CORE MARKETING CONCEPT IN MARKETING MANAGEMENT- MBA TOPIC

CORE MARKETING CONCEPT IN MARKETING 

MANAGEMENT

·      

•      THE EXCHANGE CONCEPT
•          PRODUCTION CONCEPT
•          THE PRODUCT CONCEPT
•          SALES CONCEPT
•         THE MARKETING CONCEPT
•          HOLISTIC MARKETING CONCEPT

EXCHANGE CONCEPT:-

MBA TOPIC|  Popularly known as Barter system. This is the oldest civilized

Way in which mankind started to acquire

Goods & services which satisfied their need.

Money was not yet invented & hence people

Used to swap Goods or Service in exchange to

Some other goods or service they required.

• This system however had many lacunas as

exact value of exchange was not possible due

to differences in products exchanged & the

indivisibility of products.

PRODUCTION CONCEPT

• After money got invented this concept emerged

• The philosophy that governed this concept is –

Increase production in order to reduce cost. Get

economies of scale. Produce cheap & sell cheap. Price

will sell…. So “Make & Sell”

• This concept gave rise to the Industrial revolution

that came in the mid of 18th century & lasted till early

19th century.

• Demand exceeded supply & so people accepted low

quality products also. But soon the situation got

reversed & so arose the need for quality!

• This lead to the next concept the “Product concept”

PRODUCT CONCEPT

• This is a concept obsessed with Quality.

Quality sells is the maxim.

• Focus is on improving quality & bringing in

new features & variants in the product mix.

• New technologies & sophisticated machineries

were invented to improve quality. Soon all

suppliers were giving identical quality.

SELLING CONCEPT

• With Products becoming homogeneous,

multiple suppliers & supply exceeding demand

there was now a choice with the buyers.

• Salesmen became the differentiating factor.

This is when a salesman was good when he can

“sell a comb to a bald person”

• All companies hired glib salesmen, spent a lot

of time & money in increasing the skills of

their sales team. Push Strategy – was used to

sell the product.

• Till concept was in vogue till mid 19th century

MARKETING CONCEPT

• Emerged in mid 1950's. Its an essence of all the earlier

concepts but with a difference!!!

• The focus is on enough production, Quality products,

improved selling skills but not by ‘Selling to the

customer’ but rather by ‘Making him to buy it’

• It is consumer-oriented business philosophy

• Father of marketing concept = Alfred P Sloan the

chairman of general motors. He said “a car for every

purse & purpose”

• All customers are unique & needs to be dealt

separately. All efforts are woven around the

customers – viz their Needs, Wants & Demands

HOLISTIC MARKETING CONCEPT

• Holistic means  Complete.

• There are 4 forces that affect any business – The Company

Management – Its Employees & other stake holders - Its

customers – Its External Environment.

• When we try & cover all these elements of a company then we

can say we are adhering to Holistic Marketing.

1. When we try & create a harmony within all levels of

management & dept.

2. When we look after employee. Shareholders, suppliers,

channel partners welfare

3. When we do not cheat customers with false communication,

dubious products & other unethical doings

4. When we take care of our environment, society, laws of the

land.

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