5 Basic Marketing Concepts With Examples – The increasingly fierce business competition makes many business people start looking for the best way to maintain their business. One of them is to use the marketing concept.
By understanding what a marketing concept is, you can determine a business strategy that fits your company’s products and services. This can help you to get maximum sales results.
However, what exactly is a marketing concept? Well, for those of you who want to know more about this, see the following article, OK!
- What is a Marketing Concept?
- 3 Things to Understand in Marketing Concepts
- 5 Marketing Concepts and Examples
- 1. Production Concept
- 2. Product Concept
- 3. Sales Concept
- 4. Marketing Concept
- 5. Social Marketing Concept
- Difference between Sales Concept and Marketing Concept
- Already Understand What is a Marketing Concept, Right?
What is a Marketing Concept?
The marketing concept is a concept used to maximize profits. You do this by meeting customer needs, increasing sales, and beating competitors. The focus is on understanding customer needs to create a profitable relationship between the customer and the company.
This concept is different from marketing in general, which focuses on the process of selling goods or services with the right promotional techniques.
In addition, the marketing concept also uses marketing data to map customer needs and wants. That way, the marketing strategy can be effective. For example, promotional materials for customers who want to buy cheap products will be different from customers who are looking for good quality products, and so on.
3 Things to Understand in Marketing Concepts
Generally, a company uses a marketing concept when determining the main points that they want to highlight during a promotion. However, there is a more basic concept to answer the same question.
Here are three important things you need to understand when doing marketing.
- Needs: Something that is needed for the survival of life. For example, food, shelter, self-development, and security. The most suitable marketing concept is the marketing concept and the social marketing concept.
- Wants: Something that is wanted in human life. The marketing concept that is suitable to fulfill the desire is the concept of sales.
- Demands: When wants and needs are supported by abilities, demands will arise. The product concept is a marketing concept that can meet customer demands.
5 Marketing Concepts and Examples
There are five ideal marketing concepts that business people need to know. Here is an explanation of 5 marketing concepts and examples:
1. Production Concept
The production concept assumes that consumers prefer products that are affordable and available in large quantities. This requires management to focus more on the production and distribution process. This concept focuses on increasing production and producing cheap goods to minimize production costs.
Hence, with this production concept, product supply will always be high and there will be no shortage of goods. The goal is definitely to increase business profits. So, the more products produced, the more sales will increase.
Advantages of Production Concept:
- Good for customers. Mass production can lower the price of products and services and make production time more efficient. This makes customers not have to worry about product shortages.
- Inexpensive. The production concept ensures the product that the customer is looking for is available in the market at a reasonable price.
- Attract Investors. Generally, the production concept applies in an uncompetitive market environment. This can increase company profits. As a result, many investors are attracted to the company.
- Supplier. Suppliers tend to prefer to establish relationships with large manufacturers. Because they think the orders they get are more consistent. That way, both of them benefit from the production process.
Disadvantages of Production Concept:
- Low quality. The production concept puts forward the efficiency of making products so that the goods produced are of low quality. However, customers keep buying it because they have no other choice.
- Avoid customer requirements. In the production concept, the needs and wants of customers are of secondary importance to the company. This is because the company produces products for many people and does not target a specific segment.
- Not relevant to current market conditions. Currently, the market is very competitive. This condition encourages you to implement new strategies to compete with competitors. Seeing this, it is not surprising that the company has switched to using another concept.
Example of production concept:
China is a country that applies the concept of production. The majority of products made by China fall into the category of need and demand. You must be familiar with products made in China.
For example, such as smartphones and accessories. Many household appliances and other electronics also come from China.
This product made in China does feature a relatively cheaper price. This is what makes potential consumers interested in buying and using their products.
2. Product Concept
The product concept is a concept in which customers prefer products that are quality, useful, and have the required features. This concept becomes important because you have to fulfill customer demands and desires. You do this by focusing on marketing strategies and improving product quality and features.
In the product concept, the company not only gives identity to the product but also adds functional value. This allows customers to feel the benefits of the product.
