Business concepts of marketing are the philosophy which provides the guideline to the organization. These concepts are still practiced by some business organizations. They are:
a. Production concepts b. Product concept c.Selling concept d. Marketing concept and e. Societal marketing concepts Production concept believes that consumers will favor those products which are widely available in low cost. It is the oldest concept, which was concentrated on achieving high production efficiency and wide distribution of the products. It is based on the philosophy of mass production and mass merchandising. It assumes that customers are fully aware of the available brands and given a choice for the lowest price. Many Nepalese companies are still working under the production concept. Generally, this concept is useful in two assumptions. i) If the demand of the product is more than supply and ii) if the price of the product is too high.
Product concept is production efficiency concept. The main objectives is what can be produced. It concentrates on high production efficiency through improved technology. It's main aim is to gain profit through high production and high availability.Product concept is shifted from quantity to quality concepts. So, it is known as quality efficiency concept. It believes that consumers will favor those products, which are good in quality.This is quality efficiency concept. It's main objective is to improve the quality of product. It focuses on quality product at reasonable price. Product concept does not care customers' needs and satisfaction. It attracts the customers through the improvement of quality with reasonable price.
Selling concept is developed after the failure of product concept. It assumes that consumers will either buy or not buy enough products unless the organizations persuade them to buy the products. It believes that customers will purchase the goods if aggressive promotional tools are used. So, this concept applies advertising and personal selling to persuade the customers to purchase the goods. This concept is very common in modern business organizations.
Marketing concept is consumer oriented concept as it focuses first to determine the needs and demands of consumers and then to supply the goods accordingly. It believes that the key to achieve organizational objectives is to deliver the goods more effective than competitor through integrating marketing activities to fulfill the needs and wants of the target activities. It mainly focuses on consumers needs and satisfaction. It is very useful to get the success in the competitive market.
It's main objective is to make what customers want and focuses to determine t
he target market before producing the goods that's more effective than the competitors. Marketing concept also integrates all the activities that affect the customers through co-ordinates marketing efforts.
Societal marketing concept is the latest concept of marketing. It is the combination of two words. They are societal and marketing. It focuses that the organizational objectives should be obtained through the satisfaction of customers' need and the society's well being. It also suggests the organization to maintain the balance among the three considerations. They are company profit, consumer satisfaction and society's interest because marketing creates environmental problem, shortage of resources and rapid population growth. In fact, this concept is developed when inflation, environmental destruction, negligence to social welfare and increasing population appears there. So, this concept concentrates that business organization should bear such anti-social conduct through bearing social responsibility such as control of pollution, creating employment opportunity and public awareness.
Hence, organization should be able to solve the entire problems through the right decision about the social welfare. It helps the organizations to operate different activities in long time.
Selling concept is developed after the failure of product concept. It assumes that consumers will either buy or not buy enough products unless the organizations persuade them to buy the products. It believes that customers will purchase the goods if aggressive promotional tools are used. So, this concept applies advertising and personal selling to persuade the customers to purchase the goods. This concept is very common in modern business organizations.
Marketing concept is consumer oriented concept as it focuses first to determine the needs and demands of consumers and then to supply the goods accordingly. It believes that the key to achieve organizational objectives is to deliver the goods more effective than competitor through integrating marketing activities to fulfill the needs and wants of the target activities. It mainly focuses on consumers needs and satisfaction. It is very useful to get the success in the competitive market.
It's main objective is to make what customers want and focuses to determine t
he target market before producing the goods that's more effective than the competitors. Marketing concept also integrates all the activities that affect the customers through co-ordinates marketing efforts.Societal marketing concept is the latest concept of marketing. It is the combination of two words. They are societal and marketing. It focuses that the organizational objectives should be obtained through the satisfaction of customers' need and the society's well being. It also suggests the organization to maintain the balance among the three considerations. They are company profit, consumer satisfaction and society's interest because marketing creates environmental problem, shortage of resources and rapid population growth. In fact, this concept is developed when inflation, environmental destruction, negligence to social welfare and increasing population appears there. So, this concept concentrates that business organization should bear such anti-social conduct through bearing social responsibility such as control of pollution, creating employment opportunity and public awareness.
Hence, organization should be able to solve the entire problems through the right decision about the social welfare. It helps the organizations to operate different activities in long time.
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