THE EVOLUTION OF MARKETING CONCEPTS● PRODUCTION CONCEPT- CONSUMERS...

3. The evolution of marketing concepts● Production concept- Consumers will favour products that are available and highlyaffordable, and that management should therefore focus onimproving production and distribution efficiency → Massproduction. - The production concept is a useful philosophy in two types of situation. + The first occurs when the demand for a product exceeds the supply.Here, management should look for ways to increase production. + The second situation occurs when the product’s cost is too high andimproved productivity is needed to bring it down.● Product concept- Consumers will favour products that offer the most quality, performance andinnovative features, and that an organisation should thus devote energy tomaking continuous product improvements. ● Selling concept- Consumers will not buy enough of the organisation’s products unless itundertakes a large-scale selling and promotion effort. - Focuses on creating sales transactions rather than on building long-term,profitable customer relationships.- The concept is typically practised with unsought goods (funeral service,insurance, …) – those that buyers do not normally think of buying.● Marketing concept- Focuses on customer needs, coordinates all the marketing activities affectingcustomers and makes profits by creating long-term customer relationshipsbased on customer value and satisfaction. ● Societal marketing concept- The organisation should determine the needs, wants andinterests of target markets → deliver the desired satisfactionsmore effectively and efficiently than competitors in a way thatmaintains or improves both the consumer’s and society’s well-being. - Is the newest of the five marketing management philosophies.