Marketing strategies have always been inspired by various marketing philosophies.
The word ‘marketing’ first entered the dictionary in the 16th century. Read: How the definition of marketing has evolved with time? And the journey from the 16th century until now has been a real rollercoaster.
To begin with, many products came into the market and disappeared with the changing times. And with those products, changed many old and inefficient ways of doing businesses.
In 1969, the Internet came into existence and changed the entire business scenario. It altered all the marketing concepts and strategies we have used so far for business growth.
Important to remember, with time the survival of business became dependent on adapting and innovating.
It’s time even for you to reevaluate your marketing strategy and to make sure it has adapted with time.
A point often overlooked is that long-term business growth happens when businesses evolve with time instead of sticking harder to their old ways of doing business.
You can’t fight change. It’s inevitable.
It seems like I am talking some deep philosophy from religious books but even if I am, it’s still applicable to the way we run a business.
You can’t imagine owning a successful business without using digital technologies right now just because you have never used the internet in your time and you still love the old way of doing business.
Finally, back to the topic of marketing concepts. There are actually five types of marketing concepts you can base your marketing strategy on.
Even though many of these old marketing concepts based strategies are still in use, it doesn’t make them very efficient to be used by all.
I consider these marketing concepts as evolutionary stages of marketing strategies. We started with concept one and we are now at concept five.
The 5th concept is the latest and the most efficient one as it reflects the psychology of current consumers.
And we have known by now that a better understanding of your customers generates better results. Let’s take a look at Purpose-Driven Marketing Strategy.
Production Concept For Creating A Purpose-Driven Marketing Strategy
This marketing philosophy was mainly prevalent from 1860 to 1930.
This is one of the oldest marketing philosophies and still guides many businesses. That was the time of new big machines which made the production easier.
The focus area of this philosophy is production, efficiency, and manufacturing. It’s not a very effective way of forming marketing strategies as it assumes that demand exceeds supply.
In the digital age, when the barrier of entry to many industries has gone down, this assumption can cost you business.
It was good in the old times because the competition was not so fierce as it is now.
Low competition increased demands for products from the sole provider of those. It’s not the same anymore.
Moreover, it is driven by production and not my consumer.
Product Concept For Creating A Marketing Strategy
The product concept is also like the production concept but instead of focusing on the production process, the focus is now on end products.
Businesses who use marketing strategies based on this concept think that good quality, great performance, and innovative features of a product are enough reasons for a customer to buy products from you.
No doubt that everyone wants good quality products but is that enough to build a base of satisfied customers.
Do you think if Kodak had improved the quality of their cameras, you would have still been buying those and not using your phone cameras? Maybe a few of you.
Do you think if railways in the US make their trains better performing, it will be able to attract frequent flyers?
It has got the same answer as the last one, maybe a few.
The reason being that the needs of the customers have changed with time and now, the satisfaction doesn’t come from a better product but a better solution to their needs.
It can be a train, it can be an airplane and it can even be a bus.
Customer satisfaction doesn’t come just from increasing the quality of a product.
It is based on various factors, and that’s why continuous customer research is vital for a business, and it is also the foundation of the Purpose-Driven marketing strategy.
Selling Concept For Creating A Marketing Strategy
This school of philosophy is based on the idea that consumers won’t buy unless selling and promoting takes place. This concept took shape somewhere around the Great Depression time and continued until the 1950s.
Even though it’s not new, this concept is still in practice by a few businesses. For example, many insurance companies still rely on aggressive selling.
The focus of this concept is transactions and not the customers. A business tries to sell what they make instead of making what customers want.
That’s why it generally involves aggressive selling and accepting any sales whether it fits a business’s ideal customer profile or not.
This is also a very product-centric approach and profits depend on sales volume rather than customer relationships.
Marketing Concept For creating A Marketing Strategy
An improved and better version of all the old marketing concepts is the marketing concept. It emerged in the 19050s.
And this practice is based on understanding the needs of the customer and delivering customer value and increasing customer satisfaction.
Also, profits generally come from delivering customer value profitably.
The marketing concept is very customer-centric unlike selling concepts, production concepts, or product concepts that are product-centric.
As the concept focuses on customers, the profits are generally made when superior customer values are delivered and overall customer satisfaction is increased.
Marketing is generally in tune with customers’ needs. The same goes for any kind of product innovation.
Customers play a major role in shaping the business strategies and customer satisfaction forms the part of every atom of a business’s survival
For example, Ikea and Walmart.
Societal Marketing Concept / Purpose-driven Marketing Strategy
The societal marketing concept is the latest and the most effective way of forming business strategies in the current age.
This concept is going to prepare you for the long-growth of your business.
According to a consumer study by Unilever, an estimated $1.2 trillion opportunity exists for all those businesses that make their sustainability credentials clear.
The societal marketing concept is based on the idea that just producing things that a customer wants is not enough.
That product also needs to be created ethically and sustainably. Just for the sake of profits, the future of the next generation to come can’t be sacrificed.
Societal marketing is very similar to the marketing concept I explained above.
The only difference is that in this case, you are going to consider even the long term benefits of your actions.
For example, good quality shoes will help a customer right now but if they are also ethically produced, the benefits will be seen even after many years.
What Is Sustainable Marketing?
Societal marketing is also famous as social and responsible marketing, or sustainable marketing.
It is driven by the desire to preserve the needs even of the future generation and is based on the concept of the shared value.
This practice makes us rethink the kind of relationships business and society should share.
Keeping in consideration that any kind of action a business take affect society in more ways than we can imagine.
Sometimes, the effects are visible right away, sometimes it takes many years.
According to Porter Novelli, 72% of Americans find it is very important that the businesses they buy from should reflect their values, and 90% Gen Z believes that businesses must act on environmental and social issues
For example, if your business is dependent on natural resources. Any time you use those resources, you are affecting the society you are a part of.
Businesses were not answerable earlier and they over-exploited many such resources. Time has changed a lot since then. Consumers prefer brands that have values.
They care about the earth and want all businesses they interact with to be responsible.
These resources are limited and if you don’t use them well, soon we all will be out of the natural resources.
According to Interbrand, businesses with a purpose-driven marketing strategy improve the quality of life of their customers and others outperform the stock market by 120%.
All this data shows that societal marketing is the future and it is beneficial not just for society but also for the customers.
Do you need help with your societal marketing strategy? Contact us for a consultation call.
What Is A Marketing Philosophy?
A marketing philosophy is the marketing practice that lays the foundation for a marketing strategy. Click To Tweet