Marketing concept

Summary

In this video, Haley explores the marketing concept, emphasizing that businesses should focus on understanding and satisfying customer needs. Originating from Adam Smith's 'The Wealth of Nations,' the concept has evolved to include five key marketing philosophies: production, product, selling, marketing, and societal marketing. Each philosophy is detailed, highlighting the shift from product-centric to customer-centric strategies, with the societal marketing concept advocating for meeting customer needs while enhancing societal well-being.

Takeaways

• 📚 The marketing concept is a philosophy that emphasizes understanding and satisfying the needs of potential customers.
• 🏢 Marketing is a management function that aims to make customers happy by doing the right things, which in turn leads to increased sales and customer trust.
• 📖 The concept has roots in Adam Smith's 'The Wealth of Nations' but became widely used much later.
• 🔗 Marketing concepts are directly related to needs, wants, and demands, which are fundamental to understanding consumer behavior.
• 🌱 'Need' refers to basic human requirements like food, shelter, and clothing, which are essential for survival.
• 📈 'Want' is a desire for something that provides higher satisfaction, even though it's not necessary for survival.
• 💼 'Demand' is the willingness and ability to purchase a product or service, influenced by both desire and affordability.
• 🏭 The production concept is the oldest, focusing on high production efficiency and low cost to meet consumer demand for availability and affordability.
• 🛠️ The product concept suggests that consumers prefer products with the most quality, performance, and innovative features.
• 🎯 The selling concept is based on aggressive selling and promotion to stimulate buying behavior, often used when there is overproduction.
• 🌟 The marketing concept focuses on understanding the needs and wants of the target market and delivering value better than competitors through marketing strategies.
• 🌱 The societal marketing concept goes beyond profit, emphasizing the importance of preserving or enhancing consumer and societal well-being.

Q & A

What is the marketing concept?

The marketing concept is a philosophy that suggests businesses should analyze the needs of their potential customers and make efforts to satisfy those needs. It is a department of management focused on doing the right things to make customers happy, which in turn leads to selling more goods and services and gaining customer trust.

Who originally introduced the marketing concept?

The marketing concept originated from Adam Smith's book 'The Wealth of Nations,' but it did not become widely used until nearly 200 years later.

What are the three things directly related to the marketing concept?

The three things directly related to the marketing concept are needs, wants, and demand. Needs are basic human requirements essential for survival, wants are desires for higher satisfaction beyond survival, and demand is the willingness and ability to purchase a product or service that one wants.

What is the difference between 'needs' and 'wants' in the context of marketing?

In marketing, 'needs' refer to basic human requirements like shelter, clothes, food, and water that are essential for survival. 'Wants,' on the other hand, are desires for products or services that provide higher satisfaction, even though they are not essential for survival.

Can you explain the production concept in marketing?

The production concept is the oldest business concept, which 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, assuming that consumers are primarily interested in product availability and low prices.

What does the product concept emphasize in marketing?

The product concept emphasizes that consumers will favor products that offer the most quality, performance, and innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time, assuming that consumers admire well-made products and appraise quality and performance.

How does the selling concept differ from the marketing concept?

The selling concept assumes that consumers and businesses will not ordinarily buy enough of a company's products if left alone, hence organizations must take aggressive selling and promotional efforts. It contrasts with the marketing concept, which focuses on understanding and satisfying the needs and wants of the target market.

What is the societal marketing concept and how does it differ from the marketing concept?

The societal marketing concept holds that an organization's task is to determine the needs, wants, and interests of the target market and deliver the desired satisfaction more effectively and efficiently than competitors, while also preserving or enhancing the consumers' and society's well-being. It differs from the marketing concept by adding the consideration of societal well-being to the equation.

What is a 'pull strategy' in the context of the marketing concept?

A 'pull strategy' in the marketing concept refers to making the brand so strong and appealing that consumers actively seek out and prefer the brand over competitors. This can be achieved through marketing, promotion, and advertising efforts.

What is the main goal of the marketing concept?

The main goal of the marketing concept is to understand the needs and wants of the target market and to deliver value better than competitors, with the belief that by doing so, the business can achieve customer satisfaction, loyalty, and ultimately, increased sales.

How can businesses implement the societal marketing concept?

Businesses can implement the societal marketing concept by first identifying the needs and wants of their target market, then creating products and services that not only satisfy those needs but also contribute positively to the well-being of consumers and society at large. This may involve sustainable practices, ethical sourcing, and responsible marketing.

Outlines

00:00

📚 Introduction to Marketing Concepts

This paragraph introduces the marketing concept, which is a philosophy guiding brands to analyze and satisfy the needs of potential customers. It explains that marketing is a management function aimed at making customers happy to sell more goods and services. Originating from Adam Smith's 'The Wealth of Nations,' the concept became widely used much later. It is directly related to 'need,' 'want,' and 'demand.' 'Need' refers to basic human requirements like food, water, and shelter, essential for survival. 'Want' is a desire for things that provide higher satisfaction but are not necessary for survival, like a phone. 'Demand' is what people are willing and able to buy, considering both their desire and financial capacity. The paragraph also outlines the evolution of marketing concepts, starting from the production concept to the societal marketing concept.

