According to lay man, marketing is all about selling and advertising the product. But in today’s corporate world it is one of the most important elements to run a business or business like activity. It plays a crucial role in earning profits for companies.
Marketing is all about customer’s satisfaction. Companies create value for the customer (by providing required quality goods and services quality) to build long lasting and strong relationship to capture value from the customer in return. There are two goals of marketing; one is to attract new customers and build relationship with them and second is to keep and grow the existing customers by delivering superior value. How to deliver superior value?
It’s quite simple; you just need to cater with the needs of the customer. One thing is most important and is the core of the marketing, i.e. “to know your customer”.
You can do it in 2 ways, one is either you scratch out your customers need and delivers it or you can produce or innovate on a thing and then make it your customers need. If we take the example of Nestle Curd. They prepared a product which is already available in the market everywhere with much ease and at lower cost but still they made attractively packed curd and made it customers’ requirement. Marketing is a very broad term, it includes so many things but the purpose is one and that is to Gain and retain the customers, satisfy them and capture their loyalty in return.
Marketing Concepts: To retain profitable customers, company needs to orient such strategies that would build long lasting relationship with customers. Following are 5 concepts, evolved with the passage of time to fulfill the needs of customers.
The Production Concept: In production concept it is perceived that a customer favors such product which is readily available in the market at relatively lower cost. It is one of the oldest concepts.
So the producers who follow this concept, tries to increase their production capacity and productivity as well to lower the cost. For this purpose they need efficient production processes and effective distribution channel for the placement of product.
This concept is applicable in 2 situations, one; when demand is exceeding supply in the market, to outfit that demand excessive production is required to make the product available all over. Second; when products’ price is high because of too high cost, and improved productivity is required to cut the cost.
The Product Concept: Product concept emphasizes on the view that customer favors the product that offer most quality, improvement, features and enhancements. For this purpose organization tries to put all its efforts in upgrading the product. This concept focuses on making continuous improvements.
This idea can work to some extent, but in current era of latest technology and innovative inventions, it may not work that much successfully.
The Selling Concept: In selling concept, it is being perceived that customer will not buy a certain product unless it’s being promoted and advertised massively. Such organizations that have the strategies according to this particular concept need a large sales force and promotional activities to make everyone well-informed regarding its product or service.
The Marketing Concept: It is the modern concept, in which the focus is customers’ satisfaction. Company first analyze the consumers’ need and then produce such good and service to satisfy that need. In this way it can build a strong relationship with customer which can earn monetary benefits for the company.
This is the concept which is popular nowadays. Because now customers are more concerned and well aware. They want their needs to be satisfied with rather compromise with available products.
The Societal Marketing Concept: It is enlightened concept which emphasizes that company should make products which are not only satisfying the interests of customers and company’s but society’s long run interest are saved as well.
For example, ozone free deodorants, they are environmental friendly and are produced keeping in view that how the environmental hazards can be minimized. Customer may not know the environmental benefit of the product but organization has done it for the well fare of the whole society.
