Principles of Marketing
Assignment 1- Essay
Ashraf U Bhuiyan
Afif Abdul Fattah
In the modern world, marketers want to build a customer driven marketing strategy for creating lasting customer relationships. To do this, they can use one of the five marketing management philosophies- production, product, selling, marketing and societal marketing concept. The appropriateness of these philosophies depends on the nature of the business and target market. Now we will discuss each of these philosophies for a particular product and compare them. The product is Prius, a hybrid car built by Toyota Motor Corporation.
Marketing management Philosophies:
( Production Concept: Companies following production concept believes that it should produce goods efficiently and try to bring down prices so that products become affordable. This concept is useful where the demand is more than supply. Toyota can use production concept in the marketing of Prius, if their target market belongs to any third world country, where people are more interested in obtaining products than its features.
( Product Concept: According to product concept, people like products which are very good in terms of performance and quality. Toyota can adopt product concept if their target customers are often judge products before buying.
( Selling Concept: According to selling concept, company’s entire focus is on selling and hence making a lot of sales. The selling effort is backed by serious promotional activities and aggressive advertising. Toyota can use selling concept in the marketing of Prius, if they have overcapacity.
( Marketing concept: The marketing concept is concerned with identifying customer needs and delivering products that give greater customer satisfaction than the competitors do. Marketing concept believes in “gardening” instead of “hunting”. Marketing concept rests on four pillars- target market, customer needs, integrated marketing and profitability. If Prius’s target market belongs to any North American country, Toyota should use marketing concept, because customers are more conscious about buying products there.
( Societal Marketing Concept: Societal marketing concept holds that organizations should not develop marketing strategy by only keeping customer needs in mind but also consider the well-being and betterment of society. Toyota can use societal marketing concept to reduce carbon emission from the earth by Prius.
Contrast and Compare:
( Production Concept vs. Product Concept:
Production Concept is more appropriate when company makes products for masses not for any specific or niche market. But Prius is not that kind of product. A particular group of buyers may be attracted by Prius. Toyota can attract them by improving different features of Prius rather than produce them in a large quantity. From this perspective, product concept seems better than production concept in the marketing of Prius.
( Production Concept vs. Selling Concept:
The problem about selling concept is that, company doesn’t bother about the market demand; they just want to sell what they produce. If Toyota use selling concept they can suffer in long run, because they are focusing on sales transactions rather than building long term profitable customer relationships. On the other hand production concept can meet some demands of the customers like low price. Form this point of view, production concept serves better than selling concept.
( Production Concept vs. Marketing Concept:
Marketing concept is more appropriate than the production concept in the context of Prius. Because in the production concept, Toyota may not try to satisfy all needs of the Prius’s customers. But in marketing concept, Toyota’s primary concern should be to satisfy customer needs better than the competitors. Production concept may not always helpful to build profitable customer relationships but...