Hi there! This article is about evolution of marketing concepte.
We see ads everywhere, but have you ever thought about how businesses used to advertise?
In past, they focused more on making their products and selling them instead of thinking about what customers wanted.
But Nowadays, companies care more about what their customers want and need.
It’s interesting to learn about how marketing has evolved and how it affects us today. Let’s explore this topic together!
What are the 5 concepts of evolution of marketing?
The five concepts of the evolution of marketing are:
- Production Orientation: Businesses focus on producing goods efficiently and inexpensively.
- Product Orientation: Businesses focus on creating high-quality products that they believe customers will want.
- Sales Orientation: Businesses focus on aggressive sales techniques to persuade customers to buy their products.
- Marketing Orientation: Businesses focus on understanding customer needs and wants, and creating products and marketing strategies that meet those needs.
- Societal Orientation: Businesses focus on fulfilling their social responsibilities and creating products that benefit society as a whole, while also meeting customer needs.
1. Production concept
The idea that consumers will favor products that are available and highly affordable and the organisation should therefore focus on improving production and distribution efficincyPhilip Kotler – (12th Edition)
What is production concept?
The production concept is a way of doing business where the main goal is to make things as quickly and cheaply as possible, so that they can be sold at a low price.
This idea came about a long time ago during a time when many things were being made in factories for the first time.
The idea was that if companies could make a lot of things for cheap, then people would buy them.
However, this way of thinking doesn’t really consider what people actually want or need.
So, sometimes the products made this way might not be very good, and people might not be happy with them.
Focuses of Production Concept
production concept mainly focuses on two main things:
- Maximizing production efficiency:
- This means finding ways to produce goods and services as quickly and cheap as possible.
- Production concept believes that if a company can make things faster and cheaper, then it will make more money.
- Minimizing costs:
- This involves finding ways to reduce the costs associated with production, such as labor, materials, and overhead expenses.
- By keeping costs low, companies can offer products at a lower price, companies think will make people want to buy their products.
However, there are other few more focuses that are associated with this concept, such as:
- Mass production: This involves producing goods in large quantities using assembly line techniques.
- Standardization: This involves producing products that are identical or very similar in order to streamline the production process and reduce costs.
- Distribution: This involves finding the most efficient and cost-effective ways to get products to consumers, such as using bulk shipments or direct-to-consumer sales.
- Availability: This involves making products widely available through multiple distribution channels, such as retail stores and online marketplaces, to increase sales volume.
Examples for Production Concept
Fast food chains such as McDonald’s and Burger King focus on making their food quickly and inexpensively, so they can offer low prices to customers.
Also Clothing manufacturers such as H&M and Zara use mass production techniques to produce large quantities of clothing quickly and efficiently, which helps keep costs low and prices affordable.
2. Product concept
What is product concept in marketing?
The product concept in marketing is a business approach that focuses on creating high-quality products that the company believes customers will want and need.
They believe that if they make something that’s really good, people will be happy to pay more for it and keep coming back to buy it.
To make this happen, the company has to spend a lot of time and money researching and developing the product, to make sure it’s the best it can be and meets the needs of the people who will buy it.
Then, they have to do a good job of telling people about the product and why it’s special, so that they’ll want to buy it.
What is the main focus of product concept?
The main focus of the product concept is to create high-quality products that meet the needs and preferences of the target market.
The idea is to offer a superior product that stands out from the competition, and that customers will be willing to pay a premium price for.
This approach requires a deep understanding of the customer and their needs, as well as extensive research and development to create a product that meets those needs.
Effective branding and marketing efforts are also necessary to communicate the product’s unique features and benefits to potential customers.
production concept vs product concept
|Production Concept||Product Concept|
|Focuses on efficient and affordable production||Focuses on creating high-quality products|
|Assumes customers are primarily interested in getting a good deal||Assumes customers are primarily interested in quality and value|
|Emphasizes cost reduction and volume production||Emphasizes research and development|
|Requires effective distribution channels to reach customers||Requires effective branding and marketing efforts to communicate the product’s unique features and benefits|
|May lead to standardized, low-quality products||May lead to specialized, high-quality products|
|Examples: McDonald’s, Walmart||Examples: Apple, Tesla|
3. Sales concept
sales orientation definition
Sales orientation is a business approach that prioritizes sales volume and revenue over customer satisfaction.
