5 Marketing Concepts: Definitions, Pro, Cons, and Examples

Understanding the marketing concept is one of the keys for business actors to survive in a highly competitive business environment.

If you understand the concept of marketing, you can develop the right business strategy to ensure that the products and services offered are acceptable to many people.

Furthermore, the marketing concept helps your business survive the competition and optimize higher sales returns.

In this article, you will learn the definitions, types, advantages, disadvantages, and examples of their application.

For a more in-depth explanation, read the following discussion!

What Is a Marketing Concept?

In the business world, a marketing concept is a well-defined strategy that aims to market a product or service. The strategy is structured by a company so it can optimize sales while meeting all customer needs, increase sales figures, enabling the company to compete with other business competitors. 

By leveraging existing marketing data, companies can identify consumer needs so that marketing strategies can operate smoothly.

One example of a marketing concept is creating different promotional materials for two types of consumers: those who buy at low and high prices.

There are 3 essential things you should know about marketing concepts:

• Needs: Include anything necessary for survival, such as food, shelter, and clothing. The suitable marketing concepts to use are social and digital marketing.

• Wants: Everything that someone desires. Selling is a suitable concept for fulfilling such desires. 

• Demands: This happens when desires and needs are backed by demands, it can lead to the rise of demands. A concept of marketing is something that can meet such demands, and it is referred to as a product concept.

5 Types and Examples of Marketing Concepts 

Marketing concepts are one of the things that business operators must understand. Generally, the concept of marketing in business is divided into 5 types, which are:

1. Production Concept

The main focus of the production concept is process efficiency to meet customer expectations.

Indeed, every customer wants to get a quality product at an affordable price. Apart from that, the concept of marketing goal is to maximize the production process and save time.

To implement this production concept, companies need to ensure the availability of stock to avoid the occurrence of shortages of goods, so that sales increase.

This concept of marketing has several advantages and disadvantages, including:

Advantages:

• The existence of mass production can lower product prices and benefits for consumers.

• The availability of abundant products allows consumers to purchase at an affordable price.

• Developing a positive relationship between the supplier and the primary producer.

Disadvantages:

• The excessive focus on the production process's efficiency can cause the product's quality to be less guaranteed. 

• Not targeting specific market niches and producing goods generally because basic needs become a secondary interest to the production concept.

• It is less relevant to existing market conditions because the product is mass-produced.

One of the countries that implemented this kind of marketing concept is China. The majority of companies in China produce goods to fulfill consumer desires. The company produces electronic equipment at low prices. 

2. Product Concept

Product concepts are more focused on product quality, features, and benefits. Therefore, buyers focus on innovative and unique products rather than just looking for the lowest price.

This concept has several advantages and disadvantages, which are:

Advantages:

• Giving priority to quality above quantity.

• Focusing on satisfying the customer's curiosity.

• Generates a high-profit margin with a product price comparable to quality.

Disadvantages:

• This concept is less suitable for customers who prefer low prices.

• The features are irrelevant and less practical. It is a lack of attention to the interests of customers.

“Apple” is a company that applies this marketing concept with great succes. Apple products are famous for their excellent user experiences, such as the iPhone, TV, iPad, and Macbooks.

This product is designed to be easy to use, set up, and update. Every part of their products, from the slim packaging to the sleek design and intuitive control, showcases luxury in their products.

Apple sets premium prices for their products, but their loyal fans are willing to pay for the best quality and user experience they offer.

When customers buy Apple products, they clearly understand what they get. Apple also prioritizes accessibility, which distinguishes its products in the market.

3. Sales Concept

The sales concept is when a company develops a product without considering the consumer's needs.

This concept is based on the assumption that customers will not buy a product or service in large quantities unless they are actively prompted to do so.

It suggests that customers tend to refuse and need to be persuaded to make a purchase. Companies that implement this concept often use various techniques to influence buyers who are hesitant to make purchases.

The sales concept of this digital marketing strategy can be developed by creating advertising campaigns that are held continuously. This production concept has several advantages and disadvantages, namely:

Advantages:

• Increased sales amid tight business competition.

• Focus on marketing and sales.

• Has no problem with unsold stock.

Disadvantages:

• Being too focused on sales leads to ignoring the customers' needs.

• Ignoring customer feedback.

• Lack of long-term thinking is due to being too focused on spending their existing stocks.

Every month, e-commerce sites such as "Shopee", "Tokopedia", and "Lazada" run massive ads on double dates.

Not only that, other e-commerce companies, such as "Amazon" often hold Black Friday sales or discounts on Friday in the fourth week of November, which coincides with Thanksgiving. 

Many other brands have implemented Black Friday sales as their promotion strategy.

By promoting advertising aggressively, it will attract the consumer's attention to buy a product from a brand.

4. Marketing Concept

The marketing concept is when a business places consumers as its primary focus. The company will look into consumer needs, from product concepts to sales. 

After that, the company will undertake further research based on consumer feedback. Here are the advantages and disadvantages of the marketing concept:

Advantages:

• Doing market research to understand customers.

• Building a strong branding.

• Promoting business to the audience.

Disadvantages:

• Higher marketing costs due to various channels used to run a campaign.

• It takes time and effort to create the right campaign.

Coca-Cola is one of the brands that has implemented this marketing concept. They're using the 4P marketing strategy, which refers to product, price, promotion, and place. 

They implement this digital marketing strategy by displaying ads on various social media platforms. In addition, "Coca-Cola" has also sponsored several prominent events, such as the American Idol and the Olympics, and has succeeded in attracting markets globally.

5. Social Marketing Concepts

The social marketing concept is a concept that focuses on satisfying the needs of customers to solve their problems without degrading customers' experience.

Businesses that implement this marketing concept prioritize human well-being and the balance of nature; therefore, they consider more long-term benefits.

For example, one of the digital marketing strategies is creating campaigns showing that the business cares about the environment.

In fact, companies can also create products that are beneficial to the community and environment. In addition, firms can organize social and humanitarian activities by using this concept.

Here are some advantages and disadvantages of the social marketing concept:

Advantages:

• Create a positive branding.

• Increase customer loyalty by providing eco-friendly products.

• Making an impact on the community and the surrounding environment.

Disadvantages: 

• Works in small segments because it focuses on customers who are interested in social and environmental issues.

• Expensive product price. 

One of the brands that implement this kind of social marketing concept is "The Body Shop". Their products are cruelty-free and use herbal ingredients.

Furthermore, they are quite active in humanitarian and environmental campaigns. For the humanitarian campaign, they established a charitable foundation that aims to protect animals, human rights, and the environment worldwide.

The beauty brand also conducted an environmental campaign called BBOB or "Bring Back Our Bottle". For customers who participate in such a packaging recycling program, will earn points that can be redeemed for their product purchase voucher.

Through those explanations, it is possible to conclude that the marketing concept is a concept that is implemented in the business world to optimize profits through consumer needs, increase sales, and win over competitors.

Once you understand the definition of marketing concepts, you can also maximize digital marketing strategies by offering high-quality content and visuals.

VISUWISU can serve as a professional companion who can meet all of your business visual needs. 

VISUWISU team is ready to help you conduct research into creative production processes that will be tailored to your business needs. Contact VISUWISU now to meet your needs!