ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

importance of Marketing concepts in business enterprises

Updated on November 11, 2013

Marketing concepts

Business enterprises are conducting their marketing activities under the following five marketing concepts.

1. Product Concept
2. Production Concept
3. Selling Concept
4. Marketing Concept
5. Societal Concept

1. Production Concept:
is the oldest concept under which the businessmen produce goods thinking 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 large scale 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.

a. When the supply of the product is less than the demand, you can sell more if you increase production. Main concern is to fill the demand by producing more.
b. 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 organizations adopt this concept. Such organizations have only sales department which sell product at a price set by production and finance department.

2.  Product Concept:  Consumers favour those products that offer the most quality, performance and features is the basis of product concept.  They believe that consumers are willing to pay higher cost for the goods or services which has extra quality. Companies which concentrate on product concept is focused on product improvement.  They constantly improve the product quality and features to satisfy and attract the customers.  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 colour, 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.  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 a considerable promotional efforts to sell their product through advertisements and  other means. Sales agents of electrical equipments, insurance agents, soft drink/health drink companies  and fund raisers for social or religious causes comes under this category.  That is why 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 of enterprises products, unless the enterprise undertakes 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 consumers as the guiding spirit and deliver such goods which can satisfy the consumer needs more efficiently and effectively than the competitors. Marketing concept is consumer oriented and look 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 enjoys 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 days used world wide. 

5.  Societal 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 consumers satisfaction as well as the society's well being.

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.


    0 of 8192 characters used
    Post Comment
    • profile image


      24 months ago

      I really thankful to you for sharing such useful ideas. you have shared all the details a nice way. I also get important information from keep sharing these type of ideas.

    • profile image

      munashe gora 

      3 years ago

      thanks a lot

    • profile image

      Ayo Sam 

      6 years ago

      thax a lot

    • abouttown profile image


      7 years ago from Sydney

      Hadn't thought of these concepts in that way before. Very thought provoking article - thanks

    • profile image

      Manpreet Singh 

      7 years ago

      In this we are gating good informat

    • nanderson500 profile image


      7 years ago from Seattle, WA

      Good descriptions of these concepts. Voted up.

    • Sethughes profile image


      8 years ago

      Good analysis and details about these concepts. Thanks!

    • profile image


      8 years ago

      Marketing is purely phsycology.becouse it take into consideration what consumers want and how consumers behave in relation to product or services

    • profile image

      Owolabi grace olunike 

      8 years ago

      Marketing is all about meeting consumer needs

    • profile image

      faith d 

      8 years ago

      very useful especially to us students

    • profile image

      Customer Acquisition Strategy 

      9 years ago

      Great information. You can learn something new from marketing each and every day:)

    • Wrath Warbone profile image

      Terry Chestnutt 

      9 years ago from Cleveland, Ohio

      Very informative. I didn't know any of it before.

    • profile image


      10 years ago

      really extremely cool hub. I really like the information which you have shared with us. Keep it up


    • Iamsam profile imageAUTHOR


      10 years ago

      Thanks Sunny51 and websclubs.

      Sunny I agree with you.

      Thanks for your visit and positive feedback.

    • websclubs profile image


      10 years ago

      Hi Iamsam,

      Marketing Advertising and Selling: to the public... balance between the society interests, company profit, and consumer satisfaction. Give full value and satisfaction of the money "Customer" spent. Balance the consumers satisfaction as well as the society's well being, needs and wants-- Awareness of The Social and Ethical Responsibility! Satisfied customers are the best advertisers for the product. Successful Companies Enjoys Goodwill-- "word of mouth advertising" building a network of satisfied customers are repeat buyers. Social "Customer" are consumers of what ever is selling... Psychology of marketing, consumer tastes, preferences, what's the business man's focus? Interesting hub Thanks.

    • suny51 profile image


      10 years ago

      Hello Iamsam-but I must tell you Iamsuny and I must also tell you that after working as marketing man myself I have come to the conclusion that this the marketing man who does all for a company and the production man does produce that is produced in a factory and the salesman sales them all,now do you agree with me or not? and I am sure you can not say no for an answer,Thanks. ( If you agree with me I shall write further expert comments which you can sell in market as well)


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)