Marketing Concepts

Marketing Concepts
Definition

Marketing concepts can be defined as the marketing philosophies by which

a firm’s goal can be best achieved through
identification and satisfaction of the customers’ stated and
unstated needs and wants.

Meaning
Companies adopt different philosophies in relation to marketing of their
products. Some claim that they are customer oriented and others say that
they offer value to their customers. Still others say that they treat their
customers as kings. These philosophies in relation to marketing are
known as marketing concepts.
 Types of Marketing Concepts

Traditional Concepts
• Exchange Concept: The Exchange concept holds that the
exchange of a product between the seller and the buyer is the
central idea of marketing.
• Production Concept: The production concept holds that the
consumer prefer the goods which are easily available at lower
prices. Therefore, it is necessary to produce in large quantities at
lower costs.
• Product Concept: It is a belief of the management that
consumers favour the products of superior quality, better
performance and innovative features. Therefore, successful
marketing requires continuous product planning and development
and improvement in quality standards.
Selling Concept: This concept assumes that consumers will
not buy goods voluntarily unless the seller undertakes a large
scale selling and promotional efforts. Apple creates
products like a monarchy, with all big decisions flowing
down from Emperor Steve.
Here is a quote from Steve Jobs saying that Apple
doesn’t do market research from a 
Modern
Concepts

• Marketing Concept: This is the modern concept of marketing

or marketing philosophy. This concept holds that the primary
task of a business firm is to study the needs, desires and the
preferences of the potential consumers and produce goods
which are actually needed by the consumers. When an
organisation practices the marketing concept, all it’s activities
are directed to satisfy the consumer.
• Social Concepts: According to this concept, the task of
management is to identify and satisfy consumer wants, in
conformity with social interests. Firms should not only
consider consumer wants and profits but also society
interests while making their marketing decision.
• Holistic Marketing Concept: Holistic marketing concept is
a new marketing concept. Holistic marketing recognizes that
“everything matters” with marketing- and that a
broad, integrated perspective is often necessary. There are four
components of holistic marketing concept. They are…
• Relationship marketing
• Integrated marketing
• Internal marketing
• Social responsibility marketing
 Features of Modern Marketing
Concepts

• The consumer is the key. Therefore the satisfaction of

consumer is the prime object of an enterprise.
• A business enterprise has dual objectives of customer satisfaction and
profit maximisation. Profit is a by-product of supplying what the
customer wants.
• Needs and wants of customers must be identified properly and
deeply before starting production.
• Goods must be produced according to these needs and wants. In
other words, these needs and wants must be converted into goods and
services.
• All the resources of production must be utilized to their best extent so
that the cost of production may be minimized.
• Every activity of an enterprise must start with the customer and end
with the satisfaction of customer.
• Customers are classified into groups in the basis of income, life-style,
education, age, volume of purchase etc(called market segmentation) and
the firm chooses one of the segments or classes of customers for
presenting its product or service. This selected segment is called target
market.
• Another feature of modern concept of marketing is integrative marketing.
• It seeks to co-ordinate various marketing functions such as advertising
personnel, finance, selling, product management etc for the ultimate
objective of customer satisfaction.
• Modern marketing concept emphasizes the role of information as the key
toboth customer satisfaction and profitability.
Comparison between Selling and
Marketing Concept
 Difference between Traditional and
Modern Concept

Traditional Concept Modern Concept

1. Focus is on product only 1. Focus is on customers’ needs
and wants
2. Objective is profit 2. Objective is customer
maximisation satisfaction and customer
delight
3. Short-term 3. Long term oriented
oriented 4. Sustained promotional
4. Less promotional activities
activities 5. Border concept

5. Narrow concept
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