Philosophy of Marketing | Production Product Selling Marketing & Societal Concept

Fri, 04/24/2009 - 19:22 -- Umar Farooq

Basically there are five different concepts of marketing according to which businesses conduct their marketing activities. Following are the marketing philosophies:

  1. The production concept.
  2. The product concept.
  3. The selling concept
  4. The marketing concept
  5. The societal concept.


The Production Concept 

 Production concept is one of the oldest concepts of marketing.

According to this production concept, consumer will prefer products that are widely available and inexpensive.

Assumption of Production Concept

 The underlying assumption is that the buyer is primarily interested in product availability and low prices.

Focus Production Concept

Managers following this philosophy will concentrate on:

  • Achieving high production efficiency
  • Low costs
  • Mass distribution

Application of Production Concept

Following are the applications of production concept

  • This seems to be a pertinent philosophy as the context of price conscious buyers of developing countries. 
  • It can also be used when a company wants to expand the market.
  • Henry Ford practically implemented this philosophy on large scale during 1900 in automobile industry.

Drawback of of Production Concept

It afterwards, results in poor quality.


The Product Concept

Some firms follow product concept of marketing.  The product concept of marketing holds that consumers will favor those products that offer the highest level of quality, performance and / or innovative features.

Assumption of Product Concept

The underlying assumption of this concept is that the buyers can appraise the quality and performance.

Foucs of Product Concept

The operational implications of this concept are that the managers will focus on:

  • Making superior products
  • Improving the products over time.

Drawback of Product Concept

This pattern of thinking most of the times leads the managers to be caught up in lone with their product at the cost of customer need which stands totally ignored.


The Selling Concept

According to this concept, the consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s product.  The organization must therefore undertake an aggressive selling and promotion effort.

Assumption of Selling Concept

Following are the assumptions of selling concept

  • The buying inertia or resistance exists in consumer.
  • The company has complete resources of vigorous marketing and effective selling.

Focus of Selling Concept

The result of the philosophy is, very obviously a thorough and vigorous marketing strategy in order to coax consumers.  Thus the focus will be on the seller’s need of converting his product with cash.

Application of Selling Concept

The applications of the selling concepte to the following situations are.

  • When the goods to be sold are such that buyers normally don’t think of buying (the unsought goods).  The example is of insurance
  • In the non-profit area by fund-raisers, college admission offices and political parties.
  • When the firms have over-capacity.

Drawback of Selling Concept

This concept when practiced can raise the buyers’ expectations, which if not matched by the value of the product, may result in negative advertisement.


The Marketing Concept

Developed in mid 1950s, the concept is the most practical and pragmatic.  It holds that the key to achieving organizational goals requires of a company to be more effective than its competitors in creating, delivering and communicating customer value of its chosen target markets.

Focus of the Marketing Concept

The emphasis by this philosophy has been shifted towards the customer needs of the target market and the creation for him through integrated market techniques, for the sake of profitability.

This concept, thus, takes an outside in perspective.  It starts with a well defined market, focuses on customer needs, co-ordinates all the activities that will affect customers and produces profits by satisfying customers.

Important concepts in this philosophy are:

  • Target market
  • Customer Needs
  • Integrated Marketing
  • Profitability through customer satisfaction

a. Target market

A very carefully thought and well defined target market is chosen.

b. Customer Needs

Customer needs have to be fully identified.  It is never a simple process.  Customers have the following five types of needs:

  • Stated needs: Which are stated.
  • Real needs: Which are meant by stating.
  • Unstated needs: Which are expected.
  • Delight needs: Which are a bit more than expectation.
  • Delight needs: Which are a bit more than expectation.
  • Secret needs: The purpose deep down behind the stated need

Based on needs satisfaction marketing is classified as:

  • Responsive marketing: Finds stated need and fills it.
  • Anticipative marketing: Anticipates future needs and prepares to fills it.
  • Creative marketing: Discovers and produces solution needed but not asked by the customer.

c. Integrated Marketing:

It means that all the departments of the company work together to the customer’s interest.

In companies, however, exists co-ordination problem.  It has to be overcome so that the integrated marketing can be practiced.

Integrated marketing takes place at two levels.

  • All the marketing functions should be integrated.
  • All other departments must be integrated with the marketing function in pursuit of customer’s satisfaction.

To make integrated marketing possible, extra marketing as well as internal marketing must be exercised.

d. Profitability through customer satisfaction:     

It is the ultimate goal of business organizations.  But, the marketing Managers do so by attaining higher level of customer satisfaction.

Position of profit when marketing concept is not embraced

  1. Sales decline.
  2. Slow growth.
  3. Changing buying patterns.
  4. Increasing competition.
  5. Increasing marketing expenses.

Hurdles in converting to marketing concept

  1. Organized resistance (from other departments)
  2. Slow learning (on part of employees)
  3. Fast forgetting.



Humanistic marketing and ecological marketing have resulted from it. According to societal marketing concpet, the organization’s task is to determine the needs, wants and interests of Target markets and to deliver the desired satisfaction, more effectively and efficiently than competitors, in a way that the consumer’s and society’s well being is preserved and enhanced.

Focus of Societal Marketing Concpet

A marketing manger, in this area will incorporate social and ethical considerations into his marketing strategy.  He will have to keep a balance among company’s profit, customer’s satisfaction and the public interest.  The companies practicing such form of marketing are called to be having cause related marketing