Bb0001 - Q.2 Explain the Marketing Concepts with Its Relevance in Today’s Marketing Environment.

1876 Words Aug 11th, 2011 8 Pages
BB0001 - Q.2 Explain the marketing concepts with its relevance in today’s marketing environment.
Marketing Concepts :
Studies reveal that different organisations have different perceptions of marketing. And these differing perceptions have led to the formation of different concepts of marketing such as
1. The Exchange Concept
2. The Production Concept
3. The Product Concept
4. The Selling Concept
5. The Marketing Concept
6. The Societal Marketing Concept.
1. The Exchange Concept : The exchange concept of marketing, as the very name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing. While exchange does form a significant part of marketing, to view marketing
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Levitt explained further that while business that maintains itself through the changing times, there is some fundamental characteristics in each business. And the fundamental characteristic invariably relates to the basic human need which the business seeks to serve and satisfy through its products. A wise entrepreneur or marketing man would understand this important fact and define his business in terms of this fundamental characteristic of the business rather than in terms of the products and services manufactured and marketed by him at a given point of time. For Ex. the Railways should define their business as transportation, the movie makers should define business as entertainment and the beverage marketers should define their business as nutrition.
4. The Selling Concept: This philosophy holds that customer, if left alone, would not buy enough of the company‘s products. The organization must, therefore undertake an aggressive selling and promotion effort. As more and more markets became buyers‘ markets and the entrepreneurial problem became one of solving the shortage of customers rather than that of goods, the sales concept became the dominant idea guiding marketing. Most firms practice this concept when they have overcapacity. This concept maintains that a company cannot expect its product to get

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