Marketing management is carrying out tasks to achieve desired exchanges with target markets. What strategy should guide these marketing efforts?<br><br>There are five competing concepts under which organizations conduct their marketing activity: the production, product, selling, marketing, and societal marketing concepts.<br><br>The Production Concept<br><br>The production concept holdsthat consumers will favor products that are available and highly affordable, and there-I fore management should focus on improving production and distribution efficiency. This concept is one of the oldest philosophies guiding sellers.<br><br>The production concept is a proper strategy in two types of situations. In the first, the demand for a product is bigger than the supply. In this case, management should look for ways to increase production. The second situation is one in which the product's cost is high and improved productivity is needed to bring it down. Today Texas Instruments (TI) follows the philosophy of increased production and lower costs in order to bring down prices. It won a major share of the American hand-calculator market with this philosophy.<br><br>The Product Concept<br><br>Another major concept guiding sellers, the product concept holds that consumers will favor products that offer the most quality, performance, and features, and therefore the organization should devote its energy to making continuous product improvements. Sometimes the product concept leads to marketing myopia. Railroad management thought that users wanted trains rather than transportation and overlooked the growing challenge of airlines, buses, trucks, and automobiles. Colleges assume that high school graduates want a liberal arts education rather than specific job skills and overlook the increasing challenge of vocational schools.<br><br>The Selling Concept<br><br>Many organizations follow the selling concept, which holds that consumers will not buy enough of the organization's products unless the organization undertakes a large selling and promotion effort. The selling concept is practiced hardest with unsought goods, those that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. These industries are good at tracking down prospects and hard-selling them on product benefits. The selling concept is also practiced in the nonprofit area. A political party will vigorously sell its candidate to the voters as being a fantastic person for the job.
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