Marketing Concept( Chapter 2 )

( 3rd semester )

Introduction to Marketing ConceptMarketing 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 conceptMarketing 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:

Product-Oriented Sales-Oriented Customer-Oriented Social-Oriented

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)

Different Concepts of MarketingDifferent views expressed by different authorities

about marketing are studied as different concepts of marketing. Some important are given as follows:

Production ConceptProduct ConceptSelling ConceptDistribution of Goods & Services ConceptCreation of Utility ConceptDelivery of Standard of living ConceptSocietal Marketing ConceptMarketing Concept

Old Concept of MarketingAccording 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 MarketingThe 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.

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.

Target Market

Customer Needs

Integrated Marketing

Profit through Customers satisfaction

Fundamental Pillars of new marketing conceptMarketing 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 ConceptThe adoption of new marketing concept is beneficial for business firm in the following ways:

Helpful in Product DevelopmentMore Social satisfactionPositive Impact on profitability Interaction with CustomersOverall ImprovementUseful in Competitive MarketComplete EvaluationGrowth of the firmMakes firm more adaptiveGrowth and development of the society

Difference between Old & New concepts of marketingSome points of differences between these two

concepts can be based on follows:OrientationScopeTargetConsumer SatisfactionIntegrationMarket Research

Factors affecting adoption of new marketing conceptIn 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 conceptRobbin 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

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