Classification Of Market


Market can be classified on different basis. There are different types of markets on the basis of geographical area, time, business volume, nature of products, consumption, competition, seller's situation, nature of transaction etc. as follows:

1. Classification Of Market On The Basis Of Geographical Area
Market can be classified in local, regional, national and international level on the basis of geographical area:

i. Local Market
The market limited to a certain place of a country is called local market. This type of market locates in certain place of city or any area and supplies needs and wants of the local people. Perishable consumer products such as milk, vegetables, fruits, etc are sold and bought in local markets.

ii. Regional Market
The market which is not limited to a certain place but expanded in regional level is called regional market. Mostly, food grains such as wheat, paddy, maize, millet, sugar, oil etc are bought and sold in such regional market.

iii. National Market
If buying and selling of some products is done in the whole nation, this is called national market. The products such as clothes, steel, cement, iron, tea, coffee, soap, cigarette, etc are bought and sold nationwide.

iv. International Or Global Market
Market cannot be limited to any geographical border of any country. If the goods produced in a country are sold in different countries, this is called international market. today, not any country of the world is self-dependent. All the countries are exporting the goods produced in other countries. The market of some goods such as gold, silver, tea, clothes, machines and machinery, medicines etc. has spread the world over.
2. Classification Of Market On The Basis Of time
On the basis of time, market can be divided in very short-term, short-term, long term and very long-term market.

i. Very Short-term Market
The market where shortly perishable goods are sold is called very short-term market. The market of milk, fish, meat, fruits and other perishable goods is called very short-term market. The price of short goods is determined according to the pressure of demand. When the demand for such goods is high, price rises and when demand declines, the price falls down. If the supply is low and the demand is high, the price rises higher. In such market supply cannot be increased.

ii. Short-term Market
In the short term market, supply of products can be increased using the maximum capacity of installed machines of the firm. The goods cannot be produced according to the demand for adjustment of supply by expanding or changing the existing machines and equipment. In short-term market, price of the goods is determined on the basis of interaction between demand and supply. But, as the supply cannot meet the demand, demand affects price determination in short-term market.

iii. Long-term Market

In long-term market, adequate time can be found for supply of products according to demand. New machines and equipment can be installed for additional production to meet demand. As supply can be decreased or increased according to demand situation, price is determined by interaction between demand and supply in long-term market. Market of durable products is ling-term market.

iv. Very Long-term Market Or Secular Market

In secular market, produces can get adequate time to use new technology in production process and bring new changes in products. They become able to produce and supply goods according to changed needs, interest, fashion etc. of customers. Market research becomes helpful in doing so.

                       Also Read: Meaning And Concepts Of Market

3. Classification Of Market On The Basis Of Volume Of Business
On the basis of volume of business, type and size, market can be classified in wholesale market and retail market.

i. Wholesale Market

If a large quantity of products are purchased from producers and sold to different retailers, this is called wholesale market. In wholesale market, the products are not sold directly to ultimate consumers. But, if consumers want to buy in large quantity, they can buy from wholesaler.

ii Retail Market
The market that sells small quantity of products directly to ultimate consumers is called retail market.

4. Classification Of Market On The Basis Of Nature Of Product

On the basis of nature of product, market can be classified in two types as follows:

i. Commodity Market

The market where consumer and industrial commodities like clothes, rice, machines, equipment, tea, soap, fruits, vegetables etc. are bought or sold is called commodity market. In some market only certain special commodities are bought and sold and in some other different consumer commodities are bought and sold.

ii. Financial Market

The market and financial instruments is called financial market. In such market, money, shares, debentures, treasury bills, commercial papers, security exchanges, loan giving or taking etc are dealt. Dealing of short term fund is called money market and dealing of long-term fund is called capital market.

5. Classification Of Market On The Basis Of Consumption

On the basis of consumption of products, market can be divided as follows:

i. Consumer Market

The market of products, which the people buy for consumption is called consumer market. The customers buy consumer goods, luxury goods etc. for daily consumption or meeting their daily needs from such market.

ii. Industrial Market

Generally, raw materials, machines and equipment, machine parts are dealt in industrial market. Domestic consumer goods are produced using them.

