Types of Marketing Concepts
There are several key marketing concepts, also commonly known as marketing approaches or tactics, that can go a long way in making an effective marketing plan achievable for a local business model. Not all of these marketing concepts for today’s businesses will work in all situations and for all industries, but at least 1-2 of them will! The concepts help give the business direction and help to guide them along a path that will help them get the most bang for their buck and see the best return on investment for their marketing budget.
With this approach, the most important thing, first and foremost, is the idea that customers want a product that is easy to get and that makes their lives better somehow. The production concept focuses on the business’ ability to boost output while lowering costs. Companies that decide to move the production of their product overseas is a perfect example of this concept- economizing the cost to make the product which will, in turn, maximize profits. With this approach, the products are often able to be sold for a cheaper price, which appeals to many customers; however, there is usually a tradeoff of lower quality in the final products.
Businesses that embrace the product concept of marketing are focusing on the quality of the products and services that they sell. This focus knows that customers are looking for innovative products and services that they can rely on and trust. A good example of this would be the technology industry. They are the ones who strongly utilize the product concept of marketing. The two questions that drive this approach are- can we make the product- and can we make enough of it? They are constantly updating and releasing new products in order to satisfy their customers and clients needs for quality products that will win them over and keeps them coming back for the newest upgrades and versions.
This selling concept hinges on the idea that low prices, sales, discounts, and deals help bring in customers and sells products. Many times, marketing tactics of this sort come from the need of the business to sell a product rather than the needs of the customers to purchase that product. This selling philosophy drives bulk sale businesses such as clearance warehouses, thrift stores, consignment shops, and other businesses that need a high volume of sales and to keep product moving. As far as the best marketing concepts for today’s businesses this is one methodology that often provides great help for local businesses. Most businesses with this approach focus on whether or not they can sell the product and can they charge enough to make the profit margin they are looking for?
Three key points that drive this method are- will the customer want our product, can we keep them coming back, and what will it take to keep them satisfied? This approach is one in which companies believe that consumers shop based on their needs and the value of the things they buy. So, when a customer is looking for, say, a new car, they will do a lot of comparison shopping to see what is the best choice. Cost is not the deciding factor and they may very well go with a more expensive choice if they feel it is a better-quality product or a company that shares the values that are important to them. You can see this concept in action within the fast food industry. Many restaurants have the same products but use little points of differentiation to please their consumer base.
Businesses that use this concept for marketing their goods and services hold to the idea that consumers want to do business with a company or a brand that they can relate to. Today many people choose who to do business with because of things such as are they a green company, do they support charity groups, do they pay a fair wage to their employees, and so forth. The way society views the company is one of the most important factors that drive the success or the failure of the business or the brand. Unique from other methods and approaches, this concept puts social responsibility first and foremost in terms of how the business succeeds.
There is a lot that goes into the marketing concepts for today’s businesses which help drive them either to success when implemented correctly or to failure when implemented poorly. If you would like more help for your business or brand in terms of developing a good marketing plan, contact Streng today!