Marketing concepts relate to the philosophy a business use to identify and fulfill the

needs of its customers, benefiting both the customer and the company. Same
philosophy cannot result in a gain to every business, hence different businesses use
different marketing concepts (also called marketing management philosophies).

The 'marketing concept' proposes that in order to satisfy the organizational objectives,
an organization should anticipate the needs and wants of consumers and satisfy these
more effectively than competitors. This concept originated from Adam Smith's
book The Wealth of Nations, but would not become widely used until nearly 200
years later

The production concept

When the production concept was defined, a production oriented business dominated
the market. This was from the beginning of capitalism to the mid 1950’s.

During the era of the production concept, businesses were concerned primarily
with production, manufacturing, and efficiency issues.Companies that use the
production concept have the belief that customers primarily want products that are
affordable and accessible.

The production concept is based on the approach that a company can increase supply
as it decreases its costs.Moreover, the production concept highlights that a business
can lower costs via mass production.

A company oriented towards production believes in economies of scale (decreased

production cost per unit), wherein mass production can decrease cost and maximize
profits. As a whole, the production concept is oriented towards operations.

The product concept

This concept works on an assumption that customers prefer products of
greater quality and price and availability doesn’t influence their purchase decision.
And so company develops a product of greater quality which usually turns out to be
expensive.

One of the best modern examples would be IT companies, who are always improving
and updating their products, to differentiate themselves from the competition.Since
the main focus of the marketers is the product quality, they often lose or fail to appeal
to customers whose demands are driven by other factors like price, availability,
usability, etc.

The selling concept

Production and product concept both focus on production but selling concept focuses
on making an actual sale of the product.Selling concept focuses on making every
possible sale of the product, regardless of the quality of the product or the need of the
customer.

is not great. The selling concept highlights that customers would buy a company’s
products only if the company were to sell these products aggressively.This
philosophy doesn’t include building relations with the customers. This means that
repeated sales are rare, and customer satisfaction

The marketing concept

A company that believes in the marketing concept places the consumer at the center
of the organization. All activities are geared towards the consumer.A business,aims
to understand the needs and wants of a customer. It executes the marketing strategy
according to market research beginning from product conception to sales.

By focusing on the needs and wants of a target market, a company can deliver more
value than its competitors. The marketing concept emphasizes the “pull” strategy".
This means that a brand is so strong that customers would always prefer your brand
to others’.

The societal marketing concept

This is a relatively new marketing concept. While the societal marketing concept
highlights the needs and wants of a target market and the delivery of better value than
its competitors, it also emphasizes the importance of the well-being of customers
and society as a whole (consumer welfare or societal welfare).

The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices. They must balance and juggle the often
conflicting criteria of company profits, consumer want satisfaction, and public
interest.
Conclusion
The five marketing concepts are a good example of how marketing has changed
throughout the years. It has shifted its focus from products to users.

Modern companies have to put users first, and build not only a good product (or
service), but also a good experience around it.If you need help with
creating marketing strategy, contact us today and we’ll be glad to help you.
. roduction Concept
The idea of production concept – “Consumers will favor products that are
available and highly affordable”. This concept is one of the oldest Marketing
management orientations that guide sellers.

Companies adopting this orientation run a major risk of focusing too narrowly
on their own operations and losing sight of the real objective.

Most times; the production concept can lead to marketing myopia.

Management focuses on improving production and distribution efficiency.

Although;

in some situations; the production concept is still a useful philosophy.

Product Concept
The product concept holds that the consumers will favor products that offer
the most in quality, performance and innovative features.

Here; under this concept,

Marketing strategies are focused on making continuous product

improvements.
Product quality and improvement are important parts of marketing strategies,
sometimes the only part. Targeting only on the company’s products could also
lead to marketing myopia.

For example;

Suppose a company makes the best quality Floppy disk. But a customer does
really need a floppy disk?

She or he needs something that can be used to store the data. It can be
achieved by a USB Flash drive, SD memory cards, portable hard disks, and etc.

So that company should not look to make the best floppy disk. They should
focus to meet the customer’s data storage needs.

Selling Concept
The selling concept holds the idea- “consumers will not buy enough of the
firm’s products unless it undertakes a large-scale selling and promotion
effort”.

Here the management focuses on creating sales transactions rather than on

building long-term, profitable customer relationships.

In other words;

The aim is to sell what the company makes rather than making what the
market wants. Such aggressive selling program carries very high risks.

In selling concept the marketer assumes that customers will be coaxed into
buying the product will like it, if they don’t like it, they will possibly forget their
disappointment and buy it again later. This is usually very poor and costly
assumption.

Typically the selling concept is practiced with unsought goods. Unsought

goods are that buyers do not normally think of buying, such as insurance or
blood donations.
These industries must be good at tracking down prospects and selling them
on a product’s benefits.

Marketing Concept
The marketing concept holds- “achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do”.

Here marketing management takes a “customer first” approach.

Under the marketing concept, customer focus and value are the routes to
achieve sales and profits.

The marketing concept is a customer-centered “sense and responds”

philosophy. The job is not to find the right customers for your product but to
find the right products for your customers.

The marketing concept and the selling concepts are two extreme concepts
and totally different from each other.

he Societal Marketing Concept puts Human welfare on top before profits and
satisfying the wants.

