The compilation of these Marketing Notes makes students exam preparation simpler and organised.
Marketing Management Philosophies
Marketing is an all-encompassing process. It includes all activities from production to distribution of goods and everything in between. A company may not focus its attention on all activities, but choose one particular marketing philosophy like product concept or selling concept. Let us take a look at the five Marketing Management Philosophies.
Marketing Management Philosophies
Every business, every company, and every product is different. So it is a given that one strategy of marketing cannot apply to all uniformly. So different entities employ different tactics and concepts known as marketing management philosophies.
Production Concept
This concept is based on the efficient production process of a company. Since the days of the industrial revolution, it is believed that goods that are available in excessive quantities and at cheap prices will always sell. It is the Says law that “supply will create its own demand’.
So a company can choose the production concept where it will utilize the economies of scale. It will produce huge quantities of goods at lower costs and sell them in all markets and inexpensive rates. Here the profits will come from the number of goods sold.
But the logic is flawed that the customer chooses a product only based on price. There are many other factors he will consider, such as quality and differentiation.
Product Concept
This concept places its emphasis on quality and innovation rather than price and availability. In a market, there are many factors that influence the customer. One such important factor is the quality of the product and all its features that are on offer.
So in the product concept, the company will make sure their goods are of the best quality. This will mean the cost of production and the price of the product will be higher. But the company will look to maximise profit by promising quality products. Those customers who will emphasise the cost or the accessibility of the product will be driven away.
Selling Concept
Here the concept shifts from the production of the product to simply selling the product. Even if the goods meet the price and quality requirements of the consumer, the sale is not guaranteed. In the selling concept of marketing management philosophies, the idea is to persuade the consumer to buy the product by any means necessary.
Companies use promotion, advertising, and publicity to convince the consumer to buy their products. At times they can even manipulate consumers. The ultimate aim here is to push the product, without thought of long-term consequences.
Marketing Concept
Marketing is one of the newer marketing management philosophies. It is a very 21st-century concept that truly believes “the customer is king”. Here every decision will be influenced by the needs of the customer. Right from the production and design of the goods to its transportation, every process has the customer in mind.
Since customer satisfaction is the main goal of the marketing concept they need not worry about selling or production. Since they are fulfilling all the needs of the consumers it is a given the consumer will pay an appropriate price for the product.
Societal Marketing Process
Sometimes the need of the customer and those of the company are not best suited to society and/or the environment. But since the business is a part of society, it must ensure its wellbeing as well. So this concept will focus on the satisfaction of consumer needs without harming the society or the environment in the process.
Example:
Question:
Which concept was widely in effect during the industrial revolution?
a. Product Concept
b. Production Concept
c. Selling Concept
d. None of the above
Answer:
The correct option is “b”.
During the industrial revolution, the focus was to create cheap products that the masses could have easy access to. By employing the production concept and utilizing the economies of scale, the businesses were able to churn out huge quantities of products at a low cost. At this time the emphasis was not on quality but on price and quantity.