Get to know the marketing concept and examples, those of us who work online, whether it be on social media, on websites or both, must find creative ways to market ourselves, our company or our products. We need a marketing concept even though we don’t even know the term itself or have ever used it. We are all marketers and we try our best to do it.
According to the American Marketing Association, marketing or marketing is the process of “creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
This process is done in several different ways; Marketing professionals use one or more of five marketing concepts to earn consumer trust and create long-term, profitable relationships with consumers. But not all concepts are equally effective. We need to deliver the right message to the right audience at the right time and it’s not an easy job, considering that no two people have the same thoughts and feelings.
Definition of Marketing
Marketing is the art and process of building, managing and maintaining exchange relationships; where you start by attracting customers, establish relationship with them and finally keep them by satisfying their needs. These customers can be other business actors or consumers; Therefore, marketing can be business to business or business to consumer depending on the situation.
The main function of marketing is the same, namely to establish relationships with customers and satisfy their needs by fulfilling their requests. For example, telecommunications creates marketing strategies that first attract and convince people to use their phone, messaging, and internet packages. Once people start using, they ask them to rate their services by giving them stars.
Understanding the Marketing Concept
The marketing concept is a process when a company plans and implements to maximize profits by increasing sales, satisfying customer needs and beating competitors. The goal is to create a situation that benefits both parties; customers and companies. The idea of the marketing concept is to anticipate and satisfy customer needs and wants better than competitors. The marketing concept originally came from Adam Smith’s book, Wealth of Nations. It remained known to the world well into the 21st century.
To fully understand the marketing concept, we must first understand needs, wants, and demands;
- Necessity – it is something that is necessary for the existence of life, many bad things can happen without it. The worst scenario is death. Needs consist of many things; such as food, shelter, security, social belonging, self-development, self-esteem and respect.
- Desires – are our expectations that what we want in life, our social and cultural arrangements shape our desires.
- Demand – when our wants, needs and expectations are supported by our ability to pay, then they become demands.
Types of Marketing Concepts
There are as many marketing concepts as there are businesses running in the world. Some of those concepts exist today and others have become obsolete. However, there are five core concepts of marketing which are also known as marketing management philosophies.
1. Production concept
The production concept is one of the earliest marketing concepts in which companies focus on the efficiency of their production processes. This is to produce the product cheaper to make it available to the mass population. The focus of the production concept is on quantity, not product quality.
The production concept began in the mid-1950s, and follows Says Law. It states that supply creates demand in the market. According to this law, when a business produces a product, it doesn’t need to advertise the product, it will sell itself.
This law became popular because at a time when there was no technology and no media, and people rarely traveled. The in-store seller used to be the only seller, and there were very few producers in the market. In the past, the variety of products was very limited in the market, so whatever was in the market would then be sold.
2. Product concept
The core idea of the product concept is to produce a product that is less expensive because customers will not pay as much for the product or service. Companies that follow the product concept, produce products on a mass scale and they benefit from economies of scale. When businesses produce low-cost products, they follow a broad distribution strategy to reach a wider audience. By targeting more people, they can increase their productivity by expanding their market.
In the product concept, marketers and business owners are not concerned with the needs and wants of customers. Their main focus is to produce more products, quantity is important, not quality. Customers are usually dissatisfied with poor product quality. The product concept was popular at a time when there was no competition in the market, whatever you brought to the market, people would accept it. Ford was the first auto company; it started to provide more vehicles in the market. People bought it because it was the only product available at the time.
3. Sales concept
As the name implies, the idea of the selling concept is to sell the company’s products through large-scale marketing and promotional activities, regardless of whether they meet customer needs or not. The management focus in this approach is to complete sales transactions; they think that their job is done once they sell their product. Instead of building and maintaining long-term relationships with customers, so that customers will come back for more.
The selling concept is a very risky strategy because it is based on the very weak idea that companies should sell whatever they produce, instead of fulfilling customer demands. In this strategy, marketers or business owners think that if customers don’t like the company’s products, then they will buy something else and forget their old shopping experience.
The whole selling concept idea is based on the wrong assumption, that customers don’t remember their previous shopping experiences. Insurance agents fall under the category of selling concept, where marketers think their job is done after completing a transaction.
4. Marketing concept
This marketing concept is customer oriented. It puts the customer at the center of the marketing process, finds out the customer’s needs and wants, then satisfies those needs better than the competition. In this approach, the marketer or business owner says that the customer is always right and his needs and wants must come first. Here the marketing strategy focuses on making profits by meeting the needs and wants of customers
It follows a very simple strategy that marketers are not looking for the right customers of their products; instead, they produce the right product for their customers. Marketers try to bridge the gap between the customer and the company’s product. When you compare the marketing concept with the selling concept then you find a big difference between these two strategies. It would not be wrong to say that these two strategies are at opposite extremes.
On this concept, you have several options like:
- Content marketing
- Influencer marketing
- Native advertising
What you need to know at this point is that it’s important to mix multiple strategies and try to build a profitable strategy around your brand and/or product across multiple distribution channels.
Content marketing may be effective but at the same time. You may find that you also need a few influencers to work on a “word of mouth” strategy, an advertising campaign, or even a native advertising strategy where you combine paid advertising with influencer marketing and content marketing on an ongoing basis. together.
This process focuses on delivering value to customers and the general public, value that must be better than competitors and that focuses on the needs and wants of the public. The company’s goal is to convince clients that they are the best choice compared to competitors.
5. Social Marketing Concept
The idea of the social marketing concept is based on the welfare of the whole society because it questions the strategy of the marketing concept. What customers want, that doesn’t mean it will be good for them in the long run. What you desire, and what is good for you and society as a whole, are two entirely different things.
For example, we all like sweet, spicy and fast food. We all want the same thing every time we go out. But that doesn’t mean it’s good for our health too and the health of the whole society. The intent and purpose of the social marketing concept is to make companies realize that they have a social and environmental responsibility. And that goes far beyond their short-term sales and profit goals. Companies must produce and operate towards a sustainable future for all of society. Companies are part of society and they must behave as such.
Marketing Concept Example
As you may remember, we have already mentioned the fact that a good marketing concept focuses on the consumer experience from production to social responsibility.
Concept cars for example or concept smartphones. The company studies the technical aspects of the product, evaluates costs and impact on the market, builds prototypes and then studies consumer needs by presenting the concept in brochures, at exhibitions or on the website. Most prototypes never make it to series production but a few elements do, and this is where consumers come into the equation.
If you need a real life example, you can try to analyze a bit the two most fierce competitors of the last century, Pepsi and Coca Cola. They both use a solid and well-designed marketing concept, with a constant focus on the customer experience and how brands reach customers and how that is perceived. The difference is that the concepts focus on different things. While Pepsi targets a younger audience, Coca Cola focuses on a holistic approach, in which the marketing strategy is based on the business as a whole and not on individual experiences or products.
That’s a complete discussion of the marketing concept. The concepts of production, product and sales have become obsolete in most fields; they are only in a few fields.