There's a strategy for everything these days, but in order to build a strategy, it's important to understand the basics first. For example, if you want to develop a strong marketing strategy, understanding marketing concepts is essential. After the five coresmarketing conceptsfind the right strategy for you. Simply put, execution is a crucial step in marketing and only comes after a lot of research and strategy development.
What is Marketing?
Marketing is the art and process of establishing, executing and maintaining an exchange relationship. You start by attracting customers, building a relationship with them, and eventually maintaining it by satisfying their needs.
This customer can be other companies or customers; Therefore, marketing can be either B2B or B2C depending on the situation. However, the ultimate function of marketing remains the same: to build a relationship with customers and satisfy their needs by meeting their requirements.
For example telecommunicationsbuild a marketing strategyfirst intrigues and persuades people to use their calling, messaging and internet packages. Once people start using it, they ask them to rate their service by giving them stars.
What marketing concepts are there?
The concept of marketing means that whenever a company plans and implements to maximize profits by increasing sales,meet customer needs, and outperforms its competitors. The goal is to develop a situation that works for both parties; the customer and the company.
The idea behind the marketing concept is to predict and satisfy the needs and desires of customers better than the competition. Marketing concepts were first derived from Adam Smith's book The Wealth of Nations. However, it remained unexplored to the world until the 21st century.
To fully understand the concept of marketing, we must first understand the needs, wants and demands;
- needs– is something inevitable for the existence of life; many adverse things can happen without them. The worst situation would be death. Needs include many things, such as food, shelter, self-expression, safety, social belonging, self-esteem, and respect.
- Will– Desires are our desires and desires in life; our social composition and our culture shape our desires.
- requirements– When our wants, needs, and desires are supported by our ability to pay, they become demands.
Now that we've learned the basics of marketing, it's time to understand five marketing concepts.
5 Marketing Basics
There is a definitive number ofmarketing conceptsbecause every business has its own concept. While some concepts still work today, others are obsolete. However, we will discuss five fundamental marketing concepts that are also recognized as marketing management philosophies.
1. Product concept
The central purpose of the product concept is to make products cheaper since consumers do not pay much for the products or services. The companies accompanying the product concept then produce the goods on a large scale and benefit from economies of scale.
When manufacturers make low-cost products, they adopt a broad distribution strategy to reach more audiences. By targeting more people, they can increase their productivity by expanding their market.
When designing a product, marketers do not attach importance to the requirements and wishes of the customers. Your main focus is to produce more and more goods, it's the quantity that matters, not the quality. As a result, consumers are often dissatisfied with the poor quality of the products.
The product concept was popular when there were no competitors on the market; Whatever you put on the market, people would take it.
For example: Ford was the first vehicle company; started putting more vehicles on the market. People bought it because it was the only product available at the time.
2. Production concept
It is one of the first marketing concepts in which the organization focuses on the capacity of its production processes. It manufactures the cheapest products so that they are ready for the mass population. The focus of the production concept is the quantity, not the quality of the products.
The production concept began in the mid-1950s and accompanies Say's Law. It states that supply creates demand in the market. Therefore, under this law, if a company manufactures a product, it does not have to advertise its products; it would sell itself.
The law became widespread because there was no technology or communication at the time and people traveled less.
The seller was often the sole retailer and there were few manufacturers. So there used to be a limited range of products, whatever came out, and then it would have been commercialized.
McDonald's and fast food chains in general are also aiming to improve their operations.
3. Sale concept
As the name suggests, the idea of sales is to sell the company's product through large-scale marketing and promotional activities. It doesn't matter if theysatisfy customersneed or not.
The center of management in this method is to complete the sale transaction; They believe their job is done once they market their product. So instead of building and maintaining a long-term relationshipcustomer retention, the customer would come back.
The sell concept is a very precarious strategy as it is based on a very weak notion that the company should sell what it makes instead of satisfying customer needs.
With this approach, marketers believe that if consumers don't like a company's product, they'll buy something else and forget about their previous shopping experience. So the whole notion of the selling concept is based on the false assumption that customers don't remember their previous buying experiences.
For example, blood donations and insurance policies fall under the sales concept category, where the marketer believes their job is done once the transaction is complete.
4. Marketing concept
The marketing concept is customer-oriented. Put the customer firstmarketing process, to discover the requirements and desires of the customers and then to satisfy these needs better than the competition.
With this method, the marketer assumes that the customer is always right and that their needs and desires should come first. In this case, the marketing strategy focuses on generating profits by satisfying the needs and desires of customers.
It supports a very simple strategy: marketers aren't looking for the right customers for their product; Instead, they build the right product. Therefore, marketers are trying to bridge the gap between consumers and the company's products.
When analyzing themarketing conceptWith the concept of selling, you can see a big difference between both strategies. It's not wrong to say that these two strategies are at opposite extremes. The best example of this concept is the war between Coca-Cola and Pepsi.
5. Social marketing concept
The idea behind the concept of social marketing assumes the welfare of the whole society because it examines the strategy of the marketing concept. What consumers need doesn't mean it will be useful to them in the long run. What you need and what is right for you and society as a whole are two completely different things.
For example, we all like sweet, spicy, and fast food. We all want the same things every time we go out, but that doesn't mean it's good for our health and the well-being of society at large.
