Marketing Management Explained with Philosophies

Marketing Management Definition

Marketing management is defined as the analysis, planning, implementation and control of events aimed to create, build and maintain beneficial interactions with target buyers for the purpose of achieving organizational objectives.

It is Marketing management’s responsibility to discover areas where the company’s goods and services flop to fulfill consumer needs and to initiate forcefully marketing programs to offer desired satisfactions openly demanded by consumerism.

Objectives of Marketing management have become massively more consumer-oriented and much less product for the maximum long benefits of the company itself.

Marketing management philosophies used by the companies to direct their marketing efforts. Mostly, marketing philosophies denote the philosophies a company uses to describe and achieve the needs of its customers, serving both the consumer and the company. The same philosophies are not helpful for all sorts of companies. Therefore, different kinds of companies utilize different marketing management philosophies.

You May Also Read: Marketing Planning Basics

 

Philosophies of Marketing Management

There are four philosophies of marketing management, listed below:

  1. Production Concept
  2. Product Concept
  3. Selling Concept
  4. Marketing Concept

 

Production Concept

The production concept says that the products which are available in the market and are highly affordable and consumers will favor only those products. Consequently, management emphasis on refining production and distribution efficiency.

This production concept is old philosophy that guides sellers. It is useful in two types of situations.  The first occurs when the demand for a product greater than supply. Here in the case, management has to see various techniques to increase production. The second situation is when the cost of increased, in order to bring it down, it need to improve productivity.

For example, Henry Ford’s entire idea was to flawless the production of the Model T in order to reduce the cost and more people would be able to afford it. In today’s world, Texas Instruments tracks this philosophy of increased production and lower prices.

Product Concept

The product concept says that, the products that provide the high quality, performance and innovative features, consumers will favors only those products and organization therefore take effort to make continuously product improvements.

Passion of technology is being dominated by this product concept, because managers have faith that superior technology is the key to business success.

The product concept also can lead to ‘marketing myopia’. As per example given in book, that once railway management consider user wanted trains despite of transportation and ignored the growing challenge of airlines, cars, trucks etc.

Manufacturing bigger and improved trains would not satisfy demand of consumers for transportation, but creating other forms of transportation and extending choice would.

Selling Concept

Selling concept says that, if there are not promotion efforts and selling at large-scale, consumers will not buy enough of the company’s products. Industries must be good at tracking down prospects and convincing them of product benefits. The selling concept is also practiced in the non-profit area.

Most companies practice the selling concept when they have overcapacity. Their goal is to sell what they make rather than make what the consumer demand and market wants. So, it is highly risky which marketing is based on hard selling. It only works for short-term rather than long-term profitable relationships with customers. While the average satisfied customer tells three others about good experiences, but the average dissatisfied customer tells ten others his or her bad experiences.

Marketing Concept of Marketing Management

Marketing concept says that, the need and wants of target market so also delivering the desired satisfactions more effectively and efficiently than competitors do.

The marketing concept and selling concept are often jumbled.

The selling concept starts with the manufacturing works, concentrations on the company’s existing products and their heavy selling and promotion to get profitable sales. It is short-term sales with little concern about who buys or why. In contrast to selling concept, the marketing concept starts with a well-defined market, concentrations on customer needs and wants, identify all the marketing activities which may affect customers and makes profits by building long-term customer relationships based on customer value and satisfaction.

In marketing concept, companies produce well that consumer’s want, thereby satisfying consumers and making profits.

The marketing concept has been adopted by various successful and well-known global companies such as IKEA, Procter & Gamble, Marks & Spencer, Nordstrom Marriott and McDonald’s.

One of the prime examples of a highly successful Japanese car manufacturer is Toyota that takes a customer- and marketing-oriented view of its trade.

 

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