Advantages of Product Concept:
- Focus on quality over quantity. The most prominent thing about the product concept is that it prioritizes quality over quantity. The company is focused on satisfying customer needs and wants.
- Develop customer curiosity. By creating and developing customer curiosity, they will buy the product. Moreover, coupled with new features that satisfy the curiosity of customers.
- Generate high margins. Even though the company charges a high price for its products, customers are still willing to pay for them. This is because the quality of the product is proportional to the costs incurred.
Disadvantages of Product Concept:
- Less suitable for price-conscious customers. There are still many customers who choose cheap products with low quality. This condition is caused because they are more concerned with price than quality. Hence, the product concept is only suitable for certain consumer segments.
- Features are irrelevant and impractical. Now companies are competing to create different and innovative products. However, many of them do not pay attention to the usability and value of the product to customers. As a result, the features provided are no longer relevant.
- Avoid the interests of customers. Often the innovations and new features a company creates have nothing to do with the customer. That is, the company does not pay attention to the interests of customers.
Example of product concept:
Apple is one of the largest technology companies in the world and belongs to the category of needs and wants. Apple’s main products that are widely known to the public are iPhone, TV, iPad, and Macbook.
The company follows the product concept by prioritizing product quality. This can be seen from the features in Apple products that have succeeded in becoming a technology trendsetter for other brands of electronic goods. So, do not be surprised if the price can be very expensive.
3. Sales Concept
The selling concept is a concept in which customers will not buy your goods unless you do sales and promotions on a large scale. This concept makes business people have to carry out promotional activities continuously.
You must motivate and persuade customers to want to buy the products offered. The sales concept is usually applied to large companies that often create massive promotional campaigns. For example, advertising cigarette products or e-commerce.
In other words, the sales concept only focuses on increasing sales. Regardless of whether the customer needs it or not. So, this concept does not care about the company’s relationship with the customer.
Advantages of Sales Concept:
- Increased sales. The sales concept helps the company to increase the sales volume. This is important because now the market is increasingly competitive. So you need to chase customers for the business to survive.
- Focus on sales and marketing. The company tries to target sales and product marketing simultaneously. The goal is to change customers’ minds to want to buy their products.
- No problem with unsold stock. The basic idea of this concept is to sell the company’s products without paying attention to customer needs. So, the company does not matter if there are unsold product stocks.
Disadvantages of Sales Concept:
- Ignoring customer needs. This concept tends to ignore customer needs and wants. Because they only focus on product sales.
- Ignore customer feedback. The company does not pay attention to feedback from customers. As a result, the company never knows negative comments that could have a bad impact on the company’s reputation.
- Focus on the short term. The selling concept focuses on short-term goals and objectives, i.e. exhausting available stock. So, the company has no problem with working capital and can use it for other projects.
Example of Sales concept:
Shopee is one example of the application of the sales concept. Their companies often do massive advertising. Especially on pretty dates, like 12.12. The ad is a superior marketing strategy that can attract customers.
Not only that, but Shopee also often provides discounts and flash sales through its official application and website. In addition to affordable prices, Shopee also provides free shipping and cashback vouchers. This is what makes many people interested in buying products on Shopee.
4. Marketing Concept
The marketing concept is customer-oriented. That is, the company will place the customer in the marketing process that is carried out. So you need to build a strategy that can make customers sure to buy the product.
Some of the ways that you can apply the marketing concept are content marketing, advertising, advertising, influencer marketing, and native advertising. You can even combine several strategies at once to build product branding for customers.
Not only that, but the marketing concept also focuses on certain market segments. Because the needs of each customer segment will be different. Hence, the promotion strategy used is also different.
Advantages of Marketing Concept:
- Promote the business to the target audience. You can promote products to your target audience with a specific approach. So, it will be easier for you to reach your audience and get them to buy your product.
- Better understand customers. Marketing concepts help you to better understand your customers. This is because you have to do market research first to find out what customers want.
