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Marketing concepts, also known as marketing management philosophies, are the guiding principles that firms apply to their marketing endeavors to achieve their goals.
The marketing process is comprehensive. It encompasses all activities before, during, and after the manufacturing and distribution of goods.
A corporation can adopt one marketing philosophy, such as their product or selling concept, rather than focusing on all of their actions.
In its most basic form, marketing concepts refer to a firm’s approach to determining and meeting the requirements of its clientele in a manner that is mutually beneficial to the clientele and the company.
Every business has its unique plan for manufacturing its goods, conducting business with customers, and promoting and advertising its wares.
For instance, a company that produces very high-quality caps with high selling rates and invests a lot of money to make their brand value has a marketing management philosophy that dictates how they will produce, market, and sell the product. This philosophy dictates how they produce, market, and sell the product.
No one approach to marketing leads to success for every company; therefore, their marketing approaches, commonly called “marketing management philosophies,” differ.
Marketing ideas are motivated by several obvious aims, including cost efficiency, product quality, customer needs, etc.
What is Marketing Concept?
The marketing concept is the notion that a business should examine the needs of its consumers and then make decisions to satisfy those needs in a manner that is superior to that offered by the competitors.
A marketing philosophy focusing on ethics, efficiency, and effectiveness should guide all marketing activities. The majority of companies today use the marketing concept.
Marketing Management Philosophies
There is something unique about every industry, every company, and every item on the market. Thus, a single marketing strategy cannot be applied equally to all customers.
Organizations implement marketing management philosophies to implement strategies and beliefs.
A marketing strategy is selling or purchasing goods or services to make a profit, either monetarily or in terms of additional advantages. It is a component of a bigger management process that is being carried out.
Management is the organized approach that an organization takes and continues to follow from the beginning of the process through its implementation.
Every marketing endeavor is guided by a set of guiding philosophies, which determine how marketing operations should be conducted. These ways of thinking are often referred to as marketing management philosophies.
Marketing management employs five distinct philosophical approaches to accomplish an organization’s goals.
A new marketing management concept began to emerge and gain popularity during the industrial revolution of the 18th and 19th centuries.
Every organization needs to develop its unique marketing philosophy to meet the needs of the organization.
A business should adhere to the marketing philosophy or conception most appropriate to their requirements and customers, but there are five distinct marketing philosophies.
There are five distinct marketing management philosophies under the marketing concept, each of which is used by different corporations for their marketing activities:
Production Concept
The production concept proposes that consumers are more likely to purchase goods that are not prohibitively expensive and can be obtained relatively easily.
This idea is based on the supposition that customers want an affordable and readily available product in various settings. This perspective was summed up in Say’s Law, which argues that “Supply creates its demand.”
As a result, businesses concentrate on increasing product production while ensuring that customers can easily access it in all locations.
It is typical for managers to concentrate on achieving high production efficiency, reducing costs, and expanding distribution on a large scale.
This approach to conducting business is successful in developing countries because consumers are more concerned with acquiring the goods than evaluating their qualities.
The benefit of economies of scale is gained by the businesses when there is an increase in the number of goods produced. The product has become more affordable as production costs have been reduced, making it more appealing to customers.
It’s possible that a low price would attract new customers, but the priority here is manufacturing rather than the quality of the goods. If the product does not meet the requirements, this could lead to a drop in sales.
This tenet is valid provided a greater demand exists than the available supply. In addition, a client does not necessarily favor a product that is less priced than others. There are a great number of additional aspects that contribute to his purchasing choice.
For instance, local enterprises that build mobile handsets can do so at a lesser cost than branded ones.
As a result, customers in these countries are more likely to purchase handsets that are manufactured locally rather than branded products.
Production Concept Examples
- Business owners whose target consumers live in different countries may find this strategy useful.
- Businesses that enjoy the monopoly edge in their industry.
- A company whose product is in higher demand than its supply
Product Concept
Product concept is to make consumers choose superior products over those only average in quality, performance, and other attributes.
This idea is based on the supposition that consumers prefer products of “higher quality,” and neither price nor availability plays a role in their decision-making process.
Therefore, most of the company’s resources are put toward researching and developing higher-quality goods, which typically result in higher prices.
Apple and Google are two companies that stand out from the rest of the pack when we talk about the product idea.
These two companies have worked hard to develop rich, innovative, and useful products in various settings. Many people are enthusiastic about the brands that these companies represent.
The marketers place the primary emphasis on product quality, so they don’t often appeal to the needs of the customers whose requirements are influenced by factors like price, availability, usability, etc.
One of the problems associated with the idea of the product is that it may also lead to marketing myopia.
As a result, businesses are responsible for taking trends and changes seriously and placing their customers’ requirements first.
Product Concept Examples
- Technology-related businesses and corporations.
