What is Marketing Concept?
Marketing concept is a business philosophy where a company must first identify the customer needs and then offer a product or service to satisfy the needs. The marketing concept is one of the modern concepts of marketing.
Let’s look at the different business philosophies or concepts before marketing concepts.
Due to the industrial revolution, a business organization was able to produce in large quantity. Hence, this was the beginning of what is generally known as the production concept.
The business organization felt that if they were able to produce a large number of goods at the lowest possible cost, people should buy the product.
The focus: Excellent production capacity and operational capacities to keep the cost to a minimum.
The product concept is a further improvement on the production concept. According to product concept, as long as you can add a lot of great features to your product, people would buy your product.
The focus: Excellent engineering i.e add great features & quality to the product
According to the selling concept, you need to employ a great sales team who would convince people to buy your product.
Selling concept is a natural evolution from the Production and Product Concepts. Think, if the competitors can match your company’s production capacity and the product features, what options do you have now?
Yes, you should push your products through strong sales tactics & advertising. Offer discounts and create great deals to win over customers.
The focus: Great sales team and great sales/selling tactics
The Marketing Concept
Due to the inherent flaws in the first three concepts, businesses had to do better. Soon after WII, marketing concept became popular because it preached that before producing a product, a business must find out what a customer needs.
In other words, you start with the idea of a product or service and finds out if it can solve the target customer problem. Production comes after, the needs that the company can satisfy, are identified.
The focus: Customer’s needs and better solution to a customer’s problems
The difference between the Marketing Concept and Production Concept/Prodcut/ Selling Concept
The first three concepts have one thing in common i.e that they encourage a business to focus on its product or service. This is essentially a myopic approach to business because it cannot see farther than its own product which is called marketing myopia. Generally, this approach is called the “inside-in” perspective on business in modern marketing.
The marketing concept is significantly different for this very reasons as it advocates, “outside-in” perspective on business. It is a major improvement in business thinking.
Of course, it makes more sense to go out there and do a market research to find out what the demand is in the market. It is the right thing to do from a firm’s point of view.
Marketing can make you dumb: A discussion
Think about marketing for a while. It focuses too much on the current needs of a customer. How can you be innovative when you are focusing on the same thing as everyone else. There is hardly any chance of real innovation in such a situation.
The discussion will continue…..