Marketing Concept – Does Sinaumed’s realize that in the midst of globalization as it is today, it is not only the field of technology that is progressing, but also the business world. Yep, business people have mushroomed more and more, especially with the government’s support for those in the form of MSMEs. To be able to market their products, these business people also of course have to rack their brains so they can compete in a healthy manner with competitors.
This is included in the discussion of the marketing concept which includes production, product, and marketing so that it reaches the hands of the buyer. So, what is the marketing concept? What is included in the marketing concept? So, so that Sinaumed’s understands these things, let’s look at the following review!
Understanding the Definition of Marketing
Before discussing further about the concept of marketing, it is better if Sinaumed’s understands the definition of marketing, aka marketing first. The definition of marketing has been widely discussed by marketing experts in several of their books.
According to Kotler and Keller in their book entitled American Marketing Association , states that “Marketing is an organizational function and a series of processes for creating, generating, communicating, and delivering value to customers , and managing customers in such a way as to provide benefits to the organization and its stakeholders. Handling this exchange process requires a lot of skill” (2009: 5).
Meanwhile according to Kotler and Armstrong (2008: 3), argues that “marketing is as a social and managerial process by which individuals and groups obtain what they need and they want , by creating and exchanging products and each other’s values” .
Furthermore, there is also a definition of marketing alias marketing put forward by Brech (1954) in Tjiptono’s book (2012: 2), that “marketing is the process of determining consumer demand for a product or service, motivating the sale of the product or service and distributing it to the end consumer. by earning a profit” .
So, based on some of the opinions of these marketing experts, it can be concluded that,
“Marketing is not only in the form of selling goods or services, but is also related to the activities of fulfilling the wants and needs of consumers, by trying to influence consumers to be willing to buy the goods or services that are being offered.”
That is why marketing managers must also understand how consumers behave and even pay attention to what things are trending on social media. By studying consumer behavior, marketing managers will have the opportunity to determine market segmentation accurately. Later, it is the company that will develop, determine prices, promote, and distribute products or services so that they reach consumers.
What is a Marketing Concept?
So, after understanding the definition of marketing, this time we will discuss what the marketing concept is. Basically, the marketing concept is a concept that is used by business actors in order to get maximum profit, both when competing with competitors and satisfying consumer needs.
Actually, the definition of the marketing concept is very abstract. However, according to Swastha, the marketing concept is a business philosophy which states that satisfying consumer needs is an economic and social requirement for the survival of a company. Meanwhile, according to Kotler, the marketing concept becomes more effective to be applied to compete with competitors, especially in efforts to integrate marketing activities to determine and satisfy the needs and wants of the target market.
“In short, this marketing concept aims to provide satisfaction to the wants and needs of its consumers.”
Although in the future, the consumer orientation will be limited by goals and profit growth, this marketing concept must still be carried out, both by large businesses and those that are being pioneered. This is because the existence of this marketing concept can increase sales in the form of:
- Make products that are easy to use.
- Products that are easy to buy.
- Products that are easy to maintain.
According to Wahjono (2009: 3), the existence of this marketing concept has 4 pillars namely: 1) Target Market ( Target Market ); 2) Customer Needs ( Consumers Needs ); 3) Integrated Marketing ( Integrated Marketing ); and 4) Ability to Generate Profits ( Profitability ).
So, the fulcrum and starting point of this marketing concept is to understand consumers about “Who are these consumers? What do consumers need?” . Through this marketing concept, companies can find out and understand the needs of these consumers, as an integrated marketing effort so that in the long run these consumers can make repurchases or become customers.
We all know that humans on this earth have their own needs that must be met, especially when it comes to clothing and food needs. While desire is a strong will that can satisfy deep needs.
Well, this marketing concept is the key for companies to achieve maximum profit from efforts to determine the needs and wants of the target market while providing more effective satisfaction compared to competitors.
Marketing Concept Elements
According to Swastha and Handoko (2007), there are 3 main elements in the marketing concept, namely:
1. Customer Orientation
In this case, companies that want to carry out the marketing concept must refer to consumer orientation, by doing the following things:
- Determine the basic needs of consumers to be served.
- Determine the buyer group as the sales target.
- Determine the product and how the marketing program.
- Conduct research on consumers by measuring, assessing, and interpreting their wants, attitudes, and behaviors.
- Determine and implement the best strategy, starting from quality, quality, model, to price.
2. Composition of Integral Activities ( Integral Marketing )
In this case it can be interpreted that everyone in the company will also be involved in a business that has been coordinated previously. This is done to provide customer satisfaction so that the company’s goals can be realized.
3. Consumer Satisfaction ( Customer Satisfaction )
This third element relates to the least amount of consumer satisfaction that can be fulfilled so that the company concerned can also earn a lot of profit.
5 Marketing Concepts and Their Strengths and Weaknesses
There are 5 ideal and developing marketing concepts in this marketing realm. Here’s an explanation.
