end point of marketing is profit through

A company can do this with market research, and hence, the role of market research plays a dominant role in marketing concept-oriented companies. The marketing concepts are evolving on a continuous basis since 1960s when the marketing function was recognized as a distinctive discipline and field in the organization. Majority of the products were in such short supply that the organizations sell all that they made. Under this concept, all aspects of company operations are aimed at satisfying customers wants and desires. As Joseph C. Seibert says, marketing management does not have the objective of creating customers insofar as it is responsible for creating or building markets. 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. In turn, it yields profits by creating lasting relationship with the right customers based on customer value satisfaction. The companys function is to influence consumers by using all possible sales techniques so that they are encouraged to buy more. It is suggested that this new concept represents an attempt to harmonize the goals of the organization to the occasionally conflicting goals of the society. Selling over emphasizes the exchange aspect without caring for the value satisfactions inherent in the exchange. You see, in Amazon or retail stores, the market is flooded with cheap products from china. A firm pursuing this philosophy tries to improve its products in terms of quality, performance, and any other perceptible feature. As against this, the factory is the starting point of the selling concept. The Product Concept. The Selling Concept assumes customers who are coaxed into buying the product will like it. with their product and do not realize what the market needs. Management might commit the better-mousetrap The product concept compelled organizations to ensure improving product quality, and introduce new features in the product to enhance the performance as much as possible. It began to be dominant concept from 1930s and stayed in widespread use until 1950s. When you think of high-quality products, Apple will be one of the top ones. 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. to its door.. The problem is to sell those products. Marketing in the present day environment is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. Marketing begins with the customer and focuses constantly on the needs of the customer. The concept presumes that the principal task of marketing is not just persuading the customer to buy, but also to provide the needs of the customer with the right quantity and quality. Almost all soft drinks and soda drinks follow the selling concept. Customer needs become the guiding force behind all these activities. The success of this concept was because of the time and level of technology in which this concept flourished. This is expressed by those organizational managements who make a clear distinction between the selling and the marketing orientation. Their phones are available in almost every corner of the Asian market. In marketing concept, organizational management is oriented towards profit. It holds that consumers will prefer products that are widely available A company can thus try to create a dominant position in the market where it operates. Thus, producers will be interested in increasing their outputs. . There is no coordination among the different functions involved in the total process leading to the product selling. These high-quality products are priced higher, but people still buy, and they get almost free advertisement from independent reviews. Selling can be considered as the modern version of the exchange under barter system where product is exchanged for the cash. Regarding what business we are in, the company, for example, says, we sell beauty and hope instead of we sell cosmetics.. It emphasizes on fulfilling these needs. shortages, explosive population growth, world hunger and poverty, and neglected The main emphasis here is on the product. This means that the societal marketing concept emphasizes that need which the customers consider in product purchase decisions has a component of their immediate environment. consumer wants necessarily acting in the best long-run interests of consumers In todays diverse market, it is not feasible for a company to operate successfully in every market and satisfy its needs. To be marketing oriented, a company is to carry out both internal and external marketing. A general motors executive said years ago: How can the public know what kind of car they want until they see what is available?. In marketing concept, customer determines the price and price determines the product costs. The marketing concept takes an outside-in perspective. Marketing concept The marketing concept started to dominate organizational orientation during the 1950s, and continues in the twenty first century. promotion effort. This concept assumes The emergence of the selling concept was necessary since there was big increase in the production of variety of goods after the industrial revolution and also since the organizations became more efficient in production. selling.. To be effective, selling must be preceded by several marketing activities such as needs assessment, marketing research, product development, pricing, and distribution. The production concept worked well for the organizations in the 1850s for achieving their organizational objectives. 