Marketing Concepts and Comparison with Selling

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Marketing Concepts and Comparison with Selling Concepts

Marketing constitutes one of the important functions of an organization. Along with

production, finance and accounting, human resource management, research and
development, purchase and stores, and numerous other functions, marketing contributes
to the ability of the organization to succeed. The marketing concepts hold that the key for
the achievement of the organizational goals consists in determining the needs and wants
of the target markets and delivering the desired satisfactions more effectively and
efficiently than the competitors. Under marketing concepts, the emphasis is on selling
satisfaction and not merely on the selling the product. The objective of marketing is not
the maximization of profitable sales volume, but to earn profits through the satisfaction of
the customers.

In spite of some claims that the knowledge of the society with regards to marketing is
improving, there are opinions which indicate that the marketing is not yet very well
understood subject in several organizations. The arbitrary nature of the marketing stems
from the constantly shifting perspectives in socio-cultural and technological contexts, with
marketing today considered to be of a dynamic nature rather than a static concept.
Marketing in the present day environment is a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
products and values with others. The core issues related to the marketing of the products
are shown in Fig 1.

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Fig 1 Core issues related to the marketing of the products

The origins of the present day marketing lie around the time of the industrial revolution of
the eighteenth century, when technological developments and production increases
resulted in the termination of the personal customer contact of the organization and there
were issues of surplus goods. During this period, preference towards customer needs
was largely over-shadowed by the production and selling orientations. This continued
until the mid-twentieth century.

The marketing concepts are evolving on a continuous basis since 1960s when the
marketing function was recognized as a distinctive discipline and field in the organization.
This is being reflected from the definitions of marketing which are changing continuously
with time. Several definitions of marketing have been put forward over the years as each
generation tries to capture what marketing is at its time and what it means to the
organizational functioning. Over the years, marketing function has been redefined to fit
new contexts. In more recent years, the technological developments, new techniques and
media have brought with them more opportunities for re-defining marketing. These
definitions frequently appear to dilute the meaning of the marketing in some way, with the
words marketing, sales, advertising, customer service and interactions used
interchangeably and adapted by marketing professionals or sales personnel to suit their
own job focus. Many definitions describe different facets and related terms but they do not
always convey the much broader ideology and processes which are the part of the
marketing. The evolution of various definitions of marketing also reflects change in the
concepts of product marketing.

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Overall, product marketing concepts can be categorized into five concepts consisting of
(i) production concept, (ii) product concept, (iii) selling concept, (iv) marketing concept,
and (v) societal marketing concept (Fig 2).

Fig 2 Concepts of product marketing

These five marketing concepts have their dominance during different period of time with
the last two concepts being followed presently by most of the organizations. The evolution
of the marketing concepts with time is shown in Fig 3.

Fig 3 Evolution of marketing concepts

Production concept – This is the oldest concept. The production concept can be trailed
back as far as 1850s, through to the 1900s. This was the period of industrial revolution.
During this period, there was growth in electric power generation, division of labour, rail

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transportation, assembly lines, and mass production. These made it possible to produce
goods more efficiently with new technologies in mass quantities with new ways of using
labour. Despite the increase in production of goods with these emerging ways of
production, there was heavy demand for manufactured goods.

The production concept is based on the assumption that consumers favour those
products which are easily available and highly affordable. This required that the
concentration of the organizations was directed toward product improvement and efficient
distribution of their products. The production concept assumes that the ‘consumers are
mostly interested in product availability at low prices; its implicit marketing objectives are
cheap, efficient production and intensive distribution’. In the production concept era, the
manufacturers typically concentrated on increasing output with the assumption that
customers would look for, and buy, reasonably priced, and well made products. The
production concept worked well for the organizations in the 1850s for achieving their
organizational objectives. Today, such an organizational orientation can only make sense
when the objective of the organization is to expand the market. However, production
orientation hardly works in the present day environment. Organizations with such a
marketing concept today risk focusing their effort too narrowly with their own operation
losing sight of the core idea of producing to meet customer expectation and needs to
create customer value. The trend which is prevailing in the present day scenario indicates
that production concept does not have any part in most of the organizational practices
today. However, where the organizational objective is for expansion to meet unsolicited
demands, or where new products are introduced, the production concept can be a good
complement to other more dominant concepts.

