Important Concept of Marketing Management Philosophies are as follows:
- Production Concept
Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding a sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system. In order to reduce the cost of production and to bring it down to the minimum level, these companies indulge in large-scale production.
This helps them in effecting the economics of the large-scale production. Consequently, the cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds supply. Its greatest drawback is, that it is not always necessary that the customer every time purchases the cheap and easily available goods or services.
- Product Concept
Those companies who believe in this philosophy are of the opinion that if the quality of goods or services is of a good standard, the customers can be easily attracted. The basis of this thinking is that the customers get attracted towards the products of good quality. On the basis of this philosophy or idea, these companies direct their marketing efforts to increase the quality of their product.
It is a firm belief of the followers of the product concept that the customers get attracted to the products of good quality. This is not the absolute truth because it is not the only basis of buying goods. The customers do take care of the price of the products, its availability, etc. A good quality product and a high price can upset the budget of a customer. Therefore, it can be said that only the quality of the product is not the only way to the success of marketing,
- Selling Concept
Those companies who believe in this concept think that leaving alone the customers will not help. Instead, there is a need to attract the customers towards them. They think that goods are not bought but they have to be sold.The basis of this thinking is that the customers can be attracted. Keeping in view this concept these companies concentrate their marketing efforts towards educating and attracting the customers. In such a case their main thinking is ‘selling what you have’ This concept offers the idea that by repeated efforts one can sell anything to the customers. This may be right for some time, but you cannot do it for a long time. If you succeed in enticing the customer once, he cannot be won over every time.
On the contrary, he will work for damaging your reputation. Therefore, it can be asserted that this philosophy offers only a short-term advantage and is not for long-term gains.
- Marketing Concept
Those companies Who believe in this concept are of the opinion that success can be achieved only through consumer satisfaction. The basis of this thinking is that only those goods/service should be made available which the consumers want or desire and not the things which you can do.
In other words, they do not sell what they can make but they make what they can sell. Keeping in mind this idea, these companies direct their marketing efforts to achieve consumer satisfaction.
In short, it can be said that it is a modern concept and by adopting it profit can be earned on a long-term basis. The drawback of this concept is that no attention is paid to social welfare.
- Societal Marketing Concept
This concept stresses not only the customer satisfaction but also gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further than the marketing concept. Under this concept, it is believed that mere satisfaction of the consumers would not help and the welfare of the whole society has to be kept in mind. For example, if a company produces a vehicle which consumes less petrol but spreads pollution, it will result in only consumer satisfaction and not the social welfare. Primarily two elements are included under social welfare-high-level of human life and pollution free atmosphere. Therefore, the companies believing in this concept direct all their marketing efforts towards the achievement of consumer satisfaction and social welfare.
In short, it can be said that this is the latest concept of marketing. The companies adopting this concept can achieve long-term, profit.