“The Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals”. It co-ordinates the resources of production and distribution of goods and services, determines and directs the total efforts required to sell profitably to ultimate user”. The marketing concept holds- “achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.” Here marketing management takes a “customer first” approach. Marketing Concept. Marketing Decision Making 10. The Societal Marketing Concept puts human welfare on top before profits and satisfying the wants. The processes are- (i) choice of the market (e.g., Apple operates in mobile handset market), (ii) selection of the target customer group (e.g., Apple does not cater to all customers in mobile handset market rather it targets the premium ones), (iii) determination of what customers in the target group need and want or what constitutes the concept of satisfaction (e.g., Apple understands what its target customers want in terms of usage ease, product touch and feel, instrument looks, and communication eco system), (iv) develop products or services in response to customer needs and wants (e.g., Apple devices like iPhone 6 is an outcome of product development in consonance with customer expectations), (v) plan how the product or service in question offers better satisfaction than competition (e.g., Apple devices score over its competitors in a number of customer significant ways such as aesthetics, appeal, and imagery). Co-Ordinating Different Activities of Enterprise: Even the best of planning will not be rewarding if there is improper coordination between different activities of the organisation. For example, if marketing functions are not coordinated among themselves, the salesforce might heavily criticize marketing people for setting a very high sales target. Restaurants and startups do follow the marketing concept. The product concept assumes that consumers will favor those products that are superior in quality, performance, innovative features, designs, and so on. Marketing Management Philosophies or 5 Marketing Concepts are; The idea of production concept – “Consumers will favor products that are available and highly affordable.” This concept is one of the oldest Marketing management orientations that guide sellers. A customer can be lured into buying by the power of persuasion or aggression only once but not repeatedly. Due to the increasing importance and share of the service sector in the economies of most developed and developing countries the world economy is characterized as a service economy. What do customers actually want? Although, in some situations, the production concept is still a useful philosophy. A company that believes in the marketing concept places the consumer at the center of the organization. Concept of Marketing Mix 4 Comments Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. Various functions of marketing management are: 1. The answer is no, unless they face the menace of mice. This concept created a kind of product obsession wherein production managers sought to concentrate on quality improvement and built better product than ever before. When companies started achieving the capability to produce in excess of existing demand, executives started realizing the need to reappraise marketing in business operations. Societal marketing originated after it was realized that what is good for an individual customer or a select group may not be good for society. The management process responsible for identifying , anticipating and satisfying customer requirements profitability. Marketing ensures that all decisions are taken for customer satisfaction. Production Concept 2. There are two problems with this limited perspective. 3. The constraint of repeat business changes the marketing paradigm in favour of the customer. This concept of marketing is a very important concept. Directing and Motivating the Employee: A good direction is a must for effective performance of marketing functions. This means if a customer group demands hard drugs or firearms selling the same then becomes justified. Companies may adopt the societal marketing concept if it does not result in competitive disadvantage or loss in the company profits. They changed the Men’s grooming market. Before publishing your Articles on this site, please read the following pages: 1. Promotional and Communication Process: The ultimate objective of a firm is to maximise sales volume and profit. Presence of demographic groups in the market creates differences in demand that may render one product differently attractive to these groups. This concept advocates that a manufacturer should begin his task with the consumer focus. Aggressive selling and promotion activities can guarantee sales. A contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. iii. The basis function of marketing is identification of consumer’s needs and wants .This requires continuous and systematic collection of data, analysis and reporting of data relevant to marketing activities. Marketing is related to markets and therefore marketing management calls for integration of the various elements of market. Profitable sales over the long-run and repeat-purchase by customers are vital to success in marketing. The reason behind coordination with other departments is that marketing cannot work in isolation. Essentially, marketing planning is about determining strategy that requires detailing the steps that would be undertaken to achieve the set marketing goals. Marketing concept makes customer supreme and seeks to achieve organizational goals through customer satisfaction. The entire focus should be on the consumer and his needs. Ralph Waldo Emerson wrote, ‘If a man can write a better book, preach a better sermon, or make a better mouse-trap than his neighbour, though he build his house in the woods, the world will make a beaten path to his door’. There is a strong need to explore the concept and phenomena of IMC directly in the real world of communication. Marketing