Product concept – The product concept was the dominant marketing concept in the
beginning of 1900s and continued to the 1930s. For more than a generation the concept
of the product era dominated the understanding of the marketing. The product concept
assumes that consumers prefer product based on its quality, performance, and innovative
features. This means that the organization knows its product better than all others. The
organization knows all the aspects of the design and the production of the product.
Further, since the organization has the higher knowledge and skill in making the product,
it is also assumed that it knows what is best for the consumer. The product concept
compelled organizations to ensure improving product quality, and introduce new features
in the product to enhance the performance as much as possible. These were done
without consulting the customers to find their view on the product features, though the
products were produced with the customer in mind. The product concept era reached the
climax in the development of innovative products which did not have substitutes and with
the customer needs not in too much a demand since customers did not know their needs
in such innovative market situation.

In the product concept era, organizations were able to sell all of the products which they
made. The success of this concept was because of the time and level of technology in
which this concept flourished. The product concept survived much of the time after the
‘industrial revolution’ since the demand exceeded supply and the emphasis on production
rather than on the customer was quite an appropriate product selling thought at that time.

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Majority of the products were in such short supply that the organizations sell all that they
made. Consequently, organizations did not need to consult with the consumers about
designing and producing their products. Although some organizations still continuing to
have a production oriented marketing thinking which direct their operations, the concept is
not popular in the present day market environment.

A product concept frequently leads to the organization focusing on the product rather than
on the consumer needs which is needed to be satisfied and this leads to the ‘marketing
myopia’. With the nature of customers and market environment of the present day, the
production concept can be a failure in the present day environment, except in the cases
of introduction of new products where there can be insufficient customer knowledge and
competition.

Selling concept – The selling concept was the concept of the organizations which
proceeded the product concept era, and has the shortest period of dominance compared
to the two preceding concepts. It began to be dominant concept from 1930s and stayed in
widespread use until 1950s. The emphasis of selling concept was to create a department
to be solely responsible for the sale of the organizational products, while the rest of the
organization is left to concentrate on the production of the products. The orientation of the
selling concept was that the organization can sell any product it produces with the use of
various techniques, such as advertising, sale promotion, and personal selling. The
concept assumes that consumers are unlikely to buy the product unless they are
aggressively persuaded to do so, mostly through ‘hard sell’ approach.

The emergence of the selling concept was necessary since there was big increase in the
production of variety of goods after the ‘industrial revolution’ and also since the
organizations became more efficient in production. The increase in quantity of the
products and the types of products led to competition which eventually led to the end of
product shortages and hence the emergence of surpluses. Due to this, there was obvious
pressure on the organizations to make the customer buy the product though it can lead to
loosing the customer for the future. This concept helped in the immediate sales of the
products. In the concept, the surpluses of funds which the organizations generated were
turned to the use of advertising and personal selling in order to reduce their inventories.
The primary focus in this concept remained to sell the products with an aggressive
approach.

The selling concept takes an ‘inside-out’ perspective. It starts with the production plant,
focuses on the organizational existing products, and calls for heavy selling and promotion
to obtaining profitable sales. It focuses primarily on customer conquest by getting short-
term sales with little concern about who buys or why.

The selling concept also enables part of the organization to keep focusing on the product,
through the product concept. In addition, the selling concept era was characterized by an
orientation that a sales or marketing department can sell whatever the organization has
produced. Apart from the aggressive selling approach, the selling concept era was also
noted for other unhealthy features, such as the idea that ‘selling is the goal of the
organization and not the customer satisfaction’.

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Despite the fact that the selling concept has almost seized to be a preferred
organizational orientation over time, its acceptance or rejection is not to be determined by
the concept itself, but the concept era and the dominant organizational orientation. Even
in the era of a market oriented concept, few organizations which deal with ‘unsought’
products (such as life insurance), political parties who sell their candidates aggressively
to apathetic voters in an election, and also by the organizations who have excess stock
still follow this concept and use the selling orientation successfully. This means the selling
concept though being less recognized in the environment of the present day, it is not
completely abolished since it can be used to support some more dominant concepts in
certain types of organizations. Though the marketing concept has become the
prescription for facing competition, ‘old habits die hard’. Even today some organizations
still hold to the fact that they must use the ‘hard sell’ approach for the organizational
success and prosperity.

Marketing concept – The marketing concept started to dominate organizational

orientation during the 1950s, and continues in the twenty first century. This concept
assumes that the starting point for any marketing process is the customer needs and
wants, and no longer the aggressive selling. The key assumption underlying the
marketing concept is that the organization to make only those products which it can sell,
instead of trying to sell what it has made. The marketing concept focuses on the needs
and wants of the customer rather than the needs of the seller and the product.

