Marketing concept is a strategy or an approach adapted by the firms to satisfy needs, promote sales, maximize profit or lead the market. Marketing concepts also reflect the developments in the marketing approaches across time. There are five marketing concepts evident in the marketing:
- The Production Concept
- The Product Concept
- The Selling Concept
- The Marketing Concept
- The Societal Marketing Concept
The Production Concept
The Production Concept is among the oldest Marketing management orientations. Production Concept suggests that customers will prefer products that are readily available and are highly affordable. The main focus is on production i.e. maximize the production.The manufacturers in this concept believe that supply will create the demand and economies of scale will lead the supply. Improving production & other operations and making distribution channels efficient are prime objectives of the management . The ‘price’ factor is very crucial to the customers.
Another concept we must learn in production is marketing myopia. It means that every resource in Production Concept is employed in making operations efficient that one might lose sight of the real objective of business operation i.e. satisfying customer needs and building customer relationships.
Features of Production Concept
- Production oriented
- High Production efficiency
- Wide Distribution
- Low Price
The Product Concept
In the product concept, the focus is more on the product i.e. consumers will prefer the products which will provide the quality ,performance and innovative solutions. Management focuses more on product development and product improvement. Customers are also selective while making purchasing decisions i.e. they buy the goods of the competing brands comparing the features. The ultimate goal of the product concept is to earn maximum profit by increasing production of high quality goods of low price using high efficiency and selling them in mass quantity.
There is a marketing myopia in the product concept i.e. companies are so into product development and product improvement that buyers desire might get overshadowed. In this concept, the manufacturers are more into innovation and technological development on product. Apple and Google are two companies that are operating under Product concept.
Features of Product Concept
- Emphasis of Product Quality
- Reasonable Price
- No concern with customers’ need
- Regular quality improvement
The Selling Concept
The Selling concept of marketing focuses attention on the seller and distribution channel than the consumers. The main focus in selling concepts is to increase sales volume and earn profit using various promotional and advertising activities.
The selling concept is typically practised with unsought goods- those that buyers do not normally think of buying, such as insurance. Selling concept is still prevailing in the market. It focuses more on selling the product at any cost and pushes the supply factors despite the demand. The companies sell what they make to customers rather than making what customers want.
Features of Selling Concept
- Selling – orientation
- Aggressive Selling and Promotion
- No Concern with consumers’ needs
- Customer Persuasion
The Marketing Concept
In previous concepts, the more focus was given to the product and production channel than customers. The marketing concept is consumer centered i.e. sense-and-respond . The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Marketing concept considers outside-in perspective i.e. the need and demand for the product is inspired from the consumer. Firms analyze the needs of the consumer and make decisions to satisfy those needs. The marketing concept starts with a well-defined market, focuses on consumer needs, and integrates all the marketing activities that affect the customers.
Features of Selling Concept
- Customer Orientation
- Integrated Marketing
- Customer Satisfaction
- Realization of organizational goals
- Profit creation
The Societal Marketing Concept
The societal marketing concept is a more welfare focused form of marketing. It emphasizes sustainability – socially and environmentally responsible marketing that meets the present needs of consumers and business while also preserving or enhancing the ability of future generations to meet the needs.
More and more companies have adapted to societal marketing concepts i.e. considering consumers’ needs and welfare of the society. A growing number of companies known for their hard core approaches to business such as GE, Google, IBM, Intel, Nestle, Unilever and Walmart-they are concerned not just with short-term economic gains but also with the well-being of their customers, the depletion of natural resources vital to the business. Some of the factors which firms consider apart from satisfying customers are environmental degradation, increasing pollution, resource depletion, worldwide inflation, population explosion, consumerism etc.
Features of Societal Marketing Concept
- Social responsibility orientation
- Customer need satisfaction
- Integrated marketing efforts
- Profit through social well-being and consumers welfare