marketing64

1.    Production Concept

The production concept holds that consumers will favour products that are available and highly affordable and that management should, therefore, focus on improving production and distribution efficiency.  This is one of the oldest philosophies that guides’ sellers.
The production concept is useful when:
-    Demand for a product exceeds the supply.
-    The product’s cost is too high and improved productivity is needed to bring it down.
-    The risk with this concept is in focusing company operations too narrowly.  Do not ignore the desires of the market.

2.    Product Concept
The product concept states that consumers will favour products that offer the most quality, performance, and features.  The organisation should, therefore, devote its energy to making continuous product improvements. The product concept can also lead to “marketing myopia,” the failure to see the challenges being presented by other products.

3.    Selling Concept
Many organisations follow the selling concept.  The selling concept is the idea that consumers will not buy enough of the organisation’s products unless the organisation undertakes a large-scale selling and promotion effort. This concept is typically practiced with unsought goods (those that buyers do not normally think of buying). To be successful with this concept, the organisation must be good at tracking down the interested buyer and selling them on product benefits. Industries that use this concept usually have over-capacity.  Their aim is to sell what they make rather than make what will sell in the market. There are not only high risks with this approach but low satisfaction by customers.

4.    Marketing Concept
The marketing concept holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitor. The marketing and selling concepts are often confused.  The primary differences are:
-    The selling concept takes an “inside-out” perspective (focuses on existing products and uses heavy promotion and selling efforts).
-    The marketing concept takes an “outside-in” perspective (focuses on customer needs, values, and satisfactions).
Many companies claim to adopt the marketing concept but really do not unless they commit to market-focused and customer-driven philosophies.

5.    Ethical & Sustainable Marketing / The Societal Marketing Concept
Ethical and Sustainable Marketing is the establishment, maintenance, and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives.
The societal marketing concept holds that the organisation should determine the needs, wants, and interests of target markets.  It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and the society’s well-being. The societal marketing concept is the newest of the marketing philosophies. It questions whether the pure marketing concept is adequate given the wide variety of societal problems. According to the societal marketing concept, the pure marketing concept overlooks possible conflicts between short-run consumer wants and long-run consumer welfare. The societal concept calls upon marketers to balance three considerations in setting their marketing policies:
-    Company profits.
-    Customer wants.
-    Society’s interests.