Marketing Concepts
Assignment 1!
Page 1
Wayne Said, Group 3
Marketing
4 December 2007
How does the marketing concept differ from the selling concept, the product and production philosophies ?
Illustrate the potential perils faced by companies adopting these concepts in todays highly complex and competitive environment and outline which orientations are recommended in a buyer 's market ?
The Marketing Concept is a philosophy that says that firms should analyze the needs of their customers and then make decisions to satisfy those needs in a way that is better then the competition. In 1776 in
The Wealth of Nations, Adam Smith wrote that the needs of producers should only be considered in meeting the needs of consumers. This philosophy is directly related with the marketing concept, only that it started to be used widely not less than 200 years later. This concept brought with it more intense competition and technological advancement around the 1960s. Normally it is used in a buyer’s market where the buyer ‘wants to buy’ something and different firms try to satisfy that want in the best way they can. An example of a company that uses this orientation is Apple Inc. They know that the consumers want portable music and video, and they want it in the most sleek, elegant and most easy to use device they can find, at an affordable price. With regard to this, Apple created the iPod range, which varies in price, size, and function with which they managed to gain 70% market share in the US. They also recently released the iPhone which satisfies those consumers that want a phone, camera, portable media, and wireless web surfing in one device.
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Assignment 1!
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Page 2
The Sales Concept (aka. the Selling Concept) on the other hand is used when companies do not
only want to produce the product, but they also want it to reach the customers and convince them to buy it by means of personal selling and advertising. Before they actually make the product, these
Page 1
Wayne Said, Group 3
Marketing
4 December 2007
How does the marketing concept differ from the selling concept, the product and production philosophies ?
Illustrate the potential perils faced by companies adopting these concepts in todays highly complex and competitive environment and outline which orientations are recommended in a buyer 's market ?
The Marketing Concept is a philosophy that says that firms should analyze the needs of their customers and then make decisions to satisfy those needs in a way that is better then the competition. In 1776 in
The Wealth of Nations, Adam Smith wrote that the needs of producers should only be considered in meeting the needs of consumers. This philosophy is directly related with the marketing concept, only that it started to be used widely not less than 200 years later. This concept brought with it more intense competition and technological advancement around the 1960s. Normally it is used in a buyer’s market where the buyer ‘wants to buy’ something and different firms try to satisfy that want in the best way they can. An example of a company that uses this orientation is Apple Inc. They know that the consumers want portable music and video, and they want it in the most sleek, elegant and most easy to use device they can find, at an affordable price. With regard to this, Apple created the iPod range, which varies in price, size, and function with which they managed to gain 70% market share in the US. They also recently released the iPhone which satisfies those consumers that want a phone, camera, portable media, and wireless web surfing in one device.
!
Assignment 1!
!
Page 2
The Sales Concept (aka. the Selling Concept) on the other hand is used when companies do not
only want to produce the product, but they also want it to reach the customers and convince them to buy it by means of personal selling and advertising. Before they actually make the product, these
Bibliography: http://en.wikipedia.org/wiki/Marketing http://www.netmba.com/marketing/concept/ http://www.tutor2u.net/business/marketing/marketing_orientation_alternatives.asp Marketing Advanced Lecture Topic 1 - Mr. Theresa Hoban