Marketing Concepts
LIST OF SIX MARKETING CONCEPTS
Following are the six concepts of marketing • Production concept • Product concept • Selling concept • Marketing concept • Societal marketing concept • Holistic marketing concept
THE PRODUCTION CONCEPT:
DEFINITION BY KOTLER: “It is the idea that customers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.”
EXPLANATION: This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are more interested in product availability and low prices. This concept makes sense in developing countries, where consumers are more interested in obtaining the product than in its features. This happens when the demand is more than the supply.
EXAMPLE: Computer maker Lenovo dominates the highly competitive, price sensitive Chinese PC market through low labor costs, high production efficiency and mass distribution.
THE PRODUCT CONCEPT:
DEFINITION BY KOTLER: “The idea that consumers will favor products that offer the most quality, performance and features and that the organization should therefore devote its energy to making its continuous product improvements.”
EXPLANATION: This is the next step of evolution of marketing concepts. It depicts that customers will go for those products which offer quality, utility, features, performance, value, benefits, etc. So the marketers must improve the products in an innovative way & continuously. This is more often accompanied by a suitable pricing, distribution, promotion (all the 4Ps of marketing) program.
EXAMPLE: Consumers may prefer airplanes rather than trains or modern digital cameras instead of the non digital camera
Following are the six concepts of marketing • Production concept • Product concept • Selling concept • Marketing concept • Societal marketing concept • Holistic marketing concept
THE PRODUCTION CONCEPT:
DEFINITION BY KOTLER: “It is the idea that customers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.”
EXPLANATION: This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are more interested in product availability and low prices. This concept makes sense in developing countries, where consumers are more interested in obtaining the product than in its features. This happens when the demand is more than the supply.
EXAMPLE: Computer maker Lenovo dominates the highly competitive, price sensitive Chinese PC market through low labor costs, high production efficiency and mass distribution.
THE PRODUCT CONCEPT:
DEFINITION BY KOTLER: “The idea that consumers will favor products that offer the most quality, performance and features and that the organization should therefore devote its energy to making its continuous product improvements.”
EXPLANATION: This is the next step of evolution of marketing concepts. It depicts that customers will go for those products which offer quality, utility, features, performance, value, benefits, etc. So the marketers must improve the products in an innovative way & continuously. This is more often accompanied by a suitable pricing, distribution, promotion (all the 4Ps of marketing) program.
EXAMPLE: Consumers may prefer airplanes rather than trains or modern digital cameras instead of the non digital camera