Marketing, according to Kotler, is “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit”. Marketing concepts (or marketing management philosophies) are the philosophies used by the businesses to guide their marketing efforts.
Basically, marketing concepts relate to the philosophy a business use to identify and fulfill the needs of its customers, benefiting both the customer and the company. Same philosophy cannot result in a gain to every business, hence different businesses use different marketing concepts (also called marketing management philosophies).
Marketing concepts are driven by clear objectives like cost efficiency, product quality, customer’s need fulfillment etc.
Marketing Management Philosophies
There are five marketing concepts. A company should choose the right one according to their and their customers’ needs.
- Production Concept
- Product Concept
- Selling Concept
- Marketing Concept
- Social Marketing Concept
This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. This view point was encapsulated in Says Law which states ‘Supply creates its own demand’. 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.
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.
Examples of Production Concept of Marketing Management Philosophies
- Companies whose product market is spread all over the world may use this approach.
- Companies having an advantage of monopoly.
- Any other company whose product’s demand is more than its supply.
This concept works on an assumption that customers prefer products of ‘greater quality’ and ‘price and availability’ doesn’t influence their 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.
Examples of Product Concept of Marketing Management Philosophies
- Companies in the technology industry.
- Companies having an advantage of monopoly.
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. This philosophy doesn’t include building relations with the customers. Hence repeated sales are very less. Companies following this concept may even try to deceive the customers to make them buy their product.
Companies which follow this philosophy have a short sighted approach as they ‘try to sell what they make rather than what market wants’.
Examples of Selling Concept of Marketing Management Philosophies
- Companies with short sighted profit goals. This often leads to marketing myopia.
- Fraudulent companies.
Selling Concept cannot let a company last long in the market. It’s a consumers market after all. To succeed in the 21st century, one has to produce a product to fulfill the needs of their customers. Hence, emerged the marketing concept. This concept works on an assumption that consumers buy products which fulfill their needs. Businesses following the marketing concept conduct researches to know about customers’ needs and wants and come out with products to fulfill the same better than the competitors. By doing so, the business makes a relation with the customer and generate profits in the long run.
However this isn’t the only philosophy which should be followed. Many business still follow other concepts and make profits. It totally depends on the demand and supply and the needs of the parties involved.
Examples of Marketing Concept of Marketing Management Philosophies
- Companies in perfect competition.
- Companies who want to stay in the market for long time.
Societal Marketing Concept
Adding to the marketing concept, this philosophy focuses on society’s well-being as well. Business focus on how to fulfill the needs of the customer without effecting the environment, natural resources and focusing on society’s wellbeing. 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.
Many of the big companies have included corporate social responsibility as a part of their marketing activities.
Holistic Marketing Concept
Holistic marketing is new addition to the business marketing management philosophies which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business. A business, like a human body, has different parts, but it’s only able to function properly when all those parts work together towards a same objective. Holistic marketing concept enforces this interrelatedness and believes that a broad and integrated perspective is essential to attain best results.
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3. Describe the Five (5) Marketing Management Orientations and Explain Marketing Management in Today's Terms.
629 WordsMar 6th, 20113 Pages
Describe the FIVE (5) marketing management orientations and explain marketing management in today’s terms.
The 5 marketing management orientations are production concept, product concept, sales concept, marketing concept and social marketing concept.
Production concept assumes that customers will want to buy products or services that are easily available and affordable. Hence, management would focus more on production efficiency and distribution of the product. This concept is useful when the demand of a product is higher than its supply. Coca-cola is one of the successful examples of companies that adopt production concept. The company makes Coca-cola can be purchased almost everywhere in a country, either urban area or rural area.…show more content…
Marketing concept believes that for a company to achieve organizational goals, it depends on determining the needs and wants of the target market. It takes an outside-in approach. Marketers practising this concept recognise that customers are always the first priority of the organization and they aim on complete customer satisfaction. This requires an integrated marketing effort, that is, team work between different departments within the organization. For instance, team work between the marketing team and the academic team of UCSI University. The marketing team will be in-charge of the promotion of the academic programmes available in UCSI University while the academic team will have to ensure and maintain the quality of the programmes and courses offered.
Societal marketing concept emphasises on delivering superior value to customers in a way that maintains or improves the customers’ and the society’s well beings. Companies practising this concept will hence organise various types of activities or launch different types of programmes to show the concern of the companies towards the society. Great Eastern is one of the companies that adapt societ marketing concept. Great Eastern offers international scholarships and local scholarships to the Malaysians or Singaporeans. Another good example is STAR newspaper. Besides offering scholarships to Malaysians, STAR newspaper also launches education fair annually in Malaysia.
Today, marketing management is usually