MARKETING CONCEPTS
MARKETING CONCEPTS
The term concept
means the idea, notion, theory, perception, thought etc. about something. Thus
marketing concept is the idea, thought, notion or perception about marketing.
For example
One says: –
‘the marketing is not a problem. If we are ready to sell product at cheap rate,
it is easy to sell anything.’
Another one
says: - ‘price is not a problem for the customers. If the product is of good quality,
we can sell it at any price.’
Third one says:
- ‘In order to sell product, we must know how to sell it. It is the marketing
efforts that play the key role. The marketer should know how to sell it’.
You may
have your own opinions. We can call these opinions as the ideas or concepts
about marketing. Such ideas or thoughts on marketing are called Marketing
Concepts. In all concepts, an attempt is done to analyse customer needs and
requirements. Thus, marketing concepts explain the ways to attract customers
and to maximise profitability of the business.
Marketing
concept is the philosophy, used by the business to identify and fulfil the
needs of its customers. Therefore, marketing concept is also called Marketing
Management Philosophy.
There are
five core marketing concepts which are widely accepted. They are:
Production
concept, Product concept, Selling concept, Marketing concept and Societal
marketing concept.
Production
Concept
Production
concept believes that the customers buy goods which are low priced and easily
available. That means, consumers prefer products that are widely available and
inexpensive. Thus, the focus of the production concept is on quantity and
availability, not on the quality of the products. The companies which follow
this concept, focus on the production, and they produce in large scale and
distribute products widely.
The
production concept is one of the earliest marketing concepts. In early days,
the sellers were controlling the market. In those days, the demand was always
higher than supply. Therefore, the production concept was accepted widely.
Product
Concept
Product
concept says that, consumers favour products that offer the most quality,
performance, and innovative features. This concept believes in quality and
therefore price and availability have no role. The companies which follow
product concept develop products with greater quality.
Selling
Concept
As the name
implies the idea of selling concept is to sell products through large scale
marketing and promotional activities. It believes in aggressive selling strategies.
This concept argues that, customers would buy a company’s products only if the
company use aggressive selling practices. Here the focus is on selling the
product at any way. Quality of the product or the needs of the customers are
not relevant under this concept.
Marketing
Concept
The
marketing concept is customer-oriented. It puts customers in the middle of
marketing process. This concept is of the view that the marketers should
develop products according to the needs and requirements of the customers. All
activities under this concept are geared towards the customer satisfaction. The
companies which follow the marketing concept, try to find out customers’ needs
and wants, then satisfy those needs better than the competitors.
Societal
Marketing Concept
Societal
marketing concept is the modern concept. The idea of the societal marketing
concept is based on the welfare of the whole society. Hence, the marketers
should produce and sell products which can ensure well-being of people.
The purpose
and aim of the societal marketing concept are to make companies realize that
they have a social and environmental responsibility, and that’s much bigger
than their short term sales and profit goals. The societal marketing concept urges
marketers to build social and ethical considerations into their marketing
practices.
How did the
Marketing Concepts Emerged?
Marketing
concepts have emerged because of the environmental influences. In the early
periods, the production was very low and therefore availability of products was
limited. People were struggling due to poverty. The production concept was
emerged at that time. Manufacturing as many products as possible was the
policy of business at that time.
Later, due
to industrialisation, many production units were established and there happened
the abundance of supply. Then the people became selective as they got many
products to select from. Thus they began to demand goods with higher quality.
It was the beginning of product concept. Under product concept, the business
concentrated on quality.
And what
happened thereafter? A number of production units started to produce different
varieties of products and it led to competition in the market. Thus, they
started to advertise products to get market for their products. Some units
started some other sales promotional strategies. Thus, the selling concept
generated.
Up to this
stage, the business units were the decision makers in the market. The markets
were known as Seller’s Market during these times. But this scenario
changed later. People became aware of their rights and a number of consumer
organisations were formed. Such changes in the business environment compelled
marketers to change their marketing strategies. Thus the market concept
emerged. Under this concept, customer is the king, and the manufacturers
produce goods in order to satisfy customers.
Now the situation
has changed again. There is a feeling among customers that the business units
exploit people in their attempts to maximise profits. Moreover, the business
exploit the nature and its resources while they try to grow and develop.
Therefore, the conclusion is this – the business has responsibility to protect
society and environment. They should spend a part of their profit towards the
welfare of society and environment. The societal marketing concept was emerged
on the basis of this view. A new term CSR- corporate social responsibility –
has been become part and the duty of every business. No business can survive in
the modern age without the support of nature and people.
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