Posts tagged Marketing

by gmeurope

Marketing Concept – How It All Began

The Marketing concept became predominant around the 1970′s. Till then there were basically other philosophies such as the production concept, product concept and the sales concept that were in practise throughout the historic time frames. However, as the time passed by each of the philosophies that were predominant during each time frame gradually under went changes, because of the changes that took place in the consumer market. As a result, the marketing concept emerged and was the focus of all the manufacturing organisations. eventhough some firms may still practise  other philosophies. having said that, in order to understand the marketing concept better, it is vital to have a look at each of the other philosophies that existed.

Production Concept

The production concept is considered to be one of the earliest concepts that prevailed from the time of the industrial revolution upto the late 1920′s. The main focus of this concept was to encourage the firms to produce products, that they were capable of producing, rather than trying to concentrate on goods that gave customer satisfaction.

The manufacturing firms basically assumed that the people were willing to buy the products that the firms could produce. On this assumption, the firms began to come up with basic goods that were necessary for the day to day living. The firms harly took any interest in concentrating on the choices and tastes of the consumers. They started producing goods on a large scale, which eventually dropped the cost of production. As a result, the goods produced were relatively cheap.  The consumers had no other choice but to buy the products that were on the market. Hence these goods were necessary for the day to day living  and was even cheaper, the products sold quite well in the beginning. As a result, the mass production consept became widely spread during that time.

However, as time passed by the competition began to increase. More and more competitors that produced the same or similar products came into the market. The supply of goods gradually increased. In other words, to say the supply exceeded the demand of the consumers. Now that the consumers had a lot to choice from the many suppliers, the goods that were produced by the firms began to pile up on the shelves, and it  was obviuosly time for the firms to find new strategies to move all their products off the shelves. In other means, the production concept was no longer working and the firms had to come up with another way to sell their products.

Product Concept

In order to create demand for the goods that were already piling up on the shelves, the firms began to focus on what was known as the product concept. Likewise the production concept this concept too ignored the consumer preferences. Instead, it focussed mainly on the product itself, thus concentrating on improving the quality of the products and adding different features to it, in order to make it look attractive and superior to the other competitor products. What they really wanted to do was to differentiate their products form the rest of the competitors , rather than concentrating on the large scale low cost prodcution By improving the products, the firm believed that the consumers will be attracted to their products, which will eventually get the products off the shelves.

 As predicted, the products that were piled up on the shelves and warehouses began to move slightly as the demand for the goods increased. But it was not for long before, when the other competitors too crept in with better quality products. This once again, paved the way to reduce the demand. As the demand fell, the firms basically had to look for other ways in which to increase their sales if they were to keep up with the competitors. What they basically did was come up with a new concept that concentrated on the sales aspect of production, and was the beginning of the sales concept.

Sales concept

The sales concept mainly focused on selling the pordcuts manufactured by the firms in order to increase the sales volume. In other words, the main aim of firms practising this concept was to some how try and sell their products to the consumers better than their competitors. They hardly took into consideration what the consumers thought was important, but instead what they really wanted to do was to sell the products that have already been produced, by way of convincing the consumers to buy it. In order to convince the consumers to buy what they have produced, they used techniques such as advertising and personal selling etc. The main intention was to make the consumers aware of their products and make it available to them with the hope that they will buy. At first, this really worked because the consumers bought products that they were well aware of.

But later, as the income of the people began to increase and the amount of different products that were introduced to the market went up, the consumers were no longer willing to buy what the firms produced. In stead, they basically looked for goods and services that were up to their expectations. The hard selling concept was no longer effective. The firms basically had to look for better strategies in order to keep up with the ever increasing competition, if they were to survive . As a result, they began to focus their attention to another direction which was know as the marketing concept. 

Marketing Concept

Unlike the other philosophies that existed at different time frames, market concept was a philosophy that mainly focussed on the needs and wants of the consumers. This concept belived that if the organizations are to increase their sales and obtain profitable sales, then they basically have to concentrate on the tastes of the consumers. In other means, the firms should find out what the consumers need, in order to produce goods that will keep up to their expectations. It is rather vital to first understand what exactely do the concumers want, and then produce those goods and services.

To say, the focal point of the marketing concept is to identify and satisfy the needs of the customers. As a result,  in order to produce exactely what the consumers demand for, it is important to look into areas such as what the consumers want, how to improve the products while meeteing their needs and also how to keep the customers satisfied throughout. To do so, market concept basically relies on market research. What actually means by this is that, as marketing concept is a customer focus concept , it is market research that helps to find out exactely the consumers wants thus helping to develop the marketing plan, and also deciding on the marketing mix in order to achieve profitable returns while meeting customer satisfaction.

To conclude, it should be said that marketing concept came into practise as a result of the need to satisfy customer needs. The philosophies that existed were no longer helpful in facing the competition and producing products that the consumers demanded for. In this ever changing competitive environment, the customers were considered the most important. If the  firms were to survive, then they obviously have to satisfy the needs of the customers. The tastes of the consumers kept changing with the development of new technologies and communication facilities, and the firms have to walk hand in hand with the ever changing demands of the consumers. However, if the firms fail to keep up with the ever changing needs of the consumers, then obviously there is arisk of facing the competition.