CORE CONCEPTS OF MARKETING
A market consists of the forces of supply (sellers) or demand (buyers) facilitating an exchange process between sellers and buyers.
A simple meaning of marketing is selling of goods / services. Marketing is a comprehensive term and it includes a set of on going activities necessary to create and stimulate consumer demand and to direct the flow of goods and services from producer (one who makes) to consumer (one who buys) in the process of distribution.
There are five competing concepts under which organizations conduct their marketing activity. They are as follows:
1. The production concept.
2. The product concept.
3. The selling concept.
4. The marketing concept.
5. The societal marketing concept.
The Production Concept
The production concept is one of the oldest guiding concepts of sellers. The production concept holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution coverage.
The assumption that consumers are primarily interested in product availability and low price holds in at least two types of situations â€“first one is demand for a product exceeds supply, in this case the consumers are more interested in obtaining the product than in its features Some service organizations like medical and dental care units follow this production concept.
The Product Concept
The product concept says that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these product-oriented organizations focus their energy on making superior products and continuously improving them.
These managers assume that buyers admire well-made products and can appraise product quality and performance. The product-oriented companies often design their products with little or no customer input. Usually the designers and engineers would develop plans, then manufacturers would make the product, the finance department would price it, and finally, marketing and sales personnel would try to sell it. The product concept leads to â€œmarketing myopiaâ€? a focus on the product rather than on the customerâ€™s need.
A bulb manufacturer making a bulb thinks that the consumer would buy bulbs only for the purpose of lighting his room. But, the manufacturer forgets the basic purposes or utility of a bulb. The consumer would look for illumination in his room rather than buying a bulb. Any product that provides basic illumination would be the consumerâ€™s interest. The producer should distinguish the product from this basic fact. This illusion of a manufacturer is known as â€œMarketing Myopiaâ€?.
Marketing and Selling concept
The marketing precedes the selling. Marketing is making the consumer aware that the product is able to satisfy his needs. Once the consumer is satisfied about this product then various selling concepts based on market forces are implemented to sel the goods in the market.
While marketing the help of media is taken to create awareness in the consumer and once the selling is implemented then the usual customer friendly schemes can be launched to boost the sales.