Concepts in Marketing
• The Production Concept : States that Consumers will favor those
products that are widely available and low in cost
• Therefore what do you do?
• Any companies following this concept today?
• Produce as much as possible
• Distribute widely
• Example, Henry Ford’s early cars
• Today, screws, nuts, plugs
• However, there were problems here, which were?
• No focus on quality and features, just price and availability
• This gave way to the Product Concept
• Product Concept: Consumers will favour that product that offers the
best quality/performance and most features
• Hence, what do you do?
• Make the “best” possible product
• Do R&D, come out with new features, improve, improve and improve
• What are the problems here?
Product Concept – Myopia
• Ted Levitt called it “Marketing Myopia”
• Focus on the consumer need, rather than on the product
• For instance, railroad companies in the US
• The rise of budget airlines, even in Asia
• Bajaj missed the motorcycle revolution
• IBM missed the PC revolution
Societal Marketing Concept
• You need to care about society as well
• Societal Marketing: Fill consumer needs, at the same time, harm him/her
& society as little as possible
• Thus, McDonalds faces lawsuits
• Eco-friendliness is in vogue - CFC free fridges the norm
• Thus, currently, the last two concepts hold sway
Marketing Vs. Selling
• Is selling the same as Marketing?
• Any ideas?
• Selling is “how to convert this product to cash”? “How do I get the
customer to part with money”?
• Marketing is “How do I find consumer needs and fill them better than
• Selling is short-term focussed, mktg is not
• Selling is a part of marketing, which is all-encompassing