Most managers & marketing writers now distinguish between selling & marketing. The “selling concept” assumes that resisting consumer have to be persuaded by vigorous hard-selling techniques to buy non-essential goods or services. Products are sold rather then bought. The “marketing concept”, on the contrary, assumes that the producer’s task is to find wants & fill them. In other words, you don’t sell what you make, you make what will be bought. As well as satisfying existing needs, marketers can also anticipate 7 create new ones. The markets fro Walkman, video games, personal computers, & genetic engineering, to choose some recent examples, were largely created rather than identified.
Marketers are consequently always looking for market opportunities – profitable possibilities of filling unsatisfied needs or creating new ones in areas in which the company is likely to enjoy a differential advantage, due to its distinctive competencies (the things it does particularly well). Market opportunities are generally isolated by market segmentations. Once a target market has been identified, a company has to decide what goods or services to offer. This means that much of the work of marketing has been done before the final product or service come into existence. It also means that the marketing concept has to be understood throughout the company, e. g. in the production department of a manufacturing company as much as in the marketing department itself. The company must also take account of the existence of competitors, who always have to be identified, monitored & defeated in the search for loyal customers.
Rather than risk launching a product or service solely on the basis of intuition or guesswork, most companies undertake market research. They collect & analyze information about the size of a potential market, about consumers’ reactions to particular product or service features, & so on. Sales representatives,...
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