DIFFERENCE BETWEEN SELLING CONCEPT & MARKETING CONCEPT AND DIFFERENCE BETWEEN PRODUCTION CONCEPT & PRODUCT CONCEPT

Submitted By : CH UMAR NAJEEB CHEEMA

Roll no. 11022720-005 Section: A MBA 2nd Semester

Submitted To : MIRZA ASHFAQ AHMED

DIFFERENCE BETWEEN SELLING & MARKETING CONCEPTS

In general we use marketing and selling as synonyms but there is a substantial difference between both the concepts. It is necessary to understand the differences between them for a successful marketing manager. Selling has a product focus and mostly producer driven. It is the action part of marketing only and has short term goal of achieving market share. The emphasis is on price variation for closing the sale where the objective can be stated, as I must somehow sell the product. This short term focus does not consider a prudential planning for building up the brand in the market place and winning competitive advantage through a high loyal set of customers. The end means of any sales activity is maximizing profits through sales maximization.

Selling Concept
1- Emphasis is on the product 2 - Company Manufactures the product first

Marketing Concept
1 - Emphasis on consumer needs wants 2 - Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these wants 3 - Management is profit oriented 4 - Planning is long-run-oriented in todays products and terms of new products, tomorrows markets and future growth 5 - Stresses needs and wants of buyers 6 - Views business as consumer producing process satisfying process 7 - Emphasis on innovation on every existing technology and reducing every sphere, on providing better costs value to the customer by adopting a superior technology 8 - All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction 9 - Consumer determine price, price determines cost

3 - Management is sales volume oriented 4 - Planning is short-run-oriented in terms of todays products and markets 5 - Stresses needs of seller 6 - Views business as a good producing process 7 - Emphasis on staying with existing technology and reducing costs

8 - Different departments work as in a highly separate water tight compartments 9 - Cost determines Price

10 - Selling views customer as a last link in business 11- Product enjoys supreme importance 12 - Converting product into cash 13 - Profits through sales volume 14 - Emphasis is placed on sale of products already produced. 15 - Fragmented approach to selling is practiced.

10 - Marketing views the customer last link in business as the very purpose of the business 11 - Customer enjoys supreme importance 12 - Converting customers needs into product 13 - Profits through customer satisfaction. 14 - Emphasis is given on product planning and development to match products with the market. 15 - Integrated approach to marketing is practiced.

Difference between Production and Product Concept of Marketing

The production Concept:
This concept holds that customers prefer widely available and low cost products

The Product Concept:

This concept holds that customers favour products that offer good quality, high performance, and innovative features.

Production Concept
1 - Production-orientation of the organization. It aims at selling what can be produced. 2 - High production efficiency through improved technology, standardization and mass production 3 - Mass distribution of the product to facilitate wider availability 4 - Low price to attract customers. Price is regarded as critical for marketing 5 - Mangers concentrate on increasing production volume, reducing costs, and mass distribution.

Product Concept
1 - Quality orientation of the organization. It aims at improving the product through innovation. 2 - Superior products at reasonable price; long lasting well-made products. 3 - No concern for customer needs; productorientation. 4 - Quality improvements over time to attract customers. 5 - Managers focus on making superior products

6 - They disregard customer preferences 7 - They dont give excessive attention to product. 8 - Production concept essentially means that a company produces more of a product/item within its existing industrial/manufacturing capacity 9 - It is one of the earliest marketing concepts where goods were just produced on the belief that they will be sold because consumers need them. 10 - This concept is a wee bit old-fashioned, so it doesn't have a huge assortment of advantages in today's fast-moving, high-tech world. 11 One advantage of production concept is that manufactrer will never run low on product they are producing as company can sell its product as much as they can for a very reasonable price.

6 - They regard customer preferences 7 - They give excessive attention to product But technology make the products obsolete. 8 - The product essentially is approached form the customers' satisfaction point of view, considering that they buy satisfaction, not just material objects. 9 - In product concept, The product is the offer of a company, addressed to the market in order to captivate their interest so that the customers purchase it, use it or consume it for a specific need or desire. 10 Product concept is perfectly fit in this fast-moving .high-tech world .

11 One advantage of product concept is that marketers do not need a lot of well planned research to find out their target audience for the product they believe wil sell themselves which can save alot of money.