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Management Consulting/sir please help my assigment for MARKETING MANAGEMENT


1.   Several competing philosophies such as the selling   concept, production concept and product concept exist. How are these different from one another?  Quote appropriate examples

Company Orientations to the Marketplace

What philosophy should guide a company marketing and selling efforts? What relative weights should be given to the interests of the organization, the customers, and society? These interest often clash, however, an organization’s marketing and selling activities should be carried out under a well-thought-out philosophy of efficiency, effectiveness, and socially responsibility.

Five orientations (philosophical concepts to the marketplace have guided and continue to guide organizational activities:

1.   The Production Concept
2.   The Product Concept
3.   The Selling Concept
4.   The Marketing Concept
5.   The Societal Marketing Concept


The Five Concepts Described

  The Production Concept. This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.



Their focus  is
-can we  PRODUCE    the  product
-can  we  PRODUCE   enough  OF    the  product / at the  low cost.


The Product Concept.

This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door.

Product Concept

Developing products that are aligned with current or emerging customer needs . Technology companies are often challenged to develop competitive new products while meeting short windows of opportunity. Success requires effective decision making about product features, packaging, positioning, and pricing.

PRODUCT  CONCEPT  approach  helps  to  achieve  this.

Product  CONCEPT   involves:
•   Exploratory  research
•   Needs Segmentation
•   Opportunity Assessment
•   Voice of the Customer
•   Concept Viability
•   Competitive Assessment
•   Concept Optimization
•   Ideation
•   Portfolio Management
•   Business Case Rationale
•   Product Retrieval
•   Market Research
•   Trend Monitoring

New Product Concept
There are as many methods to screen new product ideas as there are consultants. Perhaps most, if not all of them, are valid. But small companies cannot afford to incur costly product development failures as part of "the normal course of big business." Even one product failure in a small company may threaten its survival if a large amount of time, scarce resources, and personnel are committed to it.
A small company often survives on its reputation with key customers, which can be threatened or weakened with product development failures. The risks of product development failure can be reduced with carefully constructed marketing strategies, even for small companies.
Step 1. Screen concepts against your company's marketing strategies. Concept screening against new or pre-existing company marketing strategies will reinforce company focus and use of scarce resources to successfully introduce new products.
A good overall company marketing strategy acts as a guideline for action. The marketing strategy should:
•   define the target buyer, demographically and by lifestyle, if appropriate
•   translate the company mission into a measurable annual objective
•   tell how the goal will be accomplished in terms of:
•   marketing spending vs. competition in the category
•   brand positioning
•   pricing actions
•   product quality
•   establish new product introduction standards
•   frequency
•   achievement of overall marketing objective
•   response to competitive new product introductions
If the new product concept does not fit the company's overall marketing strategy, serious consideration must be given to either changing the company marketing strategy or not pursuing the new product concept.
Step 2. Screen new products against company sales and profitability minimums. A new product must have the potential to generate minimum sales and profitability goals for the company with THE  RIGHT  PRICING STRUCTURE. For example, many large consumer goods companies have minimum sales goals of $20 to $50 million per year, with a minimum gross margin before spending an overhead of 60 percent (i.e., cost of goods = 40 percent).
If a small company is competing with much larger companies, knowledge of these large company new product minimums can provide the basis for a successful new product development and marketing strategy. Most small companies would be very pleased with dominating niche market segments that amount to $5 to $20 million in total competition sales per year.
Step 3. Screen your new product concept with key customers and buyers. An important step that large and small companies often overlook is obtaining input and evaluation of new product ideas at an early stage with key customers (e.g., key account buyers and their management) and end user buyers. Business owners or managers may become so committed to a favorite new product development concept that they proceed to full development of a product prototype before outside input is obtained.
In certain high-tech industries and pharmaceuticals, where years and millions of dollars are committed to each new product development project, high security and long, complex development timetables may be necessary. Foregoing key customer and end-user input is part of the risk and cost of doing business in these industries.
QUALITITATIVE   AND   QUANTITATIVE  CONSUMER  RESEARCH  can be invaluable in this stage, as well as in earlier development stages.


  The Selling Concept.

This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.


The  firm  sold  what one  produce and  try  to  convince the  customers
through  advertising  and  personal  selling.

Their focus  is
-can we  sell  the  product
-can  we charge enough  for  the  product.


What  is  Sales ?

It  is  a  process  by  which  

-one  identifies   the  people, who  have a  need. [ PROSPECTING]
-one determines  the  needs  of  the  people.[ NEEDS ]

-one determines  a way  of  finding  a  solution to the  prospect's  problem.[ PROPOSE]

-one determines the  way of  communicating  your product  as a  solution. [RECOMMENDING]

-one determines the value for the product for  the  prospect.[ ADVOCATING  YOUR PRODUCT].

-one determines  / sells  benefits  of the  product   to the  prospect. [ SELLING BENEFITS]

and then  creating a  transaction for exchanging the product for  
a  value. [ CLOSING  THE SALE ]

and  thus  creating a  satisfaction to the buyer's needs/wants.


