1. ( Chapter 2 ) ( 3rd semester )
Marketing Concept
( Chapter 2 )
( 3rd semester )

2. Introduction to Marketing Concept
Marketing concept has two words: Marketing and Concept. A concept is a philosophy, an attitude, a course of thinking, an idea or a notion relating to any aspect of divine and human creations. Marketing concept is a way of thinking which determines the course of action about marketing functions. Thus. Marketing concept is the philosophy that guides the activities of marketing.

3. Historical development of marketing concept
Marketing philosophy has undergone a thorough and gradual change since the great industrial revolution. The history of development of marketing concept can be divided into four stages:
Product-Oriented Sales-Oriented Customer-Oriented Social-Oriented
Development of Marketing Concept
Ist Stage
(from 1900 to 1930)
IInd Stage
(from 1930 to 1950)
IIIrd Stage
(from 1950 to 1990)
IVth Stage
(from 1990 to Update)

4. Different Concepts of Marketing
Different views expressed by different authorities about marketing are studied as different concepts of marketing. Some important are given as follows:
Production Concept
Product Concept
Selling Concept
Distribution of Goods & Services Concept
Creation of Utility Concept
Delivery of Standard of living Concept
Societal Marketing Concept
Marketing Concept

5. Old Concept of Marketing
According to old concept, marketing consists of merely buying and selling activities that effect the transfer of ownership of goods and services.
Features of old concept of marketing
It consists of only production, buying and selling activities.
It aims at earning maximum profits.
It does not provide after sale services.
It does not give importance to consumer satisfaction.
It focuses attention only on production, ignoring consumer’s interests, tastes and preferences.

6. New Concept of Marketing
The new concept of marketing says that all business activities are integrated. It realizes that the business is a marketing organization where all activities are directed towards the satisfaction of human wants.
Features of New Concept of Marketing
It converts business firm in marketing organization.
It aims at earning profit only by satisfying consumers.
It creates and delivers standard of living to society.
It recognizes the consumer’s supremacy.
It stresses upon integrated marketing.
Target Market
Customer Needs
Integrated Marketing
Profit through Customers satisfaction

7. Fundamental Pillars of new marketing concept
Marketing concept as a consumer-oriented marketing philosophy of the entire business organization has the following fundamental pillars or the main components of new marketing concept:
New marketing concept
Customer Orientation
Integrated Marketing
Customer Satisfaction
Consumer Welfare

8. Significance of New Marketing Concept
The adoption of new marketing concept is beneficial for business firm in the following ways:
Helpful in Product Development
More Social satisfaction
Positive Impact on profitability
Interaction with Customers
Overall Improvement
Useful in Competitive Market
Complete Evaluation
Growth of the firm
Makes firm more adaptive
Growth and development of the society

9. Difference between Old & New concepts of marketing
Some points of differences between these two concepts can be based on follows:
Orientation
Scope
Target
Consumer Satisfaction
Integration
Market Research

10. Factors affecting adoption of new marketing concept
In coming days, only consumer-oriented companies will survive. There are many factors which affect the adoption of modern marketing concept, some important factors are as follows:
Technical Progress
Change market conditions
Changed distribution channel
Developed means of communication
Organized consumers
Positive management supports

11. Limitations of marketing concept
Robbin Peterson in his book, ‘Marketing”, points out that the marketing concept has a shortcoming that, “It focuses solely upon benefitting consumers and ignores others such as employees, suppliers, investors etc,.” There are several limitations that come in the implementation of new marketing concept. Some are as follows:
Incomplete Consumer Research
Internal Dissensions
Organizational Constraints
Societal Constraints
Conflicting Objectives

12. Thank You