Marketing Concepts

Marketing Concepts: Principles of Marketing

Marketing philosophies, also known as marketing concepts, under which the business enterprises conduct their marketing activity. They guide the organization’s approach to satisfying the customer needs. Over time, 5 main marketing philosophies have evolved which are:

Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Concept

Production Concept

This concept states that the customer will be inclined towards the product which is easily available at an affordable price. So basically this deals with the production of the product. The production concept emphasizes high production efficiency, low costs, and mass distribution. It is most effective in markets where demand exceeds supply. This kind of strategy is mostly viable for the companies looking to take the benefit of economy of scale and aiming for expansion in the market. The best example of this strategy is seen during the Industrial Revolution in Europe, when the cheap machine produced textile flooded the market and everyone could afford buying the clothes.

Product Concept

The product concept asserts that consumers will favor products that offer the most quality, performance, and innovative features. Companies adopting this philosophy focus on making superior products and improving them over time. It is also called Technology Push Method wherein the companies do the intense Research and Development to bring the new features and innovations for the customers. However this can also leads to a problem generally referred to as the Marketing myopia. Marketing myopia refers to a condition where the companies keeps on launching the new products and features without focusing on the needs of customers and market trends. The best example is the iPhone from Apple which simplified and changed the way people used the phones. iPhones have easy interface and regular addition of innovative technologies.

Selling Concept

The selling concept is based on the idea that consumers will not buy enough of the company’s products unless it undertakes a large-scale selling and promotion effort. The customers are very choosy and demanding when buying a product. The organizations need to take the help of selling and promotion of their products and services to gain attention of the customers. The organizations can change this attention into final buying through persuasion and selling actions. This approach is often used for unsought goods—products that consumers do not think about frequently or are reluctant to buy, such as insurance, vacuum cleaners, etc.

Marketing Concept

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. This philosophy is customer-centric and integrates all activities of the organization to achieve long-term customer satisfaction. The marketing concept shifts the focus from finding the right customers for a product to finding the right products for the customers.

Societal Concept

The societal marketing concept extends the marketing concept by emphasizing social responsibility and the importance of considering society’s long-term interests. This philosophy suggests that companies should deliver value to customers in a way that maintains or improves both the customer’s and society’s well-being. It acknowledges that businesses must balance profitability, customer satisfaction, and societal welfare. The goals of profit maximization should match with the goals of customer satisfaction
and responsible corporate citizenship. For example, you might have heared of Mamaearth planting trees for every purchase, Dabur Amla supporting child’s education with every purchase, BCCI distributing cricket kits with every century of runs and many more.

Principles of Marketing Management

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