Marketing Management Philosophies

There are five alternatives concepts under which organizations conduct their marketing activities: the production, product, selling, marketing, and social marketing concepts.

The Production Concept
Production concept favor product that is available and highly affordable. Focus on improving production and distribution efficiency. It is useful when the demand exceeds supply and production cost is too high and improved productivity to bring down cost.

The Product Concept
The product concept will favor product after quality, performance and innovative feature. Organization should devote energy to make continuous product improvement. The product concept also can lead to marketing myopia.

Selling Concept
Selling concept, which holds that consumer, will not buy enough of organization's product unless it undertakes a large-scale selling and promotion effort. It practical with unsought goods and in non profit area. Example: political party, firms practice the selling concept when they have over capacity. Their aim is to sell what they make rather than what the market wants.

The Marketing Concept
Marketing concept hold that achieving organization goal depend on determining the needs and wants of the target market and delivering the desired satisfaction more effectively and efficiently than competitor do. Selling concept takes an inside-out perspective, marketing concept take an outside-in perspective.

The Societal Marketing Concept
It hold that organization should determine the needs, wants, interest of target market and deliver superior value in a way that maintain or improved the customer's and the society's well.

Marketing Management

Marketing Management is defined as the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

Demand Management

Marketing Management is concerned not only with finding and increasing demand, but also with changing or even reducing it.
1) Demarketing's aim to reduce demand temporarily or permanently (move traffic away from a popular tourist attraction during peak demand times).
2) In reality, marketing management is really demand management.

Building Management

A company's demand comes from two groups: new customer and repeat customer. Today emphasis is shifting. Beyond designing strategies to attract new customer and create transaction with them, company now are going all out to retain current customer and building lasting customer relationship. Companies are facing some new marketing reality. Changing demographics, a slow-growth economy, more sophisticated competitor and over capacity in many industries cost of attracting new customer is arising. So losing a customer means more than losing single sales. Work to retain customers make good economic sense. Company can lose money on specific transaction, but still benefit greatly from long term relationship. The key to customer retention is superior customer value and satisfaction

Marketing

The concept of markets finally brings us full circle to the concept of marketing. Marketing means managing market to bring about exchanges and relationships for the purpose of creating value and satisfying needs and wants. The modern marketing system is characterized by the company and competitors sending their respective products and messages to consumers either directly or indirectly through marketing intermediaries to the end users. Environmental forces affect the system.