Marketing Concepts II: Difference Between Sales & Marketing Concept – SS1 Marketing Lesson Note (First Term)

The sales concept focuses on the seller’s need to turn products into cash, while the marketing concept focuses on satisfying the buyer’s needs.

Behavioural objectives

By the end of the lesson, students should be able to:

1. state the differences between the sales concept and the marketing concept;
2. name the five company orientations in marketing;
3. explain the societal marketing concept;
4. explain the consumer orientation approach and its assumptions;
5. list and describe the five levels of relationship building with consumers;
6. explain profit orientation.

What is the difference between the sales concept and the marketing concept?

The sales concept starts with the seller’s product and the need to sell it, while the marketing concept starts with the customer’s need.

What is the sales concept?

• Meaning: the seller’s main aim is to convert his or her product into cash.
• Focus: the needs of the seller.
• Method: heavy selling and promotion of what the firm has already made.

What is the marketing concept?

• Meaning: the firm aims to satisfy the needs of customers, using the product as a solution to the customers’ problems (needs).
• Focus: the needs of the buyer.
• Method: find out what customers need, then make and offer products that meet those needs.

How do the two concepts compare?

Why is the marketing concept important?

• Change in orientation: it represents the major change in today’s company orientation.
• Competitive advantage: it provides the foundation to achieve competitive advantage.
• Consultative selling: it is also the foundation of consultative selling, where the seller advises the buyer on how to solve a need.

What are the five company orientations in marketing?

The five company orientations are the production, product, selling, marketing and societal marketing concepts.

• Development: the marketing concept has evolved into a fifth and more refined orientation, the societal marketing concept.
• Future use: this concept is more theoretical and will influence future forms of marketing and selling approaches.

What is the societal marketing concept?

The societal marketing concept assumes that a company will consider the long-term interest of society when it makes marketing decisions.

• Society’s needs: companies consider the needs of the society where they operate.
• Level of thought: it is a higher and more mature stage of marketing thought and practice.
• Social responsibility: a company that focuses only on exchange relationships with customers might not sustain long-term success.
• Value delivery: a marketing strategy should deliver value to customers in a way that maintains or improves the well-being of both the consumer and society.
• Ethics: marketers must build social and ethical considerations into their marketing practices.
• Balance: marketers must balance three often conflicting criteria, listed below.

1. Company profits.
2. Consumer wants and satisfaction.
3. Public interest.

What is the consumer orientation approach?

The consumer orientation approach is the modern marketing concept, which holds that marketing activities are built around the consumer.

What are the assumptions of consumer orientation?

It is very popular because its marketing activities are built on these assumptions:

1. More customers know what they need.
2. Orientation to customer needs is the main target for the success of marketing activities.
3. Marketing research helps to determine customer needs exactly.
4. Satisfied customers will reward producers with repeat purchases.
5. Competing offers from different sellers help customers to identify products of interest.

What are the principles behind consumer orientation?

The customer is seen as part of a changing environment. Marketing activities drive the business through these principles:

1. Process management: it helps marketers to recognise, anticipate and satisfy customers profitably.
2. Policy-making: it focuses on selecting and developing the products best suited for sales, promotion and distribution, to achieve optimum results.

What are the levels of relationship building with consumers?

There are five levels of relationship building with consumers: basic, reactive, accountable, proactive and partnership marketing.

1. Basic marketing: the seller is just selling the product.
2. Reactive marketing: the seller sells the product and encourages customers to call with questions, comments or complaints.
3. Accountable marketing: the seller calls customers to find out whether the product meets their expectations and to ask for suggestions on how to improve it.
4. Proactive marketing: the seller contacts customers from time to time with suggestions about the benefits of products which have been developed.
5. Partnership marketing: the company works continuously to help improve performance for its customers.

• Link to loyalty: marketing experts believe that companies working in partnership with customers can establish and strengthen customer loyalty more easily.
• Tools used: these companies rely on specialisation supported by a database and interactive communication with consumers.

What is profit orientation?

Profit orientation recognises that the basic objective of any business firm is to maximise profit and increase the shareholders’ return on investment.

• Constraints: the firm pursues profit within limits set by competitors, government and public opinion.
• Common weakness: many marketing decisions are made without any reference to return on investment.
• Role of managers: marketing managers need a profit orientation when making marketing decisions.

Evaluation

1. State two differences between the sales concept and the marketing concept.
2. What is the societal marketing concept?
3. List the five levels of relationship building with consumers.
4. What is profit orientation?

Assignment

Differentiate between the sales concept and the marketing concept, and explain in detail the marketing concept. (WASSCE June, 2016)