As the market has changed, so has the way the company deals with the marketplace. The company orientation towards marketplace deals with the concepts which a company may apply while targeting a market. There are basically five different orientations which a company takes towards the marketplace.
Production Concept – In this concept the company mainly tries to increase production irrespective of demands of the customer. The production concept is almost extinct now with companies paying more and more attention to the customer. Read more about The Production concept.
The concept is mainly based on the principle that, “as the productivity levels increase, cost of production decreases, and as a result, customer will be able to purchase a product at a cheaper rate, which in turn accelerates the sales of the company.”
Selling concept – The selling concept believes that customers will not buy products unless persuaded to do so. As we know, this is true even today in case of certain products such as insurance. Although the customer should use it, they rarely do. Read more about The Selling concept.
Product Concept – The product concept says that customers will always buy products which are better in terms of quality performance and features. The concept is especially applicable in terms of electronics and other techno gadgets nowadays. Read more about The Product concept.
For a product to be successful under this concept, it should stand apart from the rest of the crowd. Let’s take Apple and Google for example. The end products of these companies are not only of the best quality, but are also very exclusive. Hence, companies willing to adapt ‘product concept’ marketing strategy should not only keep themselves updated with the ever changing technical trends, but also the needs of their customers.
Marketing Concept – Just like selling is a necessity, similarly branding and marketing are a necessity in some products. The marketing concept proposes that the success of a firm depends on the marketing efforts of the company in delivering a value proposition. Read more about The Marketing Concept.
For a company to achieve its sales target, a great marketing strategy coupled with a proper branding are absolutely important. Marketing concept thus indicates that for a company and its product to be successful, it needs to approach the customers with a value proposition and to deliver the same without fail.
Societal Marketing Concept – The societal marketing concept leads to a company orientation which believes in giving back to the society what it had received from the society. This concept believes that the company is profiting because of society and hence it should also take measures to make sure the society also benefits from the company. Read more about the Societal Marketing Concept.
If a company has benefited from the society, it should reciprocate the same by striving towards benefiting the society. This is one of the fastest growing marketing concepts which is quite capable of creating an indelible impression in the minds of customers, and along the way, help itself create an unparalleled brand image.
The company orientation towards the market place thus depends on the application of the above 5 concepts. Some of these concepts are not applicable in todays market whereas others are applicable sector by sector.