The marketing concept and philosophy is one of the simplest ideas in marketing because it states that the organization should strive to satisfy its customer's wants and needs while meeting the organization's goals. In general terms, the customer is known as the king because they are the one who decide the quantity and price for the following products. As a philosophy, marketing is based on thinking about business in terms of customer needs and their satisfaction. Marketing differs from selling because it is not concerned with the values that the exchange is all about. Apart from that, the implication of the marketing concept is very important for management. It is not something that the marketing department administers or is it the sole domain of the marketing department.
From top management to the lowest levels and across all departments of the organization, it is a philosophy or way in order to perform a business transaction. Apart from that, the customer's needs, wants and satisfaction should always be foremost in every manager and employees mind. The slogan or mottos of marketing concept are just one which is known as satisfaction guaranteed. Each and every marketing objectives, goals and targets have to be monitored and met, competitor strategies analyzed, anticipated and exceeded. Through effective use of market and marketing research an organization should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.Within this exchange transaction customers will only exchange what they value for example money if they feel that their needs are being fully satisfied and clear the greater the benefit provided the higher transactional value an organization can charge.Basically,there are various types of concepts available in this marketing.
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The product concept in marketing is an idea where a firm should focus on those products that able to produce more efficiency and also the creations of low cost products and demand for the new product. The product concept occurred when the main focus of the company is on the products that are being improved such as adding additional features on it. Thus, making the product superior each time. For examples, our Malaysian cars, Proton will do some changes towards their cars in terms of adding extra accessories for the satisfactions of their customer's needs. This means that customers will buy the products because the products that they purchased have greater quality just like before. Basically, Organization working with product concept fully concentrates on product quality, design and features and even believes that the higher quality, maximum number of features and best design will attract large number of customer to obtain the product at best price. In general terms, the costumers also willing to pay high price as long that the products which they purchased would give them satisfactions in terms of its service and functions towards them.
The term selling concepts is where many organizations follow this concept which holds that consumers will not buy enough of the organization's products unless it undertakes a large scale selling and promotion effort. The concept is typically practiced with unsought goods, those that buyers do not normally think of buying such as encyclopedias or insurance. These industries must excel at tracking down prospects and selling them on product benefits.
Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. Such marketing carrier's high risks. It focuses on creating sales transactions rather than on building long-term, profitable relationships with customers. It assumes that customers who are coaxed into buying the product will like it. Or if they don't like it, they will possibly forget disappointment and buy it again later.
These are usually poor assumptions to make about buyers. Most studies shows that unsatisfied customers will not purchased the product again. While the average satisfied customer tells three others about good experiences, the average unsatisfied customer tells ten others about his or her bad experience. Apart from that, the first decision regarding this is that of the distribution channel that is going to be used.
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The company can either do direct selling or sell the product through retailers, wholesalers or specialized sellers. The distribution channel which used depends on the kind of product and the target market. It is also determined how the product is going to reach the distribution outlet and how much is the cost. Another role that plays in these selling concepts is the sales territories are also determined under this concept. Organizations sometimes have separate managers for each sales territory to handle the transportation and sales outlets of that particular area.
This concept emphasizes on aggressive selling and high promotional back up practical on what we call as 'unsought goods' such as insurance. Therefore, the selling concept is practical by managers having uniqueness and overcapacity. Their aim is to sell what they can make rather that what the market needs. The Ford Motor Company is also a good example of the selling concepts. Ford produced and sold the Model T for many years. During its production, the automobile market attracted more competition. Not only did the competition begin to offer cars in other colors, the styling of the competition was viewed as modern and the Model T became considered as old-fashioned.
Henry Ford's sons were aware of the changes in the automobile market and tried to convince their father to adapt. However, Henry Ford was sure that his standardized low-price automobile was what the public needed. Consequently, Ford turned to marketing techniques to sell the Model T. It continued to sell, but its market share began to drop. Eventually, even Henry Ford had to recognize consumer desires and introduce a new model.
