Marketing is the continuous process of defining, anticipating, and creating customer needs and wants of organizing all the resources of the enterprise to satisfy customer demand at the desirable profits to the firm and also to the customer.
Marketing consists of those efforts which affect transfers in the ownership of good and services and which provide for their physical distribution.
What are the 6 Core Marketing Concepts?
Important concepts of marketing are as follows:
1. Creation of Utilities Concept
Marketing is an integrated system of action that creates value in goods through the creation of place, time, and ownership utility.
According to this concept, every activity which increases the utility and price of a commodity can be included in marketing.
Thus, marketing is the creation of form, place, time, and possession utilities.
For example, all the activities related to product planning and development create form utility.
All the activities related to physical distribution create place utility by transporting the goods from the place of production to the place of consumption, all the activities related to storage create time utility, and all the activities related to distribution create ownership utility by transferring the possession of goods from producer or sellers to the ultimate consumer or user.
Thus, it is clear that marketing creates different types of utilities and makes the product valuable.
2. Social System Concept of Marketing
According to this concept, Marketing is not one activity.
It is a sum of different business activities.
All the business activities which are interrelated and which affect one another, are included within the purview of your marketing.
Marketing is a total system of interacting business activities designed to plan, price, promote, and distribute want-satisfying products and services to the present and potential customers.
This core concept of marketing is customer-oriented because it considers the needs of all the present and potential customers.
3. Delivery of Standard of Living Concept
This concept of marketing is a very important concept.
Marketing is the delivery of a standard of living to society.
Marketing is the creation and delivery of the standard of living to society.
This concept is more rational because it is not sufficient to manufacturer a product of good quality. It is also necessary to deliver it to the consumers.
These concepts of marketing are called the customer-oriented concept of marketing.
It recognizes and considers the feelings, wants, liking, and emotions of consumers.
By this concept, the emotions and needs of consumers are studied before starting the production of a product, then the goods are produced and delivered to the consumers.
In addition to it, the Businessman maths his best efforts to reduce the cost of marketing and to increase the demands of his goods by establishing effective coordination between the activities of sales promotion and channels of distribution.
As a result, the cost of production and consequently the prices of goods can be reduced which increases the demand.
In addition to it, the manufacturer inspired the consumer to purchase the goods and services products by him through different marketing programs.
It creates new demand for the product and the things to be considered as luxury and Comforts are considered to be the needs of society.
Thus, it improves the standard of living of the society.
4. Generation of Revenue Concept
According to this concept, marketing is an activity that is performed to earn the maximum profit for the business.
Marketing is the art of getting the right product, for the right people, at the right price through the right channels, by the right promotion, This concept of marketing is entirely different from other concerts because neither it is product-oriented nor it consumer-oriented.
It is an enterprise-oriented concept of marketing.
This concept considers the interests of the enterprise only.
According to this concept, every activity which aims and generating revenue is included in the functions of marketing.
This concept stresses that the profits of the firm must be increased by reducing the cost of production and cost of sales and not by increasing the selling price.
5. Distribution of Goods and Services Concept or Selling Concept
This is perhaps the oldest concept of marketing.
This concept is also known as the classical concept.
According to this concept, marketing is the distribution of goods and services from producer to consumer.
The concept was propounded and supported by American Marketing Association, According to the American Marketing Association, marketing has been defined as the performance of business activities that direct the flow of goods and services from producer to consumer or user.
In this concept, all the activities for producers related to the physical distribution of goods and services from the place of production to the place of consumption are included in marketing, like transportation and storage, gradation and sale, etc.
This concept of marketing persons very narrow meaning of marketing.
It emphasizes the exchange of goods and services only.
This concept of marketing was in use for a very long time but due to revolutionary changes in the field of marketing these days, this concept is no longer in practice.
Important aspects of this concept are as under.
- According to this concept, the functions of marketing start only after the goods have been produced and end with the sale of these goods. It does not consider any activity before production or after the sale as the activities of marketing.
- According to this concept, the only object of an enterprise is to on the maximum profits by the maximum sales.
The above discussion makes it is clear that this concept is not a practical concept these days.
It is a time of cut-throat competition and success can be achieved only if proper attention is paid to the needs and wants of consumers and all the best efforts are made to satisfy these needs and wants.
6. Consumer Satisfaction or Modern Concept
This modern concept of marketing stresses much upon the satisfaction of customers.
Marketing is the analyzing organizing, planning, and controlling of the firm’s, customer impinging resources, policies, and activities with a view to satisfying the needs and wants of chosen customer groups at a profit.
Thus, this concept of marketing is based on consumer satisfaction. According to this concept, all the activities of marketing start from consumers and with the consumers.
Related: How can customer service strategies be improved?
Every activity of marketing starts immediately when an idea of manufacturing a product comes to the mind and continues until the satisfaction of consumer’s needs and wants.
This concept is based on the assumption that the object of marketing must satisfy the needs of consumers and not only earn profits.
A manufacturer can sell his product in the market only if he knows what his customers like.
This concept is based on two basic assumptions:
- The policies and programs of an enterprise must be customer-oriented, and
- The object of an enterprise must be to maximize the profits by increasing the volume of sales and not by increasing the selling price.
An increase in sales volume is possible only when the producer knows the needs and wants of his customers.
Therefore, all the activities of an enterprise must be devoted to first, determining if the needs of customers, and then satisfying these needs.
Marketing is an integrated system of action that creates value in goods through the creation of place, time, and ownership utility. According to this concept, every activity which increases the utility and price of a commodity can be included in marketing. Thus, marketing is the creation of form, place, time, and possession utilities. What are the core concepts of marketing management?
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