Understanding the Basics of Marketing Concepts

Learn about five basic concepts or management philosophies related to Marketing - Production | Product | Sales | Social | Traditional - Understand how each works & how they help businesses.

Understanding the Basics of Marketing Concepts

Nowadays, there is a strategy for everything, but to create a strategy, it is important to first understand the basics of it. For example, if you want to create a solid marketing strategy, then it's imperative to understand marketing concepts. By following the five basics of marketing, you can find the right strategy for you. In a nutshell, execution is a crucial step in marketing, and it only happens after a lot of research and strategizing.

The concept of marketing means that whenever a company plans and implements to maximize profits by driving sales, meeting customer needs and outpacing the competition. The goal is to devise a situation that serves both parties; the customer and the company. The idea behind the concept of marketing is to predict and meet the needs and desires of customers better than competitors. Marketing concepts were first derived from Adam Smith's book, Wealth of Nations.

However, it remained unexplored for the world until the 21st century. To fully appreciate the concept of marketing, we must first understand the needs, wants and demands; since we have learned the basics of marketing, it's time to understand five marketing concepts. There are a final number of marketing concepts, as each business has its own concept. While some concepts are still working today, others have become obsolete.

However, we will look at five basic marketing concepts, also recognized as marketing management philosophies. The main purpose of the product concept is to make cheaper products because consumers will not pay much price for products or services. Therefore, the companies that accompany the product concept manufacture the products on a large scale and benefit from economies of scale. In the product concept, sellers do not attach any importance to the requirements and wishes of customers.

Its central focus is to produce more and more goods, quantity matters, not quality. As a result, consumers are often dissatisfied with the poor quality of products. The concept of the product was popular when there were no competitors in the market; whatever was introduced to the market, people accepted it. It is one of the first marketing concepts where the organization focuses on the capacity of its production processes.

It's about making the cheapest products to prepare them for the mass population. The focus of the production concept is on quantity, not on product quality. The concept of production began in the mid-1950s and accompanies the Say Act. He says that supply generates demand in the market.

Therefore, according to this law, when a company manufactures a product, it does not need to promote its products; it would sell itself. When it comes to the concept of marketing, it's customer-oriented. It places customers in the middle of the marketing process, discovering the demands and desires of customers and satisfying those needs better than the competition. When you analyze the concept of marketing with the concept of sales, you can find a big difference between the two strategies.

It won't be bad if you state that these two strategies are at two opposite extreme poles. The best example of this concept is the Coke vs. Pepsi War The idea behind the concept of social marketing is based on the well-being of the whole society, because it examines the strategy of the marketing concept. What consumers need doesn't mean it's useful to them in the long run.

What you need and what is right for you and for society as a whole are two completely different things. The concepts of production, product and sale have become obsolete in most fields; they only survive in some fields. The current business follows the marketing concept of attracting and satisfying the needs and desires of customers, but environmental challenges challenge the entire strategy of the marketing concept. The concept of social marketing is true, that what is healthy for an individual and suitable for the whole society are totally different things.

Therefore, marketers should create a marketing strategy that takes into account social and environmental factors, because there will be no marketing activity without society. Therefore, company obligations must come first.

In addition to having knowledge about marketing concepts, it is important to have an effective marketing strategy. In this competitive era, acquiring target customers has become a challenge. So considering launching a referral program is a great idea.

The marketing process comprises 4 elements: strategic marketing analysis, marketing mix planning, marketing implementation and marketing control.

The concept of marketing is the strategy that companies implement to meet customer needs, increase sales, maximize profits and beat competition. There are 5 marketing concepts that organizations adopt and execute; (production concept), (product concept), (sales concept), (marketing concept) and (social marketing concept).

The concept of marketing is a process in which a company plans and implements to maximize profits by increasing sales, meeting customer needs and outpacing competition. The purpose is to create a situation that benefits both parties; customer and company. The idea behind this concept is to anticipate and meet customer needs and desires better than competitors.

The concepts were originally derived from Adam Smith's book Wealth Of Nation but remained unknown until 21st century. To fully understand this concept we must first understand needs wants & demands; there are as many concepts as many companies operating in world & some still exist while others have become obsolete.

However there are five basic concepts also known as management philosophies; production & product concepts focus on efficiency & capacity respectively while sales, social & traditional concepts focus on customer satisfaction & well-being respectively.

The traditional approach follows Say's Law which states supply creates demand & doesn't require promotion while social approach focuses on what's healthy for individual & society as whole.

In order to have an effective strategy one must consider launching referral program & take into account social & environmental factors as there will be no activity without society & company obligations must come first.