Marketing Concepts

Marketing may be defined as a societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. There are four competing concepts under which organizations conduct marketing activities. They are: 1] Production concept: this concept holds that consumers will prefer products that are widely available and inexpensive. For example, • Companies involved in the manufacture of candies like alpenlibe, (kachha mango ka bite, eclairs, candyman etc) carry out production on a large scale.

They assume that the customers are primarily interested in product availability and low prices. These products are cheap i. e. they cost a rupee or less than that and are widely available. So the company here reduces its cost of production by carrying out production in bulk. Here the needs of the customer are not considered and the customer is assumed buy these products. 2] Product concept: this concept holds that consumers will favor those products that offer the most quality, performance or innovation features. Examples: Apple iphone introduced by the Apple computers is a good example of product concept. It’s a phone, an iPod, and an Internet device in one. It gives you access to thousands of applications. And it’s built on technology that’s years ahead of its time. The company focused on making superior products and then improving them. • Dell has introduced a lot of laptop models like inspiron mini laptop, studio laptop, studio XP2 gaming laptop, adamo etc. All these models are available in variety of colors and sizes as desired by the consumers.

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So the consumers here favor the quality and innovative features of the product. 3] Selling concept: this concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations product and therefore undertake an aggressive selling and promotion effort. Example • Pepsi – the products like these need promotional activities more as compared to other products as people generally don’t buy them. People have various apprehensions about the product like its effects on health.

So a large scale promotion helps in increasing the sales of the product, as it can be seen now a day. • Garnier conditioners- for products like these the people or consumers are made aware of their needs i. e. generally people don’t feel the need to use such products but through the promotion of these products they are made aware about the reasons for the usage of the product. 4] Marketing concept: This can be laid out as recognizing consumer needs/wants, then designing products and services that correlate with consumer desires. Examples: Nano – tata group which recently launched the low cost car, Nano, entered the low cost housing segment to target industrial workers and other low wage earners. Nano is conceptualized and designed to fulfill the dreams of the middle income Indian household dream of owning a car. Thus the company first identified the need of the consumers and then designed a product that correlates with the consumers desires. • Vodafone is the world’s leading international mobile communications group with approximately 315 million proportionate customers as at 30 June 2009.

Vodafone currently has equity interests in 31 countries. It provides variety of services by introducing various schemes like Vodafone Friends Circle’. By choosing this scheme, subscribers can add 5 contacts to a ‘friends circle’; these contacts can then be called at 20 Paise per minute by the subscriber. Thus in this concept company identifies the need of the consumer and then supply them with the right product in the right place at the right time.