Concept Comparison: Product vs. Selling, Marketing vs. Relationship Marketing

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QUESTION : Compare and contrast the following a) Product concept and selling concept [12 marks]
b) Marketing concept and relationship marketing concept. [13 marks]

(a)The product philosophy believes in improving the physical attributes of the product .these include the quality, appearance and performance. The selling philosophy believes that the use of large scale selling and promotion in order to encourage product acceptance in the market. The similarities and differences between the product philosophy and selling philosophy are shown by the table below. Product philosophySelling philosophy

Product orientedVolume oriented
Large scale productionMass production
Product sells itself due to its high end features and qualityProduct is misrepresented •Product is expensiveProduct is affordable
Inward-outward perspective of the marketInward-outward perspective of the market •Demand depends on the productDemand varies with product •Costs are very high due to the improvement of goodsHigh costs and promotion •Customers always come secondCustomers needs and satisfaction is secondary •Benefits sell and are short term sales.Benefits sell and sales are short term •Oligopoly environmentPerfect market environment

Risks of failure due marketing myopiaMarketing myopia leads to failure of product •Company reputation is tarnishedReputation of company is tarnished Examples: banking sector, cosmetic sector, airline services, automotive industries and petroleum markets.Examples :Ecocash, insurance companies, encyclopedias, political parties

Product philosophy holds that consumers will favor products that offer the most quality, performance and innovative features. It is product oriented and believes that in improving the physical attributes of the product assuming that through this way the market will readily accept the product, regardless of customer satisfaction. Selling philosophy is where the customer will not buy enough of the organization product unless it undertakes a large scale selling and promotion. There is the use of aggressive marketing in order to encourage product acceptance to customers. This philosophy is based on the assumption that the more product, the higher the sales, thus there is a misrepresentation of the product, and customer dissatisfaction.

The product philosophy emphasizes on the quality of the product by adding more features so that it can be the best quality thus making it sellable to customers. They believe that a product sells itself because of its features. Prices of product are usually high due to all the added features and high level of technology used to create it. However, the selling philosophy is practiced when the company has overcapacity therefore there is large scale selling and promotion of the existing product and profits are gained through the volume of sales made. The product is misrepresented because of its production being in big volumes. Products in the selling concept are usually affordable because they are sold in bulk.

The product philosophy has an inward-outward perspective of the market thus customer needs and wants are not met. The demand of the product can vary from low to high depending on how the customers accept it. Selling philosophy also has an inward- outward perceptive of the market thus making customer dissatisfaction. The demand of the product also varies from low to high depending on how the customers accept it. Failure of customer acceptance of the product leads to failure of the company.

In the product philosophy, high costs are incurred due to all the improvements and promotions made to the product. Customers’ needs and wants are secondary so there is a high risk of failure. They spend too much time focusing on the product instead of thinking about what the customer wants. Also in the selling philosophy, customer consideration is secondary and customers do not buy...
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