According to AllBusiness. A marketing concept uses customer satisfaction to determine whether a product or service is successful. A marketing concept defines the strategy that companies use to market their products or services to customers.
The goal of marketing is to promote the benefits of a product. For instance, a cosmetic company can use marketing to explain how its products make a person feel more attractive, confident and happier in order to influence his purchase decisions.
A marketing concept also enables companies to gain a competitive advantage in the industry. Marketing concepts became popular after Word War II. Following the war, people had an increased disposable income and could choose between multiple product offerings. Therefore, a marketing concept gave companies the ability to focus on developing products that would appeal to different customer groups and increase profits by satisfying customer needs over a long period, according to NetMBA.
In modern businesses, a marketing concept relies upon marketing research about target markets, market size and the marketing mix. The marketing department of an organization is responsible for implementing marketing strategies.
What Is a Marketing Concept? More From Reference. The U.There are five marketing concepts. This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. Hence companies focus on producing more of the product and making sure that it is available to the customer everywhere easily.
Increase in the production of the product makes the companies get advantage of economies of scale. This decreased production cost makes the product inexpensive and more attractive to the customer.
Marketing Management Philosophies – 5 Marketing Concepts
Low price may attract new customers, but focus is just on production and not on the product quality. This may result in decrease in sales if the product is not up to the standards. This philosophy only works when the demand is more than the supply. Moreover, a customer not always prefers an inexpensive product over others.
There are many other factors which influence his purchase decision. Hence company devotes most of its time in developing a product of greater quality which usually turns out to be expensive. Since the main focus of the marketers is the product quality, they often lose or fail to appeal to customers whose demands are driven by other factors like price, availability, usability, etc. Production and product concept both focus on production but selling concept focuses on making an actual sale of the product.
Selling Concept focuses on making every possible sale of the product, regardless of the quality of the product or the need of the customer.
The main focus is to make money. Hence repeated sales are very less. Companies following this concept may even try to deceive the customers to make them buy their product. Hence, emerged the marketing concept. This concept works on an assumption that consumers buy products which fulfil their needs.
What Is a Marketing Concept?
By doing so, the business makes a relation with the customers and generate profits in the long run. Many businesses still follow other concepts and make profits. It totally depends on the demand and supply and the needs of the parties involved.
This philosophy believes that the business is a part of the society and hence should take part in social services like elimination of poverty, illiteracy, and controlling explosive population growth etc. Holistic marketing concept enforces this interrelatedness and believes that a broad and integrated perspective is essential to attain best results.
Marketing Philosophies Theintactfront 4 Feb 4 Comments. Like this: Like Loading Search for Change Language. By continuing to use this website, you agree to their use.
We are all marketers and we strive to be as best as we can at doing it. We need to deliver the right message to the right audience at the right time and this is not an easy job, considering that there are not two people that think and feel alike. In fact, there are not two people alike in the whole world and this is why we need to work with general ideas for general audiences.
Marketing converts and returns the investment quite quickly if done the right way. In order to get there rather sooner than later and make the most out of it, you need to consider designing your own marketing concept. A marketing concept is a strategy that companies and marketing agencies that work for companies, design and implement in order to satisfy customers needs, maximize profits, satisfy customer needs and beat the competitors or outperform them.
As the above subtitle suggests, I am sure you have already learned the fact that there are five marketing concepts which most of the companies design and implement in order to carry out their marketing plans and strategies. Every marketing strategy should start with the production. Well, we know that customers favor products that are of good quality and at the same time affordable.
This means that the productions should be optimized accordingly. It should be optimized to fit the needs of the customers. In some cases, this concept is considered outdated and inefficient but if you are focusing on the two basic ideas I have mentioned above, the concept can be of great help in the long run. Basically, you need to consider the demands of the market and then supply it with what customers need or what do you expect them to need in the following period.
A good example in the second scenario are companies that launch innovative products such as tech companies who always need to be one step ahead of the market and of the competition. Under this concept, marketing strategies should always focus on product improvements as well, whether they are of quality or of technology. Also, the important thing is to adapt your product to the market. For example, you can make the best quality cassette tapes in but you will not have a big enough market to sell them.
Or, you can build the best Floppy discs the world has ever seen. If you are not inyour product is superfluous. You need to adapt and build the products that are not only of good quality and at the best price but also the products that are relevant to your present.Assessment computing systems inc products
You need to sell in the present and this is something you need to think about at this point. The best advice I can give you regarding this concept is to focus on the customer. Learn as much as you can about what they want and what they are ready to spend their money on and try to design and develop that specific product.
This concept is based on the belief that people will not buy your products, or enough of your products unless you persuade them to do so.The marketing concept is a business philosophy that focuses on improving the customer experience. The ultimate goal is profit, but a business adhering to the marketing concept believes that customer satisfaction and retention are more effective for reaching that goal than high sales volume.
While the marketing concept can be a successful business philosophy, the prospect of diminishing returns is a problem all businesses must face.
The law of diminishing returns says that the more you engage in a benefit-producing activity, the less relative impact each successive benefit will have. For example, suppose you hire carpenters to build a house. The first carpenter you hire has the most drastic effect on production: You go from nothing being done to something being done.
