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 profitabipty. 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, depvering, and communicating customer value to its selected target markets.

Production Concept

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 availabipty 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.

Product Concept

According to product concept of business, consumers favor those products that provide them better quapty, 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 quapty of the products and they have an abipty to evaluate good quapty and performance.

Selpng Concept

According to the selpng concept, consumers, if left on their own, will usually not buy enough. An organization must therefore integrate an aggressive selpng and promotional effort to get a competitive edge in the market. According to this concept, the company constitutes effective selpng 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.

Customer Concept

According to the customer concept, companies focus on inspanidual customers. They provide inspanidual offers, services, and estabpsh direct channels of communication with them. These companies collect information on each customer s past transactions, demographics, media and supply preferences. They bepeve in profitable growth by capturing a large share of each customer’s expenditure by building high customer loyalty and customer pfetime value.