The concept of marketing has evolved over a period of time. In olden days,
sellers adopted the exchange concept and nowadays larger professional firms
practice the holistic concept of marketing.
sellers adopted the exchange concept and nowadays larger professional firms
practice the holistic concept of marketing.
1. the exchange concept
It
is the oldest concept of marketing. According to this concept, marketing
involves the exchange of a product between the seller and the buyer.
The exchange
concept assumes:-
- Customer will accept products of any quality available in the market.
- Lack of marketing research to find out customer preference.
- No emphasis on research to find out customer preferences.
- Emphasis only on profits.
- Lack pf concern for customer satisfaction.
- No important given to after-sale-service.
It
is to be noted that this concept is still practiced by sellers in third world
countries and by small traders (both in developed and developing countries),
who are merely involved in trading rather than in real marketing.
2. The production concept
This
concept came into existence after the industrial revolution in England (as a
result of large scale production).
this concept
assumes
- Customer will prefer those products that are widely available and are of lower price.
- Lack of marketing research
- Hardly any emphasis on research and development.
- The firm places greater emphasis on profit.
- Firms may undertake large scale production to reduce cost.
Under
this concept, marketers concentrate on achieving production efficiency and wide
distribution coverage.
3. The product concept
This
concept came into existence in the early 20th century. There is a
shift from marketing of low cost of production to marketing of high quality
products.
This concept
assume
- Consumer will prefer those products that offer high quality and performance.
- Emphasis on research and development to improve quality which would increase sales.
- Focus on profit motive.
- Lack of emphasis on marketing research.
- Lack of emphasis on customer relations.
Product
oriented company suffer from ‘marketing
myopia’ – the term coined by prof. according to prof. Levitt, marketing myopia
refer to narrow perception of marketing, where excessive attention is given to
the product and ignoring the customer in the
process.
4. The selling concept
This concept gained attention after the great depression
of 1930s. it places emphasis on aggressive promotion to increase the sales. It
is a seller oriented concept. The seller aim to sell what they make rather than
what the buyer needs.
- Consumer will prefer those products which are aggressively promoted with the help of publicity, advertising, salesmanship and sale promotion.
- Greater focus on promotion-mix. Example- advertising and sales- promotion to increase sales.
- Greater emphasis on profit and market share
- Lack of emphasis on marketing research.
- Lack of emphasis on customer relation.
5. The marketing concept
This
concept came into existence in the 1960s due to larger scale competition,
especially in developed country. This concept is also known as customer-
oriented concept. The target customer become the focus of all marketing
decision.
This concept hold
the view that.
- The success of the organization largely depends on customer satisfaction.
The marketing
concept rests on four pillars.
- Integrated marketing
- Target market
- Customer need
- Profitability
The main feature
of marketing concept are-
- Emphasis on marketing research
- Focus on research and development
- Balancing profits with customer satisfaction.
- Integration of all functional areas
- Emphasis on customer relationship.
6. the societal concept
The
1980s and 1990s saw the emergence of societal concept of marketing. This
concept that a company can prosper, if it strikes a balance of three element.
- Society welfare + customer satisfaction + company profit.
Some of the
feature of societal concept are.
- Emphasis on conservation of environment
- Focus on research and development to produce green goods
- Emphasis on profit as well as customer satisfaction
- Focus on marketing research
The
societal marketing concept calls upon markets to build social ad ethical value
into their marketing practices. It stresses the need for a firm to balance
three factors while taking marketing decisions.
7. the relationship marketing concept
In the 1990s, a new concept of marketing has emerged
called the ‘relationship’ marketing concept. In narrow sense of the term,
relationship marketing refers to building long term customer relationship.
In
a broader sense, relationship marketing involves creating, maintaining and
enhancing profitable and long term relationship with all stakeholder as
customer, distributors, dealers, employees, financiers, shareholders, suppliers
and society.
This concept holds the view that
- Company will prosper and progress, if it maintain excellent relationship with various stakeholder.
8. the holistic concept of marketing
Philip
Kotler introduced the holistic concept of marketing, which gives competitive
advantage to business firm. Professional marketers adopt the holistic approach.
The holistic marketing concept consists of four element.
- Integrated marketing – all element of marketing-mix (product, price, promotion and place) are integrated to deliver superior customer value.
- Relationship marketing – effort are made to build, maintain and enhance long-term relationship with customer, dealers suppliers and other stakeholders.
- Internal marketing – the employee of the organization are to be treated as internal customer, so that they serve the external to select, train and motivate the employees to provide effective customer service.
- Performance marketing – emphasis is placed on profits as well as other concern or issues as customer loyalty, customer satisfaction, market share, product quality and other related issues.
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