As the market has changed, so has the way the company deals with
the marketplace. The company orientation towards marketplace deals with the
concepts which a company may apply while targeting a market. There are
basically five different orientations which a company takes towards the
marketplace.
Production Concept – In this concept the company mainly tries to
increase production irrespective of demands of the customer. The production
concept is almost extinct now with companies paying more and more attention to
the customer.
Selling concept – The selling concept believes that customers
will not buy products unless persuaded to do so. As we know, this is true even
today in case of certain products such as insurance. Although the customer
should use it, they rarely do.
Product Concept – The product concept says that customers will always buy
products which are better in terms of quality performance and features. The
concept is especially applicable in terms of electronics and other techno
gadgets nowadays.
Marketing Concept – Just like selling is a necessity, similarly
branding and marketing are a necessity in some products. The marketing concept proposes that the success of a firm
depends on the marketing efforts of the company in delivering a value
proposition.
Societal Marketing Concept- The
societal marketing concept leads to a company orientation which believes in
giving back to the society what it had received from the society. This concept
believes that the company is profiting because of society and hence it should
also take measures to make sure the society also benefits from the company.
The company orientation towards the market place thus depends on
the application of the above 5 concepts. Some of these concepts are not
applicable in todays market whereas others are applicable sector by sector.
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