Explain The 5 Marketing concepts
Firms and businesses, approach and conduct business in different ways in order to achieve their organizational goals. There are five competing concepts by which firms and business are guided in their marketing effort.
The first three concepts production, product and selling, focus all on the product. The last two concepts marketing and societal marketing, focus on the customer. However, the commonality in all five philosophies is that they all have the same goal which is organizational profit. The choice as to which concept or philosophy to adopt depends on the circumstances of the situation
The first concept, the production concept, is the philosophy that consumers will favour products that are available and highly affordable. This philosophy states that any amount of goods produced will sell if it is available and affordable to customers. When firms adopt this concept, generally they produce goods on a mass production level, to be able to produce large quantities, therefore make it more available; investing in technology is essential, to reduce the costs of production and make it more affordable. In such case the management is required to focus mostly on improving the production and distribution of a particular product.
The production concept can be an appropriate philosophy in two types of situations: The first one is where the demand for a product exceeds the supply. Here the management should concentrate on finding ways to increase production. The second situation is where the product's cost is too high and therefore improved productivity is needed to bring it down.
A disadvantage of the production concept, is that firms which employ this concept risk to lose sight of what the customers really want.
The product concept holds that consumers will favor those products that offer the most quality, performance, and features, and therefore the organization should devote its energy to making continuous product improvements. Firms adapting this concept believe
The first three concepts production, product and selling, focus all on the product. The last two concepts marketing and societal marketing, focus on the customer. However, the commonality in all five philosophies is that they all have the same goal which is organizational profit. The choice as to which concept or philosophy to adopt depends on the circumstances of the situation
The first concept, the production concept, is the philosophy that consumers will favour products that are available and highly affordable. This philosophy states that any amount of goods produced will sell if it is available and affordable to customers. When firms adopt this concept, generally they produce goods on a mass production level, to be able to produce large quantities, therefore make it more available; investing in technology is essential, to reduce the costs of production and make it more affordable. In such case the management is required to focus mostly on improving the production and distribution of a particular product.
The production concept can be an appropriate philosophy in two types of situations: The first one is where the demand for a product exceeds the supply. Here the management should concentrate on finding ways to increase production. The second situation is where the product's cost is too high and therefore improved productivity is needed to bring it down.
A disadvantage of the production concept, is that firms which employ this concept risk to lose sight of what the customers really want.
The product concept holds that consumers will favor those products that offer the most quality, performance, and features, and therefore the organization should devote its energy to making continuous product improvements. Firms adapting this concept believe