Marketing is the concept to know your customers needs and wants, providing products and services which serves as a solution for customers problem. In modern world organizations take care of their customers and maintaining long term relationship. In past organizations not had similar thinking as it is today, marketing concept is adopted by organization in a different way. The thinking and perceptions of organization are refer to the philosophies “Organization picture of marketing”
There are five different type of marketing concepts namely production concept, product concept, selling concept, marketing concept and societal marketing concept.
Customers buy the products which are produced on mass level at low cost and widely available in the market. This concept totally phase out customer, production take place without taking customers needs and wants into consideration. This concept works well when the demand of product is more than supply or product cost is required to be reduced by following the practice of mass production.
The organization preaching this concept not last long because this concept ignore the other important factors like competition, new products, customer satisfaction etc. Organization most of the time compromise on quality in order to reduce the cost of the product which results in customer dissatisfaction leads towards product failure.
The idea behind product concept is customer will buy the product that is best in quality, design, features and durability. Organizations follow product concept are too much focused on their product that they lost site of other important factors like customer needs and wants.
This concept leads towards “Marketing Myopia” which means organization fall with love with their existing products that they never think about other alternatives. If a organization is only focused in producing best desktop computers for customer without keeping in mind that customer is willing for portable solution such as laptop and PDA.
This concept focus on organization profits by putting efforts on sales and distribution of product. This concept says, customer will buy the product as long as selling efforts are made by organization. Organization following this concept forgot that selling product one time to customer will generate profits for small span of time.
At last, innocent customers areconsidered in marketing concept, developing the products which fulfills the needs and wants of customers is the main theme of marketing concept. Marketing is all about satisfying customers for retaining long term relationship results in long term profits.
The big names like Dell computers, Microsoft, Oracle, Procter & Gamble truly practicing marketing concept which is win-win situation for both organization and customers.
Societal Marketing Concept
Marketing concept happy the customers by fulfilling their needs and wants but without taking society well being into consideration. Societal marketing concept tells the organization to offer the products which satisfy or surprise the customers and also think for society well being.
Factors like pollution, population and health issues are the main societal issues which normally ignored in marketing concept. If we take the example of fast food restaurant offering burgers according to customer taste but what if it contains heavy amount of calories which raise serious health issues. Fast food restaurant offering tasty burgers with low fats is thinking about customers needs andwant and well being of society.