                                   Also Read: Features Of Market

6. Classification Of Market On The Basis Of Competition

On the basis of competition, market can be classified into monopoly market, perfect market and imperfect market.

i. Monopoly Market

If there is full control of producer over market, then such market is called monopoly market. In such market, the producer determines price of his products in his own will. In such market, only one producer or seller controls market. In practice, the producer or seller can supply products or achieve monopoly on price only in small or limited area, but in wide area it becomes impossible.

ii. Perfect Market

The market where the number of buyers and sellers is large, homogeneous of products are bought and sold, same price of similar type products is determined from free interaction between demand and supply is called perfect market. Perfect competition takes between consumers and producers or buyers and sellers, but in practice perfect market can be rarely found.

iii. Imperfect Market

The market where there is no perfect competition between buyers and seller is called imperfect market. In this type of market, customers are affected by product discrimination. Post-sale services, packaging, price, nearness of market, credit facility, discount etc make product discrimination. Customers can buy same types of products from different sellers according to their desires and comfort. In practice, mostly products are bought and sold in imperfect market.

7. Classification Of Market On The Basis Of Seller's Position

On the basis of seller's position, market can be divided into primary market, secondary market and terminal market.

i. Primary Market

In primary market, primary goods are bought and sold. Producers sell primary goods such as agricultural products, food grains, livestock, raw materials etc. to wholesalers or commission agents in such market.

ii. Secondary Market

Primary goods are bought from producers and sold to retailers in secondary market. Generally, wholesalers buy secondary products and sell them to retailers.

iii. Terminal Market

In this type of market, retailers sell products to final consumers.

8. Classification Of Market On The Basis Of Nature Of Transaction

On the basis of nature of transaction, market can be classified into spot market and future market.

i. Spot Market

The market where delivery or handling over of the good is made immediately after sales is called spot market. In such market, price of product is paid immediately at the spot and ownership of the product is transferred to buyer at the same time.

ii. Future Market

In this type of market contract is signed for sale of products in future, but no delivery of product is made. In this market, buyer and seller sign a contract for buying and selling products at certain rate of price or on condition to determine the price in future.

9. Classification Of Market On The Basis Of Control

On the basis of control, law, rules and regulations, market can be classified into regulated market and Non-regulated market.

i. Regulated Market

If trade association, municipality or government controls buying, selling, price of products etc. it is called regulated market. Such market must follow the established rules, regulations and legal process and provisions. Otherwise, the businessmen are fined or punished.

ii. Non-regulated Market

If a market is freely functioning and is not under control of any government body or any organization, it is called non-regulated market. In such market, price is determined through interaction between demand and supply of products and buying and selling takes place. This market has not to follow any rules, regulations and legal provisions.


Concept And Types Of Customers


Concept And Meaning Of Customers

The person or groups of persons who but goods or services are called customers. In the absence of customers exchange is impossible. Only the sellers cannot complete business activity. Both the sellers and buyers are important for business. The old concept of business does not give importance to customers. But the modern concept believes that success of business depends on customers. It is said- " Customers are the king for business success." Customers are of different types. They can be classified into categories as institutional customers and non-institutional customers.

                     Also Read: Types Of Non-institutional Customers

1. Concept Of Institutional Customers/Buyers
The business firm, which buy goods for production or resale, are called institutional customers. Governmental and non-governmental organizations, which buy products for office use are also institutional buyers. So, producers, wholesalers, retailers, cooperative organizations, schools, colleges, governmental and non-governmental organizations etc include in institutional buyers. Institutional buyers are also called organizational and industrial customers.
2. Concept Of Non-institutional Customers/Buyers
The customers who buy goods or services for their daily domestic use are called non-institutional buyers. Such customers buy goods or services for ultimate use. They buy daily needs such as foods grains, clothes, books, copies, kitchen utensils and materials, medicines, ornaments, cosmetic etc. for regular use. So, the non-institutional buyers are also called individual or ultimate customers. Generally, ultimate customers buy daily needs from near by retailers. Such customers may or may not know about market situation, goods or services, price etc. But they buy different products to meet their needs.

Non-institutional buyers may be male, female, young, old, child, native, foreigner, etc. Habit, nature, behavior, necessity, thinking style etc. of each customer is different. So, such customers are of different.

Features Of Market

Following are the features of market:

1. Buyers And Sellers
There must be buyers and sellers to be market. The seller should be able to supply goods or services according to the demand of customers. But it is not compulsory to have direct meeting and interaction between them. Buying and selling of products and services can take place by establishing indirect contact between buyers and sellers, that is through correspondence, telephone, telex, intermediaries. However, customers and seller or demand and supply are very important elements to market.

2. Product
There must be product to market. Goods, services, ideas, thoughts etc. all are taken as products. Product is necessary for exchange. but markets may be different of different products, for example, market of books, market of foodstuffs, market of shoes, market of ready-made garments etc.

