LIST OF SIX MARKETING CONCEPTS
Following are the six concepts of marketing
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concept
• Holistic marketing concept
THE PRODUCTION CONCEPT:
DEFINITION BY KOTLER:
“It is the idea that customers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.”
This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are more interested in product availability and low prices. This concept makes sense in developing countries, where consumers are more interested in obtaining the product than in its features. This happens when the demand is more than the supply.
Computer maker Lenovo dominates the highly competitive, price sensitive Chinese PC market through low labor costs, high production efficiency and mass distribution.
THE PRODUCT CONCEPT:
DEFINITION BY KOTLER:
“The idea that consumers will favor products that offer the most quality, performance and features and that the organization should therefore devote its energy to making its continuous product improvements.”
This is the next step of evolution of marketing concepts. It depicts that customers will go for those products which offer quality, utility, features, performance, value, benefits, etc. So the marketers must improve the products in an innovative way & continuously. This is more often accompanied by a suitable pricing, distribution, promotion (all the 4Ps of marketing) program.
Consumers may prefer airplanes rather than trains or modern digital cameras instead of the non digital camera using film.
THE SELLING CONCEPT:
“This is the idea that the consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion efforts.”
This concept involves aggressive selling and promotional effort. “The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit”. This kind of marketing is practiced for goods & services which buyers normally don’t like to buy, like insurance, dictionaries, encyclopedia, etc. The aim of the marketers is to sell what they produce, rather than make what the market wants.
The selling concept is practiced with unsought goods, those that buyers do not normally think of buying, such as insurance or blood donations.
THE MARKETING CONCEPT:
“The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.”
This concept was evolved in the 1950s, and for the first time the attention was shifted to Customers. Instead of concentrating on the Products / Production / Selling, the business became "Customer Oriented". Instead of finding the right customer for the product, the marketer now has to find the right product for the customer. Under this concept, customer focus and value are the paths to sales and profits.
Today almost every company is following the marketing concept to better satisfy the customer and to increase its profitability. We can take an example of Head and Shoulders shampoo. It first came in a standard packing and formula. However, with the passage of time the company realized the needs of the consumers and modified their product and brought in variety in their shampoo line.
THE SOCIETAL MARKETING CONCEPT
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