; marketing starts with the customer B. Selling focuses on volume; marketing on profit through satisfaction C. Selling is long-term; marketing is short-term D. Selling pushes the product; marketing satisfies the customer
Answer: C. Selling is short-term; marketing is long-term.
Q6. Match each Kotler-marketing generation with its focus:
| Generation | Focus | ||
|---|---|---|---|
| (i) | Marketing 1.0 | (a) | Customer-centric satisfaction |
| (ii) | Marketing 2.0 | (b) | Human-centric values |
| (iii) | Marketing 3.0 | (c) | Product-centric features |
| (iv) | Marketing 4.0 | (d) | Online + offline integration |
A. (i)-(c), (ii)-(a), (iii)-(b), (iv)-(d) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(b), (ii)-(c), (iii)-(d), (iv)-(a) D. (i)-(d), (ii)-(a), (iii)-(c), (iv)-(b)
Answer: A.
Q7. Arrange the marketing philosophies in chronological order:
- Marketing concept
- Production concept
- Selling concept
- Societal marketing concept
A. (ii), (iii), (i), (iv) B. (i), (ii), (iii), (iv) C. (iv), (iii), (ii), (i) D. (iii), (i), (iv), (ii)
Answer: A. Production → Selling → Marketing → Societal.
Q8. Permission marketing — “marketing that asks for the customer’s consent first” — was popularised by:
A. Philip Kotler B. Theodore Levitt C. Seth Godin D. Peter Drucker
Answer: C. Seth Godin’s Permission Marketing (1999).
ImportantQuick recall
- Marketing — creating, communicating, delivering and exchanging value (AMA 2017). Kotler: “meeting needs profitably”.
- Core concepts: needs, wants, demand, offerings, value, exchange, markets.
- Five philosophies: Production → Product → Selling → Marketing → Societal.
- Selling (product-out, short-term, volume) vs Marketing (customer-in, long-term, profit through satisfaction).
- 4 Ps (McCarthy 1960): Product, Price, Place, Promotion. 7 Ps (Booms & Bitner 1981) add People, Process, Physical evidence. 4 Cs (Lauterborn 1990) re-frame 4 Ps from customer view.
- Modern approaches: Relationship, CRM, Social, Green, Digital, Content, Experiential, One-to-one, Permission, Inbound.
- Kotler’s marketing generations: 1.0 product → 2.0 customer → 3.0 values → 4.0 digital → 5.0 technology for humanity.
- Permission marketing — Seth Godin (1999).