|The system of thinking and studying for the success of business is called marketing concept. The concept of marketing is found to have developed along with the development of business principle and management thoughts. Marketing should be customer oriented and an effective coordination among individuals, departmental relations and objectives should be maintained.|
1. Production concept
- To produce goods in huge quantity and make available in the places at the right time as desired by the customers.
- Customers are sensitive, remain conscious of goods and brand and are well-informed about goods for substitution.
- Demand for cheap goods (having fewer prices) becomes high in markets. So, production cost should be minimized by using advanced technology and machinery and increasing work efficiency.
2. The product concept
- Customers like quality, long lasting and newer goods,
- Regular improvement should be made to produce goods to meet the demand market,
- Goods should be made long lasting by improving their quality,
- Customers select goods of lower price and higher quality among competitive goods,
- Besides lower cost quality of goods should be improved to attract customers,
- Skilled management as well as high efficiency is needed to bring improvement in quality of goods.
3. The selling concept
- Confidential, attractive, exciting, sensitive promotion attracts customers towards goods or services,
- This concept does not care for wants of customers; it only cares to meet the needs of sellers,
- The customers do not buy goods or services unless attractive promotional activities are conducted,
- This concept of marketing applies to the unsought things like encyclopedia, insurance etc.
4. The marketing concept
- Organizational goal can be achieved by fully satisfying customers,
- As the customers are the king of market, customer centered integrated market system should be adopted,
- Targeted market should be clearly defined and goods or services should be produced only by identifying customers’ need and wants,
- Goods or services should be of better quality and marketable than those of competitors,
- Only marketable (that can be sold in market) goods or services should be produced.
5. The societal marketing concept
|Maintain balance between customers' wants, satisfaction and profit of business organization|
- Societal marketing concept faces environmental threats,
- It gives priority to social demographic responsibility,
- It tries to earn profit only by fulfilling customers’ interest and promoting social welfare,
- This concept believes that the customers and society should be positively influenced by promotional activities of goods and services.
- Business organizations produce goods or services by identifying the needs, wants and interests of their customers.
|The production concept||Production orientation||- Mass Production|
- Low cost
|Profit through production efficiency|
|The product concept||Product quality orientation||- High quality|
|Profit through quality product|
|The selling concept||Seller need orientation||- Heavy promotional activities||Profit through high sales volume|
|The marketing concept||Customers need orientation||- Integrated marketing||Profit through customer need satisfaction|
|The societal marketing concept||Social responsibility orientation||- Responsible for social and ethical issues||Profit with customer and social well being|