Ill Company Orientations Toward the Marketplace

What philosophy should guide a company's marketing efforts? U'liai relative weights should he given to the interests of ilic organisation, the customers. ami society? Very ofien these interests conflict. The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and holistic marketing concept.

The Production Concept

The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive, Managers of production* oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. This orientalion makes sense in developing countries such as China where the largest PC manufacturer. Legend, and domestic appliances giant Halor take advantage of the country's huge inexpensive hbor pool to dominate the market. It is also used when a company wants in expand the markei.11

The Product Concept

The product concept holds that consumers will favor those products thai offer the most quality, performance. Or innovative features, M a lingers in these organizations focus odi making superior products and Improving them over time. However, these managers are sometimes caught up in a hue affair with their products. They might commit the '"better-mousetrap" fell lacy, believing that a better mousetrap will lead people to beat a path to their door. A new or hnproved product will not necessarily he successful unless the product is priced, distributed, advertised, and sold properly.

The Selling Concept

The selling concept holds that con sinners and businesses, if left alone, will ordinarily not buy enough of the organization's products. The organization must, therefore, undertake an aggressive selling and pro mm ion effort. The selling concept is epitomized in the thinking of Sergio Zymari, Coca-Cola's former vice president of marketing: The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit.1*

The selling concept is practiced mosi aggressi vely with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. Most firms practice the selling concept when they have overcapacity. Their aim is io sell what they make rather than make what the market wants. ! low ever, marketing based on hard selling carries high risks. It assumes (flat customers who are coaxed into buying a

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