- Helping business branding. The marketing concept is not just to promote products, but also to build branding. One of them is to establish relationships with customers to become loyal consumers.
Disadvantages of Marketing Concept:
- Marketing costs. Generally, the marketing costs required by marketers are quite large. The amount of marketing costs is because many channels can be used. For example, SEO, SEM, YouTube, and Ads. So, each campaign that is created requires a relatively large amount of funds.
- It takes a lot of time and effort. Carrying out promotional campaigns on a large scale makes companies need more time and effort. The goal is for the campaign to be successful and according to plan.
Example of Marketing concept:
Coke is a brand that applies the marketing concept. They use the 4P marketing strategy, namely product, price, promotion, and place. Coke uses a marketing strategy by serving ads in various media.
Coke utilizes social media as its primary marketing tool. In addition, Coke also sponsors several important events, such as American Idol and various Olympics. This is what allows Coke to reach its target market globally. Hence, people are already familiar with this brand.
5. Social Marketing Concept
The concept of social marketing is one of the modern and newest concepts in marketing. By applying this concept, companies can participate in improving the welfare of the community.
This is because the concept of social marketing places human well-being and the balance of nature above short-term gains. Companies that run this marketing concept will focus more on long-term profits.
This is done by ensuring that the products are marketed to increase the income of the surrounding community and not harm the environment. Because, when both have problems, the business will stop operating and profits will certainly be lost.
That’s why companies that apply this marketing concept have roles and responsibilities in various social and humanitarian activities.
Advantages of Social Marketing Concept:
- Assist companies in improving business branding on the products offered.
- Increase customer loyalty because the company provides environmentally friendly products.
- Impact on the community or the surrounding environment because it can open up new jobs and improve people’s lives.
Disadvantages of Social Marketing Concept:
- The segment is more specific because only customers who have a focus on social issues are interested in buying them.
- Product prices tend to be expensive because they have to cover social costs that other companies may not incur.
Example of Social Marketing Concept:
Brand The Body Shop, is one of the well-known cosmetic brands that use the concept of social marketing. Their company uses only plant-based ingredients for every product and is against animal testing. This is done because they are aware of the social and environmental problems they are facing.
In addition, The Body Shop also actively participates in humanitarian campaigns. For example, establishing a charitable foundation. There are at least three programs funded by The Body Shop Charitable Foundation, namely animal protection programs, human rights protection, and environmental protection throughout the world.
Difference between Sales Concept and Marketing Concept
After knowing the 5 marketing concepts and examples, you also need to know more about the difference between the sales concept and the marketing concept. Although at first glance it looks the same, both have significant differences, you know.
Then, what is the difference between the sales concept and the marketing concept? See the explanation in the table below.
|Comparison Indicator||Sales Concept||Marketing Concept|
|Definition||It is closely related to the business idea that if customers and business opportunities are not taken advantage of, then great sales potential cannot be lost||Related to business orientation to achieve company goals by being better than competitors when providing services to customers|
|Related to||Attract customers’ attention and interest in products and services||Drive products and services to attract customers|
|Main Focus||Product||Customer requirement|
|Main essence||Transfer of rights and product ownership||Customer satisfaction|
|Business planning||Short term||Long term|
|Business orientation||Volume oriented||Profit oriented|
|Strategies used||Massive sales and promotions||Integrated marketing strategy|
|Price||It depends on the overall production cost||Depending on market conditions (demand and supply).|
From the explanation above, you can see that the main difference between the sales concept and the marketing concept lies in the purpose. The selling concept focuses on strategies to generate as many sales as possible. This is different from the marketing concept which still prioritizes customer needs and satisfaction with each product.
Already Understand What is a Marketing Concept, Right?
Well, now you understand the 5 marketing concepts and examples in this article. Then, which is the best marketing concept that you can use?
The answer, of course, depends on who your target audience is and your business goals. Therefore, you need to identify potential customers first to adjust the application of the right marketing concept.
The marketing concept will be more suitable to be applied with digital marketing. Because you can apply several marketing concepts to reach audiences on different channels.