The concept presumes that the principal task of marketing is not just persuading the
customer to buy, but also to provide the needs of the customer with the right quantity and
quality. These views are consistent with an earlier proposition which was based on the
notion that the ‘goods are being made to satisfy rather than to sell’. As per this notion, in
the present environment the more progressive organization is searching out the
unconscious needs of the consumer, and is then producing the goods to gratify them. The
marketing concept takes an ‘outside-in’ perspective.

The marketing concept starts with a well-defined market, focuses on the customer needs,
and integrates all the marketing activities which affect the customers. In turn, it yields
profits by creating lasting relationship with the right customers based on customer value
satisfaction. The marketing concept recognizes that the organizational knowledge and
skill in designing products is not always being meeting the needs of customers. Thus in
this concept, the organizational is orientation shifted from the product to the market.

In the marketing concept, the attention has shifted from the problems of production to the
problems of marketing, from the product the organization can make to the product the
customers wants the organization to make. This means that the focus has shifted from
the organization to the market place. It is also now been recognized that even a good
sales department cannot sell every product which does not meet the needs of the
customer. When customers have many choices, they always choose the one which best
meets their needs. This is expressed by those organizational managements who make a
clear distinction between the selling and the marketing orientation. According to these
managements selling focuses on the needs of the seller whereas the marketing focuses
on the needs of the customer.

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Selling is preoccupied with the need of the seller to convert the product into cash. On the
other hand, the marketing is based on the idea of satisfying the needs of the customer by
means of the product and the whole cluster of things associated with creating, delivering
and finally consuming the product. This concept is what is expected from the
organizations of the present day. Following this concept the organizations have market
orientation and hence they can reap the organizational success. Despite the fact that new
concept has been developed since the emergence of the marketing concept, the concept
still reigns superior in creating and retaining profitable customers, which is a primary
objective of any organization.

Societal marketing concept – The societal marketing concept emerged in the 1970s
and has since overlapped with the marketing concept. The concept assumes that there is
a conflict between consumer short-term wants and the long-run interest of the society,
and that the organizations are to focus on a practice which ensures long run consumer
and societal welfare. The societal marketing orientation is considered as the best
business concept to be adopted by the organizations. It is suggested that this new
concept represents an attempt to harmonize the goals of the organization to the
occasionally conflicting goals of the society. As per the societal marketing concept, the
task of the organization is to determine the needs, wants, and interest of the target
markets and to deliver the desired satisfactions more effectively and efficiently than
competitors in a way which preserves or enhances the well being of the consumer and
the society.

It is understandable why this concept did not emerge until around the 1970s. The
importance of this concept became eminent when the effect of organizational activities on
the environment and society became too pronounced. It was then become necessary for
the organizations to think on how to satisfy the market with the aim of profit, and still
minimize its effects on the environment and the society. The principle thinking behind this
concept is that the satisfied society is more likely to buy and to recommend the
organizational product, while an unsatisfied society refuses to purchase of the
organizational product even if it could satisfy the needs of the customer. This means that
the societal marketing concept emphasizes that need which the customers consider in
product purchase decisions has a component of their immediate environment. The
appropriateness of societal marketing concept is deduced from the fact that it supports a
socially responsible behaviour of the organization. It thus, challenges the earlier assertion
that the social responsibility of the organization is to make profit.

Organizations are required to adopt this marketing concept in order to be able to deal with
the cultural and regulatory aspect of the organizational environment. This means that the
adoption of the societal marketing concept generates some factors of market orientation
which promote organizational performance. The societal marketing concept is considered
a separate organizational objective; however the concept can be better looked at as
complementary. It is to be complementary organizational thinking to the adoption of other
organizational objectives, particularly, the marketing concept. Thus, whether

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organizational operations are production, product, selling or marketing oriented, the
interest of the society is still to be given its rightful place since the society is a key
stakeholder in every organization.

Comparison of marketing concept with selling concept

Normally in several organizations, terms marketing and selling are used as synonyms. In
fact, these two terms have different meanings. The understanding of the differences
between them is necessary for the lone term performance of the organization. Fig 4 gives
the major differences between the selling and marketing concepts.

Fig 4 Comparison of the main features of the selling and the marketing concepts

Selling is an action which converts the product into cash but marketing is the complete
process of meeting and satisfying the needs of the customers. Marketing consists of all
those activities which are associated with product planning, pricing, promoting and
distributing the product. Selling focuses on the needs of the selling organization whereas
marketing concentrates on the needs of the customers. Tab 1 gives a detailed
comparison between the selling concept and the marketing concept.

