The Selling Concept

The Selling Concept

selling concept Many organizations follow the selling concept, which holds that consumers will The idea that consumers

not buy enough of the organization's products unless it undertakes a large­scale •will not buy enough of

selling and promotion effort. The concept is typically practised with unsought the organisation's

floods ­ those that buyers do not normally think of buying, such as encyclo­ products unless the

paedias and funeral plots. These industries must be good at tracking down organisation undertakes

prospects and convincing them of product benefits.

n large­scale selling and

promotion effort. The selling concept is also practised in the non­profit area. A political party, for example, will vigorously sell its candidate to voters as a fantastic person for the job. The candidate works hard at selling him or herself ­ shaking hands, kissing babies, meeting donors and making speeches. Much money also has to be spent on radio and television advertising, posters and mailings. Candidate flaws are

Marketing Management Philosophies * 19

The marketing concept

Figure 1.4

The selling and marketing concepts contrasted

often hidden from the public because the aim is to get the sale, not to worry about consumer satisfaction afterwards.

Most firms practise the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. Thus marketing based on hard selling carries high risks. It focuses on short­term results ­ creating sales transactions ­ rather than on building long­term, profitable re­ lationships with customers. It assumes that customers who are coaxed into buying the product will like it. Or, if they don't like it, they may forget their disappoint­ ment and buy it again later. These are usually poor assumptions to make about buyers. Most studies show that dissatisfied customers do not buy again. Worse yet, while the average satisfied customer tells three others about good experiences, the average dissatisfied customer tells ten others his or her bad experiences. 9

The Marketing Concept

The marketing concept holds that achieving organizational goals depends on marketing concept determining the needs and wants of target markets and delivering the desired

The marketing satisfactions more effectively and efficiently than competitors do. Surprisingly,

management philosophy this concept is a relatively recent business philosophy.

•which holds that The selling concept and the marketing concept are frequently confused.

achieving organisational Figure 1.4 compares the two concepts. The selling concept takes an inside­out

goals depends on determining the needs

perspective. It starts with the factory, focuses on the company's existing products and wants qf target and calls for heavy selling and promotion to obtain profitable sales. It focuses on markets and delivering customer conquest ­ getting short­term sales with little concern about who buys

the desired satisfactions or why. In contrast, the marketing concept takes an outside­in perspective. It

more effectively and starts with a well­defined market, focuses on customer needs, co­ordinates all the

efficiently than marketing activities affecting customers and makes profits by creating long­term

competitors do. customer relationships based on customer value and satisfaction. Under die marketing concept, companies produce what consumers want, thereby satisfying consumers and making profits.

Many successful and well­known global companies have adopted the marketing concept. IKEA. Marks & Spencer, Procter & Gamble, Marriott, Nordstrom and McDonald's follow it faithfully (sec Marketing Highlight 1.2). Toyota, the highly successful Japanese car manufacturer, is also a prime example of an organization

that takes a customer­ and marketing­oriented view of its business.

20 • Chapter 1 Marketing in a Changing World