The marketing concepts can be defined as a management philosophy in which a firm's goals can be best achieved through identification and satisfaction of the customers stated and unstated needs and wants. With an increased discretionary income, costomers could afford to be selective persons and buys that product that precisely meets their changing needs.However, the needs are not obvious immediately because it will always change. For example, the microwave and personal computer satisfied those needs though the consumer never imagined these products. This shows that the marketing concept does not stifle creativity and innovation but it seeks to encourage creativity to satisfy customer needs.
The marketing concept is a relative newcomer as a philosophy of doing business. However, its evolution started before the Industrial Revolution. As time progressed, customer and business needs also evolved. The product and selling philosophies eventually evolved into the marketing concept and philosophy. Today, the marketing concept and philosophy stands as a formula for doing business and many believe it is a prescription for success. It aims to satisfy customers by guiding the organization to meet the customers' needs and wants while meeting the organization's goals. Basically, this concept involves 4p's such as product, price, place and promotion. The 4Ps model is just one of many marketing mix lists that have been developed over the years and can be used to help in decide how to take a new offer to market. It can also be used to test the existing marketing strategy. Whether in the subjects of considering a new or existing offer.
Product aspects of marketing deal with the specifications of the actual goods or services plus how it relates to the end users needs and wants. The range of a product normally includes supporting elements such as warranties, guarantees, and support. For example, a customer purchased a new Toshiba laptop from computer shop. Once the product is purchased, the products which have been purchased will be given one year warranties.
This refers to the process of setting a price for a product which together with discounts. The price need not be monetary but it can plainly be what is exchanged for the product or services. For example time, energy, or attention. Apart from that, Methods of setting prices optimally are in the domain of pricing art.
Place refers to how the product gets to the buyer. For instance, point-of-sale assignment or retailing. This third criteria in marketing mix referring to the channel by which a product or service is sold through online or retail to which geographic region or industry and division of people who are suits to use this product. Apart from that, place also refers to how the surroundings in which the product is sold in can influence sales.
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This includes to the types of methods used in order to sell this products to customers. For example advertising, sales promotion, publicity, and individual selling. The Branding refers to the assorted strategies of promoting the product, brand, or company. Promotion will be one of the more costly aspects because it involves our efforts and money in order to promote the goods and services.
As a conclusion, the marketing concept is the philosophy where each and every firms should analyze the needs of their customers and makes good decisions in order to satisfy their needs. This also can enhance a good relationship between the customers. Besides, the marketing concept developed as an alternative to the selling concept as the way business firms fundamentally approach the market. The guiding theme for marketing practice under the selling concept insists that given enough selling and advertising, customers can be convinced to buy the product. Marketing is not just flogging product and putting a spin on everything but It's about serious organization and business planning.
The term marketing can be described as the management process through which goods and services move from concept to the customer. As a philosophy, marketing is based on thinking about the business in terms of customer needs and their satisfaction. In other definition, Marketing is the process of teaching consumers in terms of choosing the products which brings benefits to them and can be described as an organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in various ways that benefit the organization and its stakeholders.
As for organizations or sales person, marketing is everything that the consumer encounters when it comes to your business. For examples such as advertising, to what they hear, to the customer service that they receive, to the follow-up care that you provide. It's all known as the part of marketing subjects or criteria and creates decision within the consumer whether to choose or not to choose repeat business. Besides that, the activities of marketing are often confused with advertising and sales, but it is important to realize that there is a difference.Thus,we can simply stated that marketing is everything you do to place your product or service in the hands of potential customers and it includes diverse disciplines like sales, public relations, pricing, packaging, and distribution.Basically,in this marketing there are two types of marketing such as product and selling concepts. These concepts are related to each other in order to enhance a good marketing method.
The product concept is when the main focus of the company is on the products being. Like improving it, adding features to it, making the product superior each time. Assuming that customers will buy the products because they have greater quality. Sometimes they overlook what the customer really needs. This approach is seldom successful. For instance, we can took an example of Coca-Cola company. Essentially a touchstone for pop culture, Coca-Cola has earned its status in the minds of consumers by being a leader in the world of style and reflecting the tastes and preferences of each generation. Always upfront and innovative, Coca-Cola continually succeeds in re-inventing itself, miraculously updating the spirited essence of the brand while maintaining its position as an everyday connection point for individuals everywhere.
Through this we can inferred that 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. Even their 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.
