- Production concept
When the production concept is defined, production-oriented businesses dominate the market. This is from the dawn of capitalism to the mid-1950s.
During the production concept era, business was mainly concerned with issues of production, manufacturing and efficiency. Companies that use the production concept believe that customers primarily want products that are affordable and accessible.
The production concept is based on the approach that firms can increase supply by reducing costs. In addition, the production concept highlights that businesses can lower costs through mass production.
A production-oriented company believes in economies of scale (reduced production costs per unit), where mass production can lower costs and maximize profits. Overall, the production concept is operations-oriented.
- Product concept
This concept works on the assumption that customers prefer products of higher quality and price and availability does not influence their purchasing decisions. So companies develop higher quality products that usually turn out to be expensive.
One of the best modern examples are IT companies, which are always improving and updating their products, to differentiate themselves from competitors. Since the main focus of marketers is product quality, they often lose or fail to attract customers whose demand is driven by other factors such as price, availability, usability, etc.
- Sales concept
The production and product concepts both focus on production but the sales concept focuses on making the actual sale of the product. The selling concept focuses on making every possible sale of a product, regardless of product quality or customer needs.
The selling concept highlights that customers will buy the company’s products only if the company wants to sell these products aggressively. This philosophy does not include building relationships with customers. This means that repeat sales are rare, and customer satisfaction is not great.
- Marketing concept
A company that believes in the concept of marketing places the consumer at the center of the goals of the business organization. All activities are directed at consumers. Business development aims to understand customer needs and wants. It executes marketing strategies according to market research starting from product conception to sales.
By focusing on the needs and wants of the target market, a company can provide more value than its competitors. The marketing concept emphasizes a “pull” strategy. This means that a very strong brand will make customers always prefer your brand over others.
- Community marketing concept
This is a relatively new marketing concept. While the societal marketing concept highlights the needs and wants of target markets and delivers better value than its competitors, it also emphasizes the importance of the well-being of customers and society as a whole (consumer well-being or societal well-being).
The concept of community marketing invites marketers to build social and ethical considerations in their marketing practices. They must balance the company’s profit criteria which often conflict between customer satisfaction and the public interest.
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