What is Marketing?
Marketing may be defined as the process of obtaining customers and maintaining relationships with them while also matching their needs and wants to the services or products given by the company, ensuring that the company is profitable. Over the years marketing as a concept has evolved. The marketing concepts have been widely used by companies all over the world in the present age, but the situation was not the same earlier. As per a marketing concept, it is said that for an organisation to satisfy the objectives of the organisation, the needs and wants of the customer should be satisfied. This theory was first mentioned in Adam Smith’s book “The Wealth of Nations” in 1776 but came into widespread use only 200 years later. Now the question that comes to our mind is ‘What is a marketing concept?’
The marketing concept is a set of techniques that businesses use to analyse their consumers’ needs and implement plans to meet those demands, resulting in increased sales, profit maximization, and beating the competition.
Types of Marketing Concepts
Customers are primarily interested in things that are both accessible and affordable, according to this principle. This concept was first established at a time when the primary focus of business was on output. It states that a company can reduce costs by producing more things in a larger amount or through mass production. This production concept is found to be applicable if two situations prevail :-
• One, when the demand for a product exceeds supply. This is seen in markets that are highly price-sensitive and budget-conscious. Under such situations, consumers will basically be interested in owning the product, not the quality or features of it. Thus, producers will be interested in increasing their outputs.
• Two, if the production costs are very high, that discourages consumers from buying the product. Here, the company puts all of its efforts into building production volume and improving technology to bring down costs. Reduction in production costs helps the firm to reduce, helping the market size to increase. A company can thus try to create a dominant position in the market where it operates.
Ford began by mass-producing low-cost automobiles. They continue to do so today. McDonald’s and other fast food companies strive to be the best in the industry by following the same concept. The best example of the production concept is Vivo, the Chinese smartphone brand. Their phones are available in almost every corner of the Asian market. You can walk into any phone shop in Asia and can walk out with the latest and greatest smartphone from Vivo.
By the early 1930s, the supply of manufactured goods had outstripped demand. Manufacturers were confronted with excess capacity and fierce competition for customers. They began to realise that buyers prefer well-made products and are willing to pay more for product extras, and the product concept began to take shape in many producers’ minds. Customers will be more inclined toward products that offer better quality, new features, and top-level performance.A firm concentrates on developing high-quality items and refining them every time to generate a better and enhanced product under this type of marketing concept.
Many marketers still hold this concept, and this concept so influences some that they even forget that the market is going in another direction. Marketing has very little room in this concept.The main emphasis here is on the product. Therefore, it is understood that in the product concept, the management fails to identify what business it is in, which leads to the marketing myopia – i.e., short-sightedness on the role of marketing.
Logitech makes very high-quality computer products such as keyboard, mouse, and webcams. These high-quality products are priced higher, but people still buy, and they get almost free advertisement from independent reviews.
Apple Inc. is a prime example of this concept in action. Its target audience always eagerly anticipates the company’s new releases. Even though there are off-brand products that perform many of the same functions for a lower price, many folks will not compromise just to save money.
While the previous two concepts focused on production, the selling concept is focused on selling. It believes that customers will be buying products only when the product is aggressively marketed by the company. It does not focus on building relationships with customers, and ensuring customer satisfaction is also not deemed necessary. Marketing based on hard-selling carries high risks since a consumer is not happy with the product will bad-mouth it to eleven acquaintances, and it will multiply to the same rate by those; bad news travels fast.
One interesting point to mention here is that emphasis is given on marketing research, not on market research. Besides its application in the tangible goods business, the selling concept is also practiced in nonprofit areas, such as fund-raisers, college admissions offices, and political parties. Almost all soft drinks and soda drinks follow the selling concept. These drinks have no health benefits (actually harm your health more); you can easily replace them with water ( the most available substances on the earth) and the soft drink companies know it, and they run ads 24×7, spending millions. Everyone knows what Coke has to offer, but it’s widely known that soda lacks nutrients and is bad for your health. Coca Cola knows this, and that’s why they spend astonishing amounts of money pushing their product.
When companies began to be able to produce in excess of demand, executives realised that marketing in business operations needed to be reconsidered. They also began to notice significant market, technological, and communication changes, as well as how to reach and communicate with markets.These changes had led to the evolution of the “marketing concept,” which, in essence, is a philosophy of management.
The 4 pillars of marketing concepts are:-
• Market focus
• Customer Orientation
• Coordinated marketing
The customer is at the centre of a marketing strategy. All of an organisation’s activities are carried out with the consumer in mind. Organisations are more focused with developing consumer value propositions that will set them apart from the competition. Restaurants and startups do follow the marketing concept. They try to understand the consumer and deliver the best product or service, which is better for the competition.
Glossier is a recognisable example of this marketing concept. The company understands that many women are unhappy with the way that makeup affects the health of their skin. They also noticed that women are fed up with being told what makeup products to use. With this in mind, Glossier introduced a line of skincare and makeup products that not only nourish the skin but are also easy to use and promote individualism and personal expression with makeup.
Difference between Selling Concept and Marketing Concept
Selling concept-oriented companies start planning with the factory, focuses on the company’s existing products, and undertakes heavy selling and promoting to produce profitable sales.
The marketing concept starts with a well-defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produce profits by satisfying customers.
Societal Marketing Concept
This is the most advanced form of marketing. The emphasis here is on the customer’s needs and wants, as well as ensuring the customer’s and society’s safety first. It is committed to contributing to society and making the world a better place for all people. It calls upon marketers to balance three considerations
in setting their marketing policies: company profits, consumer want satisfaction and public interest.Companies may use the societal marketing concept if it does not put them at a competitive disadvantage or cause them to lose money. It’s because any modern company’s primary goal is to keep its customers happy while also making money by serving and satisfying them.
While large companies sometimes launch programs or products that benefit society, it is hard to find a company that is fully committed socially. The body shop is a natural cosmetic, skincare, perfume Company.The company uses plant-based ingredients to make its products and it does not test its products on animals. So this product is a perfect example of societal marketing.
Companies don’t follow a single marketing concept rigidly. They usually use a mix of marketing concepts or change it depending on the market situation, competition, and sales numbers.
4 thoughts on “Marketing Concepts”
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