Notes On Modern Marketing Concept Vs Earlier Concept:

Concept of Marketing:

       Marketing is the processes by which products are made available to the ultimate consumers form their point of origin. It consists of those activities which are meant to ensure the flow of goods and services form the producers to the consumers.

       The following are some of the precise definitions:

Defined by Philip Kotler:

       In the opinion of Philip Kotler, 'Marketing is getting goods and services the right people, at the right place, at the right time, at the right price, with the right communication and promotion.'

Defined by the American Marketing Association:

       According to the American Marketing Association, 'Marketing denotes all those activities concerned with the flow of goods and services from the producer or supplier to the consumer or inducer.'

       Over the last few decades, the concept of marketing has gone propone changes.

       Originally when market was limited and the demand for the product was high, the concept of marketing was 'Product Oriented'. But with the development of trade and commerce and keen competitions, the producers put emphasis on 'Selling Concept'. Modern Marketing has become an integral part of society i.e. 'Society Oriented'

       There are five concepts of marketing which are adopted by the organisations for their marketing activities. They are discussed as follows:

1. Production Concept:

       This concept holds that the consumers will support those products that are produced in large quantities at low unit cost. The authorities of this view believe that marketing can be managed by managing production. It involves high production efficiency with wide distribution network. This concept holds well in cases where there is high demand and supply.

2. Product Concept:

       Under this concept, the producers believe that if the product is good and reasonably priced, it will be quite popular among the consumers even though no special marketing efforts are made. They are of the opinion that it is the quality of the products that attract the customers. The qualities of goods yield satisfactory sales and profit.

3. Selling Concept:

       It is presumed that consumers will not buy as much as they are expected to unless they are convinced. The consumption lays emphasis on getting sufficient sale for its products. Under this concept, it is assumed that the products are sold and not bought. In other words, consumers' satisfaction is considered secondary and selling the product is considered primary

4. Marketing Concept:

       It is comparatively new idea in the field of exchanging goods and services. Under this concept, the organisation tries its best to determine the needs, wants and values of the buyer and every attempt is made to satisfy the consumers' wants effectively and efficiently.

5. Societal Marketing:

       This concept believes in the slogan 'Marketing both begins and ends with the customers'. It aims at giving individual satisfaction to the customers and maintains public welfare as its goal and responsibility in the long run.

       Society oriented marketing implies that business should positively safeguard and promote society's interest and values while carrying out its marketing obligations to the customers. Society has the right to observe that business should not only serve the customers but also meet the society's standard and expectations.

       In short, societal marketing can seek profits by '

  1. Satisfying consumers utility
  2. Maximizing public welfare
  3. Enhancing the quality of life

Difference between Old and New Concept:

       The old concept of marketing emphasizes on production and products whereas the new concept of marketing emphasizes on satisfaction and welfare of the consumers. The main difference between the old and new concept of marketing are as follows:

1. Orientation:

       The old concept of marketing was production and product oriented. If the products are good and reasonably priced, it will be automatically sold. The new concept on the contrary is customer oriented. It emphasizes on customer satisfaction and welfare.

2. Targets:

       The main target of the old marketing concept is to earn profits through more production and high sales

       The new concept also aims to earn more profit but through customers satisfaction and welfare.

3. Scope:

       The scope of the old marketing concept was quite narrow. Pre-production and post-sales problems are out of the scope.

       The new concept includes the study of all such problems

4. Inter-Departmental Integration:

       Under the old concept, the different departments of the firm had no integration with the marketing department

       Under the new concept of marketing, the activities of each department are directed by the marketing department and there is close integration between all the departments of the firm.

5. Customers Satisfaction and Welfare:

       The old concept of marketing has space for customers' satisfaction and welfare

       The new concept considers it as the responsibility of the modern marketing to raise the standard of living of the society through customers' satisfaction and welfare. The new concept is fully dedicated to consumers' satisfaction and welfare.