Bb0001 - Q.2 Explain the Marketing Concepts with Its Relevance in Today’s Marketing Environment.
BB0001 - Q.2 Explain the marketing concepts with its relevance in today’s marketing environment.
Answer:
Marketing Concepts :
Studies reveal that different organisations have different perceptions of marketing. And these differing perceptions have led to the formation of different concepts of marketing such as
1. The Exchange Concept
2. The Production Concept
3. The Product Concept
4. The Selling Concept
5. The Marketing Concept
6. The Societal Marketing Concept.
1. The Exchange Concept : The exchange concept of marketing, as the very name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing. While exchange does form a significant part of marketing, to view marketing as a mere exchange process would amount to a gross undermining of the essence of marketing. A proper scrutiny of the marketing process would readily reveal that marketing is much broader than exchange. Exchange covers the distribution aspect and the price mechanism involved in marketing.
The other important aspects of marketing, such as concern for the customer, generation of value satisfactions, creative selling and integrated action for serving the customer, get completely overshadowed in the exchange concept of marketing.
2. The Production Concept: This philosophy holds that customers favour those products with low offered price and easily available products. Thus this concept holds that high production efficiency and wide distribution coverage would sell the product offered to the market.
Organisations voting for this concept are impelled by a drive to produce all that they can. Naturally they get focussed on production and put all their efforts toward that aspect of the organisation. They do achieve efficiency in production. But their thinking is guided by the assumption that the steep decline in unit costs arising from the maximisation of output would automatically bring them all the customers and all the profits that they
Answer:
Marketing Concepts :
Studies reveal that different organisations have different perceptions of marketing. And these differing perceptions have led to the formation of different concepts of marketing such as
1. The Exchange Concept
2. The Production Concept
3. The Product Concept
4. The Selling Concept
5. The Marketing Concept
6. The Societal Marketing Concept.
1. The Exchange Concept : The exchange concept of marketing, as the very name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing. While exchange does form a significant part of marketing, to view marketing as a mere exchange process would amount to a gross undermining of the essence of marketing. A proper scrutiny of the marketing process would readily reveal that marketing is much broader than exchange. Exchange covers the distribution aspect and the price mechanism involved in marketing.
The other important aspects of marketing, such as concern for the customer, generation of value satisfactions, creative selling and integrated action for serving the customer, get completely overshadowed in the exchange concept of marketing.
2. The Production Concept: This philosophy holds that customers favour those products with low offered price and easily available products. Thus this concept holds that high production efficiency and wide distribution coverage would sell the product offered to the market.
Organisations voting for this concept are impelled by a drive to produce all that they can. Naturally they get focussed on production and put all their efforts toward that aspect of the organisation. They do achieve efficiency in production. But their thinking is guided by the assumption that the steep decline in unit costs arising from the maximisation of output would automatically bring them all the customers and all the profits that they