  The Marketing Concept.

This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.

The marketing  concept  is the  philosophy  that  the  firm  should  analyze
the needs of  their  customers[ current /potential ]   and  then make
the  decisions to  satisfy  those needs , better  than the  competition.


What  is  Marketing ?

It  is  a  process  by  which  

-one  identifies  the  needs and wants  of  the  people.
-one determines  and  creates a  product/service to meet  the  needs
and  wants. [PRODUCT]
-one determines  a way  of  taking the  product/service to the market
place. [PLACE]
-one determines the  way of  communicating the product  to the
market  place. [PROMOTIONS]
-one determines the value for the product.[PRICE].

-one determines  the  people, who have  needs/ wants. [PEOPLE]

and then  creating a  transaction for exchanging the product for  
a  value.
and  thus  creating a  satisfaction to the buyer's needs/wants.

TERMS  to  understand.
1.Product/Service  means  a  product or service or idea to satisfy
  the  people's  needs /  wants.
2.Needs  mean  when  a  person feels deprived of something.
3.Wants  mean  when a  person's  need  is  formed / shaped
  by  personality, culture, and  knowledge.
4.Value  means  the  benefits  that the  customer  gains from
   owning  and  using the  product  and  the  cost  of  the product.
5.Satisfaction  means  the extent  to  which  a  product's
  perceived  performance  matches  a  buyer's expectation.
6.Exchange means the  act of obtaining a needed/ wanted
  object  by  offering  something  in  return.
7.Transactions  mean a  trade  off  between  a  buyer / a seller
  that  involves  an  exchange  at  agreed  conditions.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.

There are many marketing concepts for  businesses to consider marketing and planning, but here are our Top 10 list of marketing concepts for  business marketing.

Concept Marketing # 1: Consistency
Consistency is the number one marketing concept for  firms marketing only because it is left to marketing concepts for many companies. I worked with a long list of customers, large and small, are very inconsistent in all areas of their marketing. Consistency reduces the cost of marketing and increase the effectiveness of branding.

Concept Marketing # 2: Planning
Once  business owners decide to be compatible with their marketing, planning is the next great idea to engage. Planning is the most vital  business marketing or any level of marketing, incidentally, and so many owners, marketing and CMO same evil. Put the time in planning your marketing strategy, budget and other concepts presented here to ensure success.

# 3 Concept Marketing Strategy
Immediately follows the strategy planning because your strategy is the basis for the rest of your marketing activities. In the planning process, you must develop your strategy: who you target, how you target them and how will you keep as a customer.

Concept Marketing # 4: Target Market
Target market is another key concept for  business marketing. Defining precisely which allows you to target  business owners to focus on customers and reduce waste marketing. A well-defined target market will any other marketing concept so much easier to implement successfully.

Concept Marketing # 5: Budget
Even if it is listed at number 5, budgeting is important throughout the process. Creating a marketing budget is usually the hardest and most inaccurate of the  business marketing. Most  business owners do not have much experience in marketing, so that their budgets end generally biased. The most important part of this marketing concept is to establish a marketing budget. From there, we can worry about how to distribute your funds available.

Concept Marketing # 6: Marketing Mix
The marketing mix is generally defined as product, price, place and promotion. As a business owner, you must decide precisely on your product (or service), prices, where and how you distribute your products, and how will you let everyone know about you and your products.

Concept Marketing # 7: Web Site
In today's market, a company of any size must have a website. I hate when I see companies that have a website page with updated information. Customers, whether businesses or consumers will search the web more than 60% of the time before making a purchasing decision. The marketing concept contains a large number of additional components, but you should at least put up a small website of any kind and maintain.

Concept Marketing # 8: Branding
Many  business owners also neglect of this concept. Small and medium enterprises should focus on the marketing concept as well as larger corporations do. The image consists of photos, logo, design, layout, makeup, and the image of your products and your company. Branding is how your customers perceive (please place great emphasis on that word!) Your product and corporate. Be sure to pay special attention to this type of brand building are each step of your planning and implementation.

Concept Marketing # 9: Promotion and advertising
The promotion and advertising is very complex marketing concept, but should be considered for any type of activity and its products and services. Once you commit the Previous 8 marketing concepts, you finally leave your target market know about you and your products. A good promotion and advertising will result in brand recognition efficient and, ultimately, increased sales.

Concept Marketing # 10: Customer Relationship Management (CRM)
The concept of customer relationship management has become a huge industry in the world market. There are many types of software and services to help companies of all sizes address their customer relationship management. As it is much more available, usually for a large sum of money,  business owners usually this concept as something they are not large enough to or have enough money to implement. Do not be fooled by large industry that has evolved from the concept. Maintaining good customer relationship management is essential to create loyal customers and consistent.

The list of marketing concepts should be considered, studied, planned and implemented, especially by small businesses to be successful. In addition, your marketing does not stop there. Each company is unique and additional components that must be considered, but this list will launch any marketing plan.
Marketing can be categorized as :
•   Differentiated marketing-when the same product is targeted to different segments of customers
•   Undifferentiated marketing-when the same product is targeted to all customers.
•   Concentrated marketing- when only a particular segment of customers is the matter of concentration.

