The four concepts which organizations use to design their marketing strategies (product concept, production concept, selling concept, and societal marketing concept) are important because they serve as a guide for businesses to plan and carry out their marketing and selling efforts. The production concept is the oldest of the concepts in business. It proposes that customers prefer products that are cheap and widely available. rganizations that focus on this concept are likely to concentrate on achieving high production efficiency, low costs and mass distribution, sticking to the belief that consumers are primarily interested in product availability and low prices. This concept does make sense in certain developing countries, such as Africa or Indonesia, where consumers are more interested in obtaining the product instead of its special features. The production concept as described above will not do well in first world countries such as the United States.
The standard of living in such countries is much higher, and as a result, consumers may go for higher quality or special features, which render the production concept outdated. This is where the product concept comes in. The product concept puts forth the belief that consumers will favor products which promotes the best quality, performance and innovative functions. Organizations which adopt this concept might concentrate on developing their existing products and improving them over time.
The Essay on The Product Life Cycle and Marketing
Abstract There are many things to be considered when marketing a product. These things include: length of existence time, quantity of competitors, and the quantity “of sales or revenue the product is generating” (p264). These are ways the marketer can obtain factually information on the product. After understanding the information the marketer can then look at the product life cycle. The product ...
This is based on the assumption that consumers admire well-made products and are able to appreciate the quality and performance provided. However, it is dangerous in some cases where managers who hold fast to this belief get so caught up in improving the existing product that they forget what the market needs. This will lead to the organization not being able to satisfy consumers’ wants and needs. If applied correctly, this concept is likely to do well in countries with a higher standard of living like Japan and the United Kingdom.
Another common business concept is the selling concept, which holds that consumers will not buy enough of the selling company’s products if left alone. As a result, the selling organization must take an aggressive selling and promotion effort. Organizations that hold to this concept are likely to have the aim of selling what products they have instead of selling the products the market wants. This is achieved by using selling and promotional tools to stimulate more buying. This concept would be useful when companies are facing vercapacity. The societal marketing concept is one that challenges the selling concept. It puts forth that the organization’s true task is to determine the wants, needs and interests of the target markets and to deliver these desired satisfactions more effectively and efficiently than its competitors. Besides that, it holds that all this must be done in a way that preserves or enhances the consumer’s and society’s well-being. However, this does prove to be somewhat contradictory in some situations.
For example, a fast food chain provides hamburgers which are tasty, yet unhealthy. The food’s fat content hurt the consumer’s health, while all the packaging can lead to environmental damage. This fast food chain is indeed satisfying the market’s want for good, fast food, but yet is going against the societal marketing concept of maintaining society’s well-being. These concepts, as we can see, apply to different kinds of situations. It therefore depends on the organization’s management to choose and apply the concepts wisely in order to maximize profit and efficiency.
The Essay on Consumer Product Safety Act
Consumer Product Safety Act The Consumer Product Safety Act states that any company that receives numerous complaints about a products defects must report these claims to the CPSA. According to the CPSA reporting responsibilities belong to manufacturers, importers, distributors and retailers of consumer products. Each is required to notify the Commission if it obtains information which reasonably ...
