The Marketing Concept and Its Application in Business

Marketing theories is a very broad subject that encompasses many different concepts. One of those is the marketing concept for small business, which has evolved over the decades as a way of understanding who your customer is, what they want, how to satisfy their needs and how to differentiate yourself from your competitors. This concept has become one of the cornerstones of success for many companies in today's marketplace. But which marketing concept are you using?

The marketing concept is called mass production, because it essentially refers to the production of large quantities of identical or nearly identical goods at a high rate of production. The theory of mass production is meant to drive consumer demand, increasing the number of purchases by consumers and keeping costs low. Therefore, the goal of mass production is to satisfy as many consumers as possible with as many goods as possible. Maintaining close to the same price, while driving up the volume of production also serves to maintain the cost-per-unit relatively the same as a brand-name product would have.

Mass production has many advantages. It leverages economies of scale. It is an efficient way to run a business, since it reduces the need for human resources, and it does not require a large capital budget. However, for all these advantages to be realized, companies must engage in massive consumer research, conduct market research, and engage in strategies that will distinguish them from their competition, all of which fall under the larger umbrella of the marketing concept.

Marketing theories also include the philosophy of marketing management. The philosophy of marketing management, also called the theory of company design, focuses on the psychological and sociological behaviors of consumers. Instead of considering what the product or service is actually company designers more carefully think about the consumer's experience with the product or service. For example, on a product that says, "This shampoo is made for men's hair", a man may very well perceive this to mean that his manliness is enhanced through this shampoo. However, a woman who uses the shampoo, may very well perceive differently. Both views can exist at the same time, at least theoretically.

The principles of the philosophy of marketing management are closely related to the principles of the production concept. In order to use the theory of production concept successfully, however, companies must employ methods that separate marketing concepts from the production concept itself. Companies should strive to create a balance between the two concepts. The design of a product reflects consumer psychology; the production concept reflects the economics of production, and vice-versa.

One way to separate marketing concepts from the production concept is through a marketing strategy, which is a plan devised by the marketing concept itself and implemented to maximize profits. Another way to separate the concepts is through pricing. In other words, goods are priced according to their value to the consumer. Goods are marketed on the basis of their perceived value to the consumer.

A third distinction is made between selling and marketing research. Selling research is undertaken by businesses in order to identify the selling potential of a product before selling it. Marketing research, on the other hand, seeks to understand consumer behavior toward certain goods so that businesses can determine the viability of marketing their goods. It may, for example, be done through surveys of existing customers or through the use of TV or radio commercials.

In business, the concepts of marketing management and the product concept are closely linked. Although the product concept represents the physical aspect of selling, marketing concepts represent the psychological aspect of selling. Both concepts involve the analysis of buying behavior, the allocation of resources, and the allocation of rewards. Marketing concepts, in turn, are dependent upon the product concept and on the goals of the company.