The marketing concept is a philosophy that guides how a company promotes its business. It is based on the "right" principle, which means finding out the needs and wants of potential buyers and then providing goods and services that meet or exceed their expectations. The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability. The goal of the marketing concept is to satisfy customers needs, increase sales, maximize profit, and achieve sustainable competitive advantage within the corresponding market.
There are five main concepts of marketing:
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The production concept: This concept holds that consumers will prefer products that are widely available and inexpensive. Companies that follow this concept focus on achieving high production efficiency and wide distribution.
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The product concept: This concept holds that consumers will prefer products that offer the most quality, performance, or innovative features. Companies that follow this concept focus on continuous product improvement and innovation.
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The selling concept: This concept holds that consumers will not buy enough of a companys products unless it undertakes a large-scale selling and promotion effort. Companies that follow this concept focus on aggressive sales techniques and high promotion spending.
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The marketing concept: This concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Companies that follow this concept focus on customer orientation, integrated marketing, and long-term profitability.
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The societal marketing concept: This concept holds that a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-term interests, and societys long-term interests. Companies that follow this concept focus on delivering value to customers in a way that maintains or improves both the consumers and societys well-being.
