The document discusses the five key concepts of marketing: 1) The production concept focuses on improving efficiency to increase production and profits. 2) The product concept emphasizes improving product quality, performance and features to attract customers. 3) The selling concept relies on aggressive promotion and selling efforts to move existing products. 4) The marketing concept aims to determine customer needs and satisfy them better than competitors through market research. 5) The societal marketing concept considers the interests of customers, businesses and society as a whole.

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2. WHAT IS MARKETING ?
Marketing is a social process by which individuals and
groups obtain what they need and want through
creating and exchanging products and value with
others
PHILIP KOTLER

3. WHAT IS MARKETING ?
• In other words, it is the process of
understanding, creating, and delivering
profitable value to targeted customers
better than the competitors.

4. A SIMPLE MARKETING SYSTEM
Industry Market
Communication
Information/Feedback
Goods & Services
Money

5. Concepts Of Marketing:
• There are five concepts of marketing.
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Societal concept
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7. • Consumers will favor products that are easily available
and highly affordable. Therefore
• Increase production
• Cut down costs
• And build profit through volume.
With the production concept, management focuses on
improving production and distribution efficiency. This
concept is one of the oldest orientations that guides
sellers.

8. • This was very much practiced by earlier
industrials. Later it became a standardised
practice for most companies. Ford, for instance,
was considered as one of the earliest champions
of the production concept. Ford once famously
said that Americans can get ‘any car
from Ford until it is black’. This quote has gone
down in marketing history, as it has stressed the
importance of production concept, and the
importance that it once held in the world of
business.

9. • The production concept is still a useful philosophy in
some situations. For example in the highly competitive,
price-sensitive Chinese market, both personal
computer maker Lenovo and home appliance maker
Haier lead through low labour costs, high production
efficiency, and mass distribution.
• However, although useful in some situations, the
production concept can lead to marketing myopia and
losing sight of the real objective—satisfying customer
needs and building customer relationships.
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10. • Now The focus has shifted from the past’s famous
‘production concept’, to a ‘customisation concept’.
The customisation concept is a concept whereby each and
every product that has been produced and delivered, is
done so according to the tastes of customers, the potential
choices of customers. Basically businesses have to ensure
that their products can suit all tastes. Dell is considered to
be one of the best businesses that make use of this
customisation concept. The car industry can be used, too,
as vehicles are now available with as range of features and
in an array of colours.
• Nokia phones can be example as well.
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11. •
(1) THE PRODUCTION CONCEPT
Produce
Sell
Consumers
Company
Produce more & more
Practically sells itself
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12. • Consumers favor products that offer the most quality,
performance, and features. Therefore
• Improve quality, performance and features. This would
lead to increased sales and profits.
• The focus is on continuous product improvements.
Product quality and improvement are important parts
of most marketing strategies. However, focusing only on
the company’s products can also lead to marketing
myopia. For example, some manufacturers believe that
if they can “build a better mousetrap(offer better
product), the world will beat a path to their doors.”

13. But they are often rudely shocked. Buyers may be
looking for a better solution to a mouse problem
but not necessarily for a better mousetrap.
The better solution might be something else that
suits their needs even better than a mousetrap.
Furthermore, a better mousetrap will not sell unless
the manufacturer designs, packages, and prices it
attractively; places it in convenient distribution
channels; brings it to the attention of people who
need it; and convinces buyers that it is a better
product.
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14. Product concept Example
• Examples can be Apple vs Samsung
• For example, computer companies use the
product concept to consistently develop new
hardware components and software programs
that perform better than their competitors'
offerings. Car manufacturers, clothing designers,
cell phone companies and cosmetic companies
are all good examples of companies who use the
product concept to constantly create products
that outshine comparable products already on
store shelves.
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15. (2) THE PRODUCT CONCEPT
•
Produce
Quality
Products
Sell
Consumers
Practically sells itself, it
gives most quality for
money
Buyers admire well-made products and can
appraise product quality and performance.
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16. • Consumers will not buy enough of the firm’s products unless the
firm undertakes a large-scale selling and promotion effort.
Therefore
• Promote sales aggressively.
• Build profit through quick turnover.
• The selling concept is typically practiced with unsought goods—
those that buyers do not normally think of buying, such as life
insurance or blood donations. These industries must be good at
tracking down prospects and selling them on a product’s benefits.
The selling concept is used on goods such as smoke detectors, yam
pounding machines, insurance (especially life assurance policy),
club membership, etc.

