Bb0001 - Q.2 Explain the Marketing Concepts with Its Relevance in Today’s Marketing Environment.

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BB0001 - Q.2 Explain the marketing concepts with its relevance in today’s marketing environment. Answer:
Marketing Concepts :
Studies reveal that different organisations have different perceptions of marketing. And these differing perceptions have led to the formation of different concepts of marketing such as 1. The Exchange Concept

2. The Production Concept
3. The Product Concept
4. The Selling Concept
5. The Marketing Concept
6. The Societal Marketing Concept.
1. The Exchange Concept : The exchange concept of marketing, as the very name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing. While exchange does form a significant part of marketing, to view marketing as a mere exchange process would amount to a gross undermining of the essence of marketing. A proper scrutiny of the marketing process would readily reveal that marketing is much broader than exchange. Exchange covers the distribution aspect and the price mechanism involved in marketing. The other important aspects of marketing, such as concern for the customer, generation of value satisfactions, creative selling and integrated action for serving the customer, get completely overshadowed in the exchange concept of marketing. 2. The Production Concept: This philosophy holds that customers favour those products with low offered price and easily available products. Thus this concept holds that high production efficiency and wide distribution coverage would sell the product offered to the market. Organisations voting for this concept are impelled by a drive to produce all that they can. Naturally they get focussed on production and put all their efforts toward that aspect of the organisation. They do achieve efficiency in production. But their thinking is guided by the assumption that the steep decline in unit costs arising from the maximisation of output would automatically bring them all the customers and all the profits that they need. But, they do not get the best of customer patronage. Customers, after all, are motivated by a variety of considerations in their purchases. As a result, the production concept fails to serve as the right marketing philosophy for the enterprise. Production concept is applicable in situations where demand exceeds supply. 3. The Product Concept: This philosophy holds that customer favours quality, performance, innovative features etc. The buyer will admire such products. Therefore firms following this philosophy believe that by making superior products and improving their quality overtime, they will be able to attract customers. The product concept is somewhat different from the production concept. Whereas the production concept seeks to win markets and profits via high volume of production and low unit costs, the product concept seeks to achieve the same result via product excellence – improved products, new products and ideally designed and engineered products. It also places the emphasis on quality assurance. They spend considerable energy, time and money on research and development and bring in a variety of new products. Organisations which follows this concept concentrate on achieving product excellence. They do not bother to study the market and the consumer in depth. They get totally engrossed with the product and almost forget the consumer for whom the product is actually made. They fail to find out what the consumers actually need and what they would gladly accept. When organisations fall in love with the product it leads to marketing Myopia because the focus is on the product rather than on the customer needs. Marketing Myopia

The term ?Marketing Myopia‘ is to be credited to Prof. Theodore Levitt. It means a coloured or crooked perception of marketing and a short sightedness about business executive attention to production or product or selling aspect at the cost of the customer and his actual needs, creates this myopia. It leads to a wrong or...
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