Every company has different ideas or concepts about marketing management. One company may prefer marketing concepts by producing large-scale goods, assuming that the cost of production can be reduced, the price of the goods will be cheap, and the goods will quickly sell. But other companies may have different marketing concepts through improving the quality of the goods produced. There are at least 5 marketing management concepts with all the shortcomings and advantages that you should know.
An Important Concept in Corporate Marketing
1.Concept of Production
Companies that adopt this concept, thinking that goods or services produced must be cheap so it can be made anytime and anywhere in order to avoid problems in sales. Indirectly, this company tries marketing management through efforts to reduce production costs and strengthening distribution systems. In order to lower production costs to minimum levels, companies will rely on large-scale goods production systems. This concept will work well if demand exceeds stock. However, customers do not always buy goods or services that are cheap and easy to obtain. There are times when they need quality goods at a reasonable price.
2.Product Concepts
Companies that use this concept believe that the quality of goods or services produced by the company must be good, so it is easy to attract consumers. The concept of marketing management may be acceptable to some consumers, but we must not forget, good quality will affect the price, while for some consumers, the cheap price is still the main goal to buy goods.
3.Sales Concept
Companies that use this concept think that customers should not be left alone. Companies must direct consumers to a sales technique to think about because goods are not bought but goods must be sold. In this marketing management concept, companies must think of a sales effort to influence consumers to buy their products. They believe that with a good sales system, they can sell whatever products they offer. This is sometimes true even though it can not be relied upon continuously. You may be able to grab the hearts of customers once during the first promotion, but with many competitors, it could be customers will move products in the future.
4.Marketing Concepts
The difference between sales and marketing is, sales emphasize more on products sold, while marketing is more focused on the wants and needs of consumers. Companies that use the concept of marketing assume that consumer satisfaction is everything, so the goods or services produced must fit their needs. In other words, companies like this do not make what they can but make what consumers want. The concept of marketing management may seem modern and can last a long time, but this concept can only be enjoyed by certain circles who have more prosperity.
From the 4 explanations of marketing management concepts above, there are many things you can get to learn. Each concept has its own deficiencies and advantages. Once you have defined the concept you want to use, you should also start thinking about creating a financial statement. With the company's financial statements, you can manage business finances more easily until it can make the right business decisions.