1. East West University
Department of Business Administration
Course title: Introduction to Business
Course code: BUS101
An assignment on
“In today’s business environment why is it essential for companies to practice the
marketing concept?”
Prepared by
Name: Md. Shabab Mehebub

2. In today’s business environment marketing concept is essential to practice for companies.
Companies are conducting their marketing activities under the following five marketing concepts.
1. Production Concept: Production concept is the oldest concept under which the companies
produce goods thinking needs of customers are interested only in low priced, extensively and
easily available goods. Finishing and the interest of customers are not important for the
manufacturers. They focus only on production and try to make it available on large scale. They
try to achieve high production efficiency and creating wide distribution coverage. This concept
can be adopted under the following situations.
Importance of production concept: When the supply of the product is less than the
demand, companies can sell more if companies increase production. Main concern is to fill the
demand by producing more. If the cost of the product is high and the increase in production
will decrease the cost of goods, this concept can be adopted. Production orient business
companies can adopt this concept. Such companies have only sales department which sell
product at a price set by production and finance department.
2. Product Concept: Consumers favor those products that offer the most quality,
performance and features are the basis of product concept. They believe that consumers are
willing to pay higher cost for the goods or services which have extra quality. Companies which
concentrate on product concept are focused on product improvement. They constantly improve
the product quality and features to satisfy and attract the customers.
Importance of product concept: Too much focus on product may go off the track and fail.
For example, a biscuit manufacturer produced a new brand of biscuits with good color,
ingredients and packing etc., without taking much importance in consumer tastes and
preferences. This may fail in the market if the biscuit does not taste good to the ultimate
consumer

3. 3. Selling Concept: In selling concept, producers believe that the aggressive persuasion and
selling is the essence of their business success. They think without such aggressive methods
they cannot sell or exist in the market. They are focused on finding ways and means to sell
their products. They believe that consumer themselves will not buy enough of the enterprises
products or service by themselves. Hence they do considerable promotional efforts to sell their
product through advertisements and other means. A sales agent of electrical equipments,
insurance agents, soft drink/health drink companies and fund raisers for social or religious
causes comes under this category.
Importance of selling concept: We are getting lots of calls from insurance agents, even
though insurance is a subject matter of solicitation. In short, selling concepts assumes that
consumers on their own will not buy enough companies of products, unless the Companies
undertake aggressive sales and promotional efforts. Marketers who follow selling concept
often forget the taste of consumers and not interested in the feedback of consumers. They
use fair and unfair means of persuasion to increase sales. They are not interested in building
a network of satisfied customers and target new customers for selling their products.
4. Marketing Concept: Under marketing concept the task of marketing begins with finding
what the consumer want and produce a product which will meet the consumer requirement and
provides maximum satisfaction. "Customer is the King" concept emerged from this point of
view. In the process of evolution many organizations changed their way of thinking to
match the marketing concept. Under this concept producers considers the needs and wants of

4. consumers as the guiding spirit and deliver such goods which can satisfy the consumer needs
more efficiently and effectively than the competitors.
Importance of marketing concept: Marketing concept is consumer oriented and looks
forward to achieve long term profits by making a network of satisfied consumers. When an
organization practice the marketing concept, all their activities such as research and
development, distribution, quality control, finance, manufacturing, selling etc., are focused
to satisfy the consumer needs and wants. Now a days, those companies which have attained
a certain maturity who look on beyond the immediate future adopt this concept. Some
companies avoid this concept due to unavailability of short term profit and the uncertainty
and unpredictability of the future profit. Also the companies who look for 'quick bucks' may
not adopt this concept. Companies which are successful and enjoy goodwill adopt marketing
concept as their philosophy. They realized that the satisfied customers are the best
advertisers for their products. This concept is now a day’s used worldwide.
5. Social Marketing concept: With the growing awareness of the social responsibility of
the business, attempts made successfully to turn the business organizations socially
responsible. Environmental deterioration, excessive exploitation of resources and growing
consumer movements have necessitated the recognition and relevance of marketing based on
socially responsible. Societal concept is the extension of marketing concept to cover the
society in addition to the consumers. Under the societal concept the business organization
must take into account the needs and wants of the consumers and deliver the goods and
services efficiently so as to balance the consumer’s satisfaction as well as the society's well
being.
Importance of societal concept: A company which adopts the societal concept has to
balance between the society interests, company profit and consumer satisfaction. A
voluntary acceptance of societal concept is necessary for the long term existence of the
business organization. Such organizations try to reduce the emission of pollutants to the
environment and market such goods which give full value and satisfaction of the money
spent.
The world is changing fast and the business strategies are changing and also business environment
is changing so, marketing concept can give a better company by practicing it. So that, it is essential
to practice.