Lesson Note

Subject: Marketing

Topic: Marketing Concept

Lesson Objective: by the end of the lesson, the learners should be able to:

  1. Define Marketing Concept;
  2. Distinguish between production concept and marketing concept.
  3. Explain each of the marketing concepts.

Lesson Summary/Discussion


Marketing concept can be defined as a marketing philosophy which sees the consumer or client as the central focus of all the activities of an organisation because no organisation can survive without the continued patronage of its consumers. This philosophy regards a genuine concern for consumer welfare (Consumer Orientation) and the adequate fulfillment of his needs (consumer satisfaction) as most dependent paths to the realization of an organisation short and long term goals. The act of marketing has undergone a metamorphosis over time. It has evolved from the production to the selling stage and to the consumer orientation stage and indeed it is evolving in some organisation to the consumerism and social responsibility stage. There are sharp contrasts between the two stages. At the selling state, the emphasis is placed on the product, the company first makes the product, and then figures out how to sell it profitably, the orientation of the company is internal and the emphasis of the company is on the sellers need.
Conversely, at the marketing stage, he
emphasis is on the continuous wants of the consume. But first, the company figures out how to profitably make and deliver the product to satisfy these wants. The orientation of the company is external market orientation and company emphasizes buyer’s needs.

The Various Marketing Concept

1. Production concept: The production concept is the idea that a firm should focus on in relation to those products that it could produce most efficiently and that the creation of a supply of low-cost products would in and of itself create the demand for the products. The key questions that a firm would ask before producing a product are:

  • a. Can we produce the product?
  • b. Can we produce enough of it?

The concept focuses more on solving the problem of production and little concern for the public (customer) satisfaction. This concept, customers are seen as people who exist to buy company’s products rather than company existing to serve the customers. It is the concept in management orientation that assumes that customers will favour those products that are available and affordable, and therefore the major task of management is to pursue improved production and distribution effectively.

2. The product concept: This concept assumes that customers will favour those products that offer the most
quality for the price and therefore it is important for companies to produce quality products. It explains that customers are primarily interested in product quality and they know the quality and feature difference of competing brands.
Customers make their choice from many brands available on the basis of getting the best quality for their money. So it is important for organization to produce quality products so as to attract customers to them.

3. The Selling concept: Production of
goods does not mean assure sales most times. Under selling concept, companies would not only produce the products, but they would also try to convince customers to buy them through advertising and personal selling. Before producing a product, the key questions asked are:

  • a. Can we sell the product?
  • b. Can we charge enough for it?

The sales concept paid little attention to whether if the product was actually needed, the goal simply was to beat the competition to the sale with little regard to customer satisfaction.

Marketing was a function that was
performed after the product was developed and produced, and many people came to associate marketing
with hard selling. Even today, many people use the word “marketing” when they really mean sales.

4. The marketing concept: This
concept lays emphasis on marketing
management with the twin goals of
customer orientation and profitable sales volume. Attention is to be on marketing rather than selling. The key questions became:

  • a. What do customers want?
  • b. Can we develop it while they still want it?
  • c. How can we keep our customers satisfied?

Responding to these discerning questions, firms began to adopt the marketing concept, which involves:

  • a. Focusing on customer needs before developing the product.
  • b. Aligning all functions of the company to focus on those needs.
  • c. Realizing a profit by successfully satisfying customer needs over the long-term.

5. Societal marketing concept: The
societal marketing concept embodies a higher and more enlightened plane of marketing thought and practice. The concept has an emphasis on social responsibility and suggests that for a company to only focus on exchange relationship with customers might not be in order to sustain long term success. Rather, marketing strategy should deliver value to
customers in a way that maintains or
improves both the consumer’s and the
society’s well-being. The societal
marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer’s want, satisfaction, and public interest.

Most companies recognize that socially responsible activities improve their image among customers, stockholders, the financial community, and other relevant publics. Ethical and socially responsible practices are simply good business, resulting not only in favorable image, but ultimately in increased sales.

6. The consumer orientation approach: Modem marketing concept is a concept that embraces understanding that marketing activities is consumer-oriented.
This concept is very popular because the marketing activities of this concept is built on assumptions and application of thought as follows:

  • a. More customers know what they need.
  • b. Orientation to customer needs as the main target for the success of marketing activities.
  • c. Marketing research helps in determining customer needs exactly.
  • d. Satisfied customers will appreciate the producers with a repeat purchase.
  • e. The difference bidding which is competitive is important for customers in identifying products of interest.

In such marketing concept a customer is seen as part of a changing environment, marketing activities executed to drive business with a variety mix of activities based on the principles below:

  • Process management-marketers to recognize, anticipate and satisfy customers profitably.
  • The fundamental activities of policy-making that focuses on the selection and development of products best suited for the sales, promotion and distribution to achieve optimum results.


The following are the levels of relationship building with consumers:
1. Basic marketing: The seller is just
selling the product.

2. Reactive marketing: The sellers
sell the product and convince
customers to call if they have any
questions, comments or complaints
3. Accountable marketing: Sellers
calling customers to find out whether the product meets their expectations and to ask customers about the proposed improvement of the product.

4. Proactive marketing: Seller
contact customers from time to
time with suggestions about the
benefits of the products which have
been developed.

5. Partnership marketing: The company works continuously to help improve performance for its customers.

Companies that operate on the basis
of partnership with customers through specialization which is supported by the database and develop interactive communication with consumers, it is believed by experts and practitioners of marketing will be able to easily
establish and strengthen customer

7. Profit orientation: This concept gives recognition to the basic
objectives of any business firm
which is to maximize profit and
increase the shareholders return on
investment within constraint
imposed by competitors, government and public opinion.
Many marketing decisions are made without any reference to return on investment. It is important for marketing Managers to have profit orientation when taking their marketing decisions.

See previous lessons in Marketing

Lesson Evaluation/Test
1. Define marketing concept.
2. Explain the following marketing

  • a. Product concept
  • b. Production concept
  • c. Selling concept
  • d. Marketing concept
  • e. Profit orientation

3. Differentiate between sales Concept
and marketing concept.

Questions answered correctly? Bravo😍

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