Societal Marketing emphasizes on social responsibilities and suggests that to

sustain long-term success, the company should develop a marketing strategy
to provide value to the customers to maintain and improve both the
customers and society’s well being better than the competitors.

Societal marketing concept holds that a company should make good

marketing decisions by considering consumer’s wants, the company’s
requirements, and society’s long-term interests.

Societal Marketing creates a favorable image for the company increases sales.
It is not the same as the terms of social marketing and social media marketing.
It is a term closely related to CSR and sustainable development.
It emphasizes social responsibilities and suggests that to sustain.

It calls for sustainable marketing, socially and environmentally responsible

marketing that meets the present needs of consumers and businesses while
also preserving or enhancing the ability of future generations to meet their
needs.

The global warming panic button is pushed and a revelation is required in the
way we use our resources. So companies are slowly either fully or partially
trying to implement the societal marketing concept.

The societal marketing concept is one of the 5 marketing concepts.

History of Societal Marketing Concept

In the 1960s and 70’s the unethical practices of many companies became
public. The concept of Social Marketing surfaced in 1972; a more socially
responsible, moral and ethical model of marketing, countering consumerism.
Philip Kotler introduced the concept of social marketing and societal
marketing.

The societal marketing concept evolved from older concepts of CSR and
sustainable development and implemented by several companies to improve
their public image through activities of the customer and social welfare.

Three Considerations of Societal Marketing

Concept
 Companies should balance three considerations in setting their marketing
strategies: company profits, the consumer wants, and society’s interests.

1. Society (Human Welfare)

Companies must make sure the products, services, actions, investment
innovations servers society first.

2. Consumers (Satisfaction)
Products and services should be satisfying the consumer’s needs.

3. Company (Profits)
Building long-term customer relationships, being socially responsible, and
providing satisfactory products are important for profit-making and wealth
maximization.

Societal Marketing Concept Video and

Slideshow
 Watch this video explaining marketing concepts and societal marketing
concept.

Objectives of Societal Marketing Concept

 To maintain a long-term relationship with customers.

 To create a better image in the society for the company than it’s competitors.

 To carry out its social responsibilities.

 Developing community awareness towards its brands.

 To carry out its social responsibilities.

 To increase the consumer base and market share.

Societal Marketing Concept Advantages and

Benefits
 It helps to build a better image for the company.

 It gives a competitive advantage over the competitors.

 Useful in customer retention and long-term relationships.

 Increases sales and market share.

 Facilitate expansion and growth in the long term.

 Products and company policies should prioritize social welfare and society in
general.

 Economic resources are properly used.

 Societal marketing raises the living standard of people in society.

 It ensures economic planning more significant and more fruitful to society.

Importance of Societal Marketing Concept

Societal Marketing is very important to society, the environment, and
businesses. This concept was developed in order to tackle the consumerism
and profit only the motive of business.

The societal marketing concept helps to maximize profits for the organization
and creates a long-term relationship with customers.

It encourages developing products that benefit society in the long run and
satisfies consumers.

Examples of Societal Marketing

Most recent examples of societal marketing are the super bowl 2017 ads of
several companies.

Most ads took on issues like the environment and immigration. These come
after President Donald Trump implemented executive orders that raised
controversies.

 Kia’s “Hero’s Journey” commercial starring Melissa Mccarthy is the prime

example of societal marketing.

 CocaCola release an ad that shows people of different ethnicity and singing

“America is Beautiful” in different languages.

 Airbnb’s #WeAccept super bowl 2017 ad.

 Budweiser ad showing how a company founded by its immigrant founder.

The societal marketing does not stop there.

 Societal marketing policies are what making companies actively trying to
change social policy, taking part in social activities, investing time and money
in corporate social responsibility.

Societal marketing concept questions whether the pure marketing concept

overlooks possible conflicts between consumer short-run wants and consumer
long-run welfare.

The societal marketing concept holds “marketing strategy should deliver value
to customers in a way that maintains or improves both the consumer’s and
society’s well-being”.

Instruments of Societal Marketing

Philip Kotler identified four categories of products based on long-term
benefits and immediate satisfaction:

 Deficient products bring neither long-run or short-term benefits.

 Pleasing products bring a high level of immediate satisfaction but cause

long-term harm long in society.

 Salutary products bring low short-term satisfaction, Nut Benefit society in the
long run.

 Desirable products bring both long-run benefits and immediate satisfaction.

Based on societal marketing, Kotler suggested deficient products must be

eliminated from the market.

The pleasing and salutary products need modification so that they can bring
both long-run benefits to society and immediate satisfaction to the consumer.

Meaning that these products should be launched on the market without

turning them into desirable products.
This way, rather than focusing on selling products, the focus is on consumer
and society well-being.

Post navigation

← 5 Marketing Concepts Explained with Examples

Marketing Definition, Functions, Importance, Process →

Related Posts ⁄

5 Marketing Concepts Explained

with Examples Marketing Definition,

Functions, Importance, Process

Marketing Mix: 4Ps with 4Cs

(Explained) Marketing Environment:

Macro and Micro Marketing

Environment 6 Ways Entrepreneurs

Can Increase Sales On A Budget 5

Core Customer and Marketplace
Concepts 4 Levels of Strategy: Types

of Strategic Alternatives Vision:

Meaning, Characteristics, Importance,

Necessity How Businesses Can Use

Affiliate Marketing to Boost

Revenue Integrating Traditional and

Online Marketing