Marketing Concept

Marketing S.S.S 3 Second Term

WEEK 1

Marketing Concept

Performance Objectives

Students should be able to explain:

1. Meaning of marketing concept

2. Concepts under which an organization conducts marketing activities

3. The production concept

4. The product concept

5. The selling concepts

6. Marketing concept

 

Marketing Concepts

The following scholars view the marketing concept as reproduced below:

Keith (1960): " a managerial philosophy concerned with the mobilization, utilisation ans control of total corporate effort for the purpose of helping consumers solve selected problems in ways compatible with the planned enhancement of the profit position of the firm".

Baker (1974): "the customers want satisfaction is the economic ans social justification of a company's existence under marketing, the customer becomes the fulcrum, the pivot about which the business moves in operating for the balance test/interest of all concerned ".

Modern (1991): " marketing concept is the most important managerial task within the organisation is that of understanding the needs and wants of customers in the market and of adapting the operations of the organisation to deliver the right goods and services more effectively and efficiently than its competitors ".

Kotler and Armstrong (1987):" marketing concept may be defined as a managerial orientation or outlook that accepts that the key of the organisation is to determine the needs, wants and values of a target market and to adapt the organisation to delivering the desired satisfaction more effectively and efficiently than its competitors ".

Hesket (1976): "a corporate state of mind that insists on the integration and corporation of all the marketing functions which in turn, are wielded with all other corporate functions for the basic objective of producing maximum long-range corporate profit "

Summary of the Marketing concept

Scholars' interpretation of the marketing concept can be summarised as below:

i. that business organisation need to find out the needs of their prospective customers/consumers;

ii. thereafter develop a product, services or goods to meet the identified needs of the customers;

iii.find out or determine an appropriate and relevant target customer/market segment for it;

iv. fashion out a mean or method/strategy of marketing the product or services at a profit;

v.that the business survival of an organisation depends on the highness or lowness of patronage enjoyed from the customers.

Concepts Under which Organisations Conduct Marketing Activities

These concepts include the following:

1. The Production Concept

The production concept is a marketing philosophy that says "customers or consumers will like or accept the product and services which are highly available and affordable. This connotes that producers must produce promote and distribute through the appropriate channel. However, service providers or marketers are of the opinion that consumers will accept their products and services with timely production and efficient distribution, reduction in price, consumers are aware of the competitor's prices, the service provider must not lower quality or standard in term of production and distribution.

2. The Product Concept

This is a marketing philosophy anchored on the belief that consumers/customers/buyers/patronisers favour or prefer products or services that offer or give them most quality performance and features (value/utility i.e maximum satisfaction) therefore service providers or business organisations or producers must not lower the standard, be quality conscious and make concerted efforts in product improvement.

Philip Kotler assumptions of a product concept are:

 ● that customers/ consumers aim are purely in quality and standard of product that gives them value for their money.

● that customers/consumers patronize products rather than a solution to their needs.

● that customers/consumers are aware of the quality and features of competitive products and services.

● that customers/consumers confidence and loyalty can only be sustained only by offering them quality products and services.

3. The Selling Concept (Sales concept)

This marketing philosophy anchors on the belief that consumers will either not buy or buy enough or much of the organisation's products except and useless the service provider, marketer, producer or organisation make a concerted effort to enhance, stimulate or build their confidence and interest in the products/services. This means producers must embark on intensive and aggressive promotional campaigns

Assumptions of the selling concept

● Producers/service provider can influence consumers/customers to patronise them through various sales stimulant devices or strategies e.g offering a discount, buy one, get one free campaign etc.

● The task of the organisation is to have a strong think- thank the sales team that can devise various strategies to hold the attention, attraction and retain their loyalty to the organisation's products/services.

● Consumers/customers avoid buying unnecessary nonessential goods and services i.e they will not patronise goods and services that are considered as extravagant.

4. The Marketing Concept

This marketing concept is premised on the identification of the needs and wants of the prospective client or customers, therefore, the business firm or organisation must adapt the 4ps if the marketing mix(product, price, place and promotion) to ensure efficiency and effectiveness of the meeting and satisfying the needs and wants of the customers.

Assumptions of the marketing concept

●Consumers can be classified into different categories depending on their needs and wants.

●Irrespective of the market category, customers/consumers will likely favour or prefer the offer of the service provider or organisation whose products/services is closest to satisfying or meeting their particular needs, want and desires.

●The main aim of the organisation/service provider is to further research with a view to holding and retaining their customer's patronage/interest.