Explain Marketing Management Philosophies
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Answer:
Marketing concepts or marketing management philosophies are the philosophies used by the businesses to guide their marketing efforts.
In simple terms, marketing concepts relate to the philosophy a business use to identify and fulfil the needs of its customers, benefiting both the customer and the company.Marketing Management Philosophies - 5 Marketing Concepts 1
Same philosophy cannot result in a gain for every business, hence different businesses use different marketing concepts (also called marketing management philosophies).
Marketing concepts are driven by clear objectives like cost efficiency, product quality, customer’s need fulfilment etc.
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Marketing Management Philosophies
There are five marketing concepts. A company should choose the right one according to their and their customers’ needs.
Production Concept
Product Concept
Selling Concept
Marketing Concept
Social Marketing Concept
Production Concept
This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. This viewpoint was encapsulated in Says Law which states ‘Supply creates its own demand’. Hence companies focus on producing more of the product and making sure that it is available to the customer everywhere easily.
Increase in the production of the product makes the companies get the advantage of economies of scale. This decreased production cost makes the product inexpensive and more attractive to the customer.
A low price may attract new customers, but the focus is just on production and not on product quality. This may result in a decrease in sales if the product is not up to the standards.
This philosophy only works when the demand is more than the supply. Moreover, a customer not always prefers an inexpensive product over others. There are many other factors which influence his purchase decision.
production concept marketing management philosophies
Examples of Production Concept of Marketing Management Philosophies
Companies whose product market is spread all over the world may use this approach.
Companies having an advantage of monopoly.
Any other company whose product’s demand is more than its supply.
Product Concept
This concept works on the assumption that customers prefer products of ‘greater quality’ and ‘price and availability’ doesn’t influence their purchase decision. Hence the company devotes most of its time in developing a product of greater quality which usually turns out to be expensive.
Since the main focus of the marketers is the product quality, they often lose or fail to appeal to customers whose demands are driven by other factors like price, availability, usability, etc.
product concept marketing management philosophies
Product Concept
Examples of Product Concept of Marketing Management Philosophies
Companies in the technology industry.
Companies having an advantage of monopoly.
Selling Concept
Production and product concept both focus on production but selling concept focuses on making an actual sale of the product. Selling Concept focuses on making every possible sale of the product, regardless of the quality of the product or the need of the customer. The main focus is to make money. This philosophy doesn’t include building relations with customers. Hence repeated sales are very less. Companies following this concept may even try to deceive the customers to make them buy their product.
Companies which follow this philosophy have a short-sighted approach as they ‘try to sell what they make rather than what market wants’.
SALES concept marketing management philosophies
Selling Concept
Examples of Selling Concept of Marketing Management Philosophies
Companies with short-sighted profit goals. This often leads to marketing myopia.
Fraudulent companies.
Marketing Concept
Selling Concept cannot let a company last long in the market. It’s a consumers market after all. To succeed in the 21st century, one has to produce a product to fulfil the needs of their customers. Hence, emerged the marketing concept. This concept works on an assumption that consumers buy products which fulfil their needs. Businesses following the marketing concept conduct researches to know about customers’ needs and wants and come out with products to fulfil the same better than the competitors. By doing so, the business establishes a relationship with the customer and generate profits in the long run.
However, this isn’t the only philosophy that should be followed by all the businesses. Many businesses still follow other concepts and make profits. It totally depends on the demand and supply and the needs of the parties invo
Answer:
Marketing concepts or marketing management philosophies are the philosophies used by the businesses to guide their marketing efforts. In simple terms, marketing concepts relate to the philosophy a business us to identify and fulfil the needs of its customers, benefiting both the customer and the company.