Marketing Philosophies or Concepts

Companies approach and conduct business in different ways in order to achieve their organizational goals.
•Every company can have different ideas or philosophy. For example-
•A particular company can have its idea or philosophy that if the production is done on a large scale, the cost would be less and the product would be sold automatically.

1. Marketing Orientations
or
Marketing Philosophies
or
Marketing Concepts
Dr. Amitabh Mishra 1

2. Dr. Amitabh Mishra 2
•Companies approach and conduct business in different
ways in order to achieve their organizational goals.

•Every company can have different ideas or philosophy.
For example-
•A particular company can have its idea or philosophy that if
the production is done on a large scale, the cost would be
less and the product would be sold automatically.

3. •The five competing concepts by which
companies are guided in their marketing
efforts are:
1.Production concept,
2.Product concept,
3.Selling concept,
4.Marketing concept
5.Societal marketing concept

Dr. Amitabh Mishra 3

4. Production concept
consumers will favor products that are widely available and
affordable.
Dr. Amitabh Mishra 4

5. •“The production concept holds that consumers
will favor products that are widely available and
affordable”.

•Managers of production oriented business
concentrate on achieving-
–High performance.
–Low cost, and
–Mass distribution.

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6. •This strategy is useful in developing countries
when, consumers are more interested in
obtaining the product than in its features.
Dr. Amitabh Mishra 6

7. PRODUCT CONCEPT
Consumers will favor those products that offer most quality, performance, or innovative features
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8. •“The product concept holds that consumers will favor those
products that offer most quality, performance, or innovative
features”.
•Managers focusing on this concept concentrate on making
superior products and improving them over time.
•They assume that buyers admire well-made products and can
appraise quality and performance.
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9. •However, these managers are sometimes caught up in a
love affair with their product and do not realize what
the market needs. Management might commit the
“better-mousetrap” fallacy, believing that a better
mousetrap will lead people to beat a path to its door.

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10. Selling Concept
sell what company make rather than make what the market
wants.
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11. •It holds that consumers and businesses, if left
alone, will ordinarily not buy enough of the
selling company’s products.

•The organization must, therefore, undertake an
aggressive selling and promotion effort.

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12. •This concept assumes that consumers typically show buying inertia
or resistance and must be coaxed into buying.

•Most firms practice the selling concept when they have
overcapacity. Their aim is to sell what they make rather than make
what the market wants.

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13. MARKETING CONCEPT
puts the customer and customer satisfaction at the centre of things
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14. •This is a business philosophy that challenges the
above three business orientations.

•It holds that the key to achieving its
organizational goals (goals of the selling
company) consists of the company being more
effective than competitors in creating, delivering,
and communicating customer value to its
selected target customers.

Dr. Amitabh Mishra 14

15. •The marketing concept is a philosophy of
business that puts the customer and customer
satisfaction at the centre of things.

•Adopting a marketing orientation is now widely
accepted as delivering greater levels of customer
satisfaction, profitability and sustainability.
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16. •The marketing concept rests on four
pillars:
–Target Market,
–Customer Needs,
–Integrated Marketing, and
–Profitability.
Dr. Amitabh Mishra 16

17. •Integrated marketing is a strategy aimed at unifying
different marketing methods such as mass marketing,
one-to-one marketing, and direct marketing etc.

•Its objective is to complement and reinforce the market
impact of each method, and to employ the market data
generated by these efforts in product development,
pricing, distribution, customer service, etc.
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18. Marketing Concept
Vs.
Sales Concept
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19. Sales vs. marketing
The Sales Concept

The Marketing Concept

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20. Marketing and Sales Concepts Contrasted
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21. Difference between
Selling & Marketing
S.N Sales Marketing
1 It focuses on the needs of the
seller.
It focuses on the needs of the
buyer.
2 It is preoccupied with the seller’s
need to convert his/her product
into cash.
It is preoccupied with the
idea of satisfying the needs of
the customer
3 Seller is the center of business
universe.
Buyer is the center of
business universe.
4 View business as a ‘goods
producing process’
View business as a ‘customer
satisfying process’
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22. Dr. Amitabh Mishra 22
S.N Sales Marketing
5 Over emphasis on the exchange
aspect without caring the value
satisfaction satisfaction inherent
in the exchange.
Concern it self with the ‘value
satisfaction’.
6 Seller requirement dominate the
marketing mix.
Buyer determine the shape of
marketing mix.
7 Emphasis on staying with existing
technology and reducing cost.
Emphasis on innovation and
providing better technology.
8 Cost determines the price. Consumer determines price
and price determines cost.
9 Emphasis is on somehow selling Emphasis is on integrated
marketing, covering all 4P’s.

23. SOCIATAL MARKETING
CONCEPT
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24. •Societal Marketing Concept, states that
companies should deliver customer satisfaction
in a way that improves both the consumer’s
and society’s wellbeing.
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25. •This concept holds that the organization’s task is to
determine the needs, wants, and interests of target
markets and to deliver the desired satisfactions more
effectively and efficiently than competitors (this is the
original Marketing Concept).
•Additionally, it holds that this all must be done in a way
that preserves or enhances the consumer’s and the
society’s well-being.
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26. •Societal Marketing concept calls upon
marketers to build social and ethical
considerations in to their marketing
practice.
Dr. Amitabh Mishra 26

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Orientation Focus is on…
Production Production and distribution efficiency
Product Most quality product
Sales Product sales
Marketing Consumers’ needs and wants
Societal
Marketing
In addition to consumers’ needs and wants, also consider benefits to
the society