Marketing Philosophies

MARKETING MANAGEMENT ORIENTATIONS/CONCEPTS/PHILISOPHIES
Marketing management is defined as the art and science of choosing target markets and building
profitable relationships with them.
Marketing management wants to design strategies that will build profitable relationships with target
consumers. But what philosophy should guide these marketing strategies? What weight should be given
to the interests of customers, the organization, and society? Very often, these interests conflict.
There are five alternative concepts under which organizations design and carry out their marketing
strategies: the production, product, selling, marketing, and societal marketing concepts.
1. The Production Concept
 The production concept holds that consumers will favor products that are available and
highly affordable. Therefore, management should focus on improving production and
distribution efficiency.
 Production concept is a concept where goods are produced without taking into
consideration the choices or tastes of the customers.
 It is one of the earliest marketing concepts where goods were just produced on the belief
that they will be sold because consumers need them.
 Under this concept, the organization concentrates on improving the production process.
 The Organization needs no effort to sale.
The production concept is still a useful philosophy in some situations. For example, computer maker
Lenovo dominates the highly competitive, price-sensitive Chinese PC market through low labor costs,
high production efficiency, and mass distribution.
2. The Product Concept

 The product concept holds that consumers will favor products that offer the most in quality,
performance, and innovative features.
1. Under this concept, marketing strategy focuses on making continuous product improvements.
Product quality and improvement are important parts of most marketing strategies.
2. The organization does not make any effort to identify the needs of the customer but simply
concentrates on producing good quality and fairly priced products.
3. The Selling Concept
 Many companies follow the selling concept, which holds that consumers will not buy enough of
the firm’s products unless it undertakes a large-scale selling and promotion effort.
 The selling concept is typically practiced with unsought goods—those that buyers do not
normally think of buying, such as insurance or blood donations.
 It focuses on creating sales transactions rather than on building long-term, profitable customer
relationships. The aim often is to sell what the company makes rather than making what the
market wants.
3. The Marketing Concept

 The marketing concept is a philosophy that focuses on the needs and wants of the customers of
the target markets and the organization would need to find products and services that will prove
to be useful solution to solve the requirement of such needs and wants and deriving the
satisfaction of the customers.
 The marketing concept holds that achieving organizational goals depends on knowing the needs
and wants of target markets and delivering the desired satisfactions better than competitors do.
 Under the marketing concept, customer focus and value are the paths to sales and profits.
 Instead of a product-centered “make and sell” philosophy, the marketing concept is a customer-
centered “sense and respond” philosophy.
 The job is not to find the right customers for your product but to find the right products for your
customers.
5. The Societal Marketing Concept

 The societal marketing concept questions whether the pure marketing concept overlooks
possible conflicts between consumer short-run wants and consumer long-run welfare. Is a firm
that satisfies the immediate needs and wants of target markets always doing what’s best for its
consumers in the long run?
 The societal marketing concept holds that marketing strategy should deliver value to customers
in a way that maintains or improves both the consumer’s and society’s well-being.
 It calls for sustainable marketing, socially and environmentally responsible marketing that meets
the present needs of consumers and businesses while also preserving or enhancing the ability of
future generations to meet their needs.

Marketing Philosophies

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MARKETING MANAGEMENT ORIENTATIONS/CONCEPTS/PHILISOPHIES

1. The Production Concept

2. The Product Concept

3. The Selling Concept

3. The Marketing Concept

5. The Societal Marketing Concept

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