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.. The marketing concept rests on four pillars: It is concerned with the methods and techniques of getting the customers to part with their cash in exchange for the products. This is usually a very poor and costly assumption. It takes an outside-inside view. Many of the product-oriented firms often design their products taking little or no suggestions from their target customers. much waste. In satisfying consumer The marketing activity commences with the identification of the customer needs and does not end till feedback on the customer satisfaction from the consumption of the product is received. It is to be complementary organizational thinking to the adoption of other organizational objectives, particularly, the marketing concept. The emphasis is on an integrated approach. environmental problems. than competitors in creating, delivering, and communicating customer value They changed the Mens grooming market. target market, customer needs, integrated marketing and profitability. The entire company works to develop, manufacture, and sell a product from the marketing perspective. What relative weights should be given to the interests of the A business orientation which talks about accomplishing organisational goals by becoming better than others in providing customer satisfaction is the marketing concept. The selling concept takes an inside-out perspective. In marketing concept, planning is long run oriented in terms of new products and future market demands etc. As customers needs are changing day by day, a marketing concept-oriented company has to consider and modify its product, service, and activities with the change in needs and satisfy customers better than its competitors due to earn profit in the long run. Under the marketing concept, marketing becomes the basic motivating force for the entire firm. In the production concept era, the manufacturers typically concentrated on increasing output with the assumption that customers would look for, and buy, reasonably priced, and well made products. In selling concept, packaging is essentially seen as a mere protection or a mere container for the product. Transportation, storage, and other distribution functions are seen as vital services to be willingly provided to the customer in a manner which delivers the products without any damage. The Marketing Concept is suitable for almost any type of product and market. Marketing strategies are focused on making continuous product improvements. The appropriateness of societal marketing concept is deduced from the fact that it supports a socially responsible behaviour of the organization. The consequence of the marketing efforts is the identification of the product which is needed by the customer. Under marketing, all activities and products take their direction from the customers and their needs. One, when the demand for a product exceeds supply. Despite the fact that the selling concept has almost seized to be a preferred organizational orientation over time, its acceptance or rejection is not to be determined by the concept itself, but the concept era and the dominant organizational orientation. The main focus of marketing concept is on the customer needs, but the selling concept puts greater thrust on the existing product. The societal marketing concept is considered a separate organizational objective; however the concept can be better looked at as complementary. and mass distribution. They assume When customers have many choices, they always choose the one which best meets their needs. Thus in this concept, the organizational is orientation shifted from the product to the market. Mountain Dew ads are hard to miss. Manufacturers were facing excess production capacity and competition for customers. buy enough of the selling companys products. Over the years, marketing function has been redefined to fit new contexts. Selling begins with the existing activities and products of the organization. or enhances the consumers and the societys well-being. Here engineers first design and develop the product, the manufacturing makes it, the finance department prices it, finally, marketing and sales try to sell it. The marketing concept has outside-in perspective. Focus on the selling concept starts at the production level. Philip. The Marketing to stimulate more buying. fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to Companies may adopt the societal marketing concept if it does not result in competitive disadvantage or loss in the company profits. is more theoretical and will undoubtedly influence future forms of marketing These two strategies are used together and backed by marketing research, product development, improvement, pricing, dealer organization, cooperation, and the physical distribution of goods themselves. that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing What philosophy should guide a wants, these restaurants may be hurting consumer health and causing If a firm decides to operate based on this concept, it will try to minimize production costs by making the production process efficient. There are obvious reasons behind coordinating marketing functions among themselves, and the main reason is to eliminate conflict. Societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. goals (goals of the selling company) consists of the company being more effective The increase in quantity of the products and the types of products led to competition which eventually led to the end of product shortages and hence the emergence of surpluses. The efforts involved in selling concept includes promotion and persuasion, but integrated marketing efforts are used by marketing concept, which encompasses various strategies related to the marketing mix i.e. Additionally, it holds that this all must be done in a way that preserves Organizations are required to adopt this marketing concept in order to be able to deal with the cultural and regulatory aspect of the organizational environment. Enter your e-mail address and your