Tab 1 Comparison of selling concept and marketing concept

Sl. Selling concept Marketing concept

No.

1 Selling concept is based upon the Marketing concept is based on

volume of production without thinking of producing products needed by the
the customer. customers the satisfaction of the
customers.

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2 Organization first makes the product and
then figures how to sell it
3 Selling begins with the organization
which is pre-occupied all the time with
meeting the requirements of selling.
4 Selling begins with the existing activities
and products of the organization.
5 Selling emphasizes on the saleable
products of the organization. It seeks to
convert products into cash and getting rid
of the stocks. It is concerned with the
methods and techniques of getting the
customers to part with their cash in
exchange for the products.
6 Selling over emphasizes the exchange
aspect without caring for the value
satisfactions inherent in the exchange.
7 Selling views organization as a product
producing entity.
8 The selling organization determines
which product is to be offered.
9 The product precedes the selling efforts
which are the consequence of the
product available on hand.
10 In selling concept, packaging is
essentially seen as a mere protection or
a mere container for the product.
11 In selling concept, emphasis is on the
product.
12 Selling concept is based upon the
transfer of title and possession.
Organization determines the
customer requirements first and then
produces the product which meets
the customer requirements.
Marketing begins with the customer
and focuses constantly on the needs
of the customer.
Under marketing, all activities and
products take their direction from the
customers and their needs.
Marketing emphasizes identification
of the opportunity available in the
market. It seeks to convert customer
needs into the organizational
products. It emphasizes on fulfilling
these needs.
Marketing is primarily concerned with
the value satisfaction which travels to
the customer through the exchange.
Marketing views organization as an
entity as a part of the process for
satisfying the customer.
Customer determines the product
which is to be offered by the
organization. The organization makes
a total offering which matches and
satisfies the identified needs of the
customers.
The consequence of the marketing
efforts is the identification of the
product which is needed by the
customer. The organization produces
the identified product in its own
interest.
In marketing concept, it is seen from
the point of view of the customer. it is
designed to provide the maximum
possible convenience and
satisfaction to the customer.
In marketing concept, emphasis is on
the requirements of the customers.
Marketing concept is based on the
satisfaction of the customers.
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 13 In selling concept, production cost In marketing concept, customer
determines the price. determines the price and price
determines the product costs.

14 In selling concept, organizational In marketing concept, organizational

management is oriented towards sale management is oriented towards
volume. profit.

15 In the selling concept, planning is short In marketing concept, planning is

term oriented in terms of daily sale of the long run oriented in terms of new
product. products and future market demands
etc.

16 The selling concept has inside-out The marketing concept has outside-in
perspective. perspective.

17 Transportation, storage, and other Transportation, storage, and other

distribution functions are perceived as
mere extensions of the production
function.
distribution functions are seen as vital
services to be willingly provided to
the customer in a manner which
delivers the products without any
damage.

18 The emphasis is to sell somehow. There The emphasis is on an integrated

is no coordination among the different approach. The integrated approach
functions involved in the total process includes product, production,
leading to the product selling. promotion, pricing, and distribution.

19 Different departments of the organization All the departments of the

operate in separate water tight organization operate in close
compartments. coordination with the sole purpose of
providing satisfaction to the
customer.

20 In the organizations practicing selling In the organization practicing

concept, production is the central marketing concept, marketing is the
function and sales is a subordinate or key function and the entire
secondary function. organization is organized for
supporting the marketing function.

21 Selling concept views the customer as a Marketing concept views the

link in the organizational process of
product selling.
customer as the very purpose of the
existence of the organization. It sees
the organization from the view point
of the customer with customer
consciousness spreading in the
entire organization all the time.

Selling can be considered as the modern version of the exchange under barter system
where product is exchanged for the cash. When the focus is on selling, the sale persons
think that their task begins only after completion of the production of the products which
are to be sold by them. In selling concept the role of the sale department begin
subsequent to the product production and it is the last link of the chain of organizational
departments.

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Under selling concept, aggressive sales methods are justified to meet the sale targets
and meeting the needs and satisfaction of the customers are taken for granted. On the
other hand, marketing is a wider and all pervasive activity of the organization. The
marketing activity commences with the identification of the customer needs and does not
end till feedback on the customer satisfaction from the consumption of the product is
received. It is a long chain of activities which comprises production, packaging,
promotion, pricing, distribution, and then the selling. Customer needs become the guiding
force behind all these activities. Profits are not ignored but they are built up on a long
basis.

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