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 Approaches||New/Recent/contemporary approaches|
Table of Contents
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)
Also called Human Concept and ecological concept.
Better ecological or living environment
The High quality or enrichment of Human life
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.
Marketing Management, S A Sherlekar, 13th Revised Edition, Himalaya Publishing House.