Assignment on concepts of marketing

Marketing Concept

Marketing activities should be carried out under a well-thought-philosophy of efficiency, effectiveness and social responsibility. Marketing concept or philosophy means that what will be the organization‘s philosophy to produce and distribute their products or services among the customer effectively and efficiently.

 However, there are six philosophies or concepts of marketing. These are mentioned bellow-

• The Production Concept.
• The Product Concept.
• The Selling Concept.
• The Marketing Concept.
• The Customer Concept.
• The Societal Marketing Concept.

The Production Concept

The production concept is one of the oldest concept s in business. The production concept says that consumers will prefer those products that are widely available and highly affordable. Managers of production oriented should concentrate on achieving high production efficiency, low costs and mass distribution. They assume that consumers are primary interested on the availability and low prices of the product. It is also use when the company tries to expand its market.

Example: Intel follows the production concept. They produce and distribu8te their microprocessor according to this concept.

The Product Concept

The product concept holds that the consumers will favor that product that offers the most quality, performances and innovative features. Managers in these organizations focus on making superior products and improving over time. They assume that the buyers admire well-made products and can evaluate the quality and performance.

Example: Mercedes Benz and Roles Royce they always trying to improve their product’s quality they believes that the quality of the product should be first whatever the price is.

The Selling Concept

The selling concept holds that consumers and business, if left alone, will ordinarily not buy enough of the organization’s products. The organization must, therefore undertake an aggressive selling and promotion effort. This concept assumes that the company has a whole battery of effective selling and promotion tools to stimulate more buying.

Example: Political parties, Insurance companies and so also real state business companies.

The Marketing Concept

The marketing concept says that the organization should determine the needs and wants of the target markets and deliver the desired satisfaction more effectively and efficiently than the competitors do.

The marketing concept rests on four pillars-

1. Target Market
2. Customer Needs
3. Integrated Marketing
4. Profitability

 Example: United airlines follow the customer concept to run their organization. They said that “You are the Boss”

 The Customer Concept

The customer means that the organization should focus on individual customer needs and wants to achieve profitable growth through capturing customer share, loyalty and lifetime value.

Example: Bank like “Standard Chartered.”

The Societal Marketing Concept

The societal marketing tells that the organization’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in the way that preserves or enhances the customer’s well-being.

The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction and public interest.

Example: British America Tobacco

 Short run Marketing

 Among all the six concepts of marketing the easier concept to adopt in short run is the selling concept.

 The selling concept is practiced most aggressively with unsought goods, goods that buyers do not think of buying, such as insurance, funeral plots etc. These industries have practiced various sales techniques to locate prospects and hard sell them on their products benefits.

Most organization practice selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. In most modern industrial economics, productivity capacity has been built up to a point where the most markets are buyer markets (the buyers are dominant) and sellers have to scramble for customer.

The selling concept does not consider what the customer wants, what is the quality of the product. They believe in push selling. They believe customer will buy the product if they always pushed to buy it.

Marketing based on hard selling or selling through pushing customer carries high risks. It assumes in selling concept that customer who are coaxed into buying a product will like it; and that if they do not, the y will not bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again. These are indefensible assumptions.

Study showed that dissatisfied customers may bad-mouth the product to ten or more acquaintances; and today bad news travels faster and further with the internet.

So these are the reason for why selling concept for short term. It will be so tough to push sell a product for a long period in the time of communications supper highway.

Long run Marketing

Selling concept is appropriate for short run and rest five concept of marketing are some how suitable for long run marketing. But in the question of best it is clear that the societal marketing concept is the best among all the concept of marketing.

The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction and public interest.

So the consumers are getting the most priority and so also the environment and in the total the social welfare and wellbeing of people. What the consumers will do they will be interested about those organization who’s are environment friendly and so also providing the highest quality in a reasonable price.

This concepts call upon the marketers to balance three considerations.

1. Company profits
2. Consumer wants satisfaction
3. The public interests.

In the societal marketing concept the organization is always trying to do some extra for the customer and trying to build a relationship. This will help the organization to run the business for the long time. Because by doing some extra for the consumers they are creating a good impact into the consumers mind so obviously it will bring good result for the organization in future. This is why the societal marketing concept is best for long run.