The aim and aim of the social marketing concept is to make companies understand that they have a friendly and ecological responsibility that is much more important than their short-term sales and profit goals. Businesses must design and operate a sustainable future for society; Organizations are part of society and must behave as such. One of the best examples of social marketing concepts is the 2014 Coca Cola Super Bowl "America The Beautiful" commercial. Campaign.
The terms production, product and sale have become obsolete in most areas; They only survive in some areas. Today's companies follow the marketing concept of meeting and satisfying the needs and desires of customers, but environmental challenges challenge the entire marketing concept strategy.
The concept of social marketing is true that what is healthy for an individual and what is suitable for society as a whole are entirely different things. Therefore, marketers need to develop a marketing strategy to take social and environmental factors into account because without society there will be no marketing activities. Therefore, society's obligations must come first.
Apart from knowledge aboutmarketing concepts, it is important to have a profitable marketing strategy. In this competitive age, it has become difficult to attract target customers. Therefore, it is a good idea to start a referral program.
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So the core concepts of marketing are, Need, Want, and Demand. Product, Service, and Experience. Market.What do you understand with concept of marketing explain with examples? ›
Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Some marketing is done by affiliates on behalf of a company.What is Coca Cola's marketing concept? ›
Coke aggressively markets its product lines through advertising across multiple mediums and channels, including TV, online ads, sponsorships, etc. Coca-Cola's sponsorships include NASCAR, NBA, the Olympics, American Idol, etc.What are concepts examples? ›
Concepts can be based on real phenomena and are a generalized idea of something of meaning. Examples of concepts include common demographic measures: Income, Age, Eduction Level, Number of SIblings.What is the modern concept of marketing with example? ›
The modern marketing concepts are:
Learning and comprehending the wants/needs of the consumer through online interaction. Creating products that meet the needs of the target consumer. Leading the competition in customer satisfaction. Making sure a business' efforts make a profit for the organization.
What Are Brand Examples? Although brands are generally intangible, we often associate things like products and names with brands. Examples include Apple, Nike, Coca-Cola, Advil, and Tylenol.Can you define marketing in your own words based on what you understand about it? ›
Marketing is the process of getting people interested in your company's product or service. This happens through market research, analysis, and understanding your ideal customer's interests. Marketing pertains to all aspects of a business, including product development, distribution methods, sales, and advertising.What is the marketing concept of Pepsi? ›
Pepsi's pricing strategy is driven by their competitors' prices and customer demand. The company encourages bulk sale, with the cost of higher volumes of Pepsi being cheaper per ounce than smaller volumes. This strategy helps foster the distribution channels they have in place.What type of marketing strategy does Mcdonalds use? ›
McDonald's marketing strategy includes investing in online and offline marketing methods that spread its clear, brand-centered messages to a large audience and using other channels like its dedicated mobile app to reach and keep loyal customers.What are the 5 major brands companies that adopt relationship marketing strategy? ›
To get ideas, peruse the five relationship marketing examples highlighted in this article: Starbucks, Southwest Airlines, Nike, Sendoso and HubSpot. They show how strong customer connections may lead to brand loyalty, repeat purchases, word-of-mouth promotion or social proof.
In the simplest terms, a concept is a name or label that regards or treats an abstraction as if it had concrete or material existence, such as a person, a place, or a thing. It may represent a natural object that exists in the real world like a tree, an animal, a stone, etc.What are different types of concept? ›
Types of Concepts: Superordinate, Subordinate, and Basic.How do you identify concepts? ›
Identify the main concepts in your research question by selecting nouns important to the meaning of your question. Leave out words that don't help the search, such as adjectives, adverbs, prepositions and, usually, verbs.What are the five phases of modern marketing? ›
Early Evolution of Marketing Stages
According to the Evolution of Marketing Philip Kotler, marketing has progressed through five stages since the dawn of the Industrial Revolution: the production era, the product era, the selling era, the marketing era and the holistic era.
Examples of companies that use the selling concept are life insurance and timeshare companies. Salespeople in these industries research their target demographic and focus their advertising and promotion on the results of that research to sell as many units of a product as they can to increase profits.What is Apple's brand concept? ›
Apple has a branding strategy that focuses on emotions. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams, and aspirations; and power to the people through technology.What is Nike's brand concept? ›
However, there is one main ingredient in Nike's messaging: to “bring inspiration and innovation to every athlete.” Nike encourages anyone with a body, able or disabled, to maintain sports and an active lifestyle. The brand slogan says, “if you have a body, you're an athlete.”What is Gucci brand concept? ›
Gucci is an Italian fashion brand founded in 1921 by Guccio Gucci, making it one of the oldest Italian fashion brands in operation today. Like many historic fashion houses, the brand started out as a luggage manufacturer, producing luxury travel goods for Italy's wealthy upper-classes, as well as equestrian equipment.What is marketing very short answer? ›
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (What is the most important word in any definition of marketing? ›
"Relationship" is the most important word in marketing. The relationships you build with existing and potential customers are ultimately and uniquely what differentiates you from your competitors. The purpose of marketing is to help build business relationships with the right sort of people.
Marketing is the process of “creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large,” according to the American Marketing Association.What do you understand by concept of marketing explain the need and importance of marketing in developing economy like India? ›
Marketing is the delivery of a standard of living to society. Marketing creates and increases the demand for existing and new products and thereby increases the standard of living of the people. It provides knowledge about different varieties of goods and services, of means of publicity and sales promotion to society.Which answer best describes the marketing concept? ›
Which statement best describes the marketing concept? It focuses on the importance of understanding customers and competition.