The management of all activities that are related to the market is known as Marketing Management. Earlier, marketing and selling were one and the same thing. But, with the introduction of globalisation, consumers play a crucial role in the market. Besides, different marketing strategies have also become essential for organisations. The modern definitions of Marketing are based on the philosophy, that “satisfaction of consumers is the basic purpose of business.”
According to J.F. Pyle, Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services.
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According to Phillip Kotler, Marketing Management is the analysis, planning, implementation, and control of programmes designed to create, build, maintain mutually, beneficial exchanges and relationships with target market for the purpose of achieving organisational objectives.
Marketing Management Philosophies
Marketing management philosophies are those philosophies that are used by businesses with the aim of guiding their marketing efforts. There are five marketing management philosophies that can help an organisation better market its products and services; therefore, a business should choose the philosophy carefully. Besides, the same philosophy cannot provide the same result or benefit to every organisation. Hence, it is essential for an organisation to choose a philosophy that can identify and fulfil the needs of its customers and benefit the organisation as well as the customers.
The five marketing management philosophies are as follows:
1. Production Concept
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Some organisations believe that they can sell products easily if they are inexpensive and easily available to consumers. Hence, these organisations follow the production concept, under which they focus on reducing the production cost of the products by producing goods in bulk and distributing it to customers. In other words, the main focus of this concept is on large-scale production so as to reduce costs. However, this concept is not that useful, as it has its limitation in that the customers don’t always go for inexpensive and easily available products. It is because a low price product may attract customers towards it, but since the main focus of the company was on production and not on the quality of the product, it can decrease the sales of the product if it does not meet up to the standards of the consumer.
The production concept works best when the demand for a product is more than its supply. However, a consumer does not always buy inexpensive products, there are other factors also which influence their decision regarding the purchase of a product. For example, Ford Motor Company – Ford’s Model T followed the production concept.
2. Product Concept
Some organisations believe that they can sell products easily and can attain business goals if they manufacture products of high quality. Hence, these organisations manufacture products of superior quality. However, the disadvantage of this concept is that organisations should understand that consumers will purchase high-quality product only when they need it or want it, good quality of a product is not the sole factor in a purchase decision. For example, a firm dealing in high-quality clothes will have demand only when the customers need them.
The organisations following the product concept focus mainly on the good quality and extra features of the product and hence devote most of their time on developing a high-quality product, which most of the time increases the price of the product. For example, Apple uses product concept and focuses on the quality of its products, which makes them costly.
3. Selling Concept
Some organisations believe that they can sell more products by convincing them through aggressive selling and other promotional efforts. By using the selling concept, an organisation can make a consumer purchase a product which they have no interest in buying. Therefore, organisations which rely on the selling concept use the power of advertising and various other persuasion techniques to influence the customers in buying the product. In simple terms, it can be said that the motto of the selling concept is, ‘Sell what you have”, which means that the product is sold by the seller by hook or crook.
The selling concept focuses on the needs of the producers and sells whatever is manufactured. In other words, this concept does not concentrate on the needs and requirements of the consumers who are the ultimate user of the product. Therefore, the sale of a product depends upon the buyer’s manipulation. Under this concept, the basic aim of the seller is to turn the goods into cash even if they have to use unfair tactics.
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However, organisations using the selling concept must understand that they cannot manipulate the consumers for a long time. If a seller wrongly convinces the consumer in buying a product, then it can spoil the image of the organisation and the consumer may not purchase its product ever again and will definitely not recommend it to others. For example, insurance companies tend to use the selling concept while selling insurance policies. Therefore, the selling concept can provide good results in the short run, but not in the long run.
4. Marketing Concept
The organisations using the marketing concept believe that they should always fulfil the needs of the customers and produce goods according to their requirements and wants. It means that through marketing concept the organisations try to satisfy the needs of the customers better than their competitors. Hence, this concept states that ‘customers’ satisfaction’ is the pre-condition of the organisation’s objectives and goals.
The five pillars of the marketing concept or the process of marketing concept are as follows:
- Identifying market or customers who are selected as the target market by the organisation.
- Understanding the needs, wants, and requirements of the customers in the target market.
- Developing the products or services to satisfy the needs of the customers in the target market.
- Satisfying the needs of the customers in the target market better than its competitors.
- Performing all of the above steps at a profit.
Under marketing concept, firms do not sell what they produce, but they produce and sell what their customers want. The organisations which adopt marketing concept gives importance to customers and competitors, as these two are the two important market forces. The firms have to keep a close check on the needs and requirements of the customers and the activities of the competitors so they can satisfy the needs of the customers better than their competitors.
Maintaining constant vigil on the customers is known as customer-orientation, and constant vigil on competitors is known as competitor-orientation.
5. Societal Concept
Even though the marketing concept satisfies the needs and wants of customers in the best possible way, it faces criticism from people concerned about the environment and society. They believe that companies should not blindly follow their goals of customer satisfaction and should also look for social and environmental factors. If an organisation focuses only on customer satisfaction, then it may result in many social and environmental issues. For example, if a customer wants drugs, then the company just to satisfy the customer should not manufacture drugs and supply him. Hence, the societal concept states that an organisation should fulfil customers’ satisfaction that is within the ethical and environmental aspects of society.
Difference between the Marketing Management Philosophies
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Category: WHICH