This concept also known the understanding of the dynamics of the product in order to showcase the best qualities of the product. Marketers spend a lot of time and research in order to target their attended audience. Marketers will look into a product concept before marketing a product towards their customers.
According to Philip Kottler, product concept plays a vital role in the new-product development process. It serves as a means by which to present a new-product idea to consumers. A product concept can be presented either physically or symbolically. It is through the use of the product concept that companies can receive feedback from consumers as to the possibility of implementing and furthering the proposed concept. With people being more conscious of the environment as of late, steps are constantly being taken to make all parts of our daily lives more eco-friendly.
Selling is the act of persuading or influencing a customer to buy a product or service. The selling concept occurred when the company will do promotions in order to sell out their products. This concepts surrounds both combinations of selling and marketing.However, there is a need for both selling and marketing approaches in different situations. One approach is not always right and wrong. However, it depends upon the particular situation. In this concepts there will be less time spent. This means that there is not much time is spent learning what the customer's ideal product would be because the salesperson has little say in seeing that their company's product is modified.
Secondly, the sales person has a mission where they follows method called 'A desire to sell'. At the heart of the sales concept is the desire to sell a product that the business has made as quickly as possible to fulfill sales volume objectives. The selling concept is used on unsought goods such as smoke detectors, machines, club membership and others. This group of sellers is often well equipped with various techniques or strategies aimed at finding prospects and emphasize the benefits of the products.
Selling concept is a traditional concept of marketing. In traditional concept emphasis was on only selling the product. Marketers would not bother about customers wants and would think that customers would buy whatever is offered to them. There are even two types of selling which maybe personal or impersonal. Personal selling is a highly distinctive word and the only form of direct sales promotion involving face to face relationship between seller and potential customers. For instance, Personal selling is a two way communication or mutual communication.
The examples of the selling concepts companies are Tesco and Dell. This company provides the selling concepts in terms of online customer service. Their customer can have a direct interaction to them so that they can solve their problems. Once the customers buy a product then the next time when they come to shop, they buy through the learning from experience. Selling is therefore a process through which the salespersons offer the customers products or services to fulfill their needs.
The way organizations market themselves and their product is changing and developing day by day. More successful marketing is alright but the concern here is that marketing is becoming more explicit even to the extent of some people thinking that it is non ethical in terms of its concepts. In today's society ethics is a huge aspect. Nowadays marketing concepts have become inherently ethical. Modern marketing is raising many criticisms and is having a great impact on society and its individuals.
Promotions, discounts are now known as the basic workhorse of marketing Price promotions can increase sales in only three ways such as growing the category, switching & purchase acceleration. Price promotion can indeed benefit total category sales through brining down prices and added visibility through displays and even other marketing activities. Consumers today seem to have a plethora of options to buy into various products and services of every kind.Even,the choices that is given is unlimited for the customers. The available price to discount is the same in the hands of every competitor in the organized segment. Discount and offers plays a major role to attracting customer throughout the year especially on festivals. The offers that worked well were the offers that had the consumer drooling and itching to run out and make that necessary and unnecessary purchase on festivals and occasions.
As a conclusion, we can say that this 21st century of marketing concepts is very challenging because there are lots of businesses available plus its competitors too. A large number of business owners which both large and small are so busy managing what their business does on a daily basis that they begin to lose touch with the pulse of their industry and the world of effective marketing. Apart from that, the internet has become a very important and powerful medium in the world of marketing. This gives much more convenient towards customers who wanted to purchase any products or services without delaying times. Another important role is the brand because its effect each and every customers in terms of their purchasing power. When branding is used properly, a company realizes grand scale recognition which translates into sales.
The 21st century has seen the advent of the new economy due to the technology innovation and development. To understand the new economy, it is important to understand in brief characteristics and features of the old economy. For instance, Industrial revolution was the start point of the old economy with focus on producing massive quantities of standardized products. This mass product was important for cost reduction and satisfying large consumer base, as production increased companies expanded into new markets across geographical areas.
In contrast, the new economy has seen the buying power at all time through the digital revolution. Consumers have access to all types information for product and services. Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchase where the products getting delivered at office or home.