                         Also Read: Meaning And Concepts Of Market

3. Price
There should certain price of products to be market. Customers should to pay certain price for the product. Some economists have put forth their views that price of certain product should be fixed the same in the whole market area through competition between buyers and sellers. But in practice, price of same product may be different in market due to imperfect competition between buyer and seller and to some extent due to monopoly of seller on some products.

4. Area
There should be certain area to be market. Area means, it is not a specific place, it indicates whole geographical area where a free relationship establishes between buyers and sellers. Such area remains limited to local level for certain products and for some other products the entire nation or the world becomes market.

5. Transfer Of Ownership
In market, ownership of product is transferred to buyer from seller. Money helps as medium of exchange for ownership transfer.

Hence, there should be the features such and buyers and sellers, or demand and supply, goods or services, determined price, certain area, ownership transfer etc to be market.

Meaning And concepts Of Market


The word 'Market' was derived in English from Latin word 'Marcatus'. Its meaning is trading or place of transaction. As the word 'Marketing' has been formed from the 'market', it is necessary to be clear about the concept of market in marketing subject. The following concepts can be studied to be clear about the meaning of term 'market'

1. Place concept
2. Commodity concept
3. Exchange concept
4. Area concept
5. Demand or customer concept
6. Space or digital concept

1. Place Concept Of Market
Generally, the word 'market' refers to the place where buying and selling of goods is performed. The comfortable place, where sellers and customers meet together and exchange goods or services, is called market. Although the word 'market was evolved from the place of transaction, it is used for broad meaning in economics. Nowadays the term 'market' does not represent only a certain place.

2. Commodity Concept Of Market
The commodity concept of market has given emphasis to buying and selling of goods or services. The process of buying and selling of goods or services takes place between buyer and seller is called market. In this way, place is not important in commodity concept of market. It needs commodities or services, buyers and sellers and relation or interaction among them.

                          Also read: Classification Of Market

3. Exchange Concept Of Market
Exchange concept of market has given emphasis to mutual meeting between buyer and seller and their free relationship. Its premise is that exchange should be voluntary, buying and selling between buyer and seller should be free and the price of same goods should be equal from competition.
To be 'market' this concept has given emphasis to free relationship between buyers and sellers and to equality of price of the same goods from competition. But in practice, always competition cannot be found in all goods and same price for same type of goods . In some products, monopoly of sellers can be found.

4. Area Concept Of Market
The area concept of market is related with exchange concept. This concept of market emphasis to free intercourse between buyers and sellers to fix price of goods for buying and selling. But fixation of price implies in certain area from free interaction between demand and supply. For this it is not necessary to have direct meeting or discussions between buyer and seller. They establish close and regular relationship through different modern communication media and exchange of goods and services.

                           Also read: Features Of Market

5. Demand Or Customer Concept Of Market
Market can be studied from the perspective of demand or customer concept. According to this concept, the aggregate demand by potential buyers for any product is market.
Human needs are unlimited. When one need has been satisfied, another need appears. So, need satisfaction is a never-ending process. It remains from birth to the end of human life. On the other, human needs remain changing. Today's popular product may be unpopular tomorrow and its demand may decline. So, market is the customers' demand for goods or services. In short, the activities such as contact between customers and sellers, price determination, ownership transfer etc. are the necessary factors for market.

6. Space Or Digital Concept Of Market
Space or digital concept has developed as new technology of market. Nowadays, buying and selling can be performed without direct marketing or interaction between buyer and seller. Because of the increasing use of information technology, buying and selling has become possible between persons, one living in one corner and the other in another corner of the world. The communication media like telephone, telex, computer, Internet etc have made direct contact between customer and seller a minor matter. Worldwide websites have facilitated the customers to know about quality, features, price, terms and conditions etc. of any products of any company living at home.

In this way, market can be studied from different concepts. According to the above mentioned concepts, there should be buying and selling between buyers and sellers to be market, but it is not compulsory to have direct meeting between them. Contact, buying and selling of goods and services can take place between customers and sellers through different communication media like correspondence, telephone, telex, wireless etc.

Components Of Marketing Mix Or Four P's Of Marketing


At first Prof. Neil H. Borden of Harvard Business School had named 'Marketing Mix'. However, Prof. Jerome McCarthy of Michigan State University presented marketing mix as four 'Ps" in his book ' Basic Marketing' published in 1960. Under these four 'Ps' include Product, Place, Price and Promotion. According to him, the components of marketing mix or four Ps are as follows:

* Product
* Place
* Promotion
* Price
So, marketing mix = Product mix + Place mix+ Promotion mix+ Price mix.

