It began to be dominant concept from 1930s and stayed in widespread use until 1950s. Advocates of this concept are of the opinion that consumers favor well- made products, products that are superior to the competing products in the above-mentioned aspects. On the contrary, the selling concept is concerned with compelling consumers mind towards goods and services. Internal marketing is to be carried out first because unless a company is not ready to provide customer satisfaction, it cannot go for external marketing. the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational
These were done without consulting the customers to find their view on the product features, though the products were produced with the customer in mind. advantage. This philosophy
The Selling Concept is suitable with unsought goodsthose that buyers do not normally think of buying, such as insurance or blood donations. 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. This means that the organization knows its product better than all others. You see, in Amazon or retail stores, the market is flooded with cheap products from china. 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 emphasizes identification of the opportunity available in the market. The product concept survived much of the time after the industrial revolution since the demand exceeded supply and the emphasis on production rather than on the customer was quite an appropriate product selling thought at that time. 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. In fact, these two terms have different meanings. The selling concept also enables part of the organization to keep focusing on the product, through the product concept. Focus on the selling concept starts at the production level. 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. The selling organization determines which product is to be offered. Customers can be new and old. The marketing concept has outside-in perspective. This required that the concentration of the organizations was directed toward product improvement and efficient distribution of their products. 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. Under this philosophy, the marketers first task is to identify the needs and wants of his prospect, then should work backward through the trade channel and physical distribution and continue this reverse course beyond the shipping door, past the production and assembly line, right to the drawing boards and research laboratories. In the marketing concept, the price is determined on the basis of various forces present in the market, i.e. 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. Today, such an organizational orientation can only make sense when the objective of the organization is to expand the market. The orientation of the selling concept was that the organization can sell any product it produces with the use of various techniques, such as advertising, sale promotion, and personal selling. Under marketing concepts, the emphasis is on selling satisfaction and not merely on the selling the product. The above bases suggest another clear definition of the marketing concept put forward by W. J. Stanton. Product quality and improvement are important parts of marketing strategies, sometimes the only part. into buying. It also assumes that
Source: Kotler,
According to him, selling focuses on the needs of the seller; marketing on the needs of the buyer. According to him, in its fullest sense, the marketing concept is a business philosophy that states that customers want satisfaction is the economic and social justification of a companys existence. If employees of other departments do not recognize how they impact customer satisfaction, the marketing department cannot alone provide it. 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.. As per this notion, in the present environment the more progressive organization is searching out the unconscious needs of the consumer, and is then producing the goods to gratify them. The evolution of the marketing concepts with time is shown in Fig 3. Almost all soft drinks and soda drinks follow the selling concept. 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. fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to
Customer orientation is important in the sense that a companys future and progress depend on the customers. 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. Logitech makes very high-quality computer products such as keyboard, mouse, and webcams. The initial point of marketing concept is the target market, i.e. Many marketers still hold this concept, and this concept so influences some that they even forget that the market is going in another direction. In the organization practicing marketing concept, marketing is the key function and the entire organization is organized for supporting the marketing function. organization, the customers, and society?
The evolution of various definitions of marketing also reflects change in the concepts of product marketing. . environmental problems. Societal marketing concept The societal marketing concept emerged in the 1970s and has since overlapped with the marketing concept. A business orientation which talks about accomplishing organisational goals by becoming better than others in providing customer satisfaction is the marketing concept. Mountain Dew ads are hard to miss. Regarding what business we are in, the company, for example, says, we sell beauty and hope instead of we sell cosmetics.. Company
As against this, the factory is the starting point of the selling concept. Orientations to the Marketplace. Selling emphasizes on the saleable products of the organization. (2000) Marketing Management. In the earlier concepts, goods would be brought to the market in the hope of finding customers. This concept is the oldest of the concepts in business.
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. These changes had led to the evolution of the marketing concept, which, in essence, is a philosophy of management. Customer determines the product which is to be offered by the organization. Marketing is a department of management that tries to design strategies that will build profitable relationships with target consumers. The understanding of the differences between them is necessary for the lone term performance of the organization. on this concept concentrate on achieving high production efficiency, low costs,
While large companies sometimes launch programs or products that benefit society, it is hard to find a company that is fully committed socially. In marketing concept, it is seen from the point of view of the customer. the product as a solution to the customers problem (needs). 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. to its door.. According to him, consumers typically show buying inertia and sometimes resistant to buying and have to be influenced by different means so that they are agreed to buy. For example, if marketing functions are not coordinated among themselves, the salesforce might heavily criticize marketing people for setting a very high sales target. and inexpensive. Managers focusing
The Societal Marketing
This suggests that profit is to be made by satisfying customers needs. In the selling concept, planning is short term oriented in terms of daily sale of the product. It sees the organization from the view point of the customer with customer consciousness spreading in the entire organization all the time. Consequently, organizations did not need to consult with the consumers about designing and producing their products. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. These interest often clash, however, an organizations marketing and
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. The orientation is directed toward making markets rather than making products.. The marketing concept takes an outside-in perspective. During this period, the vital role of selling, advertising, and other marketing functions was organized truly, and the selling concept came into existence. Different departments of the organization operate in separate water tight compartments. The Marketing Concept. This is a business philosophy that challenges
Transportation, storage, and other distribution functions are perceived as mere extensions of the production function. Majority of the products were in such short supply that the organizations sell all that they made. and mass distribution. They assume
To ensure customer satisfaction, a company should encourage customer complaints, since it is seen from different studies that 96% of unhappy customers never tell the company about their dissatisfaction. The product concept era reached the climax in the development of innovative products which did not have substitutes and with the customer needs not in too much a demand since customers did not know their needs in such innovative market situation. The great depression in America proved that producing enough goods or quality goods is no more a problem. In the product concept era, organizations were able to sell all of the products which they made. This is seen in markets that are highly price-sensitive and budget-conscious. It calls upon marketers to balance three considerations in setting their marketing policies: company profits, consumer want satisfaction and public interest. What is needed for success is customer orientation, i.e., carefully defining customer needs from customers points of view. These high-quality products are priced higher, but people still buy, and they get almost free advertisement from independent reviews. When customers have many choices, they always choose the one which best meets their needs. Marketing, here, indeed based on hard selling. A firm pursuing this philosophy tries to improve its products in terms of quality, performance, and any other perceptible feature. This means the selling concept though being less recognized in the environment of the present day, it is not completely abolished since it can be used to support some more dominant concepts in certain types of organizations. There are obvious reasons behind coordinating marketing functions among themselves, and the main reason is to eliminate conflict. Marketing strategies are focused on making continuous product improvements. is the foundation of consultative
The organization produces the identified product in its own interest. This means that the adoption of the societal marketing concept generates some factors of market orientation which promote organizational performance. With the nature of customers and market environment of the present day, the production concept can be a failure in the present day environment, except in the cases of introduction of new products where there can be insufficient customer knowledge and competition. Unlike selling the concept, where the cost of production forms the basis of determining the price of the product or service. On the contrary, the marketing concept suggests that marketing starts with the customers and works back to the production of desired products in the right amounts and with the right specifications. It can be achieved by a USB Flash drive, SD memory cards, portable hard disks, etc. undertakes activities such as; market research. Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts.