Lesson 1, Topic 1
In Progress

Company Orientation Toward the Marketplace

Lakshmi Datti December 23, 2021

Given these new marketing realities, let’s review the marketing philosophies that guide a company’s marketing efforts.

(1)       The Production Concept

This is the oldest concept in business. It holds that consumers prefer products that are widely available and inexpensive. Production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. This orientation has taken advantage of the company’s huge and inexpensive labor pool to dominate the market. Marketers also use the production concept when they want to expand the market.

(2)       The Product Concept

The product concept proposes that consumers favor products offering the most quality, performance, or innovative features. The managers believe that a better product will by itself lead people to buy. A new or improved product will not necessarily be successful unless it’s priced, distributed, advertised, and sold properly.

(3)       The Selling Concept

Marketing based on hard selling is risky. The selling concept holds that consumers and businesses won’t buy enough of the organization’s products unless there are some sales and promotion activities. It is practiced most aggressively with the firms with overcapacity to sell what they make rather than make what the market wants.

(4)       The Marketing Concept

The marketing concept is a customer-centered marketing philosophy. The job is to find the right products for your customers. Dell doesn’t prepare a PC or laptop for its target market. Rather, it provides product platforms on which each person customizes the features he or she desires in the machine. The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets.