Marketing has two main approaches – Earlier approaches (Old Approaches) and Recent or contemporary approaches. These approaches are product, production, sales, Marketing, Societal, Relationship etc. This article is trying to elaborate these concepts with suitable examples. If you are expert in this domain, please help us to improve content by providing valuable information.

    Old/Earlier ApproachesNew/Recent/contemporary approaches
    ProductionSocietal
    ProductRelationship
    Sales
    Marketing

    1. The Exchange Orientation

    Exchange of Product or Service between seller and buyer

    Usually based on Money

    Now a days marketing is not just an exchange between seller and buyer. It has much wider intention.

    Now marketing covers consumer needs, wants, marketing strategies, promotion & advertising with creativity, innovative ways of distribution, internet marketing and much more.

    2. The Product Orientation

    Concentration mainly on product quality, features, and performance

    Management believes that the above points are more important than all other promotion efforts to get customer response.

    This was the marketing philosophy till 1930.

    This can lead a marketer to marketing myopia or short sightedness and marketer may ignore so many other important factors which can offer new height to business.

    3. The Production Orientation

    Company sells what it can make

    The price of product is based on production and distribution cost. So main concentration is on performance and cost.

    The main features are –

    a. Narrow product line

    b. Technical research to improve production with cost cutting in production process

    c. Promotion to inform product features, quality and price only

    d. Concentration is on minimization of bad debt losses

    4. The Sales Orientation

    Focus on Sales increase & profits only

    With customer satisfaction and service

    Aggressive marketing and advertising

    Intensive Sales Promotion

    High pressure salesmanship

    Examples: Insurance, Books,  Encyclopedia, Auto Sales, Elections,

    This concept also exhibit marketing myopia.

    5. The Marketing Concept (Market Oriented Approach)

    Customer Wants are most important than what seller wants to sell

    This is a customer oriented philosophy duly integrated & implemented through the entire organization in order to serve customers better than competitors & thereby ensure sustained growth & prosperity.

    Concept started after 1950

    Latest market information, needs, wants and demands of potential consumers are most important points to adopt this strategy.

    Marketer can adopt this strategy to offer desired satisfaction and better services to consumers than it’s competitors.

    Marketing concept as a customer oriented marketing philosophy of the entire business organization has 4 premises –

    a. Customer Orientation

    Corporate plans, Marketing Strategies, programmes, and operations must be focused on customer needs and desires.

    b. Marketing Information System

    Information is the key factor to analyse and provide desired satisfaction level to consumers and profitability.

    Adequate and Accurate information of consumers, their needs

    Adequate and accurate information about competitors and  their moves

    Integrated marketing programmes are necessary to satisfy consumer needs.

    c. Integrated Marketing Activities

    It’s necessary to integrate and coordinate all marketing activities properly

    d. Dual Objectives

    Marketer should serve consumers properly and also try to maximize profit at the same time.

    This is the best route to earn more profits through satisfied consumers.

    Simply we can say profit is the by product of supplying what the customer wants.

    Benefits of Marketing Concept : Refer Marketing Management by S A Sherlekar, Page 16, Himalaya Publishing House

    6. The Societal Marketing Concept

    It’s broadened marketing concept.

    Started in 1980

    Three factors :

    a. Customer demand satisfaction

    b. Public Interests (Social Awareness)

    c. Profitability

    Also called Human Concept and ecological concept.

    Public Welfare

    Better ecological or living environment

    The High quality or enrichment of Human life

    Questions:

    Describe the evolution of Marketing Concept? What are the benefits of Marketing Concept?

    Comment on the widened marketing concept. Can it be practiced in India?

    “Marketing is a system of integrated business activities designed to develop strategic plans in the form of marketing mixes leading to the satisfaction of customer want of selected market segments.” Explain.

    Explain the difference between new and the old concepts of marketing.

    References:

    Marketing Management, S A Sherlekar, 13th Revised Edition, Himalaya Publishing House.