Marketing concepts or philosophies refer to a general thought or idea, which is used by firms to effectively and efficiently achieve their goals through identification and satisfaction of consumer needs and wants.
Traditional Marketing Concepts
Exchange concept – Under exchange marketing concept the exchange of a product between buyer and seller was the central idea of marketing.
Production concept – It was believed that consumers will prefer products that are widely available and inexpensive. The production concept aims at achieving profit through high production efficiency at low cost and wide scale distribution.
Product concept – This marketing concept holds the belief that consumers will prefer those products that are high in quality, performance and are innovative. This marketing concept involves matching of products with markets. Marketers focus on making superior products and improving them.
Selling concept – It focuses on aggressive selling and promotion activities to push the product. Marketers focus on selling what is made rather than making what can be sold.
Modern Marketing Concepts
Features of Modern Marketing Concepts –
- Consumer is central to all marketing activities.
- Every business enterprise has dual objectives i.e. profit maximization and customer satisfaction.
- Identification of needs and wants and their conversion into products
- Target marketing
- Integrated marketing
Marketing concept – The primary task of any business is to study the needs, desires & preferences of potential customers and produce goods which are actually needed by the customers. Hence, all marketing activities must be directed towards satisfaction of consumer needs and wants.
Social concept – It is concerned with well-being and welfare of the society. It believes that the primary task of any business is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that it preserves or enhances the consumer’s and society’s well-being.
Holistic Marketing concept – It focuses on integrated marketing efforts within a firm. Holistic marketing concept is based on the development, design and implementation of marketing programs, processes and activities that recognize their breadth and inter dependence. It believes everything matters and suggests that marketing must be looked from broad and integrated perspective.
Components of Holistic Marketing
- Relationship marketing
- Integrated marketing
- Internal marketing
- Social responsibility