Marketing Management Philosophies by Vedantu
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Marketing is a standard process of selling and buying used to gain profit either in monetary terms or in Fringe benefits. It is a part of the entire management phenomenon. Management is the easiest structured way followed by an organization from the initial step to the implementation process. The step-by-step procedure to achieve the ultimate objective of an organization in an organized manner is nothing but the management.
From these two definitions, we can derive the concept of marketing management. Beautiful kisses only on the selling and buying goods or bonds or any other items in your Market to gain something in return. The marketing concept is a management philosophy that affects various factors. These factors are nothing but influencing aspects of marketing management. Some of those factors are as given below,
Population Growth: Population growth is defined as the rise in the count of people in a population. The population is classified into two ways, one is the overall count of the population throughout the year and one is counted within a single nation. If we talk about the world population then it is estimated as 83 million annually in other words 1.1% per year.
Expanding Household needs: Expansion of household needs could be associated with anything from the requirement of having a new car to the hope of shifting to a new house. This expansion also accounts for an increase in requirements when you welcome a newborn to your home. You may realize that your current room space is not sufficient. This is how the expansion of household needs keeps going on.
Removal of Income: There is a non-operating income that is the portion of a company’s income as it is earned from those activities that are not related to its mainstream business operations. It may include profits, losses, and dividends by the foreign exchange as well as asset write-downs.
Excess Income: Depending on the changing spending habits, the income effect might have both negative and positive consequences especially on a small business according to different factors.
Technological Development: Each business focuses on technological development under the marketing management as it is essential to impress target customers. Stay assured of understanding all topics in simple language as Vedantu has designed a superb format for its lovely students sitting across the world.
Mass Communication Media: These days, mass communication media has become an integral part to spread word of mouth. Here, each company is competing to grab the market behavior and work on all the parameters that contribute to wooing more and more customers.
Credit Purchases: It means to say that you are purchasing on credit to receive services or goods right away by paying for a later scheme. Students, you need to remember that this is really a crucial term in marketing management, so do not worry Vedantu tutors will explain it step by step for you.
Altering Social Behaviour: Marketing management is based on the behavior of the customers so organizations also have to keep an eagle watch on their altering social behavior.
Describe Market Management Philosophies
Marketing management has four philosophies to achieve the objectives of an organization easily. The evolution of marketing management philosophies was started in the mid of the 18th and 19th centuries. It took place during the industrial revolution for the first time. Then after it grew on increasing day by day and derived several philosophies.
Among them, the major 4 marketing management philosophies can be explained as below:
The Production Concept
This concept explains the importance of production in marketing management. It is first among the four marketing management philosophies. Some organizations may believe that if the product has come into the market at a low cost, without considering the customer's requirement, it can be attracted by the customers. It means the product itself can create its demand as the supply is more.
The Product Concept
Another important concept of marketing management taken from the four marketing management philosophies is the product concept. These people believe that rather than the production, supply, price, the growth of an organization depends on the quality of the product. A qualitative product can easily change the customer's purchasing decision, even if it is expensive and doesn't available in large quantities.
The Selling Concept
The vital concept of the four marketing management philosophies. Because every organization's final goal is to increase its sales. So the selling concept plays a vital role. It doesn't consider the quality or quantity and other criteria. It only focuses on the selling of available goods as much as we can. It considers every customer as valuable and tries to make them favorable.
The Marketing Concept
In this 21st century, the market plays a significant role. Because it is the place where the organizational outputs may meet the customer requirements. It is a platform where all the organizations should exhibit their creative, innovative, and qualitative products to attract more customers and to gain the highest market share.
In the Marketing Management Philosophies class 12, another philosophy is also added to make five marketing management philosophies in total. So the next philosophy is, Societal marketing concept:- we can consider this concept as an extension of the marketing concept. Along with all specifications of marketing philosophy, it also considers the well-being of society and the growth of the country depends on the growth of society. Society means public.
These are the major 5 marketing management philosophies. Each concept has its advantages. All the concept's final objective is to increase the growth of an organization. So, we can't differentiate marketing management philosophies.
Conclusion
Thus marketing management is a disciplined, structured way of selling and buying goods which leads to developing the organization. To achieve these outputs, we have observed several philosophies, strategies, etc. Vedantu brings the entire syllabus under one roof where students do not need to collect the material from different sources. They have sorted topics that have been well explained from the examination point of view.
Vedantu serves the students from all corners of the world, the best part is that they do not have to step out of their homes and can grab all the learning from the comfort of their home. Download the study material from Vedantu and observe the difference within your knowledge of the subject.
FAQs on Marketing Management Philosophies Explained
1. What does 'marketing management philosophy' mean?
A marketing management philosophy is a business's fundamental guiding principle or approach to achieve its marketing objectives. It dictates how a company views its customers, products, and overall market, influencing its strategies for production, sales, and customer relations.
2. What are the five main marketing management philosophies?
The five main marketing management philosophies, as per the CBSE syllabus, are:
- Production Concept: Focuses on making products widely available and affordable, assuming consumers will favor products that are easy to get and inexpensive.
- Product Concept: Assumes consumers prefer products that offer the most quality, performance, and innovative features, leading companies to focus on continuous product improvements.
- Selling Concept: Believes consumers will not buy enough of the company's products unless the company undertakes a large-scale selling and promotion effort.
- Marketing Concept: Holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
- Societal Marketing Concept: Considers not only customer satisfaction and company profits but also the long-term welfare of society and the environment.
3. How have marketing management philosophies evolved over time?
Marketing management philosophies have evolved significantly. Initially, businesses focused on production efficiency and product availability (Production Concept). This shifted to emphasizing product quality and features (Product Concept). Later, the focus moved to aggressive selling and promotion (Selling Concept). A major shift occurred with the Marketing Concept, where understanding and satisfying customer needs became central. Most recently, the Societal Marketing Concept emerged, adding concerns for broader societal well-being and environmental impact to business objectives.
4. What is the key distinction between marketing and selling?
The key distinction is that selling is primarily concerned with converting products into cash through persuasion, focusing on the seller's needs. In contrast, marketing is a broader process that begins with understanding customer needs and wants, developing products to satisfy those needs, and then pricing, promoting, and distributing them. Marketing aims for long-term customer satisfaction and and value creation, whereas selling is a part of the marketing process, specifically focused on the transaction aspect.
5. Why is it important for businesses to choose a specific marketing philosophy?
It is important for businesses to choose a specific marketing philosophy because it provides a clear strategic direction. This philosophy guides all major decisions, from product development and pricing to promotion and distribution. It ensures consistency in a company's approach to the market, helps allocate resources effectively, and ultimately influences its competitive advantage and long-term success by defining its relationship with customers and society.
6. How do companies apply the Societal Marketing Concept in practice?
Companies apply the Societal Marketing Concept by balancing customer wants, company profits, and society's long-term interests. For instance, a food company might offer healthy, organic options and use sustainable packaging. An automobile manufacturer might invest in developing electric vehicles and support recycling programs. This concept encourages businesses to make ethical decisions, engage in corporate social responsibility (CSR) initiatives, and contribute positively to environmental sustainability while still meeting consumer needs and earning profits.
7. What common challenges might a business face when shifting from a Selling Concept to a Marketing Concept?
Shifting from a Selling Concept to a Marketing Concept can present several challenges. Businesses accustomed to aggressive selling may face internal resistance to change from sales teams. There's a significant shift in focus from product-centricity to customer-centricity, requiring extensive market research to understand actual customer needs. It also demands a cultural transformation within the organization, retraining employees, and potentially restructuring departments to align with the new customer-focused approach, which can be costly and time-consuming.