17. • Such aggressive selling, however, carries high
risks. It focuses on creating sales connections
rather than on building long-term, profitable
customer relationships. The aim often is to sell
what the company makes rather than making
what the market wants. It assumes that
customers who are coaxed into buying the
product will like it. Or, if they don’t like it, they
will possibly forget their disappointment and buy
it again later. These are usually poor assumptions.
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18. • The five most important points of the selling concept of
the marketing are describe hereunder: -
1. This concept is typically practiced with unsought
goods (those that buyers do not normally think of
buying e.g. insurance policies).
2. The selling concept focuses on existing products and
uses heavy promotion and selling efforts.
3. To be successful with this concept, the organization
must be good at tracking down the interested buyer
and selling them on product benefits.
4. Industries that use this concept usually have
overcapacity. Their aim is to sell what they make rather
than make what will sell in the market.
5. There are not only high risks with this approach but
low satisfaction by customers.
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19. (3) SELLING CONCEPT
• Consumers have normal tendency to resist.
Produce
Sell it Consumers
Aggressive selling &
promotion efforts
Making sales becomes primary function and
consumer satisfaction secondary .
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20. :
Marketing concept is that
“Know the needs and wants of the target markets and
deliver the desired satisfactions better than
competitors”. Under the marketing concept, customer
focus and value are the paths to sales and profits.

21. • The job is not to find the right customers for
your product but to find the right products for
your customers.
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22. example
• Let us look at the example of 2 interminable
opponents – Pepsi and Coke – Both of these
organizations sell the same products. However,
the value proposal displayed by both is diverse.
These organizations flourish with the concept of
marketing. Where Pepsi concentrates on youths,
Coke conveys on a broad methodology. That coke
particularly flourishes with the advertising idea as
contrasted with its rival(Pepsi)
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23. → The concept of marketing accordingly
depends on three key perspectives
• 1) What is the target market – The first step is to focus precisely
which the object market is. This can be achieved by market
research and choosing which target business sector will give the
best returns.
• 2) What are the needs as well as the demands of the target
market – A further project in market research is the ‘buyer
preference’ study. This study will help the firm to focus on the
needs and demands of the target market, consequently helping
the firm in choosing their policies.
• 3) How better would we be able to convey a value proposition –
In this step, the firm will decide on the policies that it would adopt.
What sort of quality the firm would create and convey? In what
capacity would it be advisable for the firm to incorporate its
distinctive offices? Eventually, the firm chooses how to apply the
concept of marketing to convey a better consumer experience.
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24. (4) MARKETING CONCEPT
• “ LOVE THE CUSTOMER , NOT THE PRODUCT ”
Consumers
Produce it
Market it
Learn what they
want(MR)
Sell what they want(Satisfy
needs of customers)
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25. :
The company’s marketing decisions should consider consumers’
wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
Students might be familiar with many different companies that
practice societal marketing through their corporate social
responsibility (CSR) initiatives. Students might be familiar with
local retailers who are also involved in societal marketing. They
will note that these companies donate, contribute, or offer
services to charities and not-for-profit organizations.

26. • The societal marketing concept holds that
marketing strategy should deliver value to
customers in a way that maintains or improves
both the consumer’s and society’s well-being.
• Many leading business and marketing thinkers
are now preaching the concept of shared value,
which recognizes that societal needs, not just
economic needs, define markets.
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27. examples
• Consumer Health
• Marketing campaigns that emphasize consumer health are
campaigns that fall into the societal marketing strategy.
• Eco-Friendly Marketing
• Companies that place an emphasize on recycled products and
organic products that aren't going to damage the ozone layer fall
under the societal marketing strategy
• Supporting Farms and Local Business
• Companies that don't import raw materials practice a more
contained form of societal marketing by marketing products made
with materials obtained from local sources. This type of marketing
takes into account the well-being of a local social structure. A
company that purchases raw materials from local farmers or other
businesses can market its products using this fact as a key part of its
marketing strategy.
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28. Ahmad Faraz
03047765351
afaraz.ns@gmail.com
Rasool Pur Colony,
Noor Shah, Sahiwal
BSCS
BZU sub-campus Sahiwal
Batch-2nd