This concept is all about learning as much as you can about your customers, and only then creating a product that you know they need.
Of all the marketing philosophies, this is probably the most used in marketing today.
Let’s start with God: Philip Kotler and his vision of marketing concepts
Surely you have read at least one of Philip Kotler’s books. In my college years, Kotler was a god. And for good reason: he dedicated his life to numerous generations of marketing as a teacher and author.
Marketing Management and Marketing Principles are the most appreciated books I know. He came up with the essential concepts of marketing, and since then, marketers around the world have been building their strategies based on his ideas. The Kellogg school admits it:
The social concept
The concept of social marketing is emerging and emphasizes the welfare of society. It is based on the idea that marketers have a moral responsibility to market consciously to promote what is good for people over what people may want, regardless of a company’s sales goals. A company’s employees live in the companies they do business with and must advertise with the best interests of their local community in mind.
The fast food industry is an example of what the social concept is intended to address. There is a great social demand for fast food, but this food is high in fat and sugar and contributes to excess waste. While the industry is responding to the desires of the modern consumer, it is harming our health and detracting from our society’s goal of environmental sustainability.
The central purpose of the product concept is to make products cheaper because consumers will not pay much for the products or services. Then, the companies that accompany the product concept manufacture the goods on a large scale and benefit from economies of scale.
When manufacturers produce low-cost products, then they follow a broad distribution strategy to reach more audiences. By targeting more people, they can increase their productivity by expanding their market.
The product is a tangible good or an intangible service that appears to satisfy a specific need or demand of the customer. All products follow a logical product life cycle and it is vital that marketers understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is trying to solve. You need to understand the benefits that the product offers and all its features and study the unique selling proposition of the product. In addition, it is necessary to identify and understand the potential buyers of the product.
Price covers the actual amount the end user is expected to pay for a product. The price of a product will directly affect how it is sold. This is tied to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. That’s why it’s imperative to understand how a customer views what you’re selling. If there is positive customer value, then a product may be priced higher than its target dollar value. Conversely, if a product has little value in the eyes of the consumer, it may need to be undervalued in order to sell it. Price can also be affected by distribution plans, value chain costs and margins, and how competitors price a rival product.