- Businesses that enjoy the monopoly edge in their industry.
Selling Concept
The fundamental idea behind the selling concept is that there is a chance that clients would not purchase a sufficient quantity of the organization’s items unless the business makes extensive promotional and selling efforts.
The production concept and the product concept both center on producing something, while the selling concept centers on the idea of actually selling the product.
The goal of the Selling Concept is to make as many sales of the product as possible, regardless of the nature of the customer’s requirements or the standard of the product itself. Making money is the primary objective here.
The cultivation of relationships with clients is not a component of this ideology. Because of this, there are very few repeat sales.
Some companies follow this approach to increase revenue by tricking people into purchasing their products.
Under the product concept’s purview, customers do not typically buy merchandise like insurance and other unrequested things.
These products are aggressively marketed by locating the target demographic and focusing on the numerous advantages offered by the goods being marketed.
Businesses that subscribe to this school of thought have a myopic outlook because, as the saying goes, they “attempt to sell what they make rather than what the market wants.”
This idea lives up to expectations despite the flawed presumption that customers will appreciate a product more on a fundamental level if they are persuaded to buy it.
They will eventually forget how much they despise it after some time has passed, and even though they do not like it, they will still buy the product at some point in the future.
Selling Concept Examples
- Businesses that have profit targets that are too short-term. This frequently results in a myopic approach to marketing.
- Fraudulent companies.
Marketing Concept
The idea of marketing has evolved throughout the years; today, it emphasizes businesses analyzing customers’ requirements and developing goods and services that more effectively satisfy those requirements than those offered by competitors.
It is completely incompatible with the idea of manufacture,’ in addition to the idea of sales because it emphasizes customers and their requirements.
The selling concept assumes that businesses and consumers will not purchase an adequate quantity of a company’s items if left to their own devices. The organization must therefore invest in sales and marketing.
The selling concept presumes that clients, whether individuals or organizations, will not purchase a sufficient quantity of the company’s products unless the selling effort convinces them.
Businesses must therefore engage in marketing and selling their products to succeed.
Marketing Concept Examples
- Companies that are in direct competition with one another.
- Businesses to remain competitive over an extended time.
Societal Marketing Concept
In addition to the idea of marketing, this philosophy emphasizes the health of the community as a whole.
The company’s primary concern is meeting the requirements of its clients in a manner that has minimal impact on the earth’s ecosystem and natural resources while prioritizing the health and happiness of its community.
The theory of societal marketing states that a company should make marketing decisions based on its requirements, customer needs, and, most importantly, the general public’s long-term interests.
The concepts of Corporate Social Responsibility and Sustainable Development form the basis of Societal Marketing, which is just a branch of CSR.
This idea encourages businesses to do more than simply have a commercial relationship with their customers; to go beyond simply selling items and work toward improving both the customers and society.
As integral components of society, businesses should participate in social activities such as reducing poverty and illiteracy and stemming the growth of the population at an exploding rate.
For instance, The Body Shop International PLC is a pioneering, all-encompassing, and ethically superior brand. Only materials derived from plants are used in this company’s goods manufacturing process.
In addition to being against animal testing, it advocates for group interchange, seeks to boost self-esteem, and defends human rights and the planet’s general security. In addition, they have their own charitable organization, The Body Shop Foundation, which assists organizations and individuals working to improve human and social equity, environmental protection, and animal welfare.
Selling Concept Examples
- Businesses with short-term profit targets. Myopia in marketing is often the result of this.
- Fraudulent companies.
Societal Marketing Concept
In addition to the idea of marketing, this philosophy emphasizes the health of the community as a whole.
The company’s primary concern is meeting the requirements of its clients in a manner that has minimal impact on the earth’s ecosystem and natural resources while prioritizing the health and happiness of its community.
According to this school of thought, businesses should participate in social activities such as reducing poverty and illiteracy and regulating exploding rates of population growth because they are an integral component of society.
Corporate social responsibility has become an integral part of marketing activities at many large companies.
Holistic Marketing Concept
The concept of holistic marketing is relatively new to business marketing management philosophies.
This approach to marketing views a company and all its components as one entity and assigns a common goal to all the activities and people associated with that company.
A company, much like the human body, is comprised of many diverse components, but it is only able to operate effectively when all of these components collaborate to achieve the same goal.
The holistic marketing idea emphasizes the interconnected nature of all aspects of business and believes that one must adopt an expansive and unified point of view to achieve the most successful outcomes.
Final Words on Marketing Management Philosophies
These marketing management philosophies are concepts and serve as the primary focal point around which the company’s operations are centered.
In addition, the organizational goals of these businesses are decided upon, considering the marketing mentioned earlier management philosophies.
These considerations consider not just the organization’s interests but also those of its clients and society.
