Transcript Marketing Concept

( Chapter 2 )
( 3rd semester )
Introduction to Marketing Concept
Marketing concept has two words: Marketing and
Concept.
A concept is a philosophy, an attitude, a course of
thinking, an idea or a notion relating to any aspect of
divine and human creations.
Marketing concept is a way of thinking which
determines the course of action about marketing
functions.
Thus. Marketing concept is the philosophy that guides
the activities of marketing.
Historical development of
marketing concept
Marketing philosophy has undergone a thorough and
gradual change since the great industrial revolution.
The history of development of marketing concept can
be divided into four stages:
Development of Marketing Concept
Ist Stage
(from 1900 to 1930)
IInd Stage
(from 1930 to 1950)
IIIrd Stage
(from 1950 to 1990)
IVth Stage
(from 1990 to
Update)
Product-Oriented Sales-Oriented Customer-Oriented Social-Oriented
Different Concepts of Marketing
Different views expressed by different authorities about
marketing are studied as different concepts of marketing.
Some important are given as follows:
 Production Concept
 Product Concept
 Selling Concept
 Distribution of Goods & Services Concept
 Creation of Utility Concept
 Delivery of Standard of living Concept
 Societal Marketing Concept
 Marketing Concept
Old Concept of Marketing
According to old concept, marketing consists of merely
buying and selling activities that effect the transfer of
ownership of goods and services.
Features of old concept of marketing
 It consists of only production, buying and selling activities.
 It aims at earning maximum profits.
 It does not provide after sale services.
 It does not give importance to consumer satisfaction.
 It focuses attention only on production, ignoring
consumer’s interests, tastes and preferences.
New Concept of Marketing
The new concept of marketing says that all business
activities are integrated. It realizes that the business is
a marketing organization where all activities are
directed towards the satisfaction of human wants.
Target
Market
Customer
Needs
Integrated
Marketing
Profit through
Customers
satisfaction
Features of New Concept of Marketing
 It converts business firm in marketing organization.
 It aims at earning profit only by satisfying consumers.
 It creates and delivers standard of living to society.
 It recognizes the consumer’s supremacy.
 It stresses upon integrated marketing.
Fundamental Pillars of new
marketing concept
Marketing concept as a consumer-oriented marketing
philosophy of the entire business organization has the
following fundamental pillars or the main components
of new marketing concept:
New marketing concept
Customer
Orientation
Integrated
Marketing
Customer
Satisfaction
Consumer
Welfare
Significance of New Marketing
Concept
The adoption of new marketing concept is beneficial for
business firm in the following ways:
 Helpful in Product Development
 More Social satisfaction
 Positive Impact on profitability
 Interaction with Customers
 Overall Improvement
 Useful in Competitive Market
 Complete Evaluation
 Growth of the firm
 Makes firm more adaptive
 Growth and development of the society
Difference between Old & New
concepts of marketing
Some points of differences between these two concepts
can be based on follows:
 Orientation
 Scope
 Target
 Consumer Satisfaction
 Integration
 Market Research
Factors affecting adoption of new
marketing concept
In coming days, only consumer-oriented companies will
survive. There are many factors which affect the
adoption of modern marketing concept, some
important factors are as follows:
 Technical Progress
 Change market conditions
 Changed distribution channel
 Developed means of communication
 Organized consumers
 Positive management supports
Limitations of marketing concept
Robbin Peterson in his book, ‘Marketing”, points out that the
marketing concept has a shortcoming that, “It focuses
solely upon benefitting consumers and ignores others such
as employees, suppliers, investors etc,.” There are several
limitations that come in the implementation of new
marketing concept. Some are as follows:
 Incomplete Consumer Research
 Internal Dissensions
 Organizational Constraints
 Societal Constraints
 Conflicting Objectives