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5 Important Marketing Concepts

5 Important Marketing Concepts
Understand the Five Important Marketing Concepts

Amid the intense business competition, where people start running their new businesses offline and online, every business owner must have a strategy so that their products or services can be more accepted than their competitors.

Even though more companies are implementing digital marketing strategies these days, they still need to pay attention to how marketing concepts must be processed so that their marketing efforts can provide satisfactory results.

You need to know that most of the successful companies in the world have adopted and implemented marketing concepts. So what is a marketing concept? Here we provide a complete explanation.


What is Marketing Concept?

The marketing concept is a philosophy that encourages companies to develop products or services based on market needs and preferences. Therefore, the company's marketing strategy will be designed and implemented by the company to meet customer needs, maximize profits, and beat their business competitors.

Besides maximizing company profits, this marketing concept also needs to be considered to create conditions where both parties, be it the company or the customer, can feel the benefits. If executed consistently well, then this concept can help companies to gain profits in the long term.

There are 5 main marketing concepts that have evolved over the decades. However, remember that not every concept will be useful for all businesses. Therefore, we provide an explanation for each of these concepts.  

5 Marketing Concepts

1. Production concept

The production concept is one of the earliest marketing concepts where the company focuses on the efficiency of the production process. As we already know, consumers generally like a product of good quality at an affordable price. In addition, this production concept also focuses on product availability. So, to achieve this, the company needs to optimize the production process that will be carried out.

One instance of using this marketing concept is when a company decides to produce its merchandise in another city with low production costs. This can help companies to be able to offer goods or products at a more affordable price. 

Nevertheless, the company must always pay attention to the quality of the products produced. Because if the production process is not carried out according to standards, the company will experience a decrease in product quality, which can impact decreasing sales.

2. Product concept

The product concept carries the idea that consumers will favor products with good quality and performance. This indicates that customers will look for innovative alternatives and always seek the best of what is currently available in the market. In addition, in this concept, it is assumed that consumers will also remain loyal if they have many choices and benefit from the products used.

Therefore, the company needs to carry out a marketing strategy focusing on continuous product improvement and innovation to achieve this. One example of a company that routinely innovates the products they develop is a company engaged in technology. These companies usually update features and functionality and even create new products regularly. 

Technology companies usually use software development methods such as the Agile method to realize routine feature development. This way, companies and teams can work well to bring out new innovations for the products they develop.

It should be noted that when choosing to apply this concept, it is important for companies to make decisions about how often products need to be updated or how often they need to release new products. This must be considered because when a company releases new innovations with too often a time range, consumers will usually feel frustrated because of the lack of changes they get. 

On the other hand, if the company takes too long in issuing new innovations, consumers may feel that the company is out of date and not updated with current technological developments.

3. Selling concept

The next marketing concept is the selling concept. In this concept, the company will be sales-oriented. That is, the company can develop a product and sell it to the target market without considering the needs or desires of consumers. The selling concept believes that customers will buy the product when the company sells aggressively.

Here, company management mainly focuses on making sales transactions rather than building customer relationships. Although this concept can work effectively for some time, it should be understood that the selling concept usually cannot be maintained for a long time. So, this concept only offers short-term benefits but does not offer long-term benefits.

In addition, this concept was very popular in the early 1930s. By then, mass production had become the standard and most of the customer's demands had been met. So, the company started to put this selling concept into practice. Companies will produce products and encourage consumers to buy them by personal selling or running advertisements.

One example of a company that runs this concept is a company that sells soda pop or soft drinks. Have you ever wondered why you keep seeing advertisements for soft drink companies even though the drink has no nutrition or is even bad for your health? These companies know this, and that is why they drive product sales by running aggressive advertising.

In addition, the concept of selling is usually also used by companies that sell products or goods that consumers don't think of buying. Examples include insurance or burial plots.

4. Marketing concept

Companies that follow this marketing concept will put consumers as their main focus. They will understand consumers' needs and wants and carry out marketing strategies according to market research from product conception to sales. Not only that, when sales have started, the company will conduct further research to find out consumer feedback. In addition, the company will also find out if an improvement is needed for the product.

Companies that follow this marketing concept believe that by focusing on the needs and wants of the target market, the company can provide better value than its competitors. They also argue that companies can become successful with the satisfaction of their customers. This thinking is based on the belief that goods and services will only be available when consumers need or want them. So, companies will not try to find the right consumers for their products, but companies will provide the right products for their consumers. 

Usually, companies that are actively holding this marketing concept will set up a marketing department within their company. This is done as a step so that companies can understand and satisfy the needs of their customers. Although the main focus of this marketing concept is to meet consumer needs, the main goal of this approach is to increase the company's profit volume.

5. Social marketing concept

The social marketing concept is relatively new. Most people think that the concept of social marketing is one step ahead of the marketing concept that we discussed in point 4. This assumption arises because companies that carry out this concept not only try to meet their consumers' needs but also emphasize society's welfare.

When implementing this concept, companies are asked to pay attention to these three things before setting their marketing policies:

  • Company profit
  • Consumer satisfaction and desire
  • Public interest or society

Basically, all companies run their business to make a profit. Of course, you can adopt this social marketing concept as long as this concept is not able to generate profits and does not bring harm to your company. 

An example of applying this social marketing concept is when a company that produces food ingredients uses environmentally friendly or eco-friendly packaging. They consistently package food products using environmentally friendly packaging, for example, with materials that are easily decomposed and can be recycled so that they are not harmful to the environment or humans. 

Another example would be a company developing a car that uses less fuel to increase customer satisfaction. Since the company also holds the concept of social marketing, the company will also develop cars that do not emit much pollution for social welfare.


While not all of the above concepts are effective for all types of businesses, you can take advantage of aspects of various concepts to design and structure your marketing plan or product promotion strategy. 

The marketing team or the company must be able to determine which marketing concept is the most appropriate and effective to use. In general, companies tend to choose marketing concepts that are in accordance with the company's value, market, and the products they sell.

Marketing strategies that are carried out with a primary focus on consumers in general, have a greater chance of generating profits for the long term. However, you need to know that the marketing concept requires in-depth research and analysis to understand the requirements of your target market or audience.

About author

Harby Jay Harby Jay

Harbyj is a blogger, web designer, SEO expert, and the owner of this blog.

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