Marketing management philosophies
1. The production concept: The production concept holds that consumers will favour products that are available and highly affordable; therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest philosophies that guide sellers. The production concept is still useful philosophy in two types of situations:
a. When the demand is still a useful philosophy for a product exceeds the supply, management should look for ways to increase production.
b. When the products costs is too high, improved productively is needed to bring it down.
2. The product concept: The product concept is somewhat different from the production concept. Whereas the production concept seeks to win markets and the profits via high volume of production and low unit costs of the production, the product concept concepts seeks to achieve the same result via product excellence improved products, new products and ideally designed and engineered products . It also places the emphasis on quality assurance. In general, it tries to take care of the marketing task claims regarding products.
Organizations that subscribe that subscribe to the product concept of marketing believe that the consumers would automatically vote for products of high quality. They concentrate on achieving product excellence. In addition, many of them also spend as encyclopaedias or insurance. These industries must excel at the tracking down prospects and selling them on the product benefits. Most firms practise the selling concept when they have over capacity. Their aim is to sell what they make rather than make what the market wants. Such marketing carries high risks. It focused on creating sales transactions than on building long term, profitable relationship with customers.
3. The marketing concept: The marketing concept holds that achieving organizational goals depends on determining the needs and wants of the target marketers and delivering the desired satisfaction more effectively and efficiency than do not competitions. J.C. Penny's mottos also summarize the marketing concept: "to do in our power to pack the customer's rupee full of value, quality, and satisfaction. It starts with a well defined market, focused on customer needs, coordinates all the marketing activities affecting customers, and makes profits by creating long term customer relationship based on the customer value and satisfaction. Under the marketing concept, companies produce what consumers want, thereby satisfying consumers and making profits. Many successful and well companies have adopted the marketing concept.
4. The social marketing concept: the societies marketing concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver superior value to customers in a way that maintains or improves the consumer's and the society does well bring. The societal marketing concept is the newest of the five marketing management philosophies. According to the societal marketing concept, the pure marketing concept over looks possible conflicts between consumer short run wants and the consumer long run welfare. The social marketing concept calls on to the marketers to balance three considerations in setting their marketing policies: company profits, consumer, wants and for the society interests. Originally most began to recognize the long run importance of satisfying consumer wants, and the marketing concept emerged. Now many companies are beginning to think of the society's interests when making their marketing decisions.