Marketing Management Philosophies
Category : Marketing Concepts, Marketing Papers
4. Marketing Management Philosophies
a. There are five alternative concepts under which organizations conduct their marketing activities: the production, product, selling, marketing, and societal marketing concepts.
The Production Concept
b. The production concept holds that customers will favor products that are available and highly affordable and that management should therefore focus or improving production and distribution efficiency.
c. The production concept is useful when:
1) Demand for a product exceeds the supply.
2) The product's cost is too high and improved productivity is needed to bring it down.
d. The risk with this concept is in focusing too narrowly on company operations. Do not ignore the desires of the market.
The Product Concept
e. The product concept states that consumers will favor products that offer the most quality, performance, and features, and that the organization should therefore devote its energy to making continuous product improvements.
1. Some manufacturers mistakenly believe that if they ``build a better mousetrap'' consumers will beat a path to their door just for their product.
2. The product concept can also lead to “marketing myopia” the failure to see the challenges being presented by other products.
The selling Concept
f. Many organizations follow the selling concept. The selling concept is the idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort.
1. This concept is typically practiced with unsought goods (those that buyers do not normally think of buying).
2. To be successful with this concept, the organization must be good at tracking down the interested buyer.
3. Industries that use this concept usually have overcapacity. Their aim is to sell what they make rather than make what will sell in the market.
4. There are not only high risks with this approach but low satisfaction by customers.
The Marketing Concept
g. The marketing concept 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.
h. The marketing and selling concepts are often confused. The primary differences are:
1) The selling concept takes an 'inside-out'' perspective (focuses or existing products and uses heavy promotion and selling efforts).
2) The marketing concept takes an ``outside-in'' perspective (focuses on customer needs, values, and satisfactions).
i) Many companies claim to adopt the marketing concept but really do not unless they commit to market-focused and customer-driven philosophies.
The Societal Marketing Concept
j. The societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being.
1) The societal marketing concept is the newest of the marketing philosophies.
2) It questions whether the pure marketing concept is adequate given the wide variety of societal problems and ills.
3) According to the societal marketing concept, the pure marketing concept overlooks possible conflicts between short-run consumer wants and long-run consumer welfare.
4) The societal concept calls upon marketers to balance three considerations in setting their marketing policies:
a) Company profits.
b) Customer wants.
c) Society's interests.
5) It has became good business to consider and think of society's interests when the organization makes marketing decisions.