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Implications of different marketing concepts
Product concept
First stage of product
development
Selling concept
1920s-1950s
Demand equals supply
Focus on advertising and selling
“If our product is the best, then we
will sell it”
Consumers always prefer
goods/services that offer best
quality, performance and features
Focus on R&D, innovation
Consumers need to be aware of new
products (promotion)
Risk of product failure without
market research!
Production concept
Mid 19th century-1920s
“If a product is made, somebody
will want to buy it”
Demand exceeds supply
To make profits, product just needs
to be readily available and of right
quality
Implications
Implications
Marketing concept
1950s- present
Supply exceeds demand
Led to intense competition
among sellers, identifying
consumer needs and wants via
market research
Market orientation, market led
marketing
Implications
Business have to satisfy
needs/wants of customers to
meet goals
Market research to identify
these and then produce
goods/services to satisfy them
Least risk of failure
Consumers have to be encouraged
to buy one firm’s product over
another
Consumers may not buy nonessential goods
Creative ads and personal selling
required, high expenditure on
advertising
Societal marketing concept
1970s-present
“Marketing is a means of
satisfying consumer needs
profitably, with minimum costs
and damage to society”
Considering all stakeholders ie.
Employees, shareholders, suppliers,
competitors, government,
community, natural environment
Limited product choice
Implications
Prices based on costs of production
Balancing three concerns (company
profits, consumer wants, society’s
interests)
No market research
Packaging to protect product
Little promotion
Long term welfare ie. Protecting
environment and paying workers
reasonable wages
Socially responsible products
Firm can charge high prices for
products that benefit society