Developing Marketing Concepts
Marketing concepts focus on finding right products for the customers instead of finding right customers for the products. It is based on four pillars − target market, customer requirements, incorporated market, and profitability. Marketing concepts start with a well-defined market, focus on customer needs, co-ordinate all the inter-related activities that will affect customers, and increase the profits by bringing more satisfied customers.
Market concept focuses on achieving organizational goal by creating a company that is more effective and efficient than competitors by creating, delivering, and communicating customer value to its selected target markets.
According to production concept, consumers prefer to buy those products that are widely available and inexpensive. Executives of production-oriented businesses usually concentrate on achieving high production efficiency, low cost, and mass distribution for effective results. Consumers are interested more in product availability and low prices. This type of business orientation is effective in developing countries.
Example − Local mobile companies in developing countries provide cell phones at much cheaper cost than the branded companies and due to this, people in these countries prefer to purchase cell phones from them.
According to product concept of business, consumers favor those products that provide them better quality, performance and innovative features. Managers in product-oriented organizations mainly focus on making superior products and improving them time to time. In product concept, it is considered that the consumers are aware of the quality of the products and they have an ability to evaluate good quality and performance.
According to the selling concept, consumers, if left on their own, will usually not buy enough. An organization must therefore integrate an aggressive selling and promotional effort to get a competitive edge in the market. According to this concept, the company constitutes effective selling and promotion tools in order to encourage more buying.
The purpose of marketing is to sell more things to more people, more regularly, in order to make more profit.
According to the customer concept, companies focus on individual customers. They provide individual offers, services, and establish direct channels of communication with them. These companies collect information on each customer's past transactions, demographics, media and supply preferences. They believe in profitable growth by capturing a large share of each customer’s expenditure by building high customer loyalty and customer lifetime value.