Shwe Thinzar Oo
Diploma in Business & Management (DBM – 31)
Principles of Marketing
Assignment 1 – The Concept And Process of Marketing
Assessor
Tr. Su Myat Naing Wai
Table of Contents
Page
1. Introduction 1
2.1 Production Concept 2
2.2 Product Concept 3
2.3 Selling Concept 4
2.4 Marketing Concept 4
2.5 Societal Marketing Concept 5
3. Conclusion 8
4. References 9
1. Introduction of Marketing
The term marketing can be described as the management process through which
goods and services move from concept to the customer.
The marketing concept is the strategy the firms implement to satisfy customers need
increase sales, maximize profit and beat the competition. There are five marketing concept
that organization adopt and execute.
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Societal Marketing Concept
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2.1 Production Concept
This concept is one of oldest business concept. It is based on the idea that customers
prefer products which are cheaper and more readily available. Therefore, management should
focus on low production costs, high production efficiency and mass production.
In the 1950s this concept was used because there were a little producers and
customers are many.
In our Myanmar country, production concept was used before 2005. Most of
Myanmar people prefer the products that are cheaper and easily available products. There
were many company which used the production concept.
For example, Shwe War Soap Company, Fiber-optic plant and Garment factory, etc.
China is the one of the country that uses the production concept.
Advantages and Disadvantages of the Production Concept
Advantages
Producers will never run low on the product they are producing.
Company produces large amount of products as much as they can.
Company sells a product for a very reasonable price.
Disadvantages
Poor Quality
Customer cannot fully satisfied about a product.
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2.2 Product Concept
Product Concept sates that customers or consumers prefer product which is of the
highest quality, performance and features.
Using Product Concept, a company can give identity to the product and can add
functional value and usability so that the intended customers can derive the benefit and
eventually buy the product in the market.
This concept is truly applicable in some niches such as electronics and mobile
handsets.
For example, Apple and Google are the product concept. Both of these companies
have tried hard on their products and deliver the consumers feature rich, innovative and
diverse application products and people just love these brands.
One problem which has been associated with the product concept is that associated
with the product concept is that it might also lead to marketing myopia. Another problem is
that several innovative products are marked as experimental in the market. As a result is that
these products have less shelf life and might have to be taken off the market.
Marketing Myopia
Marketing Myopia is a situation when a company focuses on quality and not on the
actual demand of the customers. One of the example of the marketing myopia is Nokia.
Nokia losing the marketing share to android and IOS.
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2.3 Selling Concept
Selling concept is based on the idea that consumers will not buy enough of the firms
product unless a large scale selling and promotion effort.
This concept holds that a company needs to buy push sales in order for customers to
buy a product. The selling company needs to be an aggressive force. This means that repeated
sales are rare and customer satisfaction is not great.
Selling concept focuses attention on the needs of seller but not on customers’ and
focuses on creating sales- transactions rather than on creating sales-transactions rather than
long term profitable relationship. It aims to increase sales volume and earn profit through
different promotional activities.
Selling concept example are insurance, encyclopedia, online shopping, door-to-door
selling, etc. In Myanmar country, selling concept can be found mostly at the bus station and
pagoda. At the bus station, drivers invite forcedly the passengers to ride their bus. At the
pagoda, most of flower sellers force sale their flowers.
2.4 Marketing Concept
Marketing is a buyer-oriented process involving the creation, communication and
delivery of value even as it strives to build and retain life time customer loyalty.
Marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs, better than the competition. People
working in the marketing department of a company, try to get customer attention through
packaging designs, slogans, celebrity endorsements and media exposure.
Marketing is the process of getting the right goods or services or ideas to the right
people at the right place, time and price using the right promotion techniques and utilizing a
appropriate people to provide people to provide the customer service associated with those
goods, services or ideas.
The key questions become:
What do customers want?
Can we develop it while they still want it?
How can we keep our customers satisfied?
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Differences between selling concept and Marketing concept
Selling concept Marketing concept
Focuses on seller’s needs Customers enjoy supreme importance
Product is important Product planning and development
required to customer’s needs
High pressure to sell good already Integrated approach to achieve long term
product goods
Fragmented approach to achieve Integrated approach to achieve long term
immediate gains goals
Converting products into cash Converting customers need into products
Cost determine price Market determines price
Profits through sales volumes Profits through customers’ satisfaction
2.5 Societal Marketing Concept
Adding to the marketing concept, this philosophy focuses on society’s well-being as
well. The business focuses on how to fulfill the needs of the customer without affecting the
environment, natural resources and focusing on society’s well-being. This philosophy
believes that the business is a part of the society and hence should take part in social services
like the elimination of poverty, illiteracy and controlling explosive population growth, etc.
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The idea that organization should determine the needs, wants and interests of target
markets and deliver the desired satisfactions more effectively and efficiently than
competitors.
The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices.
Applying Marketing Concept on the Business
When the future life, I want to start a business that clothes production and shopping.
At the present time, I am pre-planned for the business. Firstly I will apply my business with
marketing concept and later I will apply societal marketing concept. So, according to
marketing concept, I analyze customer needs and wants.
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In our country, most of the regions are tropical. Therefore, most of Myanmar people
needs and wants cool and comfortable clothes. They want to wear cool and comfortable
clothes even travelling and attending party. So, I want to produce beautiful and lightweight
clothes with fair prices. And I have a plan to make online shopping and delivery services.
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3. Conclusion
The five marketing concepts are a good example of how marketing has changed
throughout the years. It has shifted its focus from products to users.
Modern companies have to put users first, and build not only a good product
(or service), but also a good experience around it.
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4. References
1. https://iedunote.com/marketing-concept
2. http://www.yourarticlelibrary.com/marketing/marketing-concepts-top-5-important-
concepts-of-marketing-explained/32287
3. https://www.marketing91.com/product-concept/
4. https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/2065-
selling-concept.html
5. https://www.managementstudyguide.com/societal-marketing.htm
