Discuss about the marketing management philosophies.
What are the differences between marketing and selling concept?
What are the differences between Customer and Consumer?
Answer: Marketing is the process of identifying needs and wants of target customers and delivering the product and service to customer for earning profit. There must have some logic behind every activity. This logic is called philosophy. When marketing activities are completed under these logic then it is called marketing philosophy.
There are five marketing management philosophies. These are given below:
1. The Production Concept:
The product concept holds that consumers will favor products that are available and highly affordable. Such as; WASA, Bangladesh Railway etc. Marketing manager tasks:
a). Produce product with a view to sufficient supply and distribution.
b). Price keep up within the capacity of buyers.
2. The Product Concept:
The product concept holds that consumers will favor products that offer the most quality, performance and innovative features. Such as; Nescafe coffee of Nestle. Marketing manager tasks:
a). Development of product continuously.
b). Make attractive design, color, packaging and form of product.
c). Increase the effectiveness of product
3. The Selling Concept: The selling concept holds that consumers will not purchase enough of the form’s products unless it undertakes a large-scale selling and promotion effort. Such as; Insurance Company of Bangladesh is following this concept. Marketing manager tasks;
a). Increasing promotional activities.
b). Employed skilled and experienced salesman.
c). Ensure customer satisfaction
d). Taking planning shortly
4. The Marketing Concept:
The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Such as; Pride, Dandy Dying, and Proctor and Grumble (P and G) are conducting their business under this concept. Marketing manager tasks;
a). Identity customer test, preference and demand.
b). Product planning, development, pricing and distribution according to the demand of customers.
c). Earning profit with customer satisfaction.
5. The Societal Marketing Concept:
The societal marketing concept is the idea that a company’s marketing decisions should consider consumer’s want, the company’s requirements, consumer’s long run interest and society’s long-run interests. Such as; Uniliver Company ltd., Bata Shoe, Dutch Bangla Bank ltd. are doing their business under this concept. Marketing manager tasks:
a). Satisfying the needs of customer and welfare the society and society’s people.
b). Participate various types of social welfare programs.
c). Try to solve environmental problem, economic problem use our minimum resources properly.
From the above discussion we can say that, marketer has to follow an appropriate philosophy for effective marketing programs.
2. What are the differences between marketing and selling concept?
Answer: Marketing concept and selling concept are two different concepts. The basic differences of these two concepts are given below:
|Point of Difference||Marketing Concept||Selling Concept|
|1. Definition||Marketing is the process of creating value for customer and delivering goods and services for earning profit.||Selling is the process of encoring customers for increasing sales.|
|2. Objective||The objective of this concept is to satisfy customer through goods and services.||The objective of selling concept is to increase sales of goods and services.|
|3. Scope||The scope of marketing concept is wider.||The scope of selling concept is narrow.|
|4. Emphasis||This concept emphasis on customer needs.||This concept emphasis on products or services.|
|5. Profit||This concept earns profit through customer satisfaction||This concept earns profit through attractive sales and marketing promotion.|
|6. Start||This concept starts with actual and potential customers||This concept starts with existing product.|
|7. Market segmentation||This concept thinks about market segmentation deeply.||This concept never thinks about market concept.|
|8. Marketing mix||This concept gives equal importance on marketing mix.||This concept gives importance on only promotion.|
|9. Effectiveness||This concept is applicable in pure competition market.||This concept is useless in pure competition marekt|
3. What are the differences between Customer and Consumer?
Answer: Though the meaning of customer and consumer are almost same, but it has some fundamental differences. The basic differences between customer and consumer are given below:
|Point of Difference||Customer||Consumer|
|1. Definition||Customer is a person or organization who purchases goods or services for further production.||Consumer is a person or organization who purchases goods or services for consumption.|
|2. Nature||Customer may be business or organization.||Consumer may be person or family member.|
|3. Objective||Business customer purchases goods for earning profit.||Consumer purchases goods for destroying utility of goods or services.|
|4. Utility||Customer creates utility of goods or services||Consumer destroys the utility of goods or services.|
|5. Number||The number of customers is fewer.||The number of consumer is larger.|
|6. Purchase volume||Customer purchases huge amount of goods or services||Comparatively purchase lower amount of good or services|
|7. Place||In distribution channel, customer stays before consumer.||In distribution channel, consumer stays after customer.|
|contract||Customers have ability to make contract.||Consumers may have no ability to make contract.|