Marketing Management Philosophies
Marketing Management Philosophies
There are Six marketing concepts. A company should choose the right one according to their and their customers’ needs.
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Holistic Marketing Concept
6. Social Marketing Concept
Let's see one by one
1. Production Concept
This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. This viewpoint was encapsulated in Says Law which states ‘Supply creates its own demand’. Hence companies focus on producing more of the product and making sure that it is available to the customer everywhere easily.
Increase in the production of the product makes the companies get the advantage of economies of scale. This decreased production cost makes the product inexpensive and more attractive to the customer.
This philosophy only works when the demand is more than the supply. Moreover, a customer not always prefers an inexpensive product over others. There are many other factors which influence his purchase decision.
*Examples Of Production Concept Of Marketing Management Philosophies
1. Companies whose product market is spread all over the world may use this approach.
2. Companies having an advantage of monopoly.
3. Any other company whose product’s demand is more than its supply.
2. Product Concept
This concept works on the assumption that customers prefer products of ‘greater quality’ and ‘price and availability’ doesn’t influence their purchase decision. Hence the company devotes most of its time in developing a product of greater quality which usually turns out to be expensive.
Since the main focus of the marketers is the product quality, they often lose or fail to appeal to customers whose demands are driven by other factors like price, availability, usability, etc.
*Examples Of Product Concept Of Marketing Management Philosophies
1. Companies in the technology industry.
2. Companies having an advantage of monopoly.
3. Selling Concept
Production and product concept both focus on production but selling concept focuses on making an actual sale of the product. Selling Concept focuses on making every possible sale of the product, regardless of the quality of the product or the need of the customer. The main focus is to make money. This philosophy doesn’t include building relations with customers. Hence repeated sales are very less. Companies following this concept may even try to deceive the customers to make them buy their product. Selling Concept cannot let a company last long in the market.
Companies which follow this philosophy have a short-sighted approach as they ‘try to sell what they make rather than what market wants’.
*Examples Of Selling Concept Of Marketing Management Philosophies
1. Companies with short-sighted profit goals. This often leads to marketing myopia.
2. Fraudulent companies.
4. Marketing Concept
Selling Concept cannot let a company last long in the market. It’s a consumers market after all. To succeed in the competitive world, one has to produce a product to fulfil the needs of their customers. Hence, emerged the marketing concept. This concept works on an assumption that consumers buy products which fulfil their needs. Businesses following the marketing concept conduct researches to know about customers’ needs and wants and come out with products to fulfil the same better than the competitors. By doing so, the business establishes a relationship with the customer and generate profits in the long run. Here, in case of tangible product they focus on 4 Ps that are, Product, Price, Place(Distribution,Storage etc) and Promotion (Communication), and in case of intangible product they also focus on addition three Ps, these are People, Process and Physical evidences along with the 4Ps of tangible products.
However, this isn’t the only philosophy that should be followed by all the businesses. Many businesses still follow other concepts and make profits. It totally depends on the demand and supply and the needs of the parties involved.
*Examples Of Marketing Concept Of Marketing Management Philosophies
1. Companies in perfect competition.
2. Companies who want to stay in the market for a long time.
5. Holistic Marketing Concept
Holistic marketing is a new addition to the business marketing management philosophies which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business. A business, like a human body, has different parts, but it’s only able to function properly when all those parts work together towards the same objective. Holistic marketing concept enforces this inter-relatedness and believes that a broad and integrated perspective is essential to attain the best results.
Fig. 5 Components Of Holistic Marketing
Holistic marketing focuses on marketing strategies designed to market the brand to every person related to it, be it employees, existing customers or potential customers, and communicating it in a unified manner while keeping in mind the performance of the business.
a. Relationship Marketing
The relationship marketing aspect of holistic marketing philosophy focuses on a long-term customer relationship and engagement rather than short-term goals like customer acquisition and individual sales as well as with employees and other stakeholders too. This strategy focuses on targeting marketing activities on existing customers to create a strong, emotional, and everlasting customer connections. These connections further help the business in getting repeated sales, free word of mouth marketing and more leads.
b. Integrated Marketing
Integrated marketing is an approach to create a unified and seamless experience for the consumer to interact with the brand by designing and directing all communication (advertising, sales promotion, direct marketing, public relations, and digital marketing) in such a way so that all work together as a unified force and centres around a strong and focused brand image.
c. Internal Marketing
There are two types of customers to every business: internal and external. While focusing on external customers should be a top priority for every business, internal customers should not be left unnoticed as these internal customers (employees) play a vital role in marketing the brand and products to the external customers of the business.
Internal Marketing treats employees and staffs as internal customers who must be convinced of a company’s vision and worth just as aggressively as external customers. It also involves crafting processes which make them understand their role in the marketing process.
d. Performance marketing
This is an often forgotten component of holistic marketing which is focused on the returns of marketing activities to the business.
Marketers should be able to show a return on investment on any resources spent on marketing and to show the effect of these marketing activities on the business.
The five components of holistic marketing come together to ensure that all aspects and departments of the business work together as a single unit with the common goal of increasing sales and delivering a great customer experience.
6. Societal Marketing Concept
Adding to the marketing concept, this philosophy focuses on society’s well-being as well. The business focuses on how to fulfil the needs of the customer without affecting the environment, natural resources and focusing on society’s well-being. This philosophy believes that the business is a part of the society and hence should take part in social services like the elimination of poverty, illiteracy, and controlling explosive population growth etc.
Many of the big companies have included corporate social responsibility as a part of their marketing activities.
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