The Different Marketing Concepts or Orientations Flashcard
Marketing is also known as a concept which companies use to raise awareness of their particular product or service in a specific region .Companies seek to keep lifetime relationships with their customers as it would increase the profitability of the company . Retaining existing customers rather than attracting new ones.
Marketing is seen as a key to the success of any business, as it is the way of understanding both its customers and the market within which it operates.The Different Marketing Concepts or Orientations1. The selling concept According to this concept the company’s entire focus is on selling and hence making a lot of sales. The selling effort is backed by serious promotional activities and aggressive advertising. The company does not bother about the market demand; they just want to sell what they produce. Important Fact: This is adopted when the firm faces something which we call over capacity2.
The product and production concept Product Concept: According to this concept, people like products which are very good in terms of performance and Quality.The Company aims at making a continuous effort towards product improvement and innovation. Limitations:Here the firm may face problems when substitute products are available. For example: consumers may prefer modern digital cameras instead of the non digital camera using film. Production Concept: The company believes in the fact that it should produce goods efficiently and try to bring down the prices so that products become affordable.
The firm undertakes mass production and makes an effort to improve the distribution. Important fact: This happens when the demand is more than the supply3. The Marketing concept The marketing concept is concerned with first identifying the consumer needs and then making products that give maximum customer satisfaction. Marketing starts before the product; service or solution is ready and continues even after the sale has been made.
The firm here aims to make products and provide services better than the competitors. Here the company makes sincere efforts towards retaining the customers and also attracting new ones.If the customers are satisfied with the product they will buy it again and again and tell other people about it also. If the product turns out to be better than what they had expected, the consumers will be really impressed and this will prove to be very beneficial in the long run.
For E.g. .Good Customer loyalty This means that the firm should focus on the customer centered approach and make profits through customer satisfaction.
Companies like Dell and Wal-mart have had had great success by following the Marketing concept.4. The Societal concept The Societal concept seems to be the best marketing concept as this gives importance to the society’s well being, interests and welfare. Societal concept focuses on consumer needs and wants, profits and also the social welfare. This helps in improving the image of the company. Here the firms are concerned with social issues like: Environmental problems and pollution caused by the waste material, health problems caused by fast food etc.