MARKETING CONCEPTS

1. MARKETING CONCEPTS
1
Course: MBA-I
Subject: MARKETING MANAGEMENT - 1
Unit: I

2. 2
Production Concept
The philosophy that consumers will
favour products that are available and
highly affordable and that management
should therefore focus on improving
production and distribution efficiency.

3. 3
Product Concept
The philosophy that consumers will
favour products that offer the most
quality, performance, and innovative
features.

4. 4
Selling Concept
The idea that consumers will not buy
enough of the organization’s products
unless the organization undertakes a
large – scale selling and promotion
effort.

5. 5
Marketing Concept
The marketing management philosophy
that holds that achieving organizational
goals depends on determining the
needs and wants of target markets and
delivering the desired satisfactions
more effectively and efficiently than
competitors do.

6. 6
Societal Marketing Concept
The idea that the organization should
determine the needs, wants, and
interests of target markets and deliver
the desired satisfactions more
effectively and efficiently than
competitors in a way that maintains or
improves the consumer’s and society’s
well – being.

7. 7
Factory Existing
products
Selling
and
promoting
Profits through
sales volume
Starting
point
Focus Means Ends
The selling concept
Market Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
The marketing concept
The selling and Marketing Concepts Contrasted

8. 8
Three Considerations Underlying The Societal
Marketing
Societal
marketing
concept
Society
(Human welfare)
Company
(Profits)
Consumers
(Want satisfaction)

9. EVOLUTION OF MARKETING
MANAGEMENT
 Marketing management has
evolved through following
stages :
 (1) Production Orientation Stage
 (2) Sales Orientation Stage
 (3) Marketing Orientation Stage
 (4) Social Responsibility &
Human

10. COMPANY ORIENTATION FOR
MARKETING ACTIVITIES
 Marketing Management can be defined as
the effort to achieve desired EXCHANGE
outcomes with TARGET MARKETS.
 Now the question arises :
(1) What philosophy should guide
the marketing activities?
(2) What weights should be
given to the interests of the
organisation,the customers and the
society?

11. MARKETING CONCEPTS
 There are FIVE competing
concepts under which
organizations conduct their
marketing activities:
 The Production Concept
 The Product Concept
 The Selling Concept
 The Marketing Concept
 The Societal Marketing Concept

12. (1) THE PRODUCTION CONCEPT
Produce
Sell
Consumers
Company
Produce more & more
Practically sells itself

13. THE PRODUCTION CONCEPT
 Consumers will favour those
products that are widely available
and low in cost.
 Therefore increase production
and cut down costs.
 And build profit through volume.

14. (2) THE PRODUCT CONCEPT
Produce
Quality
Products
Sell
Consumers
Practically sells itself,if
it gives most quality
for money
Buyers admire well-made products and can
appraise product quality and performance.

15. THE PRODUCT CONCEPT
 Consumers will favour those
products that offer the most
quality, performance, or
innovative features.
 Therefore, improve quality,
performance and features.
 This would lead to increased
sales and profits.

16. (3) SELLING CONCEPT
 Consumers have normal tendency to
resist.
Produce
Sell it Consumers
Aggressive selling &
promotion efforts
Making sales becomes primary function and
consumer satisfaction secondary .

17. THE SELLING CONCEPT
 Consumers , if left alone , will not
buy enough of company’s
products.
 Therefore, promote sales
aggressively.
 And,build profit through quick
turnover.

18. (4) MARKETING CONCEPT
 “ LOVE THE CUSTOMER , NOT THE
PRODUCT ”
Consumers
Produce it
Market it
Learn what they
want(MR)
Sell what they want(Satisfy
needs of customers)

19. THE MARKETING CONCEPT
 The key to achieving
organizational goals consist in
determining the needs and wants
of target markets and delivering
the desired satisfactions more
effectively and efficiently than
competitors.
 And build profit through customer
satisfaction and loyalty.

20. (5) THE SOCIETAL MARKETING
CONCEPT
 It is Marketing Concept (+)
Society’s well being.
 Balancing of following three
considerations while setting marketing
policies :
-Customer’s want satisfaction
-Society’s well being
-Company’s
profits

21. THE SOCIETAL MARKETING
CONCEPT
 The societal marketing concept holds that
the organization’s task is to determine
the needs, wants, and interests of target
markets and to deliver the desired
satisfactions more effectively and
efficiently than competitors in a way that
preserves or enhances the consumer’s
and the society’s well being.
- It addresses conflicts between
consumer’s and firm’s short run wants
and long term welfare.

22. SELLING AND MARKETING CONCEPT
CONTRASTED
Starting point Focus Means Ends
Factory Products Selling and
Promoting
Profit through
Sales Volume
Selling Concept
Target Market Custome
r Needs
Coordinated
Marketing
Profit through
Customer
Satisfaction
Marketing Concept

23. REFERENCES & SOURCES
23
www.businessdictionary.com/definition/marketing-
concept.html
PHILIP KOTLER (BOOK: MARKETING MANAGEMENT –
CHAPTER-1)
web.nchu.edu.tw/pweb/users/amy/lesson/988.ppt