Traditional concept of marketing
According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.
Features of Traditional Concept of Marketing
(i) This concept starts with the product or output which is produced in factories.
(ii) It stresses upon the product of the manufacturer.
(iii) This concept focuses on the need and interests of the producer’s.
(iv) The objective of marketing under traditional concept is maximizing profit by maximizing sales.
(v) The means to achieve objective of marketing i.e. profit maximization is achieved through selling and promoting the product.
(vi) This concept aims to achieve short term goals.
(vii) Traditional concept includes production concept, product concept & selling concept.
(viii) The focus of this concept is on production.
Modern concept of marketing
According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organizing business to satisfy these needs.
Marketing in the modern sense involves decisions regarding the following matters:
- Products to be produced
- Prices to be charged from customers
- Promotional techniques to be adopted to contact and influence existing and potential customers.
- Selection of middlemen to be used to distribute goods & services.
Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.
Features of Modern Concept of Marketing
(i) This concept starts with target market selection and finding the needs and wants of the target market so selected.
(ii) It stresses upon the needs and wants of the consumer.
(iii) This concept stress on the need and interest of the consumer.
(iv) The objective of marketing under modern concept is profit, but through consumer satisfaction.
(v) The objective i.e. consumer satisfaction is achieved through coordinated marketing techniques.
(vi) This concept aims to achieve long term goals.
(vii) Modern concept includes consumer oriented philosophy, societal oriented philosophy.
(viii) The focus of this concept is on the consumer satisfaction.