Understanding your customers’ motivations will help refine your product and message, and give you the confidence to move forward with a strong marketing strategy. Companies that manufacture their products overseas are a perfect example of the production concept in action.
Manufacturing retail goods offshore decreases costs, savings they can pass on to the customer. Lower prices can be a might incentive for attracting new customers. Unfortunately, the company may see a decrease in quality, and eventually a decrease in sales if the process is not kept up to standards. When establishing a price, companies must consider the unit cost price, marketing costs, and distribution expenses. Companies must also consider the price of competing products in the marketplace and whether their proposed price point is sufficient to represent a reasonable alternative for consumers. In 1908, the price of the Model T was around $825, and in 1912 it was around $575. Retaining customers is all the more important under such circumstances.
Consumers wanted businesses to be more responsive to their wants and needs. Then, the business and product development philosophy changed a little bit, due to a more mature stage of the mass production euphoria. At this point, many companies were manufacturing products at an increasing pace but the market was not reacting positively to them in all cases. This created a sales focus, where companies poured a lot of their resources to advertise their products in order to obtain a bigger market share. The idea of the societal marketing concept is based on the welfare of the whole society because it questions the strategy of the marketing concept. What customers want, it doesn’t mean that it would be good for them in the long term.
It’s more difficult also because the seller can’t read the customer’s mind. These include free replacement of products, round the clock customer support, home trials, and many others. They are still based on the four Ps of marketing i. e. product, place, price, and promotion. This concept calls Marketing Concepts to weave in ethical and social considerations into their marketing practice. They have to balance conflicting criteria of consumer wants, company profits, public relations, and customer satisfaction.
Companies have also incorporated corporate social responsibilities in their management practices. We will go through seven of the most important marketing concepts that are a mainstay of most businesses today.
Marketing has evolved over the years, largely because of changing businesses. Marketing concepts to have been adapted and re-adapted to suit present-day needs. Digital marketing has made great inroads with e-commercebecoming the norm. But still, there are some products that are not usually sold over the internet, like automobiles and heavy engineering. Consumers’ discretionary incomes were rising, products were becoming more sophisticated, and the business environment was becoming increasingly complex and competitive.
What you want, and what is good for you and society as a whole, are two completely different things. The core idea of the product concept is to produce cheaper products because the customers won’t pay much price for the products or services. The companies that follow the product concept, manufacture the product on a mass scale and they make a profit out of the economies of the scale. That customer can be other businesses or the consumers; therefore, marketing can be business to business or business to consumer depending upon the situation. Typically the ultimate function of promoting is typically the same, and that is usually to ascertain a relationship together with customers and satisfy their particular needs by meeting their particular demands.