The second carpenter you hire doubles production. The third has less of an impact -- after all, three carpenters aren't twice as productive as two -- but still, production increases.
And so on. Each new hire has a relatively smaller effect than those who came before. Wisner and Linda L. For example, suppose you don't have a customer-service department, and your customers are angry about that. So you hire one customer service representative.
Now your customers can ask questions and make suggestions and complaints. Things are going well, so you keep hiring customer service representatives. As you hire more staff, each successive hire has relatively less impact on overall customer satisfaction. Eventually, customer satisfaction would level off when a new hire has only a negligible impact on the overall performance of your customer service department.
The law of diminishing returns applies to every aspect of the marketing concept. From improving delivery times to increasing product quality to lowering prices, your initial efforts will have bigger payoffs than your later efforts.Philip Kotler: Marketing Strategy
At some point, making further efforts becomes pointless. Newlands and Mark J. Stan Mack is a business writer specializing in finance, business ethics and human resources. Mack studied philosophy and economics at the University of Memphis. The Advantages of a Centralized Office.
Share on Facebook. The Law of Diminishing Returns The law of diminishing returns says that the more you engage in a benefit-producing activity, the less relative impact each successive benefit will have. Long-term Effect Things are going well, so you keep hiring customer service representatives.
Considerations The law of diminishing returns applies to every aspect of the marketing concept. Newell and Marina N.Marketing concepts or marketing management philosophies are the philosophies used by the businesses to guide their marketing efforts. Same philosophy cannot result in a gain for every business, hence different businesses use different marketing concepts also called marketing management philosophies.
There are five marketing concepts. This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. Hence companies focus on producing more of the product and making sure that it is available to the customer everywhere easily. Increase in the production of the product makes the companies get the advantage of economies of scale.
This decreased production cost makes the product inexpensive and more attractive to the customer. A low price may attract new customers, but the focus is just on production and not on product quality.
This may result in a decrease in sales if the product is not up to the standards. This philosophy only works when the demand is more than the supply. Moreover, a customer not always prefers an inexpensive product over others. There are many other factors which influence his purchase decision.
Hence the company devotes most of its time in developing a product of greater quality which usually turns out to be expensive. Since the main focus of the marketers is the product quality, they often lose or fail to appeal to customers whose demands are driven by other factors like price, availability, usability, etc. Production and product concept both focus on production but selling concept focuses on making an actual sale of the product.
Selling Concept focuses on making every possible sale of the product, regardless of the quality of the product or the need of the customer. The main focus is to make money. Hence repeated sales are very less.
Companies following this concept may even try to deceive the customers to make them buy their product. To succeed in the 21 st century, one has to produce a product to fulfil the needs of their customers. Hence, emerged the marketing concept. This concept works on an assumption that consumers buy products which fulfil their needs. By doing so, the business establishes a relationship with the customer and generate profits in the long run.The Five Marketing Philosophies help determine the management of marketing.
Companies approach and conduct business in different ways in order to achieve their organizational goals. The five competing concepts by which companies are guided in their marketing efforts are:.
Production conceptwhich is based on the fact that consumers favor products that are available and affordable. This is used primarily when demand exceeds supply and the focus is on finding production methods that can bring the price down to attract more customers.
Product conceptwhich is based on ways to improve the quality, performance, and features to attract buyers. This philosophy tends to spend too much time adding features to their products, rather than thinking about what people actually need and want. Selling conceptwhich places the focus on sales rather than what people actually need or want. Most of the time the product is misrepresented which results in high customer dissatisfaction. Marketing conceptwhich focuses on what people need and want more than the needs of the seller.
Products are developed around those needs and wants. Societal marketing concept, which not only uses the same philosophy as the marketing concept, but also focuses around the products benefit to the betterment of society as a whole.
Greater emphasis is put on environmental impacts, population growth, resource shortages, and social services. The marketing concept relies upon marketing research to define market segments, their size, and their needs. The marketing department makes the appropriate decisions to satisfy those needs. What are the Five Marketing Philosophies?HA- Company Orientations to the Marketplace.
What philosophy should guide a company marketing and selling efforts? What relative weights should be given to the interests of the organization, the customers, and society? Five orientations philosophical concepts to the marketplace have guided and continue to guide organizational activities:.
The Five Concepts Described. The Production Concept. This concept is the oldest of the concepts in business.
It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept 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 orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.Customer service training service quality institute
The Product Concept. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features.
Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs.Research presentation rubric elementary grades chart
The Selling Concept. This is another common business orientation.Dissertations uk alerion writing service
The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying.
It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. The Marketing Concept. This is a business philosophy that challenges the above three business orientations.
Its central tenets crystallized in the s. It holds that the key to achieving its organizational goals goals of the selling company consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. Distinctions between the Sales Concept and the Marketing Concept:. The Sales Concept focuses on the needs of the seller.
The Marketing Concept focuses on the needs of the buyer. This philosophy is the foundation of consultative selling. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches. The Societal Marketing Concept. This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services.
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