1. Production Concept
In this concept, it is believed that consumers will prefer products that are readily available anywhere at low prices. Adherents of this concept will usually concentrate on efforts to create production efficiency, low costs, and mass distribution, thus assuming that consumers will be attracted to the availability of products at low prices. The application of this concept is often found in developing countries, one of which is in Indonesia. Not only that, this concept can also be applied by companies that want to expand their market.
Advantages and Disadvantages of the Production Concept
| Excess | Lack |
| The price is cheap | Product quality is often low. |
| The relationship between suppliers and large producers is becoming more consistent, because they are both profitable. | Often irrelevant to the market environment, requiring new strategies to be implemented. |
| Consumers will not be short of products because of mass production. | Tend not to target certain consumer segments due to mass production. |
| Can attract investors especially in an uncompetitive market environment. |
2. Product Concept
Having the view that consumers will definitely favor good quality products with the best performance or innovative features. Adherents of this concept will usually strive to create superior products by improving their quality. In short, this one marketing concept will focus on product aspects only. The application of this concept can be found in the marketing of electronic products and works of art (eg films, novels and paintings). An example of a company implementing this product concept is Samsung.
If consumers like good quality products, then they will definitely continue to trust the other products offered. That way, the producer (company) has a good relationship in the form of trust from the consumer,
Advantages and Disadvantages of Product Concepts
| Excess | Lack |
| More focus on quality over quantity. | Not infrequently product features that are considered innovative turn out to be irrelevant and impractical. |
| Generate high margins, in the form of consumers who are still willing to buy at any price because of the good quality. | Less suitable for consumers who are concerned with price rather than product quality. |
| Develop consumer curiosity, usually provided with innovative new features. | Avoiding consumer interests, usually between product innovation and consumer needs. |
3. Sales Concept ( Selling Concept )
This concept refers that consumers will not be interested in buying products in large quantities, if they are convinced or persuaded first. Therefore, adherents of this concept will tend to promote their products aggressively. The application of this concept is often found in the sale of unsought goods (insurance, tombstones, and burial sites); non-profit marketing (fundraising, political parties); and overcapacity situations (supply far exceeds demand). Currently, the concept of selling is also implemented by e-commerce.
The aggressive and massive promotion of products is characteristic, with the premise of:
- If consumers refuse to buy a product, then the producer (usually sales) will persuade them to buy.
- Consumers can be influenced through promotional stimulation.
Advantages and Disadvantages of Selling Concepts
| Excess | Lack |
| Focus on sales and marketing simultaneously. | Ignoring consumer feedback. |
| Sales increased and the market became more and more competitive. | Ignore customer needs, only focus on selling products. |
| Since this concept does not pay attention to customer needs, the producer will not have a problem if the product stock is not sold out. | Only focus on the short term, namely spending the available stock. |
4. Marketing Concept
Has the view that to achieve company goals it must be more effective than competitors by creating, delivering, and communicating customer value to the target market, compared to its competitors. The purpose of this customer value is the ratio between what the customer has obtained with the effort given. This customer value can be formulated as: customer value = [benefits – costs] = [functional benefits + emotional benefits] – [monetary costs + time costs + energy costs + psychic costs].
The existence of this marketing concept adheres to 4 pillars, namely,
1. Target Market: That is, companies can do best when they choose their target market carefully and prepare marketing programs accordingly.
2. Customer Needs: That is, after the company determines how its target market is, they must understand what customer needs are.
3. Integrated Marketing: That is, when all departments in a company work together to serve the interests of customers, the result is integrated marketing.
4. Profitability: Basically, the main aim of this concept is to help the company to achieve goals. For example, for private companies, the main goal is the ability to earn profits continuously over the long term. As for non-profit and community organizations, the goal is to survive and attract enough funds to carry out useful work.
Advantages and Disadvantages of the Marketing Concept
| Excess | Lack |
| Understand consumers better because they do market research first. | It takes a lot of time and effort. |
| Helping business branding so that relationships with loyal consumers. | Marketing costs are not cheap because there are many channels that are used, starting from YouTube Ads, Facebook Ads, SEO and SEM. |
| Promote business to more specific target consumers. |
5. Social Marketing Concept
This concept believes that the company’s task is to determine the needs, wants and interests of the target market and provide satisfaction effectively compared to competitors in order to improve the welfare of consumers and society. The application of this concept emphasizes social and ethical aspects, especially in marketing practices. Therefore, there will be a balance between company profits, customer satisfaction, and public satisfaction.
An example of a company using this concept is The Body Shop, which uses only plant-based ingredients in its products and opposes animal testing of its products.
Pros and Cons of the Social Marketing Concept
| Excess | Lack |
| Impact on the community in the form of new jobs. | Applies to consumers who only focus on social issues. |
| Helping companies in efforts to improve business branding. | Prices tend to be expensive because they have to cover social costs. |
| Increasing consumer loyalty because the company provides products that are environmentally friendly. |
So, that’s a review of what the marketing concept is and 5 marketing concepts that are often used by big companies. Is Sinaumed’s interested in going into business and implementing one of these marketing concepts?
Source:
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