password. Selling concept is a business notion, which states that if consumers and businesses remain unattended, then there will not be ample sale of organization's product. Along with production, finance and accounting, human resource management, research and development, purchase and stores, and numerous other functions, marketing contributes to the ability of the organization to succeed. On the other hand, marketing is a wider and all pervasive activity of the organization. it is designed to provide the maximum possible convenience and satisfaction to the customer. undertakes activities such as; market research. The Selling Concept.This is another common business orientation. Here, the company puts all of its efforts into building production volume and improving technology to bring down costs. The production concept assumes that the consumers are mostly interested in product availability at low prices; its implicit marketing objectives are cheap, efficient production and intensive distribution. This marketing concept is thought to have been simple: he who offered a standard product at the lowest price was going to win. Several definitions of marketing have been put forward over the years as each generation tries to capture what marketing is at its time and what it means to the organizational functioning. It sees the organization from the view point of the customer with customer consciousness spreading in the entire organization all the time. The marketing concept starts with a well-defined market, focuses on the customer needs, and integrates all the marketing activities which affect the customers. On the other hand, the selling concept takes an inside-outside perspective (see the figure below). On the contrary, the selling concept is concerned with compelling consumers mind towards goods and services. Comparison of marketing concept with selling concept. 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. Companies adopting this orientation run a major risk of focusing too narrowly on their operations and losing sight of the real objective. This And the soft drink companies know it, and they run ads 247, spending millions, 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.. Compelling consumer's mind towards goods and services. In marketing concept, emphasis is on the requirements of the customers. Selling is an action which converts the product into cash but marketing is the complete process of meeting and satisfying the needs of the customers. Under selling concept, aggressive sales methods are justified to meet the sale targets and meeting the needs and satisfaction of the customers are taken for granted. Further, since the organization has the higher knowledge and skill in making the product, it is also assumed that it knows what is best for the consumer. social services., Are companies that do an excellent job of satisfying countries, where consumers are more interested in obtaining the product than The Marketing Concept. This is a business philosophy that challenges between the Sales Concept and the Marketing Concept: 1. The Sales Customer determines the product which is to be offered by the organization. The Selling Concept makes poor assumptions. Producing quality products does not necessarily guarantee its sale. The selling concept holds the idea- consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort.. The understanding of the differences between them is necessary for the lone term performance of the organization. Lets overview the 5 basic marketing concepts with this infographic. The Selling Concept is suitable with unsought goodsthose that buyers do not normally think of buying, such as insurance or blood donations. demand and supply of the commodity. The Production Concept. A business notion, which states that if consumers and businesses remain unattended, then there will not be ample sale of organisations product, is the selling concept. Followers of product concept philosophy keep on improving their products on a continuous basis. The product concept assumes that consumers prefer product based on its quality, performance, and innovative features. Although some organizations still continuing to have a production oriented marketing thinking which direct their operations, the concept is not popular in the present day market environment. Marketing consists of all those activities which are associated with product planning, pricing, promoting and distributing the product. As Kotler says, the selling concept is practiced most aggressively with unsought goods, those goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. The global warming panic button is pushed, and a revelation is required to use our resources. The marketing concept can be contrasted with earlier concepts in terms of the principles of orientation. Marketing concept views the customer as the very purpose of the existence of the organization. Selling begins with the organization which is pre-occupied all the time with meeting the requirements of selling. Application of this concept in service firms such as hospitals is also criticized because it may cause deterioration in the firms service. There are five alternative concepts under which organizations design and carry out their marketing strategies to answer these. The trend which is prevailing in the present day scenario indicates that production concept does not have any part in most of the organizational practices today. In contrast, the selling concept has a short-term business planning, i.e. Marketing has very little room in this concept. What philosophy is the best for a company in setting marketing strategies? In the marketing concept, the price is determined on the basis of various forces present in the market, i.e. selling activities