The 5 Marketing Management Philosophies
The 5 marketing management philosophies include the Production concept, Product concept, Selling concept, the marketing concept, and the Societal marketing concept. Before understanding these philosophies, I will recommend visiting the marketing management blog and revise it.
In this blog post I will be covering the following topics:
- Marketing Management concept
- What can be marketed?
- Difference between selling and marketing
- Exchange is the essence of marketing
- Marketing management philosophies
If you are clear with the basic terms already, then go ahead and read more about it. Let’s learn. 🙌
Marketing Management Concept
Marketing management is the management of all activities related to marketing. It refers to planning, organizing, directing, and controlling which results in the exchange of goods and services. This you must learn using the tip as below:
For writing the meaning of marketing management remember the acronym: ‘PODC’ like a Podcast where,
What can be marketed? 🤷♀️
A product that has a use-value can be marketed. It includes any tangible (which you can touch and see) products like a bike, cake, etc. It also includes any intangible (which are invisible) products like insurance, banking services, teaching services, airplane services, etc.
Difference between Selling and Marketing
|It focuses on seller needs.||It focuses on customer’s needs.|
|Here objective is to maximize profit through seller.||Here objective is to get optimal profit with customer’s satisfaction.|
|Selling is limited to exchange of goods and services.||Marketing is a wider concept.|
|Selling starts after the production and ends with sale.||It starts before production and continues even after the sale.|
|Producer is the king of the market.||The customer is the king of the market.|
Exchange is the essence of marketing
This is true, without exchanging goods or service, marketing cannot take place. So, the exchange is the core of marketing.
- The exchange involves at least two parties which are buyer and seller.
- Both parties should have something valuable to offer to each other.
- Both parties are free to accept or reject the offer.
- Each party is capable of communicating with each other.
The 5 Marketing Management Philosophies
Different firms follow different marketing philosophies in their companies. These are:
The firms following the production concept focus on lowering the cost of production by increasing production. The drawback of this concept is that customer doesn’t always buy the cheaply available product.
The firms which follow product concept, they realize that business goal is to make a product of high quality, but customers will buy these products only when they need it. For example, what product will be produced. Let’s assume Godrej hair dye (high quality) will only be demanded by the customer when they have grey hair.
The firm focuses on increasing sales by convincing customers through aggressive selling and promotional efforts. In this concept, the firm forces their products on customers when they have no intention of buying it.
Selling what you have is the main goal of this concept. The product should be sold by hook or crook.
Although firms are aware that buyers cannot be manipulated many times. The customer, once wrongly convinced, can spoil the image of the firm. So, selling can succeed in the short-run but not in the long-run.
It focuses on the needs of the customer by designing and producing a product, keeping in mind the need of the customer. The product designed should be able to satisfy the need better than competitors. Here, firms sell what the customer wants.
The key points of marketing management concepts are:
- Identify the target market.
- Understand the needs and wants of the customer in the target market.
- Develop products for satisfying the needs of the target market.
- Fulfill the needs of the target market better than a competitor.
- Doing all this at a profit is the goal.
Societal Marketing Concept
This concept aims to bring balance between 3 factors which are:
- Customer Satisfaction
- Social Welfare
This concept holds that the task of any organization is to identify the needs and wants of the target market and deliver the desired satisfaction effectively and efficiently. So, the long term well being of consumers and society is taken care of. It lays attention to the social, ethical, and ecological aspects of marketing.
Tips to memorize the marketing management philosophies, use the acronym SMSPP where,
S- Selling concept which focuses on Sales Maximization
M- Marketing concept which focuses on Customer Satisfaction
S- Societal Marketing concept which focuses on Customer Satisfaction within the tradition of the Society
P- Production concept which focuses on Increasing Quantity
P- Product concept which focuses on the Quality of the Product.
I hope it was helpful. Feel free to subscribe to this website for free lessons in your mailbox or you can also join our Facebook group for Business studies students.