Marketing management is the conscious effort to achieve desired exchange outcomes with target market. But what philosophy should guide a company’s marketing efforts ? What relative weights should be given to the interests of the organization, the customers and society ? So, marketing activities should be carried out under a well thought philosophy of efficiency, low cost and mass distribution. There are five competing concepts under which organizations conduct marketing activities. These are discussed below.
1. Production concept :
The production concept is one of the oldest concept in business. The production
concept holds that consumers will prefer products that are widely available and
inexpensive. Managers of production oriented businesses concentrate on
achieving high production efficiency, low costs and mass distribution. They
assume that consumers are primarily interested in product availability and low
prices. This concept hugely used in the developing countries. It is also used
when a company wants to expand the market.
2. Product concept :
The product concept holds that consumers will favour those products that offer
the most quality, preference or innovative features. In this concept price of
the product is not an important factor. Managers in these organization focus on
making superior products and improving them over time. They assume that buyers
admire well made products and can appraise quality and preference. Company
first try to produce a better quality product with the help of their engineers
but they do not consider the needs and wants of the consumer. Here company
think that if they are able to product a better quality product then they can
sell it easily in the market.
3. Selling concept :
The selling concept holds that normally consumers are not interest to buy
enough of the company’s product, until they are forced. The company must
therefore, undertake an aggressive selling and promotional effort. This concept
assume that typically consumers are not buy much more and must be stimulated to
buy more. It is also assume that company has an efficient and effective selling
and promotional tools to stimulate more buying.
The selling concept is practiced most aggressively with unsought goods,
that buyers normally do not think to buy it. Such as insurance, encyclopedias.
These industries have preferred various sales techniques to locate prospects
and disclose the product benefits to the prospects. The selling concept is also
practiced in the non - profit organizations to collect funds and political
parties. Most firm practice the selling concept when they have over capacity.
Their aim is to sell what they make rather than what market
wants.
4. Marketing concept or consumer oriented concept
:
The marketing concept or consumer oriented concept holds that the key to
achieving its organizational goals consist of the company being more effective
than competitors in creating, delivering and communicating customer value to
its chosen target market. Marketing concept rests on four pillars. These are
discussed below.
(a) Target market : First company
segmented total market according to some effective basis. Then they choose a
target market, which market is more profitable and at the same time it is easy
to serve. Company do best when they choose their target market carefully and
prepare effective marketing programs.
(b) Customer needs : A company can
define its target market but fall to correctly understand the customers needs.
Understanding customer needs and wants is not always simple. Some customers
have needs which they are not fully conscious, or they can not articulate these
needs, or they use some words that requires some interpretations. So, it is
essential to find out the actual needs and wants of the customers.
(c) Integrated marketing : When all
the company’s departments works together to serve the customer’s interest, the
result is integrated marketing. Integrated marketing takes place on two levels.
First, the various marketing functions - sales force, advertising, customer
service, product management, marketing research - must together. Second,
marketing must be embraced by the other departments, they must also have to
think about customer.
(d) Profitability : The ultimate
purpose of the marketing concept is to help organizations to achieve their
objectives. In the case of private firms, the major objective is to earn
profit. In the case of non - profit or public organizations, it is surviving
and attracting enough funds to perform useful work.
The societal marketing concept holds that the organization’s task is to
determine the needs, wants and interests of the target markets and 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. The
societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices. Here company must try to make a
balance among company profit, customer want satisfaction and public interest.
At the same time company try to build up a health and wealth society so that
company can able to survive in long run.
Difference between selling concept and marketing concept
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Starting point |
Focus |
Means |
Ends |
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Factory |
Products |
Selling and promoting |
Profit through sales volume |
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Selling concept |
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Target market |
Customer needs |
Integrated marketing |
Profit through customer satisfaction |
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Marketing concept |
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