What is Marketing Concept?
Marketing concept is a set of strategies that the firms adopt where they analyse the needs of their customers and implement strategies to fulfil those needs which will result in an increase in sales, profit maximisation and also beat the existing competition.
The marketing concept has been widely used by companies all over the world in the present age, but the situation was not the same earlier. As per this concept, it is said that for an organisation to satisfy the objectives of the organisation, the needs and wants of the customer should be satisfied. This theory was first mentioned in Adam Smith’s book “The Wealth of Nations” in 1776 but came into widespread use only 200 years later.
Therefore, marketing can be said as a process of acquiring customers and maintaining relations with them and at the same time matching needs and wants with the services or product offered by the organisation, which ensures that the organisation will become profitable.
What are Needs, Wants and Demand
Marketing concept focuses on the needs, wants and demands of customers. Let us understand them in brief.
Needs are basic requirements that enable a healthy and active life. If needs are not fulfilled, it will result in the dysfunction of the system, which can result in disability or death. It can be objective as well as physical as in need of food, water and shelter.
Wants are something that is not desired by the person. These are not required for day to day functioning. Wants are not necessary for basic survival and are mostly moulded by cultural influence.
When the needs and wants are supported by an ability to pay, it becomes a demand.
Types of Marketing Concept
Five types of marketing concepts are as follows:
1. Production Concept
2. Product Concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept
This concept was based on the assumption that customers are primarily interested in products which are accessible and affordable. This concept was introduced at a time when business was focused mainly on production. It says that a business will be able to lower costs by producing more quantity or mass production of goods.
Solely focusing on producing goods may lead to the firm deviating from its objective.
The product concept is based on the assumption that customers will be more inclined towards products that are offering more quality, innovative features and top-level performance.
In this type of marketing concept, a business focuses on creating high-quality products and refining it every time in order to develop a better and improved product.
While the previous two concepts focused on production, the selling concept is focused on selling. It believes that customers will be buying products only when the product is aggressively marketed by the company. It does not focus on building relationships with customers, and ensuring customer satisfaction is also not deemed necessary.
A marketing concept places the centre of focus on the customer. All the activities that are undertaken by an organisation are done keeping the customer in mind. The organisations are more concerned about creating value propositions for the customers, which will differentiate them from the competition.
Societal Marketing Concept
This is the fifth and most advanced form of the marketing concept. Here the focus is on needs and wants of the customer as well as ensuring the safety of the customer and society first. It believes in giving back to society and making the world a better place for all human beings.
This was all about the different marketing concepts. For more such interesting concepts, stay tuned to BYJU’S.