When it comes to marketing, the best companies don’t stick to just one marketing concept. They will typically use a blend of various concepts that when combined, allow companies to adapt to the changing markets.

But what is the purpose of it all? What are the five concepts of marketing? Is there a difference between them?

This article was created to answer these questions and help you to understand the five main principles. If you’re a company that is looking to improve brand awareness, this guide is for you. So, let’s get started.

What Is Marketing?

Marketing is the actions that companies take to try and attract potential customers to the product or services they offer. There are many methods to do this, but the main goal is to use content to demonstrate company value to an audience.

Why Is Marketing Important?

The reason it’s important is that without it, there would be less chance of getting people interested in your company’s product or service. It is a tool that every company uses to persuade an audience to become customers.

What Is A Marketing Concept?

There is a broad definition created by the experienced marketing strategist, Robert Katai. The definition provided is:

“A strategy that companies and marketing agencies design and implement in order to satisfy customers’ needs, maximise profits, satisfy customer needs, and beat the competitors or outperform them.”

What Are The Five Marketing Concepts?

When it comes to the various concepts, there are five main ones that are used most often. Not all will be used together and some may not beneficial to specific businesses, so it is about finding which ones work best for you. The five marketing concepts are:

Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept

Let’s take a look at each one in detail.

The Production Concept

The production concept is mainly focused on operations. Think about when customers are purchasing products, they will more likely be attracted to readily available products, rather than others that are more expensive and less available.

This concept came in the 1950s when companies were focused on ensuring that they produced maximum profits and scalability through efficiency in manufacturing.

Companies may find this philosophy useful when their industry is experiencing sharp growth. Growth carries a huge risk as some businesses may become too focused on cheap production.

This sees a loss of touch with the needs of the customers, therefore leading to a loss in business, even though they have cheaper and more accessible goods.

The Product Concept

When compared to the production concept, the product concept is completely different. This philosophy assumes that price and product availability don’t influence customers’ buying habits. Furthermore, it states that customers will usually prefer better quality and innovation rather than cost.

So, this strategy focuses more on developing producers striving towards continuous innovation and improvement. However, by simply working on product enhancements, you may begin to see competitors offering cheaper alternatives that attract other customers.

The Selling Concept

When looking at the selling concept, there is a focus on transitioning the customer to the actual transaction, all without thinking of the product quality or the customer’s needs.

Customer satisfaction is excluded from the process and more often than not, will see a huge drop in repeat purchases. This is due to the principle of using aggressive marketing to convince customers to buy a product.

The Marketing Concept

Companies want to utilise the marketing concept to show their customers they offer better value than their competitors. To do this, brands must have a full understanding of the target market, recognise its needs, and meet them most effectively.

In comparison to the selling method, this is a more customer-first approach, the complete opposite. Companies that notice and understand the market can then use this to their advantage, putting their knowledge into advertising.

The Societal Concept

One of the newer trends in the societal marketing concept. Now more than ever, companies are focusing on the welfare of society and have a moral responsibility to market conscientiously.

Often, what’s good for people is better than what people may want. The companies that thrive will usually have the best interests of their local community in mind when advertising.

Examples Of The 5 Marketing Concepts

Below are some examples to consider for your business.

Concept	Example
Production	Many online stores right now will be littered with cheap products from all over the world, more specifically Asia. Most products will be made here due to cheap material costs.
Product	Apple is a good example of how they use this concept. Customers all over the world are in awe of innovations and wait patiently for new releases of their latest products. When it comes to quality, the company will not compromise to save money, setting standards for the industry. Other companies may offer similar products at cheaper prices, but Apple always seems to lead the way.
Selling	Think about advertisements you see over and over again. No matter where you go, you can never seem to escape this marketing. This will be the selling concept in full effect. Companies will push their products by spending millions so they stick in your head.
Marketing	Researching and acknowledging what customers want is key to growth. See what your competitors are doing, then try to be different. This can be smarter advertising, better products or improved customer service.
Societal Marketing	Brands will sometimes push for green energy, using renewable sources or recyclable materials to gain interest. Others will launch programs or products that benefit society. You may have seen some supporting social causes that can be controversial too.

What Is The Difference between The Selling Concept and Marketing Concept?

When it comes to separating them, it was best explained by Theodore Levitt of Harvard. Marketing focuses on the requirements of the buyer, whereas selling focuses on the requirements of the seller.

Marketing is trying to satisfy the needs of the customer by creating and delivering a way for customers to utilise the product. For selling, the main focus is on converting the product into cash.

There are four pillars of marketing; customer needs, target market, integrated marketing and profitability. Meanwhile, selling uses an inside-outside perspective, a slightly different method.

This begins with planning in the factory, thinking about existing products then trying to sell as much as possible while producing profitable sales.

On the other hand, marketing begins with a well-defined market that puts the customer’s needs first, analysing areas that will impact customers, and therefore produce profits by satisfying their target audience. Below is a table that highlights these differences.

No.	The Selling Concept	The Marketing Concept
1	Uses promotion efforts and large-scale selling.	Uses marketing research to find out the customer needs.
2	More suited to companies selling unsought goods, those that aren’t usually thought of for buying.	Can be suited for all types of markets and products.
3	Begins at the production level.	Begins by understanding the market.
4	Higher risk strategy.	Lower risk strategy.
5	The thought is that customers who buy the product will like it, otherwise, if they don’t then they will likely forget their initial disappointment and buy it again later.	The thought is that by thinking about what the consumer requires, there is a more tailored approach to the sale that acts more personally to them.

How to Choose the Right Marketing Concept

Of course, each business is completely different and the various concepts will differ from company to company. Not all of the concepts are effective, with some being less successful due to a change in how the markets work.

This means that when designing and strategising a marketing plan, you need to decide what areas work for you and which ones don’t. You can for sure take parts from one concept and some from another. There are no rules and guidelines you have to follow.

But first of all, the best way to determine what works for you is to ask yourself some questions. This can really open up the framework and broaden some ideas for your brand. Some of the questions include:

What makes your brand different and unique?

Apart from making money. what are the long term goals for your business?

Is there a specific demographic or target audience that will be interested in your brand?

Who actually is your target audience?

Why would your target audience be attracted to your company rather than others in your niche?

What is your audience looking for and how can you best make your company the first one they find?

Are you trying to create a loyal customer community?

Are you more focused on finding gaps in the market?

What forms of advertising are best suited for your customers?

What analytics can you use to make sure you’re reaching the right demographics?

What lessons can you take from the examples above?

What parts of the concepts can be useful for your business and which ones do you need to avoid?