Fundamental marketing concepts, Marketing Management

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Q. Explain some fundamental marketing concept?

Ans.: The several fundamental concepts are :-

(1) Exchange Concept: Exchange concept holds the concept that the exchange of product among seller and buyer is the central idea of marketing Exchanges an essential part of marketing, but marketing is a much wider concept.

(2) Production Concept: The production concept is 1 of the oldest concepts in business. It holds the concept that consumers will prefer products that are widely available & costly. Manager of production oriented business concentrate on gaining high production efficiency mass distribution & low cost.

For example: Haier in China take benefit of the country's vast inexpensive labor pool to dominate the market, to manufacture personal computer& domestic appliances.

(3) Production Concept : This concept holds that consumers will desire those products that  are high  in quality,  performance or innovative  features Managers of these organization focus on making superior products & improving them. Occasionally, this concept leads to marketing myopia; marketing myopia is a short sightedness regarding business. Excessive awareness to production or the product or selling aspects at the cost of customer & his real requirement creates this myopia.

(4) Selling Concepts: This concept based on aggressively promoting &pushing its products, it cannot expect its products to get high picked up automatically by the customer. The idea is basically to sell more stuff to more people, in order to make high profits. For example: Coca Cola

(5) Marketing Concept: The marketing concept emerged in the mid of the year 1950's.The business usually shifted from a product - centered, compose and sell philosophy, to a customer centered, sense & respond philosophy. The task is not to find the right customers for your product, but to find precise products for your customers. Marketing concept holds that the key to achieving organizational goals consist of the company being more effective than competitors in making, delivering & communicating superior customer value. This particular concept puts the customers at the beginning & the ending both of the business cycle. All departments and every worker should think customer and act customer.

Distinguishing Features of the Marketing Concept:

(i)            Consumer Orientation: The intention of any business is to make a customer. It is the customer who determines what a business is-

(ii)          Integrated Management with Marketing as the Fulcrum: Integrated management means that all the different functions of a business have to be strongly integrated with 1 another. This is essential because every function has a bearing on the consumers &the aim is to see that all the functions make a favorable impact on the consumer.

(iii) Consumers Satisfaction: Marketing concept emphasizes that it is not sufficient if a firm has consumer orientation, it is necessary that with such an orientation, it should lead to consumer satisfaction.

(iv) Realization of all Organizational Goals, Including Profits: The firm should remember its own interests. It treats consumer happiness as the pathway to the achievement of goals of the organization.

In brief the marketing concept in essence represents a shift in orientation.

  • From product orientation to customers orientation
  • From production orientation to marketing orientation
  • From internal orientation to external orientation
  • From sales orientation to satisfaction orientation
  • From supply orientation to demand orientation

(6) Social Marketing Concept: This concept holds the understanding broader Concerns and the ethical, environmental, social and legal context of marketing activities & programs. The reason and effects of marketing extend beyond the company & consumes to society as entirety. Social responsibility also needs that marketers carefully consider the role that they are playing and they could play in terms of social welfare.

(7) Holistic Marketing Concept: This concept is relay on the design & development and implementation of marketing programs, procedure and activities that recognizes their breadth. Holistic concept says that "everything matters in marketing. 


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