05:01

🔍 Exploring Different Marketing Concepts

This paragraph delves into the different marketing concepts: production, product, selling, marketing, and societal marketing. The production concept assumes consumers prefer widely available and inexpensive products, focusing on high production efficiency and low costs. The product concept emphasizes quality, performance, and innovation, aiming to create superior products. The selling concept believes in aggressive sales and promotion to stimulate buying behavior, often used when there is overproduction. The marketing concept focuses on understanding and delivering value to target markets better than competitors, using marketing and advertising to build a strong brand. Lastly, the societal marketing concept considers the well-being of consumers and society while meeting their needs and wants. The paragraph concludes by inviting viewers to suggest topics for future videos.

Keywords

💡Marketing Concept

The marketing concept refers to a business philosophy that emphasizes understanding and satisfying the needs of potential customers. It is central to the video's theme as it sets the stage for discussing how businesses should approach their marketing strategies. The video explains that marketing is not just about selling products but about making customers happy, which in turn leads to increased sales and trust. This concept is rooted in Adam Smith's 'The Wealth of Nations' and is crucial for businesses to adapt their strategies to meet customer needs effectively.

💡Needs

Needs are the fundamental human requirements essential for survival, such as food, water, and shelter. In the video, needs are contrasted with wants and are depicted as the basic necessities without which humans cannot live a healthy and stable life. The video uses the term 'needs' to illustrate the absolute requirements that every individual must have fulfilled, highlighting the importance of addressing these in marketing strategies to ensure the basic well-being of consumers.

💡Wants

Wants are desires that go beyond basic needs and are not essential for survival but are sought for higher satisfaction. The video explains that while humans can survive without wants, they seek them for a better quality of life. For example, wanting a phone is a want because it's not necessary for survival, but it enhances one's lifestyle. In marketing, understanding wants is important as it helps companies create products that fulfill consumers' aspirations beyond their basic needs.

💡Demand

Demand refers to the quantity of a product that consumers are willing and able to purchase at a certain price. The video clarifies that demand is not just about wanting something but also having the financial capability to buy it. It uses the example of wanting to see a movie and having enough money to afford a movie ticket, which then translates into demand. In the context of marketing, understanding demand is vital for businesses to set prices and production levels that align with what consumers are willing to buy.

💡Production Concept

The production concept is one of the oldest marketing concepts and suggests that consumers will prefer products that are widely available and inexpensive. The video explains that businesses following this concept focus on high production efficiency and low costs to make products accessible to a broad audience. This concept is particularly relevant in developing countries where the availability and affordability of products are more critical than their specific features.

💡Product Concept

The product concept posits that consumers will favor products that offer the most quality, performance, and innovative features. The video describes how managers adhering to this concept concentrate on creating superior products and continuously improving them. This concept assumes that consumers appreciate well-made products and are willing to pay for quality and performance, which is a shift from merely focusing on availability and price.

💡Selling Concept

The selling concept is a business orientation that assumes consumers will not ordinarily buy enough of a company's products unless there is aggressive selling and promotion. The video explains that this concept is often adopted by companies with overcapacity in production, aiming to sell what they have made rather than adapting to what the market wants. It emphasizes the importance of marketing and promotional efforts in stimulating consumer buying behavior.

💡Marketing Concept

The marketing concept, as discussed in the video, is a business philosophy that focuses on understanding the needs and wants of the target market and delivering value better than competitors. It advocates for a pull strategy, where the brand becomes so strong that even competitors prefer it. The video illustrates that this can be achieved through effective marketing, promotion, and advertising, which is a more customer-centric approach compared to the selling concept.

💡Societal Marketing Concept

The societal marketing concept extends the traditional marketing concept by emphasizing that organizations should not only meet consumer needs and wants but also do so in a way that preserves or enhances the well-being of consumers and society. The video highlights that this concept goes beyond profit-making to consider the broader impact of marketing activities on society, suggesting that businesses have a responsibility to contribute positively to societal well-being while fulfilling consumer demands.

💡Pull Strategy

A pull strategy, as mentioned in the video, is a marketing approach where the focus is on creating such a strong brand and product offering that consumers actively seek out the product. This is in contrast to a push strategy, which relies on aggressive sales and promotion to push products onto consumers. The video uses the pull strategy as an example of how the marketing concept can be implemented effectively, creating a demand that naturally pulls the product through the distribution channels.

Highlights

The marketing concept is a philosophy that emphasizes understanding and satisfying the needs of potential customers.

