Since industrial revolution, business firm has undergone distinct concepts of marketing which are discussed below.
A. The Production Concept
Production oriented organization emphasizes or concentrates on production. Philip Kolter has said, “consumer will favour (buy) those products that are widely or largely available at low price and manager of such organization will put his efforts on large production & distribution efficiency.” Eg: if groundnut oil is not available, consumers are ready to purchase Palmolive oil or cotton seed oil which is largely available at lower price.
1. Consumers are interested in the goods which are largely available at low prices
2. Consumers have knowledge of the prices charged by the rival (competitors) firms
3. Consumers consider only price factor
4. Management should concentrate only on production efficiency and low prices
B. The Product Concept
This concept mainly focuses on product quality rather than quantity. According to Philip Kotler, “consumer will favour those products that offer the most quality, performance and features, managers in product oriented organization concentrate their energy on making goods products and improving them over the time.” Consumer will do admire good quality of product. In some cases, numbers of consumers are getting decreased because of increasing in price and it does not satisfy customer needs. Eg: The Apple’s tablet / laptop is not affordable to all the customers. The product concept leads to “marketing myopia”(narrow term) as it focuses on product (quality) instead of the need.
1. Consumers purchase quality product and not a commodity (product) that satisfies their need.
2. Consumers are interested in high quality only.
3. Consumers have knowledge of differences in quality of different products and choose only that product which is having superior / high quality.
4. Therefore, a producer should concentrate only on improvement of quality of his products.
C. The Selling Concept
This concept puts stress on aggressive selling efforts. It is believed that product does not sell itself, it is to be sold. For selling a product, one has to go for promotional mix (advertising, sales promotion, publicity or personal selling). According Philip Kotler ,“ Consumer if left alone, will not buy enough of organizational product, therefore the organization must undertaken an aggressive selling promotion efforts.”
1. The consumers have a tendency not to buy goods which they do not need
2. The consumers can be induced / motivated to buy more through various sales promotion efforts
3. The main function of a firm is to strengthen (to make strong) its sales organization so that consumers can be stimulated / motivated to buy its product.
D. The Marketing Concept
This concept is known as customer oriented philosophy as it puts major stress on customer’s needs and wants. It means determination of needs and wants of customers and delivering the desired satisfaction effectively and efficiently better than competitors and it is the key to achieve organizational objectives.
Characteristics of the Marketing Concept
1. Consumer oriented philosophy: The management should consider following guidelines to make the company consumer oriented. (a.) Consumer is king of the market. By making them happy, profit can be earned. (b.) After sales service should be considered (c.) Satisfaction of the consumers is out motto (d.) Consumers are always right. (e.) The organization should not feel that they are selling the goods but consumers are paying price. So a care must be taken for their maximum satisfaction.
2. Emphasis on Research: this concept stresses more on identify target consumers needs and satisfying them which is possible only through research.
3. Benefits to both parties: Through this modern marketing concept, both consumers and producer get benefits. Consumers will have satisfaction whereas a producer will be able to earn maximum profit by satisfying his consumers.
4. Target Market Oriented: A producer, first of all segments (divides) the entire market and tries to identify their needs in order to cater them effectively.
5. Integrated concept: The modern marketing concept is a combination all marketing concepts and approaches in which product quantity, price, quality, sales and promotion efforts, distribution and satisfaction of consumers are taken into consideration.
E. The Social Marketing Concept
This concept concentrates on social well being & satisfaction of societal needs. The societal marketing concept holds that the organization’s task is to determine the needs, wants and interest of target market and society and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves customer’s and society’s well being. In modern marketing, there should be consumer satisfaction. With consumer satisfaction business should consider social interest also. While satisfying consumer’s wants the product may hurt the consumers’ health.
1. Consumers’ needs are not always consistent with (in line with) long run interests of themselves or of the society.
2. Consumers favour those products which offer consumer satisfaction and consumer and societal well being in long run.
3. The management should satisfy consumers’ needs in a manner which is conducive to long term interests of consumers and society.