is one of the newer marketing management philosophies. Marketing, in its true sense, still does not get a strategic position in this concept. Marketing concept takes an individualistic perspective to business with a complete disregard for society. Marketing Concept is the philosophy that an organization should analyze the needs of their consumers and then make decisions to satisfy those needs, better than the competition. This helps in forecasting and planning future course of action. The earlier belief that decisions like what to produce, how to produce, how to sell, and where to distribute were the prerogative of people inside the organization and customer’s role was confined to ‘take it or leave it’. Evaluation enables identification of effectiveness of marketing plans and actions. Once the company has full information regarding marketing opportunities, they can formulate marketing strategies in the form of dynamic action-oriented formal plans to achieve mission, goal, and objectives. Selecting the correct channel requires careful analysis, particularly since the decision usually involves a heavy investment of time by managers and salesmen and goes far in fixing the rest of the marketing plan for some time into the future. This concept seeks to insert societal interest in the marketing concept so that customer satisfaction does not compromise societal well-being in the long run. Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts. It is the customers who open up revenue streams. Marketing strategies are focused on making continuous product improvements. From social perspective, drugs are undesirable because their use causes addiction with a host of personal and family ramifications. The spatial aspects of the structure of distribution, for example, the geographical concentration of buyers in each market, will make a great difference in determining the best set of channels for a particular situation. The process of dealing with the markets must be properly managed or else both effectiveness and efficiency of the process will get compromised. As Dr Kotler defines; Marketing Management is a social and managerial process by which individuals or firms obtain what they need or want through creating, offering, exchanging products of value with each other. The function of both types of promotion—advertising and personal selling—is to provide potential buyers with informa­tion about the product—its quality, its availability, and its price. Production Concept. The Societal Marketing Concept. As defined by Philip Kotler, it holds that consumers, if left alone, will ordinarily not buy enough of the organization’s products. They try to understand the consumer and deliver the best product or service, which is better for the competition. Therefore, it is ideal for a company to highlight its attention to a particular segment (s) of the total heterogeneous market. Underlying these are, of course, the much more fundamental forces of techno­logical, social, political, and economic change. Production concept; Product concept; Selling concept; Marketing concept; Societal marketing concept; The article lists out the concepts of marketing in a very brief manner. Customers can be new and old. The marketing concept is the concept of competition. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. 5. Thus advertising and personal selling are alternative methods of performing the function of conveying information, but a particular blend of the two may be more effec­tive than either of them alone. Marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system. Second, work on the production systems to bring down cost so that more consumers could buy them. The concept of marketing management involves marketing and management. 6. Marketing research and marketing information service alone can act as effective tool in all decisions of Marketing Management. Basic Concepts of Marketing (Marketing Concepts, Business Concepts), are the ways by which the enterprises can implement their marketing, commerce and sales activities.. Philip Kotler and Kevin Lane Keller classify the concepts of marketing activities as following:. It is concerned with formulation of policies relating to product, price, channels of distribution, promotional measures, forecast of target sales etc. There are five marketing concepts. This marketing concept is thought to have been simple: he who offered a standard product at the lowest price was going to win. A number of issues are connected to the concept of market such as size, consumer diversity and geographic spread, type of demand, volume and value. Marketing Chapter 1. The marketing concept is the strategy that firms implement to satisfy customers’ needs, increase sales, maximize profit, and beat the competition. In moving goods from producers to consumers, the function of personal selling is to push, and advertising plays a pull function. Several products and services such as insurance and preventive health check-ups face consumer resistance because they are perceived to be unnecessary. It has the task of organising these elements into an effective operating system so that it can serve both customer and business enterprise effectively. It looks after the marketing system of the enterprise. For instance, Fair and Handsome brand of fairness cream is targeted at the male segment of consumers. The Selling Concept makes poor assumptions. This understanding can serve two objectives. Marketing Management identifies market opportunities and comes out with appropriate strategies for exploring those opportunities profitably. This is possible through satisfaction of customer’s needs and wants by delivering them, appropriate goods and services according to their needs and wants, at right time and through convenient channel. The dominant business logic according to marketing concept is that an organization depends upon customers for its survival. It becomes a legitimate concern of businesses to discover what actually is critical to get the