mrktin concepts

7/28/2019 Mrktin Concepts

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Company Orientations to the Marketplace

What philosophy should guide a company marketing and selling efforts? What relativeweights should be given to the interests of the organization, the customers, and society? Theseinterest often clash, however, an organizations marketing and selling activities should be carried

out under a well-thought-out philosophy of efficiency, effectiveness, and socially responsibility.

Five orientations (philosophical concepts to the marketplace have guided and continue to

guide organizational activities:

The Production Concept

2. The Product Concept

3. The Selling Concept

4. The Marketing Concept

5. The Societal Marketing Concept

The Five Concepts DescribedThe Production Concept. This concept is the oldest of theconcepts in business. It holds that consumers will prefer products that are widely available andinexpensive. Managers focusing on this concept concentrate on achieving high production

efficiency, low costs, and mass distribution. They assume that consumers are primarilyinterested in product availability and low prices. This orientation makes sense in developingcountries, where consumers are more interested in obtaining the product than in its features.

The Product Concept. This orientation holds that consumers will favor those products

that offer the most quality, performance, or innovative features. Managers focusing on this

concept concentrate on making superior products and improving them over time. They assumethat buyers admire well-made products and can appraise quality and performance. However,

these managers are sometimes caught up in a love affair with their product and do not realize

what the market needs. Management might commit the better-mousetrap fallacy, believingthat a better mousetrap will lead people to beat a path to its door. The Selling Concept.This is

another common business orientation. It holds that consumers and businesses, if left alone, will

ordinarily not buy enough of the selling companys products. The organization must, therefore,undertake an aggressive selling and promotion effort. This concept assumes that consumerstypically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes

that the company has a whole battery of effective selling and promotional tools to stimulate more

buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sellwhat they make rather than make what the market wants.The Marketing Concept. This is a

business philosophy that challenges the above three business orientations. Its central tenets

crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the


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selling company) consists of the company being more effective than competitors in creating,

delivering, and communicating customer value to its selected target customers. The marketing

concept rests on four pillars: target market, customer needs, integrated marketing andprofitability.

Distinctions between the Sales Concept and the Marketing Concept:

1. The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on

the needs of the buyer.

2. The Sales Concept is preoccupied with the sellers need to convert is/her product into

cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the

customer by means of the product as a solution to the customers problem (needs).

The Marketing Concept represents the major change in todays company orientation thatprovides the foundation to achieve competitive advantage. This philosophy is the foundation ofconsultative selling. The Marketing Concept has evolved into a fifth and more refinedcompany orientation: The Societal Marketing Concept. This concept is more theoretical and will

undoubtedly influence future forms of marketing and selling approaches.

The Societal Marketing Concept.This concept holds that the organizations task is todetermine the needs, wants, and interests of target markets and to deliver the desired satisfactions

more effectively and efficiently than competitors (this is the original Marketing Concept).

Additionally, it holds that this all must be done in a way that preserves or enhances the

consumers and the societys well-being.This orientation arose as some questioned whether the

Marketing Concept is an appropriate philosophy in an age of environmental deterioration,resource shortages, explosive population growth, world hunger and poverty, and neglected social

services.

Are companies that do an excellent job of satisfying consumer wants necessarily acting in the

best long-run interests of consumers and society?

The marketing concept possibily sidesteps the potential conflicts among consumer wants,

consumer interests, and long-run societal welfare. Just consider:

The fast-food hamburger industry offers tasty buty unhealthy food. The hamburgers have a high

fat content, and the restaurants promote fries and pies, two products high in starch and fat. The

products are wrapped in convenient packaging, which leads to much waste. In satisfyingconsumer wants, these restaurants may be hurting consumer health and causing environmental

problems


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OrientationProfit

driver

Western

European

timeframe

Description

Production[4]

Production

methods

until the

1950s

A firm focusing on a production orientation specializes in

producing as much as possible of a given product or

service. Thus, this signifies a firm exploitingeconomies ofscaleuntil theminimum efficient scaleis reached. A

production orientation may be deployed when a high

demand for a product or service exists, coupled with a

good certainty that consumer tastes will not rapidly alter(similar to the sales orientation).

Product[4]

Quality of

the

product

until the

1960s

A firm employing a product orientation is chiefly

concerned with the quality of its own product. A firm

would also assume that as long as its product was of a highstandard, people would buy and consume the product.

Selling[4]

Selling

methods

1950s and

1960s

A firm using a sales orientation focuses primarily on the

selling/promotion of a particular product, and not

determining new consumer desires as such. Consequently,this entails simply selling an already existing product, and

using promotion techniques to attain the highest sales

possible.

Such an orientation may suit scenarios in which a firmholds dead stock, or otherwise sells a product that is inhigh demand, with little likelihood of changes in consumer

tastes that would diminish demand.

Marketing[4]

Needs and

wants ofcustomers

1970s to

the presentday

The 'marketing orientation' is perhaps the most commonorientation used in contemporary marketing. It involves afirm essentially basing its marketing plans around the

marketing concept, and thus supplying products to suit new

consumer tastes. As an example, a firm would employmarket research to gauge consumer desires, use R&D

(research and development) to develop a product attuned to

the revealed information, and then utilize promotion

techniques to ensure persons know the product exists.

Holistic

Marketing[2]

Everythingmatters in

marketing

21stcentury

The holistic marketing concept looks at marketing as a

complex activity and acknowledges that everything matters

in marketing - and that a broad and integrated perspectiveis necessary in developing, designing and implementingmarketing programs and activities. The four components

that characterize holistic marketing are relationship

marketing, internal marketing, integrated marketing, andsocially responsive marketing.
http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Minimum_efficient_scalehttp://en.wikipedia.org/wiki/Minimum_efficient_scalehttp://en.wikipedia.org/wiki/Minimum_efficient_scalehttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Marketing#cite_note-adcock-a-4http://en.wikipedia.org/wiki/Marketing#cite_note-adcock-a-4http://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/Marketing#cite_note-Kotler-2http://en.wikipedia.org/wiki/Marketing#cite_note-Kotler-2http://en.wikipedia.org/wiki/Marketing#cite_note-Kotler-2http://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/Marketing#cite_note-adcock-a-4http://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Minimum_efficient_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturing


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