Five Marketing Management Philosophies
There are different concepts that guide sellers to conduct their marketing activities. For example sellers can only focus on production and try to reduce their cost of production, or focus on improving the quality of product. Similarly they can pay more attention to selling and promotion. In this way different concepts have evolved to help the organizations in managing their marketing activities. These concepts are: production, product, selling, marketing, and societal marketing. The explanation of these concepts is given below.
Production concept refers to the philosophy that supply creates its own demand. It means that the sale will increase automatically with the increase in production and distribution facilities. This is one of the oldest concepts and works only in few situations. For example if the management is trying to reduce the cost of production then it can do so by increasing the production.
With the increase in production, economies of scale takes place and the cost of production reduces, which helps to reduce the prices. Similarly the concept of production is helpful in situation when there is imbalance between demand and supply i.e. demand exceeds supply. Due to higher demand, prices start to increase therefore management can earn higher profits by increasing the production.
Product concept states that the sellers should focus on improving the quality of their products, improve the performance, add more innovative features etc. So basically this concept is about to attract the customers by improving the quality and performance on one hand and offer attractive prices on other. Similarly the design, packaging and effective distribution channels of product are some of the important tactics to attract the customers. The important drawback of product concept is that it can lead to marketing myopia...