In other words, it’s a strategy where a company focuses on pushing its products or services onto customers, regardless of whether or not the customers actually need or want them.
While this approach may work in the short-term to boost sales figures, it can ultimately lead to customer dissatisfaction and lack of loyalty.
It’s important for companies to strike a balance between sales and customer needs and preferences.
Because ultimately the customers who drive the success of a business.
What is sales oriented objectives?
Sales-oriented objectives are goals set by a company or organization that prioritize increasing sales revenue and volume over other business objectives such as customer satisfaction, product quality, or social responsibility.
For example, a sales-oriented objective might be to increase sales by 20% in the next quarter, without considering how that might impact customer satisfaction or brand reputation.
Focusing solely on sales-oriented objectives may help a business in the short-term, but it could cause them to prioritize immediate gains over long-term success.
When was the sales orientation?
The sales orientation era took place between the 1920s and 1940s.
During this period, businesses focused on aggressive sales techniques to increase revenue and gain market share.
The assumption was that customers would buy a product if it was effectively marketed and sold to them.
Companies primarily focused on increasing sales and maximizing profits, rather than developing customer relationships or meeting their needs.
While this approach was successful for many businesses during this era, it ultimately led to a lack of customer loyalty and a focus on short-term gains at the expense of long-term success.
4. marketing oriented concept
What is the meaning of marketing orientation?
Marketing orientation is a business approach that places the customer at the center of all business decisions.
This approach involves understanding the needs and wants of customers and creating products and services that satisfy those needs and wants better than competitors.
The marketing orientation approach requires extensive market research and a deep understanding of the target market, including their demographics, preferences, and behaviors.
Marketing orientation also involves building long-term relationships with customers by providing them with high-quality products and services, exceptional customer service, and a positive brand experience.
This approach is customer-centric, and businesses that adopt a marketing orientation are focused on meeting customer needs and providing value to customers, rather than simply maximizing sales or profits.
What is an example of a marketing oriented company?
One example of a marketing-oriented company is Apple Inc.
Apple is known for its customer-focused approach and emphasis on innovation and design.
The company has a deep understanding of its target market, which includes tech-savvy consumers who value style and performance.
Apple invests heavily in market research and product development to create products that meet the needs and preferences of its target market.
The company’s marketing strategy emphasizes the unique features and benefits of its products, using sleek advertising campaigns that highlight the design, functionality, and user experience of its products.
Apple also places a strong emphasis on customer service, with a network of retail stores that provide personalized support and training to customers.
This customer-centric approach has helped Apple build a loyal customer base and maintain a competitive edge in the highly competitive tech industry.
5. Societal Orientation
What is meant by societal marketing?
Societal marketing is an approach to marketing that considers not only the needs and wants of the target market but also the broader social and environmental impacts of a company’s products, services, and marketing activities.
This means that a company practicing societal marketing aims to strike a balance between its interests, the needs of the target market, and the well-being of society as a whole.
In addition, a company practicing societal marketing values building relationships with stakeholders such as customers, employees, suppliers, and local communities.
They listen to their perspectives and feedback and use it to guide their decision-making processes.
The goal of societal marketing is to create long-term value for both the company and society by taking into account economic, social, and environmental considerations.
Conclusion: Evolution of Marketing Concept
It was great to explore the evolution of marketing concepts, from the production concept to the societal marketing concept.
We learned how each concept shifted the focus of businesses towards their customers and society.
The production concept aimed to produce goods and services as efficiently as possible, while the product concept focused on creating high-quality products that met customer needs.
The sales orientation era prioritized sales and persuasion techniques to increase revenue.
In contrast, the marketing orientation era centered on building long-term relationships with customers and creating value for them.
Finally, the societal marketing concept emphasized a company’s responsibility towards society and the environment.
It’s fascinating to see how marketing has evolved over the years and how customer needs and values have become increasingly important.
These concepts are still relevant today, and businesses must adopt a customer-centric approach to stay competitive in the market.
If you like to read about History of marketing go dive our past posts!!