There’s a plan for just about anything these days, but before you can make one, you need to know the fundamentals. So what are the 5 marketing concepts? An excellent marketing plan necessitates, for instance, an intimate familiarity with marketing principles. Applying the five pillars of marketing theory can help you zero in on the optimal approach.
What Is A Marketing Concept?
Simply said, a marketing concept is the guiding principle that determines how a business goes about promoting its products or services. A company’s marketing strategy will differ depending on the marketing concept it embraces.
A marketing concept facilitates internal communication about the company’s long-term strategy for driving revenue growth. In addition, it helps with and unifies the marketing team’s goal setting. A business must select and refine its marketing concept to ensure that its product, pricing, distribution, and advertising are consistent with one another.
The Production Concept
The production philosophy is based on the idea that consumers are more likely to make a purchase if the product is both readily available and at a lower price than those of competing brands. Therefore, producing items on a massive scale is essential to this marketing strategy.
The principle is not just applicable in fast-growing sectors, but also in large-scale firms where economies of scale become more significant. Due to the massive volume of production essential to this marketing strategy, there is never a shortage that has any real effect on customers.
The advantage of this method is that it leads to the gradual evolution of cutting-edge production techniques. Products benefit from this as well, as their quality improves.
People, according to this theory, are very price-conscious. Since economies of scale lower the price, customers are drawn to it. The low cost is a direct outcome of mass production.The business begins to flourish and gain notoriety as time passes. The result is an influx of capital from investors willing to put their faith in the company. Investors become more reliant on the firm as time goes on.
Mass production also strengthens links between businesses and their suppliers. Raw resources are needed. Suppliers can provide this to manufacturers who anticipate sustained demand and can benefit from purchasing in bulk. Therefore, working together productively strengthens relationships.
However, this marketing strategy is not without its flaws. First, in recent years, competition has increased across all niches and market segments. Even niche markets are crowded. This necessitates tailoring both the goods and the advertising to each individual customer. If not, the company will surely fail.
Since this method is used for mass production, the advertising is impersonal. Another negative effect of depersonalization is that consumers’ unique requests and concerns are ignored. Products’ quality may suffer as a result.
This is common since many companies outsource their manufacturing to places where labor is cheaper, but the end product is lower quality. The production concept has fallen out of favor for the reasons listed above. In contrast, they have contributed to the development of other things.
The notion that the thing you sell actually has some worth is known as the product concept. You can’t just sell anything. It needs to be worthwhile for people to shell out money for it. Keeping your product current and desirable means adapting it to meet the needs of your target market as they evolve over time.
Creating a compelling product concept paves the way for the marketing efforts required to bring a finished product to market. With this information in hand, you can approach your target demographic more confidently and enter new markets with less resistance.
This concept’s biggest flaw is that customer happiness isn’t a priority. It disregards the realities that high-quality products can still be undercut by cheaper products and that low-price alone is no guarantee of market success for low-quality items.
According to the selling principle, if a company doesn’t actively promote and sell its items to consumers, those people won’t buy enough of the company ‘s products to make it profitable.
Instead of concentrating on developing lasting, mutually beneficial connections with their clients, the management here prioritizes generating sales. Selling what the corporation produces, rather than catering to consumer demand, is the main objective. There are considerable risks associated with such an aggressive sales strategy.
The idea behind selling is that consumers may be persuaded to purchase the product and will ultimately find satisfaction with it; if they do not, they will likely get over their initial dissatisfaction and purchase the product again. This is an extremely foolish and costly assumption to make.
In most cases, the notion is applied to unsought products. The term “unsought products” refers to items that consumers typically do not consider purchasing, such as insurance or blood donations.
This idea is most relevant when a company has excess production capacity but still wants to sell its products. Starting with the manufacturing process, which is product-centric, this strategy seeks to maximize revenue by increasing product sales through various marketing and advertising channels.
However, this idea does not provide marketing a strategic role in true sense. To be successful, this business model relies heavily on aggressive sales tactics. Personal selling serves as a push function, while advertising serves as a pull function, in the distribution of goods from producers to consumers.
Hard-selling marketing is risky because a dissatisfied customer will tell multiple other people they know, and those people will tell even more people, and so on. The long-term effects of this on the brand’s reputation are disastrous.
Marketing is customer-focused. It puts customers in the middle of the marketing process, identifying their requirements and addressing them better than competitors.
The marketer assumes the customer is always right and prioritizes their needs and wishes. In this case, the marketing strategy is centered on generating a profit by catering to the requirements and preferences of the target audience.
It supports a straightforward approach, in which businesses don’t go out of their way to find suitable buyers, but rather focus on creating an ideal product for those buyers. Therefore, it is the job of marketing professionals to facilitate connections between the company’s products and the people who will ultimately buy them.
The Societal Concept
Social marketing suggests businesses should be motivated by more than profit. They should also care about employees, consumers, the environment, and other stakeholders. This marketing approach says companies must serve society to survive.
The idea behind “social marketing” is that if a company can make a product that is accessible to a wide range of consumers, including those in lower socioeconomic brackets, they are doing good work by assisting those in need.
Soap manufacturers are a great example; they produce affordable soaps for wide distribution so that everyone can afford to use it on a regular basis. When more people practice good hygiene, fewer infectious diseases will spread, which is good for everyone in society.
The idea of social marketing prioritizes community over profit. Instead of trying to make a quick buck off of clients by selling them items they don’t need, this business model is more concerned with helping people achieve their long-term goals and living in accordance with their core principles.
Environmental protection is an integral part of the broader notion of societal marketing, which aims to help firms avoid exploitation of the planet’s finite natural resources. When businesses seek to reduce their environmental impact, they contribute to a world where everyone has access to the medical care and economic opportunities that come with advanced technology.
Some fields have managed to keep the old ideas of production, product, and sale alive, but this is not the case for the vast majority. To survive, modern businesses must adhere to the marketing concept, which entails listening to and satisfying the needs and demands of customers. However, environmental issues pose significant hurdles to this strategy.
What is good for an individual and what is good for a society as a whole are not the same, and this is a central tenet of the concept of societal marketing. Since there would be no marketing activity without society, it follows that while formulating a marketing plan, marketers should take these elements into account. Consequently, societal duties should take precedence.