customers to keep coming back. It is this philosophical idea that sets apart right from wrong and what is acceptable and what is not. Product planning involves new product development, product innovation, product diversification plan. It deals with physical attributes of the product and the benefits associated with use of that product. Achieving high efficiency in production, low cost as well as distribution on a mass scale is the usual focus of the managers. Marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. New ways of motivation are being introduced so that the employee gives his best of services. THE FOUR P’S Product. The marketing concept can be contrasted with earlier concepts in terms of the principles of orientation. What is Marketing Management: Introduction, Definition, Concept, Importance, Functions and Process, What is Marketing Management – Introduction, What is Marketing Management – Definition: Provided by Institute of Marketing Management and Philip Kotler, What is Marketing Management – Features: Managerial Process, Consumer Centric, Research Analysis, Planning and Development and a Few Others, What is Marketing Management – Importance: Analysing Market Opportunities, Determination of Target Market, Planning and Decision Making and a Few More, What is Marketing Management – Functions: Assessing the Marketing Opportunities, Planning the Marketing Activities, Organising the Marketing Activities and a Few Others, What is Marketing Management – Scope: Marketing Research, Determination of Objectives, Planning Marketing Activities, Pricing of Product and a Few Others, What is Marketing Management – Marketing Mix: Product Mix, Pricing Mix and Promotion Mix, What is Marketing Management – Marketing Decision Making: Product Variation, Marketing Channels, Prices and Promotion, What is Marketing Management – Orientation: Production, Product, Selling, Marketing and Societal Marketing Orientation, What is Marketing Management – Issues: Size, Number of Buyers, Demographic Grouping and Geography. 1. While over the long term these factors will share the nature of the uncontrollable forces, the manager is forced by such aspects as convenience and lack of adequate data to concern himself mainly with the immedi­ate uncontrollable item. Marketing activities are not just selling and distribution of ownership of goods and services from the producer to the ultimate consumer. These can be summarized, as in the outer hexagon of Figure 6, as competition, demand, non-marketing cost, structure of distribution, public policy, and company organization. It motivates them to buy the goods. Every aspect of marketing, starting with identifying the consumer’s need and wants, identifying the targeted customer, product planning, development, pricing, promotion, distribution process requires planning, decision making, coordination and controlling. This requires a systematic analysis, planning, implementation, and control of marketing efforts or programmes. We have to identify and evaluate unsatisfied and potential customers’ needs and desires. It can also improve its product quality and service level if it knows what customers actually want. 1996). The marketing concept emphasizes the “pull” strategy”. The societal marketing concept holds that the ‘key to achieving organization goals is in determining customer needs and wants and delivering satisfaction better than competitors in a manner that it preserves or enhances long term well-being of consumer and society’. Some readers will be students who intend to be in marketing management, others already are marketing manag­ers, and still others may be in related activities that bear on mar­keting management in either a managerial or a regulative capacity. During this period, the vital role of selling, advertising, and other marketing functions was organized truly, and the selling concept came into existence. Here marketing management takes a “customer first” approach. Communication is the basis of all marketing activities. Marketing process requires researcher, production engineer, different distribution intermediaries, sales personnel also creates employment opportunities in advertisement section. In a similar vein, organizations need philosophy to guide their thinking and behaviour. It refers to firm’s communication with the consumers regarding the product. Holistic Marketing Concept. Management is the process of getting things done in an organised and efficient manner. The sales orientation lays stress on overcoming consumer resistance through information, persuasion, and often hard selling. Only then the objectives can be achieved. The belief that a better product is always bought by consumers actually turned out to be wrong. This is basically a management orientation that holds that the key task of the firm is to determine the needs and wants of target markets and to adapt the organization to delivering the desired satisfactions more efficiently and effectively than its competitors in a way that preserves and enhances the well-being of the consumers in particular and the society in general. The concept of marketing is the rationality that urges association to concentrate on their clients’ necessities. First, people who could buy the product must be made aware and be informed about its superiority. It supplements advertisement and personal selling as a means of promoting sales. It might be called the “law” of marketing manage­ment, like other rules of behaviour such as Aristotle’s Golden Mean and the Golden Rule. The best way to understand marketing is to visualize it as a practise that marketing firms undertake while working with markets. Thus marketing management opened up different employment avenues thus creating employment opportunities. Share Your PDF File More "Marketing: Definition, Scope, Importance, Role" Posts /, 5 Marketing Concepts: Marketing Management Philosophies, Societal Marketing Concept: Definition, Advantages, Examples, Marketing Environment: Macro and Micro Marketing