Some types of marketing are following :
•   Internet marketing or e-marketing or online marketing
•   Telephonic marketing
•   Door to door marketing
•   Personalized marketing
•   Digital marketing
•   Article marketing
•   Television marketing
•   Evangelism marketing
•   Social marketing
•   Reality marketing
•   Sports marketing
•   Guerrilla marketing
•   Engagement marketing
•   Cause marketing
•   Search engine marketing
•   Viral marketing
•   Global marketing
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.

It encompasses  the  following  elements  and  the  most  popular  company
which  uses   all  these  is  COCA  COLA  CORPORATION
and  they do it  very  well.

- market research,
[conducts  marketing  research  continuosly--pre-product/during  product  launch/
during  the maturity/ consumer research/retail research/test  marketing  etc etc
-product planning / development ,
[they  plan/  develop  products  in  a  scientific  manner, tailoring
it  to  the  exact  taste  of  the  consumers]
-product  pricing,
[conduct  price  research and  position  the  price  point
where the  consumer can afford / the  company makes  good profit.]
-product  marketing
[the  company  conducts  one  of  the  most  effective  product  marketing
programs in the  world.]
[the  company  has   a  wide  network  of   sales  representatives
in  almost  over   180 countries]
[the  company  applies  varieties of  promotions including
sales promotion/trade  promotion/consumer  promotion/
advertiisng/ public relations ]
[when  it comes  to  distribution, they  have  an  unmatched  distribution network.
they  go  for  extensive and  intensive  coverage  of  the  market---that covers
supermarkets/corner stores/gas  stations/ schools/colleges/convenience stores/sports complex etc
-customer care,
[the  company has   a  well crafted  customer  care  program for  
the  consumers.]
[when  it  comes to  branding,  they  are  second to  none  in the  world
''COKE'' say  no  more]
[the company  has  an extensive  program  on  merchandising  like
external displays / internal  displays ]
[ the  company  has  a   strong presence  in  the  retail field
supported  by  active  merchandisers]
-strategic  marketing management  
[the  company  has  a  strong  team  to  manage  the
strategic   aspects  of  market--it  is highly  research based]
-market  forecast.
[the  company  uses  the  finest  software  to  develop
the  demand  planning  and  market  forecast and  sales  forecast]
 -consumer  behavior
[the  company  continuously  monitors  the  consumer  behavior
with  respect  their  products]
 -organizational  buyer  behavior.
[the  company  continuously  monitors  the  organization  buying   behavior
with  respect  their  products  ---like  schools/ colleges/ business  houses]
-Strategic market Planning
[the  company  has  a  strong  team  to  manage  the
strategic   aspects  of  market--it  is highly  research based]
-Market  Development.
[ the  company  develops   the  market   through
*geographical  coverage  increase.
*current  customers usage  increase
*new customers  increase
-marketing  environments
[the  company  is  sensitive  to  the  environment
and  has   a  number  of  societal  marketing  programs.
-market  segmentation/ targeting
[THE  company  uses  the  segmentation   techniques
heavily  targeting   the  ''15 --45''   age  group]
-field  sales  planning /  development
[the company   carries out  regular  field  sales
planning  and  development program to  sharpen/ tune
the  field  sales  team.

Successful businesses focus on getting the basics of marketing right.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.
Some of the things that the company does  in   marketing  practices is to:
*Have a marketing team or individuals who have qualifications in marketing
*Review  brand, its image and what it stands for
*Consider the consistent use of a strap line in the  advertisements
*Launch a website and think about e-marketing and interactive website pages to add value
*Adopt the correct pricing strategy for the  market sector, competitors, customers & profit
*Create a database of all the  retailers so that you can market to them again
*Know your consumers - find out where they are spending their time and money
*Employ specialists for website creation or use external experts in the field
*Use external professionals for press releases
*Support anyone wanting to train in marketing
*Have a consistent brand message on all literature, websites, business cards & letter heads
*Create a mission statement
*Always plan properly, there are packages such as Microsoft Project which can help
*Use market research to understand  competitors, spot opportunities and lessen risks
*Use the database to market either by postal campaigns, e-mail or even mobile marketing
*Advertise in the correct places, and analyse and learn from each campaign
*Enlist professional designers for  literature, business cards and logos
*Stick to what you do best and let the experts help with their specialist knowledge.

  Distinctions between the Sales Concept and the Marketing Concept:
1.   The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on the needs of the buyer.

2.   The Sales Concept is preoccupied with the seller’s need to convert his/her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs).

  The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve competitive advantage. This philosophy is the foundation of consultative selling.

  The Marketing Concept has evolved into a fifth and more refined company orientation: The Societal Marketing Concept. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches.

  The Societal Marketing Concept.

This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being.

  This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services.
Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society?

  The marketing concept possibily sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider:
The fast-food hamburger industry offers tasty buty unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.

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Leo Lingham


management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc


18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc


24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc




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