should be carried out under a well-thought-out philosophy of Middle management is there to support front-line people so that they can better serve the customers, and top management stays at the base to support middle management so that they can effectively and efficiently provide support to the front line people. The orientation is directed toward making markets rather than making products.. Though the marketing concept has become the prescription for facing competition, old habits die hard. Almost all companies eventually fall into this concept. Organizations with such a marketing concept today risk focusing their effort too narrowly with their own operation losing sight of the core idea of producing to meet customer expectation and needs to create customer value. It focuses primarily on customer conquest by getting short-term sales with little concern about who buys or why. The emphasis is to sell somehow. Through the ispatguru.com website I share my knowledge and experience gained through my association with the steel industry for over 54 years. For example, if marketing functions are not coordinated among themselves, the salesforce might heavily criticize marketing people for setting a very high sales target. Two, if the production costs are very high, that discourages consumers from buying the product. The Marketing Difference Between Sole Proprietorship and Partnership, Difference Between Provident Fund and Pension Fund, Difference Between Internal and External Reconstruction, Difference Between Investment and Speculation, Difference Between Micro and Macro Economics, Difference Between Developed Countries and Developing Countries, Difference Between Management and Administration, Difference Between Qualitative and Quantitative Research, Difference Between Full-Service Broker and Discount Broker, Difference Between Contract and Quasi Contract, Difference Between Strict Liability and Absolute Liability, Difference Between Planning and Scheduling, Difference Between Audit Report and Audit Certificate, Difference Between Product-Based and Service-Based Companies, Difference Between Civil and Criminal Liability. Hence, the company should take the initiative from its own to encourage customers to complain. This concept holds that the (adsbygoogle = window.adsbygoogle || []).push({}); Overall, product marketing concepts can be categorized into five concepts consisting of (i) production concept, (ii) product concept, (iii) selling concept, (iv) marketing concept, and (v) societal marketing concept (Fig 2). Consequently, organizations did not need to consult with the consumers about designing and producing their products. Marketing concept is based on producing products needed by the customers the satisfaction of the customers. This concept In fact, these two terms have different meanings. and selling approaches. Or, if they dont like it, they will possibly forget their disappointment and buy it again later.. This required that the concentration of the organizations was directed toward product improvement and efficient distribution of their products. Dollar shave club is the best example. Managers focusing on this concept concentrate on making superior products Tab 1 gives a detailed comparison between the selling concept and the marketing concept. They usually use a mix of marketing concepts or change it depending on the market situation, competition, and sales numbers. The marketing concept is a total enterprise concept. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. On the other hand, a company can get quite helpful innovative ideas from its customers complaints. on this concept concentrate on achieving high production efficiency, low costs, The hamburgers have a high fat content, and the restaurants promote Here marketing management takes a customer first approach. This concept is mostly used in the case of overcapacity, where a firm wants to sell what it makes. The Societal Marketing In other words, the aim is to sell what the company makes rather than making what the market wants. They assume that buyers admire well-made products The organization knows all the aspects of the design and the production of the product. The evolution of the marketing concepts with time is shown in Fig 3. Even in the era of a market oriented concept, few organizations which deal with unsought products (such as life insurance), political parties who sell their candidates aggressively to apathetic voters in an election, and also by the organizations who have excess stock still follow this concept and use the selling orientation successfully. In the marketing concept, the attention has shifted from the problems of production to the problems of marketing, from the product the organization can make to the product the customers wants the organization to make. The concept assumes that consumers are unlikely to buy the product unless they are aggressively persuaded to do so, mostly through hard sell approach. Five orientations (philosophical Despite the fact that new concept has been developed since the emergence of the marketing concept, the concept still reigns superior in creating and retaining profitable customers, which is a primary objective of any organization. Concept focuses on the needs of the seller. Fig 1 Core issues related to the marketing of the products. What is needed for success is customer orientation, i.e., carefully defining customer needs from customers points of view. The product concept holds that consumers will favor products that offer the most quality, performance, and innovative features. During this period, preference towards customer needs was largely over-shadowed by the production and selling orientations.

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