Compare and contrast marketing concept with product and sales concept
What will be an ideal response?
Answer: The product concept views the primary purpose of a business as making things, not satisfying customers. As markets evolved and competition heated up, the sales concept began to take over, which emphasizes building a business by generating as many sales transactions as possible. The customer features more prominently in the sales concept, but only as a target to be sold to, not as a partner in a mutually satisfying relationship.
In contrast, today's most successful companies tend to embrace the marketing concept, the idea that companies should respond to customers' needs and wants while seeking long-term profitability and coordinating their own marketing efforts to achieve the company's long-term goals. These customer-focused companies build their marketing strategies around the goal of long-term relationships with satisfied customers. The term relationship marketing is often applied to these efforts to distinguish them from efforts that emphasize production or sales transactions.
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Indicate whether the statement is true or false
Mini-Case Question. If differentiation advantage and cost advantage are both rated at 40% of total importance and marketing advantage is weighted much lower at 20%, what is Aster Inc.'s competitive position index for this product-market?
A) 29.6 B) 18.4 C) 6.8 D) 54.8 E) 45.7