Marketing concepts centered around consumer needs and preferences emphasize customer satisfaction to increase profits for companies. Businesses that employ this strategy believe they can generate greater earnings by giving consumers what they desire.
This philosophy stands in stark contrast to selling concepts, which focus on outselling competitors rather than meeting customer satisfaction goals. Companies adhering to this philosophie prioritize value creation for both their consumers and society at large.
Marketing’s selling concept centers around increasing sales transactions rather than cultivating relationships with customers. It operates under the assumption that most buyers would enjoy your product even if coaxed into purchasing it and will quickly forget any dissatisfaction they may feel with it in due course.
Attracting new buyers by engaging in sales promotions activities. Companies with excess capacity and excessive inventory often take this approach.
Life insurance companies use aggressive sales promotion tactics to entice potential customers to buy their products, yet this does not address customer satisfaction – dissatisfied customers may voice their complaints with others and damage a company’s reputation in turn. In contrast, marketing focuses on understanding customer needs and wants and how these can best be met by tailoring its approach accordingly.
Marketing concept refers to a strategy for matching company competencies with customer needs. It encompasses aligning all functions within an enterprise and its employees so that customer satisfaction and profit goals are met, and also creating unique selling points of products so as to draw in new customers.
Production Concept Developed During the Mid 1950sThe production concept first appeared during the mid 1950s with Say’s Law which states that, if enough goods are produced, they will all automatically be purchased by consumers. Unfortunately, this approach disregards that people may prefer different kinds of goods or services than produced.
Product concepts based on consumer preference assume that people often prefer quality and innovation over availability or price, such as Apple’s hardcore fans who will pay more for products that work out of the box, Bose headphones, Doc Marten boots and Tag Heuer watches as examples of companies employing this strategy. It aims to identify what your target audience needs then design and create products to fulfill those requirements.
Unique Selling Point
Uning unique selling points (USPs) to your business is critical for its success. They allow you to identify an identifiable value that sets your products apart from competitors and establishes your presence in the marketplace. A USP can be implemented into marketing and sales strategy, branding materials, website, product packaging or even directly onto products themselves.
Your unique selling proposition (USP) should represent the values and qualities of your company, so brainstorm with employees, survey customers or read customer reviews to come up with ideas. For instance, hobby stores catering specifically to geeks might emphasize longevity of their products in order to set themselves apart from rival stores that promote them as trending fashion items or inexpensive solutions to expensive looks.
Once you’ve developed an effective USP, it should permeate every piece of content produced for your brand – products, advertising and online. This demonstrates your true dedication to positioning rather than using unique selling points as marketing ploys.
Advertising is a form of communication used to promote products or services and is an essential element of the marketing mix, consisting of product, price, place and promotion (the four Ps).
Advertising seeks to build brand recognition among potential customers and persuade them to take certain actions such as asking for samples, calling the company directly or purchasing products immediately.
Advertising strives to set one business apart from its competition and can be achieved via various mediums such as print media, TV broadcasting and radio broadcasting.
Advertising can be divided into four subcategories depending on its target audience: consumer product advertising is intended to entice end consumers, while industrial product ads attempt to increase demand for the products produced by an industrial manufacturer.