Marketing Concepts

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Company Orientation toward the Marketplace

1) Production Concept: This concept suggests that the consumers will like to buy the products which are available easily, cheaply & widely. So the marketers must have a mass production facility (efficient production) with low price (cost efficiency) and make it available very near to the customers (mass distribution).

Examples:
a) Ford Model T –By the end of 1913 Ford's application of the moving assembly line had improved the speed of chassis assembly from 12 hours and eight minutes to one hour and 33 minutes. Ford's cars came off the line in three minute intervals, much faster than previous methods, greatly reducing production time. In 1910 Ford produced more cars than all other automakers combined. The Model T was a great commercial success, Henry Ford's ideological approach to Model T design was one of getting it right and then keeping it the same. In fact, it was so successful that Ford did not purchase any advertising between 1917 and 1923; in total, more than 15 million Model Ts were manufactured, reaching a rate of 9,000 to 10,000 cars a day in 1925. b) Maruti Service Centre - These spread all over India providing easy accessibility to customers , which in turn boosts sales of the cars as customers would like to purchase a brand which has good and wide availability of service centers. Maruti Suzuki has 800-plus dealer workshops, 1,945 Maruti Authorized Service Stations and 30 Express Service Stations on 30 National Highways across 1,314 cities in India.

2) Product Concept: This concept proposes that consumers favor products that offer the best quality, performance or innovative features.

Examples:

a) Mercedes Benz: The cars from the Mercedes stable are perfect examples for “Product concept”. The focus is on providing best in class features. The product offers maximum luxury, comfort and also puts least impact on the environment. Mercedes continuously strive for improving the quality of their products and keeps on adding new and better features to their cars. b) Facebook: Facebook captured the market by product innovation. The online social networking market was dominated by Orkut when Facebook was launched in India. The web design added improved the total experience of social networking and made the web site dynamic when compared to its competitors. Features like gaming within the website gave additional motivation to log on to the website. 3) Selling Concept: is defined as “Management philosophy that if customers are left to themselves, they will not make the effort to buy the firm's products. Therefore, it dictates, the firm must be aggressive in pushing its sales”.

Examples:

a) Airtel Hello Tunes Service - Airtel introduced ‘Hello Tunes’ as a value added service . If the subscribers pay for this service then the boring ring of the phone when a caller calls is replaced by a chosen song. This is a classic example of selling concept as it does not improve call reception, or clarity and even the subscriber doesn’t get to listen to the songs and the customer doesn’t actually benefit much from the service, but the sales strategy has been designed so as to make the customer feel the need for it .Once the customer was lured in, the tariffs were presented4: Subscription: |

 | Monthly charges– Rs.30| |
 | 3 months Subscription – Rs.60| |
 | 6 months Subscription – Rs.120| |
 | 12 months Subscription – Rs.200| |

b) Sale of Bundled socks in Big Bazaar - Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very effectively used in the “Big Bazaar” hyper market. And none more common than in the sale of socks. The customer comes in looking for a particular type of socks and ends up in a situation where he/she has to choose all in a pack or none. Further, he/she does not want to go through the effort of going to another shop...
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