However, a marketing concept is actually a strategy that organizations execute to satisfy customer’s need, amplify sales and increase profit. If you haven’t heard the term “marketing concept”, you are sure to hear more about it in the near future. The marketing concept is based on the principle that companies should analyze the needs of their customers and base their decisions on meeting those needs. It also emphasizes the importance of satisfying those needs better than the competition. While many companies already mirror their programs to match customer demands, some still haven’t bought into the concept of having this focus be their main objective. While needs are instinctual, wants are based off of social, cultural, and economic pressures largely stemmed from marketing endeavors. Consumer demand is characterized by typically the want for a specific product or service and the customer’s willingness to pay for it.
Dead stock presents products that a business is not able to sell and that has to be stored, which costs the company money. The way they get rid of it is by using the selling marketing philosophy, putting it on sale and encouraging people to buy it. They became more efficient in production, which then led to overproduction and a surplus of products. Companies needed to sell the extra stock somehow, hence the emergence of the selling marketing philosophy. The businesses that utilize this marketing philosophy believe that they can sell any product with the use of advertising. What lead to the emergence of this concept was the very Industrial Revolution. During it, there was a lot demand, which leads to a lot of competition between businesses.
The aim of business is to serve the needs of customers profitably. Consumer orientation, integrated marketing and coordinated efforts are meant to deliver consumer satisfaction ensuring survival and growth of business. The aim of marketing is to create, communicate and deliver value to consumers. This concept believes in the pull strategy and helps the firm in making its brand very strong. Marketing concept came into existence after the Second World War when the variety of products increased in the market and hard selling no longer could be relied upon to generate sales. The marketing concept is the philosophy that the firms follow after analysing the needs and wants of their customers and then try to make appropriate decisions to satisfy those needs better than the competitors.
When consumers are doing well then that leads to society as a whole doing well. A business can make sure that this is happening by prioritizing needs outside of what services it can offer to its consumers by improving production and operations. The marketing process begins with knowing the customers’ desires until a business can create a product or offer a service that can meet and satisfy them.
For example, many customers want a Rolex watch but few are able to and willing to pay for it. Product refers to an item or items the business plans to offer to customers. The product should seek to fulfill an absence in the market, or fulfill consumer demand for a greater amount of a product already available. Marketing refers to all activities a company does to promote and sell products or services to consumers. The production concept is all about the mass production of products with the goal of making them inexpensive and available to the consumers, while the product philosophy focuses on the quality of the products. Unlike the selling marketing concept, which doesn’t care about the needs of the customer and the market, the marketing concept is all about that.
The firms following the selling concept rely upon the power of advertising and other promotional techniques to maximise their sales. This philosophy is based on the belief that high production efficiency and mass distribution would sell the product offered to the market. The high production efficiency means that the input-output ratio is favourable. It will lead to economies of scale and decline in the cost per unit. Thus, the production concept holds that customer favours products that are offered at lower prices and are easily available. In short, mass production and distribution are the essence of the production concept. It was introduced as marketing philosophy and objectives only after 1950.