The different marketing concepts or orientations
Published by admin on November 14th, 2007 | Tagged Advertising and Marketing, Business, Corporate Social Responsibilities, Management
What does marketing mean to you and which concept do you believe in?
I can recall the following marketing concepts:
1.The selling concept
What is the selling concept?
According to this concept the company’s entire focus is on selling and hence making a lot of sales.The selling effort is backed by serious promotional activities and aggressive advertising.The company does not bother about the market demand,they just want to sell what they produce.
When is the selling concept adopted? This concept is practiced when the firm is into the business making products which the consumers do not know much about.We call these unsought goods.The consumers do not consider or think about buying such products.A good example of such products is:Insurance Policies
Important Fact: This is adopted when the firm faces something which we call over capacity
I do not believe in the selling concept as it is important for the firms to think about the long term relations with the customers rather than making sales.In the selling concept marketing begins after the product has been made.
Marketing should start with identifying the market needs,this means that marketing is something that should begin before the product is made.Customer satisfaction and long term profitable relations are more important.
2.The product and production concept
According to this concept,people like products which are very good in terms of performance and quality.The company aims at making a continuous effort towards product improvement and innovation.
Here the firm may face problems when substitute products are available.It happens many times that firms fail to predict the future take into account the challenge of substitutes.For example: consumers may prefer airplanes rather than trains or modern digital cameras instead of the non digital camera using film.
The company following the production concept believes in the fact that it should produce goods efficiently and try to bring down the prices so that products become affordable.The firm undertakes mass production and makes an effort to improve the distribution.
Important fact: This happens when the demand is more than the supply
The managers may become narrow in their thinking and forget about customer satisfaction.Later they may realize that there is a need to redefine the marketing objectives and plans.Also,the quality may become an issue if it begins to decline.
3.The Marketing concept
The marketing concept is concerned with first identifying the consumer needs and then making products that give maximum customer satisfaction.
Marketing starts before the product,service or solution is ready and continues even after the sale has been made.
The firm here aims to make products and provide services better than the competitors.
Here the company makes sincere efforts towards retaining the customers and also attracting new ones.
If the customers are satisfied with the product they will buy it again and again and tell other people about it also.
If the product turns out to be better than what they had expected,the consumers will be really impressed and this will prove to be very beneficial in the long run.For Eg.Good Customer loyalty
This means that the firm should focus on the customer centered approach and make profits through customer satisfaction.
Companies like Dell and Wal-mart have had had great success by following the Marketing concept.
4.The Societal concept
The Societal concept seems to be the best marketing concept as this gives importance to the society’s well being, interests and welfare.
Societal concept focuses on consumer needs and wants,profits and also the social welfare.This helps in improving the image of the company.
Here the firms are concerned with social issues like: Environmental problems and pollution caused by the waste material,health problems caused by fast food etc.
Example:Company known for following the Societal concept: Johnson & Johnson
What are your views?