Marketing Management Philosophies
There are some philosophies important to describe. These concepts use by organizations in
different stages of their evolution process. Clearly, marketing activities should be carried out
under a well-thought-out philosophy of efficient, effective and socially responsible
marketing. However there are five competing concepts under which organizations conduct
marketing activities.
(1) The Production Concept
The production concept holds that consumers will prefer products that are widely available
and inexpensive.
Managers of production oriented businesses concentrate on achieving high production
efficiency, low costs, and mass distribution. They assume that consumers are primarily
interested in product availability and low prices.
(2) The Product Concept
The product concept holds that consumers will favor those products that offer the most
quality, high performance and innovative features. When marketers use this concept they
have to understand the additional cost involve with the product will be bared by the
consumers. This Product concept can lead to marketing myopia. The word myopia refers to
‘short sightedness’. What it says is that these companies tend to focus on the product rather
than on the consumer’s needs.
(3) The Selling Concept
This concept is another common business orientation .This concept holds that consumers will
not buy the organization’s product unless the organization undertakes an aggressive selling
and promotional effort. The selling concept is practiced more aggressively with unsought
goods that buyers normally do not think of buying such as insurance.
This selling concept also practiced by non-profit organizations for fund raising purpose. In
here Seller sell what they made rather than what customer need.
Starting point Focus Means End
Factory Products Selling & Promoting Profit
through sales
volume
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(4) The Marketing Concept
The Marketing Concept holds key to achieve organizational goals consists of the company
being more effective than competitors in creating, delivering and communicating customer
value to its chosen target market.
This concept can be expressed in many colorful ways.
Meeting needs profitability
Finds wants and fill them
Love the customer, not the product
You are the boss
Putting People first
Marketing concept involves:
Focusing on customer needs before developing the product
Aligning all functions of the company to focus on those needs
Realizing a profit by successfully satisfying customer needs over the long-term
The marketing concept helps a business focus its effort on satisfying customer needs in a way
that makes a satisfactory profit.
In the selling concept, it focuses on needs of the seller. But in the marketing concept it
focuses on the needs of the buyer. So every developed organization treat customer as first. So
we can compare modern customer oriented organizations with traditional organizations as
follows
In the marketing Concept, basically focus on profit through customer satisfaction
Starting point Focus Means End
Target Customer Integrated Profit through
Market needs Marketing Customer
Satisfaction
Companies believe that consumers will buy your products if you identify their needs &
satisfy those needs better than competitors.
Therefore marketing conception focuses on needs or goals rather than products
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(5) The Holistic marketing Concept
Internal Marketing Integrated
Marketing
Holistic
Marketin
g
Social Responsible Relationship
Marketing Marketing
Four components of holistic marketing are
Relationship Marketing
Relationship marketing has the aim of building mutually satisfying long-term
relationships with key parties – customers, suppliers, distributors, and other
marketing partners – in order to earn and retain their business.
Integrated Marketing
The marketer’s task is to devise marketing activities and assemble fully integrated
marketing programs to create, communicate and deliver value for consumers.
Internal Marketing
Ensures that everyone in the organization embraces appropriate marketing principles,
especially senior management. This is the task of hiring, training and motivating
employees who wants to serve customers well.
Social Responsibility Marketing./Performance Marketing
Understands the broader concerns and the ethical, environmental, legal and social
context of marketing activities and programs.
