Basically there are five different concepts of marketing according to which businesses conduct their marketing activities. Following are the marketing philosophies:
- The production concept.
- The product concept.
- The selling concept
- The marketing concept
- The societal concept.
THE PRODUCTION CONCEPT
The Production Concept
Production concept is one of the oldest concepts of marketing.
According to this production concept, consumer will prefer products that are widely available and inexpensive.
Assumption of Production Concept
The underlying assumption is that the buyer is primarily interested in product availability and low prices.
Focus Production Concept
Managers following this philosophy will concentrate on:
- Achieving high production efficiency
- Low costs
- Mass distribution
Application of Production Concept
Following are the applications of production concept
- This seems to be a pertinent philosophy as the context of price conscious buyers of developing countries.
- It can also be used when a company wants to expand the market.
- Henry Ford practically implemented this philosophy on large scale during 1900 in automobile industry.
Drawback of of Production Concept
It afterwards, results in poor quality.
THE PRODUCT CONCEPT
The Product Concept
Some firms follow product concept of marketing. The product concept of marketing holds that consumers will favor those products that offer the highest level of quality, performance and / or innovative features.
Assumption of Product Concept
The underlying assumption of this concept is that the buyers can appraise the quality and performance.
Foucs of Product Concept
The operational implications of this concept are that the managers will focus on:
- Making superior products
- Improving the products over time.
Drawback of Product Concept
This pattern of thinking most of the times leads the managers to be caught up in lone with their product at the cost of customer need which stands totally ignored.
THE SELLING CONCEPT
The Selling Concept
According to this concept, the consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s product. The organization must therefore undertake an aggressive selling and promotion effort.
Assumption of Selling Concept
Following are the assumptions of selling concept
- The buying inertia or resistance exists in consumer.
- The company has complete resources of vigorous marketing and effective selling.
Focus of Selling Concept
The result of the philosophy is, very obviously a thorough and vigorous marketing strategy in order to coax consumers. Thus the focus will be on the seller’s need of converting his product with cash.
Application of Selling Concept
The applications of the selling concepte to the following situations are.
- When the goods to be sold are such that buyers normally don’t think of buying (the unsought goods). The example is of insurance
- In the non-profit area by fund-raisers, college admission offices and political parties.
- When the firms have over-capacity.