Today, there is a plan for everything, but before you can design one, you must first comprehend the fundamentals. For example, understanding marketing ideas is critical if you want to develop a great marketing plan. You can find out the best marketing approach for you by following the five fundamental marketing concepts. Simply put, execution is a critical element in marketing that occurs only after extensive study and strategizing.
Before we begin talking about 5 marketing concepts, let’s first understand what marketing concepts are?
What is the Marketing Concept?
When a corporation prepares and implements strategies to increase profits by increasing sales, meeting consumer requirements, and outperforming competitors, it is referred to as marketing. The goal is to create a condition that benefits both the customer and the business.
The marketing concept is based on the idea of anticipating and satisfying customer requirements and wants better than competitors. A wealth of Nations, Adam Smith’s work, was the source of the marketing concepts. However, it remained unknown to the rest of the world until the twenty-first century.
To completely comprehend the marketing notion, we must first comprehend needs, desires, and demands.
Needs are unavoidable for life to survive; without them, various negative consequences can arise. Death would be the worst-case scenario. Food, shelter, self-development, security, social belonging, self-esteem, and respect are all examples of needs.
Wants – social environment and culture shape our desires and wishes.
Demands are created when our desires, needs, and wants are backed by our ability to pay.
Now that we’ve covered the fundamentals of marketing, let’s look at five marketing principles.
5 Marketing Management Philosophies
Every business has its unique concept, hence there are an infinite amount of marketing concepts. While some ideas are still relevant today, others have grown obsolete. We will, however, focus on five basic marketing concepts, commonly known as marketing management philosophies.
1. Product Concept
The main goal of the product concept is to create lower-cost goods because consumers are unwilling to pay a high price for goods or services. As a result, the firms that support the product concept mass-produce the goods and profit from economies of scale.
When companies develop low-cost goods, they employ a broad distribution strategy to reach a larger audience. They can increase their productivity by increasing their market by targeting more consumers. This marketing strategy was supposed to be straightforward: whoever delivered a standard product at the lowest price would win.
Marketers do not value the needs and desires of customers while developing a product proposition. Their main goal is to manufacture more and more items; quantity is more important than quality. As a result, customers are frequently dissatisfied with product quality.
When there were no competitors in the market, the product concept was popular; whatever you brought to the market, people would take it.
2. Production Concept
It is one of the oldest marketing concepts in which the company emphasizes the capability of its manufacturing processes. It is to make the items more affordable to make them available to the general public. The focus of the production concept is on number rather than product quality.
Say’s Law is accompanied by a production concept that dates back to the mid-1950s. In the market, supply creates demand, according to this theory. As a result of this law, when a corporation manufactures a product, it does not need to market it; it will sell itself.
Because there was no technology or communications at the time, and people traveled less, the law became widely known.
Vivo, a Chinese smartphone manufacturer, is the best example of the production concept. Their phones may be found in practically every Asian country. You can walk into any Vivo store in Asia and walk away with the newest and most advanced smartphone.
3. Selling Concept
The selling principle, as the name implies, is to sell a company’s product by large-scale marketing and promotional operations, regardless of whether or not it meets the needs of customers.
In this strategy, the management’s primary goal is to complete the selling transaction; they believe that their job is complete once they sell their goods. Instead of establishing and maintaining a long-term relationship with the consumer, which would encourage the customer to return,
A sale concept is a dangerous approach. Since it is built on the faulty assumption that the corporation should sell everything it is creating rather than addressing client requests.
Marketers believe that if customers don’t like a company’s product, they’ll buy something else and forget about their previous purchasing experience if they use this method.
4. Marketing Concept
The marketing strategy is all about the customer. It places customers at the center of the marketing process, identifying their requirements and wants and then exceeding their expectations.
The marketer believes that the consumer is always right and that his needs and wants should always come first. Here, the marketing strategy focuses on creating a profit through satisfying clients’ needs and desires.
Marketers don’t hunt for the right customers for their product; instead, they make the perfect product for their customers, according to a straightforward method. Marketers attempt to close the gap between customers and company products.
5. Societal Marketing Concept
Because it examines the marketing concept’s approach, the societal marketing concept’s idea is focused on the welfare of the entire society. What clients want does not always imply that it is best for them in the long run. What you want versus what is best for you and society as a whole are two very different things.
The societal marketing concept’s purpose and goal are to convince businesses that they have a social and environmental duty. The duty is far greater than their short-term sales and profit ambitions. Companies should produce and function in a way that ensures a long-term future for the entire society; they are a part of society and should act as such.
In most fields, the concepts of production, product, and sale have become obsolete; they only survive in a few. Today’s market adheres to the concept of serving and satisfying customers’ needs and desires, but environmental challenges are calling into question the marketing concept’s entire strategy.
To some sense, the social marketing concept is correct: what is good for an individual and what is good for the entire society are two completely different things. Because there will be no economic activity without society, marketers should develop a marketing plan that considers both sociological and environmental concerns. As a result, the demands of society should take precedence.