Marketing is a department of management focused on making customers happy to sell goods and services effectively.

The marketing concept originated from Adam Smith's 'The Wealth of Nations' but became widely used much later.

Marketing concepts are directly related to needs, wants, and demand of consumers.

Needs are basic human requirements essential for survival, such as shelter, clothes, food, and water.

Wants are desires that provide higher satisfaction beyond basic needs, like wanting a phone.

Demand is the willingness and ability to purchase a desired product, influenced by affordability.

The production concept focuses on high production efficiency and low cost for mass distribution.

The product concept emphasizes creating superior products with quality and performance.

The selling concept assumes that aggressive selling and promotion are necessary to stimulate buying behavior.

The marketing concept focuses on understanding the needs and wants of the target market and delivering value.

The societal marketing concept aims to meet consumer needs while preserving or enhancing societal well-being.

The video discusses the evolution of marketing concepts from production to societal marketing.

Each marketing concept has distinct strategies and assumptions about consumer behavior and market approach.

Understanding the differences between needs, wants, and demand is crucial for effective marketing strategies.

The video concludes with an invitation for viewers to suggest topics for future videos.

Transcripts

Haley knows welcome back to my another

video this video is going to be on

marketing concept where we are going to

see all five concepts of marketing so

let's start Rey's video the marketing

concept is a philosophy which provide us

an idea that brand should analyze the

needs of their potential customers and

make efforts to satisfy those needs

marketing is a department of management

that tries to do right things that make

their customers happy and as a result

they can sell maximum goods and services

into the market and can get the trust of

the customers this concept is originated

from Adam Smith's book The Wealth of

Nations but would not become widely used

until nearly 200 years later

marketing concepts are directly related

with three things water they need want

and demand

what does need need is the basic human

requirements like shelter clothes food

water etc these are essential for human

beings to survive this is something

necessary for people to live a healthy

stable and safe life when needs remain

unfulfilled these the clear adverse

outcome which result in death therefore

we relate need with the necessity with

the basic requirement without which we

can't leave because survive second we

have want won't we see it as desire of

someone

Thanks without which we can survive but

we need them for providing us higher

satisfaction for example we want one

phone but without the phone also we can

survive third we have demand demand

something

which we are willing and able to by

demand something that you want to buy or

consume and your pocket allows its

consumption that is you can afford for

it

thus bad thing become your demand for

example I have thousands of rupees in my

pocket and I want to see a movie was

ticket is worth rupees 500 since I want

it and I can afford it so I demand a

movie ticket so here we have seen all

these three terms

what does need without which we can't

survive what is want which is a step

ahead without which we can survive but

we wanted to satisfy ourselves more what

is demand we want to buy something and

we have enough money to buy that product

that means that product as mine demand

so here we have seen the three things

which are directly related with

marketing concept next we have find

marketing concepts what are the first

production concept second product

concept third selling concept fourth

marketing concept and five so sight a

marketing concept now let us see all

these terms in detail first point we

have production concept this concept is

the oldest of the concepts in business

it holds that consumers will prefer

product that are widely available and

inexpensive managers focusing on this

concept concentrates on achieving high

production efficiency low cost and mass

distribution they assume that consumers

are primarily interested in product

availability and low prices

this orientation makes sense in

developing countries where consumer

are more interested in obtaining the

product than in its features second

point we have product concept this

orientation holds that consumers will

favor those products that offer the most

quality most performance and innovative

features managers focusing on this

concept concentrate on making superior

products and improving them over time to

time this assumed that bias admire

well-made products and appraise quality

and performance third we have selling

concept this is another common business

orientation it holds that consumer and

business if left alone will ordinarily

not buy enough of selling company's

products therefore organization must

take an aggressive selling and promotion

effort this concept assumes that

consumers typically show buying behavior

it also assumes that the company has a

whole battery of effective selling and

promotional tools to stimulate more

buying behavior among the customers most

forms practice this selling concept when

they have over capacity of production

their aim is to sell what they have made

rather than make what the market wants

what we have marketing concept marketing

concept focuses on needs wants of target

market and delivering value better than

competitors the marketing concept

believes in pull strategy and says that

you need to make your brand so strong

that competitors themselves prefer your

brand

over every other company

does this can be achieved through

marketing through promotion and

advertising first point we have societal

marketing concept this concept holds

that the organization's task is to

determine the need want and interest or

target market and to deliver the desired

satisfaction more effectively and

efficiently than that of competitors

this concept

additionally holds that this all must be

done in a way that preserves or enhance

the consumers and the society's

well-being so here we have finished five

marketing concepts with this we have

completed today's video which was

requested by Monisha if you also have a

topic in your mind which you wants me to

work on or create a videos on then don't

forget to leave a comment in comment box

and I'll come out with new videos

relevant to that of your comment so till

the next video I will take leave from

you guys have a nice day thank you