LESSON NOTE 4.
CLASS- SS1.
SUBJECT – MARKETING. FIRST TERM
TOPIC- INTRODUCTION TO MARKETING.
SUB-TOPIC- MARKETING CONCEPTS.
MARKETING CONCEPT- can be defined as a set of strategies that firms adopts to analyze the of needs of
their customer and implement strategies to fulfill those needs which will result in an increase in sales,
profit maximization and also beat the existing competition.
Marketing concepts lays emphasis on marketing management with the main goals of customer
orientation and profitable sales volume.
Marketing concepts is also the use of market data to focus on the needs and wants of customers in
order to develop marketing strategies that not only satisfy the needs of the customers but also
accomplish the goals of the organization.
CONCEPTS OF MARKETING
The following are concepts of marketing which are:
1. The production concepts.
2. The product concepts.
3. The selling concepts.
4. The societal concepts.
5. The consumer orientation.
6. The organizational effort.
7. The profit orientation.
PRODUCTION CONCEPT- is a description of a product or services at an early stage of a product
life cycle.
This concept focuses more on solving the problem of production and little concern for the public
(customer) satisfaction.
A company should make low-cost production in large quantities rather than products that suit
customers particular needs for which they would pay more.
For example- Ford Motor company started producing cars at economics of scale at the
beginning of the 20th century, believing that the more it produces, the more people will buy the
cars.
Product concept- it main focus is maintaining high quality of products.
This concept assumes that customer will favor those products that offer the most quality for
price and therefore, it is important for companies to produce high quality products.
SELLING CONCEPT- a sales concept analyzes buying and selling effects to place the focus
primarily on generating sales transaction. Eg. Life insurance companies.
This concept assumes that production of goods does not mean assures sales most time. The
company tries to sell what it makes rather than what the customer wants.
SOCIETAL CONCEPT- this concept attaches importance to social responsibilities and business
ethics.
Societal concept adopts the position that marketers have greater social responsibility than
simple satisfying customers and provide them with superior value.
CONSUMER ORIENTATION- this is a business approach that put the needs of customer over the
needs of the business. The companies understand that the business won’t expand, unless it
consistently improves customer focus.
For example – Apple Company comes out with new products that solve customer needs and
wants before they even express them.
PROFIT ORIENTATION- (PRICING STRATEGY)-means that companies seek to earn maximum
profit in every sale or services provided and achieved long –term business profitability.
Integrated organizational effort- this is achieved when organizational goals are line up between
external actors (economic conditions, politics, regulation and socio-cultural trends) and internal
actors (company strategy, culture, staff skills, technology etc..).
ASSIGNMENT- Differentiate between selling concepts and marketing concepts.
