Professional Documents
Culture Documents
Evolution of
Marketing Concepts
LEARNING OBJECTIVES
After studying this chapter, you wll
learn:
2.1 Approaches to the Study of
Marketing
2.2 Evolution of Marketing Concept
2.3 Modern Marketing
Concept
2.4.1 Features of the Marketing Concept
2.4.2 Importance of the Marketing Concept
2.4 Distinction between Marketing and Selling
Summary
Test Questions
even more than what actually they are willing to pay in normal conditions. It
alleged that the product concept leads to 'marketing myopia' as it unduly
concentrates on the product rather than the need. This is like looking into a
mirror rather than looking out of the window.
3. The Selling Concept. The selling concept holds that "consumers, if
lelt
alone, will ordinarily not buy enough of the organisation's products. The
organisation must, therefore, undertake an aggressive selling promotion effort."
It implies selling what is made rather than making what can sell. It involves
hard selling. The selling concept may be useful when a firm has over capacity
and the product is insought e.g. encyclopedias.
The product does not sell itself. The consumer has to be educated and
convinced, that it is this and this product only which will satisfy his need.
Effective selling and promotion tools to stimulate buying, therefore, are a pre
condition for selling, Peter Drucker holds that "there will always, one can assume.
be need for some selling. But the aim of marketing is to make selling superfluous.
The aim of marketing is to know and understand the customer so well that the
product or service fits him and sells itself. Ideally, marketing should result in
a customer who is ready to buy. All that should be needed then is to make the
product or service available."
Thus", says Philip Kotler, "selling, to be effective, must be preceded by
several marketing activities such as needs assessment, marketing research.
does a good job of
product development, pricing and distribution. If the market
identifying consumer needs, developing appropriate products, and pricing,
distributing, and promoting them effectively, these products will sell very
easily."
A. The Marketing Concept. Philip Kotler says, "The marketing concept
determining the
holds that the key to achieving organisational goals consists insatisfactions more
needs and wants of target markets and delivering the desired
Indian market was
effectively and efficiently than competitors. "2 Before 1991l,
increased tremendously
largely a seller's market. Since then competition has Indian market has now
choice. The
and the consumer now has considerable
focusses on building
become largely a buyer's market.(The marketíng concept
customers whereas the selling concept
longterm profitable relationships withsections)
Iocusses enly on creating sales from
According to Philip Kotler "the societal
L8. The Societal Marketing Concept. task is to determine the needs,.
marketing concept holds that the organisation's deliver the desired satisfaction
and to
Wants, and interests of target markets
competitors in a wvay that preserves or
more effectively and efficiently than well-being "3
enhances the customers' and the society's
Societal
Marketing
Concept Company
Consumers
(Want Satisfaction) (Profits)
follows:
of the
1. The firm appreciates and understands the strategic position
customers.
2. The marketing system is designed to serve customer needs.
3. Emphasis is put on product innovation and product planning.
4. products and services are continuously adapted to the changing preferences
of customers.
3. Integrated Marketing. Marketing concept requires that all activities of
business be coordinated to satisfy customers. The idea of 'customer is the king
should permeate each and every part of the enterprise so as to provide a sense
of common purpose.
Marketing concept is a systems approach to marketing. It requires intelligent
coordination of all business activities. To ensure integration, the firm must
support external marketing by internal marketing which involves hiring, training
and motivating able employees who want to serve the customers well. It makes
no sense to promise excellent service to customers before the employees are
able and willing to provide excellent service.
4. Marketing Research. Under the marketing concept all marketing decisions
are to be made on the basis of information relating to the needs and expectations
of consumers. Therefore, market research is necessary to identify and under
EVOLUTION OF MARKETING CONCEPTS
2.9
Needs of Customers
Achieve Goals by satisfying
MARKETING RESEARCH
INTEGRATED MARKEING
CUSTOMER ORIENTATION
Know and understand your
All Marketing Activities are All Marketing Activities are customers as best as you
coordinated
focussed on Satisfying the can
Customers
Marketing Concept
FIGURE 2.3: Foundations of Modern
7. The interest of the company and the society are harmonised. The
management realises that the satisfaction of human wvants and human
welfare would automatically bring profits for business.
Many companies do not adopt the marketing concept. The following factors
put pressure on them to embrace the marketing concept:
" Decline in sales
Slow growth in sales
" Changing wants of customers
" Increasing competition
" Increasing nmarketing costs
Marketing concept, however, does not recognise the wider social dimensions
of marketing. It focuses attention on satisfying consumers. It overlooks the
interests of other social groups such as employees, shareholders, suppliers,
government and gerneral public which also have a stake in business.
the
5. Demnand Creation. Selling presupposes the existence of demand for
maintenance
firm's product. On the other hand, marketing involves creation and
of consumer demand.
5. Beginning and end Begins before production and continues Begins after production and ends with
after sale sale
Internal, on seller's needs to convert
6. Focus External, on customer's needs
product into cash
7. Demand
Involves creation and maintenance of Presupposes existence of demand
demand
8. Growth New and modern concept Old and traditional concept
Profits through
Target Customer Integrated Customer
Marketing
Market Needs Marketing Satisfaction
Concept
product into cash, marketing with the idea of satisfving the needs of the consumer
by means of the product and the whole cluster of things associated with
creating,
delivering and finally consuming it."
SUMMARY