The marketing analyzes the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.
The production concept was the idea that a firm should focus on 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. By the early 1930’s however, mass production had become commonplace, competition had increased, and there was little unfulfilled demand. With increased discretionary income, customers could afford to be selective and buy only those products that precisely met their changing needs, and these needs were not immediately obvious. At the time, the production concept worked fairly well because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand.A concept is the overall idea or structure of something and marketing is how a product is moved through a channel to reach its target consumer. A marketing concept embraces the philosophy that good marketing strategy always has the needs and wants of the target market in mind. The marketing concept relies upon marketing research to define market segments, their size, and their needs. The product now stands out as offering something different and better than other brands. To increase the likelihood that a consumer will try the product, a coupon for the stew could be included in a print ad in a newspaper or magazine.
While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company-wide customer focus. Although marketing communication is by its nature creative, it should always be strategic and thoughtful as well. Advertising should interest and motivate the target audience, while creating a desire for the product.