The term marketing can be described as the management process through which goods and services move from concept to the customer. As a philosophy, marketing is based on thinking about the business in terms of customer needs and their satisfaction. In other definition, Marketing is the process of teaching consumers in terms of choosing the products which brings benefits to them and can be described as an organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in various ways that benefit the organization and its stakeholders.
As for organizations or sales person, marketing is everything that the consumer encounters when it comes to your business. For examples such as advertising, to what they hear, to the customer service that they receive, to the follow-up care that you provide. It’s all known as the part of marketing subjects or criteria and creates decision within the consumer whether to choose or not to choose repeat business. Besides that, the activities of marketing are often confused with advertising and sales, but it is important to realize that there is a difference. Thus, we can simply stated that marketing is everything you do to place your product or service in the hands of potential customers and it includes diverse disciplines like sales, public relations, pricing, packaging, and distribution. Basically, in marketing there are two types of concepts such as product and selling concepts. These concepts are related to each other in order to enhance a good marketing method.
Product Concept in Marketing
The product concept in marketing is an idea where a firm should focus on those products that able to produce more efficiency and also the creations of low cost products and demand for the new product. The product concept occurred when the main focus of the company is on the products that are being improved such as adding additional features on it. Thus, making the product superior each time. Basically, Organization working with product concept fully concentrates on product quality, design and features and even believes that the higher quality, maximum number of features and best design will attract large number of customer to obtain the product at best price. In general terms, the costumers also willing to pay high price as long that the products which they purchased would give them satisfactions in terms of its service and functions towards them.
Selling Concept in Marketing
The term selling concepts is where many organizations follow this concept which holds that consumers will not buy enough of the organization’s products unless it undertakes a large scale selling and promotion effort. The concept is typically practiced with unsought goods, those that buyers do not normally think of buying such as encyclopedias or insurance. These industries must excel at tracking down prospects and selling them on product benefits.
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. Such marketing carrier’s high risks. It focuses on creating sales transactions rather than on building long-term, profitable relationships with customers. It assumes that customers who are coaxed into buying the product will like it. Or if they don’t like it, they will possibly forget disappointment and buy it again later.
These are usually poor assumptions to make about buyers. Most studies shows that unsatisfied customers will not purchased the product again. While the average satisfied customer tells three others about good experiences, the average unsatisfied customer tells ten others about his or her bad experience. Apart from that, the first decision regarding this is that of the distribution channel that is going to be used.
The company can either do direct selling or sell the product through retailers, wholesalers or specialized sellers. The distribution channel which used depends on the kind of product and the target market. It is also determined how the product is going to reach the distribution outlet and how much is the cost. Another role that plays in these selling concepts is the sales territories are also determined under this concept. Organizations sometimes have separate managers for each sales territory to handle the transportation and sales outlets of that particular area.
This concept emphasizes on aggressive selling and high promotional back up practical on what we call as ‘unsought goods’ such as insurance. Therefore, the selling concept is practical by managers having uniqueness and overcapacity. Their aim is to sell what they can make rather that what the market needs. The Ford Motor Company is also a good example of the selling concepts. Ford produced and sold the Model T for many years. During its production, the automobile market attracted more competition. Not only did the competition begin to offer cars in other colors, the styling of the competition was viewed as modern and the Model T became considered as old-fashioned. Henry Ford’s sons were aware of the changes in the automobile market and tried to convince their father to adapt. However, Henry Ford was sure that his standardized low-price automobile was what the public needed. Consequently, Ford turned to marketing techniques to sell the Model T. It continued to sell, but its market share began to drop. Eventually, even Henry Ford had to recognize consumer desires and introduce a new model.