Even though business in modern times is constantly changing and drastically different from 20 or even 50 years ago, some fundamental concepts of marketing remain the same.
Market is described according to the American Marketing Association as:
“the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
Marketing concepts refer to the way businesses use their philosophies to determine and satisfy the needs of customers which benefits both the customer and the business. The same philosophies cannot bring an increase for every business as different companies use different concepts in marketing (also known as marketing management concepts).
The marketing concept suggests that in order to achieve the goals of an organization organizations should anticipate the needs and desires of customers and fulfill them more efficiently than its competitors. The concept was derived from Adam Smith’s work The Wealth of Nations, but it wouldn’t be widespread until 200 years after.
Marketing and marketing are directly connected.
Due to the importance of customers’ wants and needs in marketing, it is important to know them well.
They were defined a many years ago as:
- Needs: Anything that is essential for people to lead an enlightened, stable, and secure life. If the needs of a person are not met in the absence of a need, there is an obvious negative outcome, such as a malfunction or even death. The need for needs can be physical and objective such as the necessity for water, food and shelter, or psychological and subjective such as the need to be part of an extended family or a social group and the need for self-esteem.
- Wants: Anything which is desired desired or aspired for. These are not necessary for life’s necessities and are often dictated by cultural.
- Demands: When the need and desires are backed by the capacity to pay these needs, they can be able to develop into economic demands.
There are many marketing concepts used by marketers to provide an example in the field of marketing. Certain of these concepts are still in use and some are obsolete and have been replaced by different marketing theories.
Five marketing concepts
Five marketing concepts include:
- Concept of production
- Product
- Concept of selling
- Concept of marketing
- Social marketing concept
The concept of production
As the concept of production was established as a business oriented towards production, it was dominant on the market. It was this way from the beginning of capitalism through the mid 1950’s.
In the early days of the production idea companies were concerned with manufacturing, production, and efficiency problems. Businesses that rely on the production model are of the opinion that consumers generally want items that are inexpensive and readily available.
The concept of production is based on the idea that a business can boost production while reducing cost. Furthermore, the concept of production suggests that a company can cut costs by mass production.
Production-oriented companies is one that believes in economies of size (decreased cost of production per unit) which means that mass production will reduce costs and increase profits. In general production model is geared towards processes.
The product’s concept
This idea works on the assumption that buyers are more likely to purchase products with higher quality, and that price and availability does not influence their decision to purchase. So, a company creates products of higher quality that is usually found to be costly.
One of the most modern examples is IT companies that constantly improve and update their products to differentiate them from their competitors. Because the primary focus of marketing is product’s quality, they frequently aren’t able to attract to the customers whose requirements are influenced by other factors like availability, price and usability, for instance.
The concept of selling
Product and production concepts both are focused on production, but selling concept is focused on the actual selling of product. Selling concept is focused on making every sale for the product no matter the item’s quality or requirements of the buyer.
The concept of selling suggests the fact that customers will buy products from a company only if the company was able to market these products effectively. This approach doesn’t focus on creating relationships with customers. This means that repeat sales are not common, and customer satisfaction isn’t high.
The concept of marketing
A business that is a believer in the concept of marketing puts consumers at the core of its operations. Every aspect of the business is geared toward the needs of the consumer. The goal of a business is to comprehend the requirements and desires of the customer. It implements a marketing strategy in accordance with market research, from product design through sales.
By focusing on the requirements and desires of the target market, companies will be able to provide greater worth than its competition. Marketing concepts emphasize on the “pull” strategy”. This means that a brand’s image is so enduring that customers will always favor your brand over other brands..
The concept of societal marketing
This is a fairly new concept in marketing. The concept of societal marketing emphasizes the wants and needs of the market it is targeting and the ability to provide superior value over its counterparts, it also stresses how important it is to ensure the wellbeing of both the consumer and the society at large (consumer welfare or social welfare).
The concept of societal marketing demands that marketers incorporate ethical and social aspects into their marketing decisions. They must be able to manage the often contradicting demands of profits for companies, consumer need for satisfaction, as well as public interests.
Conclusion
Five marketing concepts are a great illustration that shows how the field of marketing evolved throughout time. Its focus has changed from the sale of products to the user.
Modern businesses must place the needs of their customers first and develop not only an excellent item (or service) but also the best experience possible around it. If you require assistance in making a marketing plan, get in touch with us now and we’ll be happy to assist you.
