All the marketing efforts are guided by certain marketing management philosophies that give the directions about how the Marketing Activities should be carried out. The marketing management philosophies are actually a concepts, which is the central focus for the business to do their operations. The organizations set their organizational goals in the light of these marketing management philosophies that cover the interests of not only the organizational itself, but also the customers and the society as a whole.
Marketing Management Philosophies
Although there are many Marketing Management Philosophies, but the following five are the famous ones.
01- Production Concept
Production Concept is much simpler idea that gives the companies to develop their marketing strategies. It states that the highly affordable and available products are preferred by the consumers. This means that the success of the company is based upon the effective production and distribution of the products. This concept worked in the oldest era of the marketing revolution, when there is not any competition, and whatever thing a businessman manufactures, will be sell easily. So, the main focus of the management of the firms was to produce in bulk and made sure that these manufactured products are properly available to the customers in the market. The customers have no choice of alternatives, so they are naturally bound to buy those products.
In the modern competitive environment, this production concept is effective in the following two conditions.
- When the demand of a product is too high as compared to its supply.
- When the cost of product is much higher and so increased level of productivity is required to cover that heavy cost.
If a company adopts this policy, then it will have to increase its productivity and enhance the efficiency of distribution of its products, so that the products are available to customers all the time at a reasonable price.
02- Product Concept
Product Concept is the amended form of the production concept in the marketing history. In this marketing management philosophy, the main area of interest of the management of the firm shifts towards the product. As the competition starts increasing, so there are more alternatives available to the customers and their expectations about the quality and performance of a product goes high and high with every passing day. Therefore, the management of company needs to increase the quality of its product at a comparatively reasonable price. New features are added in the product to improve its performance. A company that follows this philosophy should innovatively changes its product continuously in order to be successful in the market. This concept also requires a little promotional effort.
There is a big disadvantage of the product concept of marketing management philosophies is that it pushes the companies towards the “marketing myopia”. Marketing myopia specifies that more focus is given to add new features than to the main aim of the product.
03- Selling Concept
It is further modified form of the product concept in which the main area of concentration is selling and promotional efforts. As there is increased competition in the market, so the management of the company must increase its selling and promotional activities to increase its sales and profit. The customers do not buy any product unless they are not compelled through any selling or promotional channel. So, the companies need to reform their marketing strategies that must cover large-scale promotions and selling activities.
This philosophy is best for the category of products that are unusual for the customers like the insurance policy, etc. The companies follow this concept for identifying the prospective customers, and guide them about the benefits of products to make them their potential customers.
Generally, companies that produce too much quantity of a product adopt selling philosophy to sale all the excessive quantity. These companies first manufacture a product, and then focus on its selling which is against the modern concept of marketing in which the product is manufactured on the basis of available demand in the market.
This concept has a disadvantage that the risk is higher whereas the level of customer satisfaction is low.
04- Marketing Concept
It is the modern marketing concept that focuses on customers rather than on product or selling efforts. According to this philosophy, the company identifies the unsatisfied need and want of customers first, and then manufactures the product accordingly, which deliver more value to customers need and demands. In other words the product is based on the available demand in the market, which means the company should only manufacture a product that has certain need or demand; otherwise it is quite hard to sell the undesired product.
Mostly people confuse the selling with the marketing, which are quite different from each other. The main difference is that the selling concept concentrates on the idea that first manufactures, and then sells through selling and promotional activities. Whereas the marketing concept is based on the idea that first analyze the need or demand in the market, and then manufacture the product accordingly.
Marketing concept also guides the companies to use customer-driven strategy in which the companies analyze their current customers to get useful information about the consumer psychology along with the innovating ideas about the products.
Sometimes the customers themselves do not understand their needs and wants. In such case, the marketers apply customer driven strategy to manufacture such kind of products that will fulfill not only the obvious wants, but also the hidden ones.
05- Societal Marketing Concept:
It is the most advanced form of the marketing concept that is recently becoming popular throughout the world. According to this marketing management philosophy, the unsatisfied need and want is identified, and then the product is manufactured that provides more satisfaction than the competitors do. In this way the company gets benefit together with the customers, but at the same time the society is also getting benefit from the operations of the company.
According to societal marketing philosophy, the marketing concept is not sufficient enough to cure the ills of the society and it only takes into account the short term benefits of the customers. So, there is strong need of a new concept that should tackle the major societal problems.
The company follows the societal concept for maintaining the equilibrium between the three aspects, which are as follow.
- Profits of company
- Satisfaction of the customers
- Overall benefit of the society.