Ans. MARKETING CONCEPTS
Production Concept - The Production Concept emerges out of the production orientation. The basic proposition is that customers will choose products and services that are widely available and are of low cost. So managers try to achieve higher volume with low cost and intensive distribution strategy. The managers believe that consumers prefer products that are priced low and are widely available. This seems a viable strategy in a developing market where market expansion is the survival strategy for the business. Companies interested to take the benefit of scale economies persue this kind of orientation.
Product Concept - The Product Concept has the proposition that consumers will favor those products that offer the most attributes like quality, performance and other innovative features. The managers focus on developing superior products and improving the existing product lines over a period of time. The innovations in the scientific laboratory are commercialized and the consumers get an opportunity to know and use these products, This is called "Technology Push Model". The problem with this orientation is that the managers forget to read the customers mind and launch products. Many times it is observed that the innovations enter in to the market before the market is ready for the product.
Selling Concept - The Selling Concept proposes that customers, be individual or organizations will not buy enough of the organization's products unless they are persuaded to do so through selling effort. So organizations should undertake selling and promotion of their products for marketing success. The consumers typically are inert and they need to be goaded for buying by converting their inert need in to a buying motive through persuasion and selling action.
Marketing Concept - The Marketing Concept proposes that the reason for success lies in the company's ability to create, deliver and communicate a better value proposition through its marketing offer in comparison to the competitors for its chosen target market. According to Theodore Levitt "Selling focuses on the needs of the seller and marketing focuses on the buyer. Selling is preoccupied with the seller's need to convert his product in to cash, marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it". The marketing concept is an elaborative attempt to explain the phenomenon that rests on four key issues like target market, customer need, integrated marketing and profitability.
Societal Concept- The Societal Concept proposes that the enterprise's task is to determine the needs, wants and intentions of the target market and to deliver the expected satisfaction more effectively and efficiently than the competitors in a way to preserve or enhance the consumer and society's well being. It combines the best elements of marketing to bring social change in an integrated planning and action framework with the utilization of communication technology and marketing techniques. It also looks for marketers to build social and ethical considerations into the marketing practices. The goals of profit maximization should match with the goals of customer satisfaction and responsible corporate citizenship. Social marketing often termed as cause related marketing utilizes concepts of market segmentation, consumer research. product concept development and testing, communication to maximize the target adopters response.
Evolution process of Marketing Management Philosophy
The origin of marketing management dates back to prehistoric period when people started settlements and there was a division of labor for the community living. As it was difficult for every one to engage in activities to satisfy all the need requirement, a mutual cohabitation led to this division of labor in the society. The birth of a barter system where two parties are involved in the physical exchange of goods and services for mutual benefits and voluntary agreement of both the parties for the transfer of ownership of the physical goods exchanged, started the evolutionary growth of modern day marketing.
When the volumes grew beyond the individual and community consumption, then the intermediaries emerged in the social system that became part of the trade. These are the people who aided in the transfer of ownership between two parties at two different periods of time. At the time of production, the producer had the need or the value of the output for his survival and business where as the end consumer was not ready to own the final product as the demand for consumption was at a future period of time. So intermediaries took over the ownership, stored and distributed the ownership at the future period of time in different assortment as desired by end consumer for s benefit which was subsequently marked as trades man's profit.
In the initial stages of Industrial Revolution, producers were able to sell whatever they have produced. So they concentrated on higher production. At that stage most of the enterprises adopted the production concept. Later when the competition started building-up, producers faced difficulties to sell whatever they produced and the need to improve the product arose. This led to the emergence of product concept and selling concept. With the increase in competition, producers realized the advantage of producing what consumer's need instead of selling whatever is produced.
This lead to the consumer orientation and the emergence of marketing concept. As the industry was expected to play the role of corporate citizen and care about the welfare of the modern society, the industry was expected to produce products and services that are contributing to the greater cause of the society and in the process of making profit, contribute towards the building of the nation. This give rise to the modern day concept of social marketing. In the developed countries where the markets are developed, most of the producer adopts the marketing concept.
The growth of civilization, the increasing standard of living, the changing life styles and technological growth have created new wants. These can be satisfied only with a wide variety of new goods and services apart from changes and improvements in the existing goods and services. This however the general trend, and there are several exceptions. Markets for all products and services have to reach a certain maturity to experience this evolutionary trend. It may not be so in the case of each and every product or market. The rural market in India, for example, is fairly different from the urban market. Even among a set of consumer goods, for example, cosmetics which serve the middle/upper income groups are much more consumer oriented than the market for undergarments for men. Besides, there is a seller's market in some goods and services, and a buyer's market in some others.
Another feature in the evolutionary process of marketing is the growing role of service marketing. The demand for service contracts to maintain the gadgets in use ]lave to become more easily marketable and a reliable service commands a premium in the market. Some of the developed economies are now thriving more on service industry than manufacturing, as the customers are looking for better service facilities with the product and the success of a company is decided on the basis of quality of product support services. The globe is now treated as a single market place because large numbers of players are manufacturing and delivering products and services in a global scale where by they can achieve economies of scale and offer a lower price to the customers. Global life styles, tastes and products have emerged due to rapid advent of television and global media. So brands like Coca Cola, Sony, Honda are no more identified by their country of origin. They have become global brands in true sense.
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