Environment, Marketing: Definition, Scope, Importance, Role, Marketing Management: Meaning, Definition, Application, Marketing Process: 5 Steps of Marketing Process, New Product Development: Definition, Process, Marketing Organization: Meaning, Purpose, Role, Organizing Marketing Unit, production concept can lead to marketing myopia, undertakes a large-scale selling and promotion effort. Second, understanding of marketing management will permit a better grasp of the role of marketing in economic development, which many countries are so earnestly seeking. It starts with the point of production, which focuses on products, and its aim is to earn profit through increased sales volume, and the means used are selling and promoting. Where other company’s grooming products will cost hundreds to buy for just one month. The number of buyers in a market gives rise to its size, which can either be expressed in terms of volume (e.g., number of cars sold in India in a given year) or value (e.g., total car sales expressed in rupee terms). This concept is based on product of which the organization creating good quality products and … And today, we have an opportunity to look at all 5 concepts of marketing and what they represent. Product Concept 3. Adam Smith’s com­ment cited above is most consistent with it. Content Guidelines 2. Marketing management is practiced in every one of them. To meet all their needs our main objective is to develop a structure, a “theory”, of managerial marketing around which they can organize their reading and experience in order to arrive at a better understanding of it. What do you think about the importance of Marketing Management in business? The advice given by Emerson that if you build a better mouse-trap the world would make a beaten path to your door wrongly shifts marketing focus from consumer to product. This will help him in knowing the deficiencies if any, which can be corrected beforehand only and proper adjustments can be made with the changing environment. If employees of other departments do not recognize how they impact customer satisfaction, the marketing department cannot alone provide it. v. Innovation – Innovation is an important tool to provide consumer satisfaction. (2) Selection and management of marketing channels for distribut­ing the product. Privacy Policy3. Their phones are available in almost every corner of the Asian market. Philip Kotler defines marketing as:. Putting the marketing plan into action and. A company’s modification of the nature of its offering is achieved through product and service decisions which are essentially of two types. Two, if the production costs are very high, that discourages consumers from buying the product. Finally, some buyers may receive a different price (or discount as it is usually called), based on such factors as the quantity they purchase. The marketing concept and the selling concepts are two extreme concepts and different from each other. Related: … To one unfamiliar with company practice the need for implementing the concept and the capacity to do it would seem to be so obvious as not to merit discussion. The term is named marketing mix… Pricing Concept in Marketing Management Price is one of the important variables in the marketing mix. Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. ‘Dollar shave club’ charges a couple of bucks a month with higher quality products and home delivery convenience. Consequently, all company activities in production, engineering, and finance, as well as in marketing, must be devoted first to determining what the customers’ wants are and then to satisfying those wants while still making a reasonable profit.”. Almost all soft drinks and soda drinks follow the selling concept. Such a situation is often seen in commodity markets such as sand, cement, and iron ore. Mergers and acquisitions in the field of commodities such as cement, aluminium, and steel are guided by a motive to create large production systems that become instrumental in driving the cost of production down through economies of scale and experience curve effects. Marketing management, like all other areas of management comprises of the function of planning, organising, directing coordinating and controlling. Everything you need to know about marketing management. The company stops selling those products what they produce they change the production according to the customer need and wants. Consumers can be either psyched out or lured into giving a favourable response. With Figure 6 for perspective, we will first examine each of the controllables. Marketing activities are based on the premise of “make what the market wants”. All these functional areas of marketing must be effectively planned, organised and built effectively to achieve best results. The ideas enshrined in production concept gradually got diffused across different firms rendering participating firms similar in their marketing approach. This production concept is found to be applicable if two situations prevail. In the light of the changing concept of marketing, it is necessary that the organisation structure is flexible and accommodative. For instance, air conditioner and refrigerator sellers’ market their products in tropical locations with ‘tropicalized’ compressors that are equipped to work in hot weather. Marketing management helps in creation of new customers and retention of current customers. Lets understand the definition and characteristics of services in detail. Forced into compliance or subordination by organizations from wrong and what is market­ing management rarely buy and. Above bases suggest another clear definition of the marketing strategy perspective, drugs are undesirable because their causes... Suppose a company should take the initiative from its own to encourage customers to keep back. Are slowly either fully or partially trying to implement marketing programme and evaluate continuously the effectiveness of must! 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