The Five Marketing Philosophies help determine the management of marketing. Companies approach and conduct business in different ways in order to achieve their organizational goals. The five competing concepts by which companies are guided in their marketing efforts are: Production concept is based on the fact that consumers favor products that are available and affordable. Concentration on production efficiency and effective distribution networks outweigh the customer’s actual needs and wants. This is used primarily when demand exceeds supply and the focus is on finding production methods that can bring the price down to attract more customers. A production orientation dominated business thought from the beginning of capitalism to the mid 1950’s. The firm concentrates on efficient low cost production and endeavors to produce quality goods and expects the customer to buy them
Product concept is based on ways to improve the quality, performance, and features to attract buyers. This philosophy tends to spend too much time adding features to their products, rather than thinking about what people actually need and want. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features, that buyers will admire well-made products and can appraise quality and performance. The product philosophy assumes that the organization knows its product better than anyone or any organization. Since the organization has the great knowledge and skill in making the product, the organization also assumes it knows what is best for the consumer.
Selling concept places the focus on sales rather than on the needs of the buyer. Most of the time the product is misrepresented which results in high customer dissatisfaction. The firm focuses on the skills of selling rather than. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying
Marketing concept focuses on what people need and want more than the needs of the seller. The marketing concept states that the organization should strive to satisfy its customers’ wants and needs while meeting the organization’s goals. The best way to meet the organization’s goals is also by meeting customer needs and wants. The marketing concept’s emphasis is to understand the customers before designing and producing a product for them. With the customer’s wants and needs incorporated into the design and manufacture of the product, sales and profit goals are far more likely to be met. Products are developed around those needs and wants
Societal marketing concept not only uses the same philosophy as the marketing concept, but also focuses around the products benefit to the betterment of society as a whole. The societal marketing concept highlights a highly developed thought and practice of marketing. It is all about responsibility of a corporate towards the society and it suggests how a company can focus on delivering satisfaction and exchange relationship with the society especially with its consumer’s on a long term basis. It focuses on balancing the fact that a corporate can earn high worth in the society and thus, high profits by thinking on both consumers’ satisfaction along with society’s well-being.
This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being. Greater emphasis is put on environmental impacts, population growth, resource shortages, and social services
1. Marketing concept in Magnum Magnum is one of the world’s leading ice cream brands, selling one billion units annually worldwide, and it is the biggest brand of Unilever ice creams. One of the important factors that help Magnum to archive that desired successful is that it has applied marketing concept in marketing management. The marketing concept recognizes that the company’s knowledge and skill in designing products may not always be meeting the needs of customers. It also recognizes that even a good sales department cannot sell every product that does not meet consumers’ needs. When customers have many choices, they will choose the one that best meets their needs.
The wants and needs of customers and potential customers drive all the marketing-oriented company’ strategic decisions. Customer satisfaction is a fundamental factors for the growth of the business. With the customer’s satisfaction the key to the organization, the need to understand the customer is critical. Marketing research techniques have been developed just for that purposeThe marketing concept relies upon marketing research to define market segments, their size and their needs. The firm’s corporate culture is systematically committed to creating customer value.
This concept puts the customers both at the beginning and at the end of the business process. It starts with a well-defined market thanks to market research which is from customers and the end is business profits through customers’ satisfaction. The businesses focus on customer needs and use integrated marketing to satisfy them. Business that applies marketing concept has some certain particular characteristics. It uses intensive market research to keep up with the change in market and customer preferences. It has a wide range of product lines and use product innovation techniques. Moreover, it emphasizes on product’s benefits to customers rather than on product attributes and provides ancillary services like availability, delivery, installation, and warranty to best serve and satisfy them.