Understanding the 5 Marketing Concepts with Examples

Understand what are 5 main marketing concepts with examples; production concept, product concept, sales concept, marketing concept and social marketing concept.

Understanding the 5 Marketing Concepts with Examples
The concept of marketing is the strategy that companies implement to meet customer needs, increase sales, maximize profits and beat the competition. There are 5 marketing concepts that organizations adopt and execute; production concept, product concept, sales concept, marketing concept and social marketing concept. The purpose of the marketing concept is to create a situation that benefits both parties; the customer and the company. It is to anticipate and meet the needs and desires of customers better than competitors. The marketing concepts were originally derived from Adam Smith's book, Wealth of Nation.

The concept of production is one of the first marketing concepts in which the company focuses on the efficiency of its production processes. It is to produce cheaper products to make them available to the mass population. The concept of production focuses on quantity, not on product quality. The product concept is to produce cheaper products because customers will not pay much price for the products or services. Companies that follow the product concept, manufacture the product on a large scale and benefit from economies of scale.

The idea of the sales concept is to sell the company's product through large-scale marketing and promotion activities, no matter whether they meet the needs of customers or not. It puts customers in the middle of the marketing process, finding out their needs and wants and then meeting those needs better than the competition. The concept of social marketing is based on the well-being of the whole society because it questions the strategy of the marketing concept. What customers want doesn't mean it's good for them in the long run.

The purpose and objective of social marketing is to make companies realize that they have a social and environmental responsibility, and that it is much larger than their short-term sales and profit objectives. Companies must produce and operate towards a sustainable future for society as a whole. The current market follows the marketing concept of satisfying and satisfying customer needs, but environmental challenges question this entire strategy.

The concept of production is effective because it speaks to our deep human need for immediate gratification. The more offer there is for a particular product, the lower its cost is likely to be. Consumers will choose products that are easier and cheaper to access. If we look closely at the product concept, we can see that it focuses more on business production and less on customer satisfaction.

The basic idea behind the concept of selling is that people will not buy enough of a company's product, so companies must persuade them to do so. People who choose to use this marketing concept should be good at doing market research, finding potential customers and convincing them to do business with them in question. The goal is to convince customers that they need your product, rather than that of the competition.