The marketing concepts propose that in order to satisfy the organizational objectives, an organization should anticipate needs and wants of consumers and satisfy these more effectively than competitors. Concepts originated from Adam Smith’s book “The Wealth of Nations” but would not become widely used until 200 years later.
Marketing and Marketing Concepts are directly related. They give the importance of customer needs and wants in marketing. We need to understand them. They have been defined years ago like this:
- Needs: necessary for people to live healthy, stable, and safe life. Unfulfilled can mean death. Can be physical and objective, such as the need for food, water, and shelter.
- Wants: something desired, wished for or aspired too. Wants are not essential to basic survival.
- Demands: when needs and wants are backed by ability to pay, they have the potential to be demands.
The Five Concepts:
- Production Concept – Based on approach that company can increase supply and decrease cost. This concept says that a business can lower costs via mass production.
- Product Concept – Assumption that customers prefer products of greater quality and price and availability doesn’t influence present decisions. A product of better quality ends up being more expensive. This can cause customers to lose appeal because of price, availability, and usability.
- Selling Concept – focuses on making every possible sale of the product, regardless of quality or customer need. Highlights that customers would buy a company’s products only if the company were to sell these products aggressively. Repeat sales are rare and customer satisfaction is not great.
- Marketing Concept – Places the consumer at center of organization. All activities are geared towards the consumer. A business, aims to understand the needs and wants of a customer.
- Social Marketing Concept – New marketing concept. This concept is geared towards emphasizing the importance of the well-being of customers and society as a whole(consumer welfare or societal welfare). Societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices.