Marketing Concepts

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Marketing may be defined as a societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

There are four competing concepts under which organizations conduct marketing activities. They are:

1] Production concept: this concept holds that consumers will prefer products that are widely available and inexpensive. For example,
• Companies involved in the manufacture of candies like alpenlibe, (kachha mango ka bite, éclairs, candyman etc) carry out production on a large scale. They assume that the customers are primarily interested in product availability and low prices. These products are cheap i.e. they cost a rupee or less than that and are widely available. So the company here reduces its cost of production by carrying out production in bulk. Here the needs of the customer are not considered and the customer is assumed buy these products.

2] Product concept: this concept holds that consumers will favor those products that offer the most quality, performance or innovation features. Examples:
• Apple iphone introduced by the Apple computers is a good example of product concept. It’s a phone, an iPod, and an Internet device in one. It gives you access to thousands of applications. And it’s built on technology that’s years ahead of its time. The company focused on making superior products and then improving them. • Dell has introduced a lot of laptop models like inspiron mini laptop, studio laptop, studio XP2 gaming laptop, adamo etc. All these models are available in variety of colors and sizes as desired by the consumers.

So the consumers here favor the quality and innovative features of the product.

3] Selling concept: this concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations product and therefore undertake an aggressive selling and promotion effort....
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