MARKETING CONCEPTS

1

Course: MBA-ISubject: MARKETING MANAGEMENT - 1Unit: I

2

Production Concept

The philosophy that consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency.

3

Product Concept

The philosophy that consumers will favour products that offer the most quality, performance, and innovative features.

4

Selling Concept

The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.

5

Marketing Concept

The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

6

Societal Marketing Concept

The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being.

7

Factory Existing products

Selling and

promoting

Profits through sales volume

Starting point

Focus Means Ends

The selling concept

Market Customer needs

Integrated marketing

Profits through customer

satisfaction

The marketing concept

 The selling and Marketing Concepts Contrasted

8

Three Considerations Underlying The Societal Marketing

Societal marketing

concept

Society(Human welfare)

Company(Profits)

Consumers(Want satisfaction)

EVOLUTION OF MARKETING MANAGEMENT

Marketing management has evolved through following stages :

(1) Production Orientation Stage (2) Sales Orientation Stage (3) Marketing Orientation Stage (4) Social Responsibility & Human

Orientation Stage

COMPANY ORIENTATION FOR MARKETING ACTIVITIES

Marketing Management can be defined as the effort to achieve desired EXCHANGE outcomes with TARGET MARKETS.

Now the question arises : (1) What philosophy should guide the marketing activities? (2) What weights should be given to the interests of the organisation,the customers and the society?

MARKETING CONCEPTS

There are FIVE competing concepts under which organizations conduct their marketing activities:

The Production Concept The Product Concept The Selling Concept The Marketing Concept The Societal Marketing Concept

(1) THE PRODUCTION CONCEPT

Produce

Sell Consumers

Company

Produce more & more

Practically sells itself

THE PRODUCTION CONCEPT

Consumers will favour those products that are widely available and low in cost.

Therefore increase production and cut down costs.

And build profit through volume.

(2) THE PRODUCT CONCEPT

Produce Quality Products

SellConsumers

Practically sells itself,if it gives most quality for money

Buyers admire well-made products and can appraise product quality and performance.

THE PRODUCT CONCEPT

Consumers will favour those products that offer the most quality, performance, or innovative features.

Therefore, improve quality, performance and features.

This would lead to increased sales and profits.

(3) SELLING CONCEPT

Consumers have normal tendency to resist.

Produce

Sell it Consumers

Aggressive selling & promotion efforts

Making sales becomes primary function and consumer satisfaction secondary .

THE SELLING CONCEPT

Consumers , if left alone , will not buy enough of company’s products.

Therefore, promote sales aggressively.

And,build profit through quick turnover.

(4) MARKETING CONCEPT

“ LOVE THE CUSTOMER , NOT THE PRODUCT ”

ConsumersProduce it

Market it

Learn what they want(MR)

Sell what they want(Satisfy needs of customers)

THE MARKETING CONCEPT

The key to achieving organizational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

And build profit through customer satisfaction and loyalty.

(5) THE SOCIETAL MARKETING CONCEPT

It is Marketing Concept (+) Society’s well being.

Balancing of following three considerations while setting marketing policies : -Customer’s want satisfaction -Society’s well being -Company’s profits

THE SOCIETAL MARKETING CONCEPT

The societal marketing concept holds 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 a way that preserves or enhances the consumer’s and the society’s well being. - It addresses conflicts between consumer’s and firm’s short run wants and long term welfare.

SELLING AND MARKETING CONCEPT CONTRASTED

Starting point Focus Means EndsFactory Products Selling and

PromotingProfit throughSales Volume

Selling ConceptTarget Market Custome

r NeedsCoordinatedMarketing

Profit throughCustomerSatisfaction

Marketing Concept

REFERENCES & SOURCES

23

www.businessdictionary.com/definition/marketing-concept.html

PHILIP KOTLER (BOOK: MARKETING MANAGEMENT – CHAPTER-1)

web.nchu.edu.tw/pweb/users/amy/lesson/988.ppt