Question

a) A marketing orientation is a way of doing business or the philosophy that guides marketing effort. Discuss the following philosophies in marketing: Production concept, Selling concept, Product concept, Marketing concept, Societal marketing concept. 25 Marks

Answer 1

Production Concept:

This concept is based on an idea that inexpensive and widely available products generate more sales because customers prefer those. This is quite similar to the Say’s Law which states ‘Supply creates its own demand’. So, companies produce the product on a large scale and make sure that it is easily available everywhere to the customer.

The large scale of production of the product helps the companies to avail the economies of scale which lead to inexpensive products and thus attracting more customers.

The drawback of this concept is that it focuses only on production but not on the product quality which in the long run may cause decreased sales if the product is not up to the mark.

Applicability of this Concept:

· Companies who have a worldwide market for their products may apply this concept.

· Companies enjoying a monopoly advantage may use this concept.

· Any company whose product’s demand exceeds its supply may follow it

Selling Concept:

Selling Concept is only concerned with selling the product whatever may be the quality of the product and need of the customer. The chief motive is making money, not developing a relationship with the customers. So, there is less possibility of repeated sales. Companies applying this philosophy can even deceive the customers to sell their products.

The drawback of this concept is that it lacks foresightedness because the companies focus on selling what they produce instead of focusing on the need of the market.

Applicability of this Concept:

· Companies only concerned with short-term profits follow this concept which may lead to marketing myopia, a situation where a company focuses only on selling a product instead of fulfilling customer needs.

· Dishonest or illegal companies may apply this concept.

D. Marketing Concept:

A company following selling concept cannot have long-term existence in the market because it cannot fulfill customers’ needs. Companies have to make products fulfilling their customers’ needs to be successful in today’s era. So, the marketing concept came into existence. This concept is based on an idea that customers buy the products accomplishing their needs. Companies based on marketing philosophy perform customer-researches to know their needs and wants and make products to meet the same better than their competing companies. In this way, the company builds a customer relationship, becomes profitable and earns goodwill. But still, many companies follow other philosophies and generate profits. The choice of the concept is totally dependent on the demand, supply, and the engaged parties’ needs.

Applicability of this Concept:

· Businesses engaged in perfect competition may follow this concept.

· Businesses who want long-term existence in the market can apply this concept.

E. Societal Marketing Concept:

The societal marketing concept is based on the marketing concept just adding the philosophy of social welfare with it. Companies concentrate on fulfilling their customers’ needs as well as contributing to social welfare without polluting or affecting the environment and natural resources. According to this concept, company or business being a part of the society has corporate social responsibilities such as eliminating illiteracy, poverty, controlling alarming population growth, ensuring better health and treatment facilities, helping victims of different natural calamities like flood, cyclone, excess cold, draught, etc.

Applicability of this Concept:

· Many big reputed companies like banks, TV channels, telecommunication companies, etc. follow this concept.