Traditional and Modern Marketing Concept | Principles of Marketing Notes CBCS Pattern | B.Com 5th Sem Hons

Traditional and Modern Marketing Concept
Principles of Marketing Notes 
CBCS Pattern
B.Com 5th Sem Hons

Traditional concept of marketing

According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.

Modern concept of marketing

According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organising business to satisfy these needs. Marketing in the modern sense involves decisions regarding the following matters

1. Products to be produced

2. Prices to be charged from customers

3. Promotional techniques to be adopted to contact and influence existing and potential customers.

4. Selection of middlemen to be used to distribute goods & services.

Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

Difference Between Traditional and Modern Marketing Concept

From the above discussion, the following differences between these two concepts are drawn:

S. No.

Traditional Concept

Modern Concept

1.

Traditional marketing emphasis on selling and more profit. 

While, modern marketing emphasis on profit as well as consumer satisfaction.

2.

Traditional marketing is start from production and end with sell. 

But in modern marketing it includes planning, product, price, promotion, place and after sell services.

3.

In traditional marketing the manufacturer sell only those products which he produce and not focused on consumer preference. 

But in modern marketing manufacturer analyse the consumer demand then produce.

4.

Traditional marketing concentrate on favourable products.

But modern marketing concentrate on customer needs wants and satisfaction.

Six Fundamental concept of Marketing

There are six concept of marketing which the companies keep in mind:

i) Production concept: 

The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. So, production concept oriented business concentrate on achieving high production which reduces cost and focus on mass distribution.

ii) Product concept: 

This concept holds that consumers will prefer those products that are high in quality and performance and with innovative features. Managers in these organization focus on making superior products and improving them. But the marketer must keep in mind that the customers will buy the best quality product only when they need or want it.

iii) Selling concept: 

Now a days, as the technology advances along with the quantity and quality of the goods, the art of selling the goods are also very essential. The firms which follow the selling concept believe that in order to motivate a customer to buy his product, he must be convinced by aggressive selling and promotional efforts. Firms following selling concept make use of advertising powers and other persuation techniques to influence the customers.

iv) Marketing Concept: 

The marketing concept emerged in the mid 1950’s. The business generally shifted from a product – centered, make and sell philosophy, to a customer centered, sense and respond philosophy. The marketing concept concentrates on the need of the customers. This concept says than product should be designed and produced keeping in mind the need of the customers and try to satisfy the need better than the competitor. The marketing concept holds that the key to achieving organizational goals consist of the company being more effective than competitors in creating, delivering and  communicating superior customers value. This concept puts the customers at both the beginning and the end of the business cycle. Every department and every worker should think about the customer and acts as per need of the customer.

v) Consumer concept: 

As per this concept, companies’ aims at providing consumers separate offers or services. This is possible through one to one marketing.

vi) Societal marketing concept: 

A company must not blindly follow the goal of customer satisfaction because it may lead to many social and environmental ills for example, a customer may want to have drugs so just to satisfy customer the firms should not supply him drugs. This concept requires that company should deliver superior value to the consumer to improve the consumer and the society. It focuses on consumer welfare. Firms should not produce harmful products.

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