Five Basic Principles of Marketing Management
The customers are considered as the king by any of the business houses, and there are various departments in a company which take care its different functions. Marketing is such department which takes care of the customer needs and maximizing the profits by increasing the sale of a particular product or service. Organizations across the globe adopt five important marketing concepts which are used for creating strategies for increasing the profits.
The primary function of the marketing department is to build a relationship with the customers which is profitable. There are many strategies go hand in hand to formulate the best marketing strategy for a firm. Most of the organization make their marketing plans by following the below-written concepts:
The Production Concept
In this concept of marketing, we assume that the customers like to buy those things which are first readily available and the second easily affordable. Marketing professionals are making use of this concept for the longest time known, and it is therefore regarded as the oldest concept of marketing management. When the managers adopt this strategy, then they have to focus on the high efficiency of the production process, low costs of material and other resources and mass distribution so that the costs can further be cut down. This concept focuses entirely on the production process.
The Product Concept
As the name suggests this principle of marketing management focuses on the product itself. In this concepts, it is assumed that the people favour those products which have high quality and add value to their lives. The innovative feature of a product or the performance is the main highlight of this marketing orientation. When a company take the path to follow this concept, then they try to make their products and services as superior and exclusive as they can be. The marketing managers applying this strategy have to take a great care of the features and benefits of the products. They have to improve them time to time to keep themselves updated with the current trends in technology or their industry.
The most important aspect of making this strategy work is to know the market demands ahead of time so that the companies can produce goods or services as per the needs of the consumers. They can do various value additions to their product, butfirst, they should make it as specific as the demand is there. If managers do not take into the consideration the needs of the people, then this profile will not be as unfruitful as it might be for them.
The Selling Concept
This is an important marketing orientation which is adopted by almost all the business houses. It is believed that the quality of the product or service alone cannot bring in the sales and therefore it is essential to promote the company with the help of aggressive promotional tactics. This concept tells us that the companies should coax the customers into buying their product or services by using selling techniques. This concept gives the idea that the selling is in the hands of the company and with the promotional; efforts the organizations can stimulate more buying. The firms who have an overcapacity of production, they usually adopt this technique of marketing.
Here the organizations focus more on the creating sales transactions and they do not pay attention to build long-term relationships with the customers. The main motive of the business units who choose this technique is to sell what the company is producing instead of what the customers need. Usually, these marketing campaigns also carry high risks as well. The selling concept works well with the unsought goods. The unsought goods are those products about which a customer do not think about buying in the first place. An excellent example of such goods can be buying the insurance policies.
The Marketing Concept
The marketing concept assumes that an organization can achieve its strategic goals by creating goods and services which are demanded by the market or its consumers and doing it better than its competitors to earn the trust of the people. Here the customers get the highest priority as the whole strategy is woven around their needs and wants. The routes to achieve profits in marketing concepts are a focus on the consumer behaviour and the value addition in the products and services.
This is purely a customer-centred philosophy, and it is created by sensing the needs of the customers and according to that designing the products of the services to meet their expectations. Here the companies think opposite than the selling concept. The marketing managers who adopt this concept of marketing do not focus on finding the right customers for the products which they have already produced, but in contrast, they try to create right products which can solve the problems of their customers and give value to their money.
Societal Marketing Concept
This is like an extent ion to the marketing concept of selling. Here also the companies concentrate on the desires of the consumers, and according to that, they design their products, services or process and that too in a way so that they can outshine their competitors. The fundamental difference here lies in the fact that here the companies also look for the methods for the enhancement and the preservation of the well-being of their customers and the society as a whole. The name itself suggests that this principle takes in to account the excellent fare of the whole community.
In this age of technological advancement, the environment is deteriorating, the natural and renewable resources are depleting rapidly, the population is rising explosively, and many problems are prevailing in the societies such as poverty, and hunger etc. Therefore an approach like this where the companies take steps to preserve the environments or to uplift a class of unprivileged people is needed a lot. This is considered as the best approach which takes a holistic approach towards the business houses and the society also.