Concepts / Philosophies of Marketing .

 INTRODUCTION :

In order to achieve desired exchange outcomes with target markets , it is important to decide what philosophy or thinking should guide the marketing efforts of an organization . 

An understanding of the philosophy or the concept to be adopted is important as it determines the emphasis or the weightage to be put on different factors , in achieving the organisational objectives .

Example - If marketing efforts of an organisation will focus on product or on selling techniques. 

5 MARKETING PHILOSOPHIES :

1.PRODUCTION CONCEPT  :

Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding sale.

These companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system and thus indulge in large scale production.This helps them in effecting the economics of the large scale production. Consequently, the cost of production per unit is reduced.

The utility of this philosophy is apparent only when demand exceeds supply.

Its greatest drawback is that it is not always necessary that the customer every time purchases the cheap and easily available goods or services.

2.PRODUCT CONCEPT  :

Those companies who believe in this philosophy are of the opinion that if the quality of goods or services is of good standard, the customers can be easily attracted. 

The basis of this thinking is that the customers get attracted towards the products of good quality. 

These companies direct their marketing efforts to increasing the quality of their product.

The customers do take care of the price of the products, its availability, etc. A good quality product and high price can upset the budget of a customer.

Therefore, it can be said that only the quality of the product is not the only way to the success of marketing.

3. SELLING CONCEPT  :

Those companies who believe in this concept think that leaving alone the customers will not help. Instead there is a need to attract the customers towards them. They think that goods are not bought but they have to be sold.

The basis of this thinking is that the customers can be attracted. 

These companies concentrate their marketing efforts towards educating and attracting the customers. In such a case their main thinking is ‘selling what you have’.

This concept offers the idea that by repeated efforts one can sell-anything to the customers. If you succeed in enticing the customer once, they cannot be won over every time.

Therefore, it can be asserted that this philosophy offers only a short-term advantage and is not for long-term gains.

4.MARKETING CONCEPT  :

Those companies who believe in this concept are of the opinion that success can be achieved only through consumer satisfaction.

The basis of this thinking is that only those goods/service should be made available which the consumers want or desire and not the things which you can do.

In other words, they do not sell what they can make but they make what they can sell.

These companies direct their marketing efforts to achieve consumer satisfaction.

In short, it can be said that it is a modern concept and by adopting it profit can be earned on a long-term basis. 

The drawback of this concept is that no attention is paid to social welfare.

5.THE SOCIETAL MARKETING CONCEPT  :

This concept stresses not only the customer satisfaction but also gives importance to Consumer Welfare/Societal Welfare. 

This concept is almost a step further than the marketing concept. Under this concept, it is believed that mere satisfaction of the consumers would not help and the welfare of the whole society has to be kept in mind.

For example, if a company produces a vehicle which consumes less petrol but spreads pollution, it will result in only consumer satisfaction and not the social welfare.

Primarily two elements are included under social welfare-high-level of human life and pollution free atmosphere. 

Therefore, the companies believing in this concept direct all their marketing efforts towards the achievement of consumer satisfaction and social welfare.

In short, it can be said that this is the latest concept of marketing. The companies adopting this concept can achieve long-term profit.

DIFFERENCES IN MARKETING MANAGEMENT PHILOSOPHIES :

BASIS	PRODUCTION CONCEPT	PRODUCT CONCEPT	SELLING CONCEPT	MARKETING CONCEPT	SOCIETAL MARKETING CONCEPT
1. STARTING POINT	Factory	Factory	Factory	Market	Society.
2. MAIN FOCUS	Quality of Product .	Quality , Performance , Features of Product .	Existing Product.	Customer Needs .	Customer needs and society's well being.
3. MEANS	Availability and affordability of product.	Product Improvements.	Selling and Promoting.	Integrated Marketing .	Integrated Marketing.
4. ENDS	Profit through volume of production .	Profit through product quality .	Profit through Sales volume.	Profit through Customer Satisfaction .	Customer Satisfaction and Social Welfare .