- Welcome to another episode of Marketing Knowledge on Questus Channel, where we discuss the contemporary and relevant marketing concepts, tools, and models. In today's video, we will discuss marketing management orientations.

In this video, you will learn what are the production concept, the product concept, the selling concept, the marketing concept, and the societal marketing concept? What are the disadvantages of the first four, less contemporary concepts? Why is the societal marketing concept a source of organizational success today? Ready? So let's get started.

The production concept is the oldest of all orientations related to sales. Its origins are believed to be industrialization. It focuses on production and starts with the belief that customers prefer to buy products that are easily accessible and affordable. Thus, an organization representing the production concept should primarily improve the efficiency of production and distribution processes.

However, the production concept is not perfect. Most of all, it is marked with marketing myopia. It results from focusing on the activities within the company, which can lead to ignoring the real marketing objectives, which should be meeting the customer's needs and building the relationships with them.

Currently, the majority of Chinese companies are an example of organizations that are production oriented. They focus on providing cheap and quick to produce solutions. Over time, product availability has become a norm. And competition in the marketplace has started to grow dynamically.

That is why a new approach has emerged, the product concept. Its basic assumption is that consumers prefer products of the best quality and unique innovative solutions. So the marketing strategy in the product concept is associated with continuous product improvement.

The product concept is also accused of marketing myopia. Often, the organization seems to think that if it creates a product of better quality than the competition, then every consumer would desire it, while the customer might actually look for a substitute solution.

What is more, the organization should also take care of the packaging, integrated marketing communication, or adjusting the price to the target group. However, these aspects are ignored in the case of product orientation.

The previous two orientations increase the number of competitors in the market and gave the advantage to the customer. Marketers notice the reluctance of buyers to react quickly to new products. These market changes led to the birth of the selling concept. It is based on the belief that the customers themselves will not buy the product in sufficient quantity. Hence, large scale activities focusing on sales and promotion should be carried out. Therefore, the essence of the selling concept can be described as finding customers and selling them the benefits offered by the product.

The disadvantages of this concept of a lack of establishing long term relationships with the customers and neglecting the customer's needs. Nowadays, sales orientation is often used in the case of products or services that customers themselves are not looking for, such as insurance products.

It comes as no surprise that the selling concept has also failed to meet the expectations of many companies. Growing competition and market saturation have led to the emergence of the marketing orientation in the 1950s. It has a lot to do with the definition and the essence of marketing, which we have discussed in one of the previous videos.

In the marketing concept, it is assumed that the goals of the company are achieved by knowing and understanding the needs of target markets better than the competition, which leads to profit making.

The concept follows the sense and respond philosophy. So instead of looking for potential buyers for a ready to purchase product, the success of the organization comes from creating the right products for the identified target group.

However, the marketing concept also has its drawbacks. It works well if the customers know their needs. And the job of a marketer is to reach them. Unfortunately, it is not always the case. If buyers always knew exactly what they want, products such as iPhones and ecommerce stores would not have arisen.

Their success comes from getting to know the customer's needs better than they do themselves. In other words, the marketing concept lacks the focus on identifying the potential needs of the future. However, since the marketing concept says if the product responds to the needs of the buyer, the customer is satisfied, and the organization generates significant profits, then we have succeeded, right?

Well, not really. After all, fast food restaurant chains respond to the needs and generate both customer satisfaction and profits for the organization. However, they sell food that is harmful to the people's health in the long run. Therefore, the latest, most modern concept responds to the shortcomings of its predecessor.

The societal marketing concept focuses not so much on the short term needs of a consumer, but on the long term well-being of the entire society, including the care for the natural environment. At the same time, the company's operations should contribute to increasing the ability of future generations to meet their needs.

This requires the balance between the company's profits, consumers satisfaction, and human welfare. The societal marketing concept can be seen, for example, in the activities of the Tesla company, which is leaning towards green energy and proposing environmentally friendly electric cars. The Body Shop brand also represents this concept by offering natural cosmetics.

All in all, we found out from today's video that the production concept is focused on the effectiveness of production and distribution, the product concept on the quality and innovation of products, and the selling concept on sales and promotions. However, none of them takes into account the customer's needs.

The marketing concept focuses on getting to know buyers' expectations, and on this basis, creating products for them. However, it does not take into account human welfare.

The last concept, the societal marketing concept, analyzes not only the customer's needs, but also human welfare. That's all for today. We hope you have enriched your marketing knowledge, and that your thirsty for more.

Don't forget to like the video and subscribe to our channel. See you next time. Bye.