1. Product Mix
Product is the mist important component of marketing mix. Product means goods, materials, services and even ideas. in marketing the word 'product' does not indicate only physical goods or materials. It also indicates quality, price, brand, color, packaging, seller's service, goodwill, reputation, guarantee and warranty of goods with which the customers can get satisfaction. So, product mix is the important component.It includes product planning, development, standardization,grading, branding, packaging etc.

2. Place Mix
The another important component of marketing mix is place mix. This is also called distribution mix. In this include two components- selection of distribution channel and physical distribution of products.

i. Selection Of Distribution Channel
The means or medium used to carry products to the ultimate consumers is called distribution channel. The business firm, which can select proper channel to deliver goods to the customers at right place at right time, can get success. The selection of distribution channel is affected by the nature of product, distribution cost, financial position of the firm, market situation, market competition etc.

ii. Physical Distribution
Physical distribution works for carrying finished products to the consumers and supplying necessary raw materials to the manufacturing company. Physical distribution helps to supply products in right quantity to right place at right time at lower cost. Under this include the activities such as management of necessary means of transportation, warehouse for storing, inventory control, material handling, order processing, place analysis etc. Among them, management of transportation and warehouse are the most important. These create place utility and time utility of products.

                            Also Read: Meaning Of Marketing Mix

3. Promotion Mix
Promotion mix includes the activities such as personal selling, advertising, sales promotion, publicity and public relations etc. Promotional activity becomes very important in attracting customers towards the products and creating demands by giving information and message about the products. Today's tough competition and complex market situation have made promotional activities more challenging. Success can be achieved in business only through proper promotional policy and proper use of means and resources. So, a good business entrepreneur should make proper promotional policy and implement.
4. Price Mix
Price is very sensitive component of marketing mix. In it, decision on selling price, discount, commission etc. are taken. While taking decision on price, reasonable return of the investment of the firm and customers' services should be considered at a time. While determining price of the product, production cost, demand situation, competition, possible sale expenses, expected profit etc should be carefully analyzed.

Product, place, promotion and price are very important and useful for a product- oriented company. Some scholars have suggested that service-oriented firms should add the components such as process, people and physical evidence to 4ps to make 7ps and integrated in marketing mix.

Implementation Of Marketing Mix

The following issues needs to be considered in implementing the marketing mix:

1. Strategic tool
The marketing mix is a strategic tool in marketing. Each element of the marketing mix is under the control of the marketing firm and can be altered to achieve the desired results in the target market. The marketing manager should have full control on the mix and free to change the blend according to the need.

2. Different mixes for different segments
The marketing firms need to adopt several marketing mixes for different products in different target markets. The marketing mix used to sell branded products in urban areas is totally different from lower priced products sold in villages of remote areas.

                Also Read: Meaning Of Marketing Mix

3. Mixes differ for different organizations
The firm adopts an adequate blend of the marketing mix elements in relation to a product in a defined target market. The nature of the market and the characteristics of the product determine the composition and proportion of the marketing mix. A manufacturing firm needs to give equal weight to all elements of the marketing mix. A service firm will put more emphasis on people, process, and physical evidences. A retailer's marketing mix may have higher composition of shop-displays and public relations.

Meaning Of Marketing Mix

Marketing Mix

In this modern age, marketing has occupied a wide scope. Different activities should be performed in marketing. Hence, the combination of all the activities conducted to satisfy the needs of target market is called marketing mix. In this include all the activities from research, identification of customer's needs, production of the goods or services accordingly and satisfy the customers through sales and distribution. Marketing activities should be coordinated in such a way that the needs of target markets are completely satisfied. So, the coordination and well management of entire marketing activities is called marketing mix.

                Also Read: Components Of Marketing Mix Or Four P's Of Marketing

The techniques and strategies of marketing to be used by the firm in order to achieve the objective of earning profit through the customers' satisfaction is marketing mix. The combination of the major components such as products, price, distribution system and promotional activities in the firm's marketing programs is marketing mix.

The fulfillment of customers' needs and wants should be considered while making marketing mix decision. These four components i.e. product, price, promotion and distribution are interrelated. So, decision on any one of the four components also affects others. Marketing mix represents dynamic condition of marketing activities of the firm. This is focused on or concerned with how the customers' needs and wants can be satisfied. If the needs and wants of customers are changed, marketing mix should also be changed accordingly.

Societal Marketing Concept And Its Features

Societal Marketing Concept

The marketing concept has become challenging due to long-term effect of the firms' activities on society. Because of environmental degradation, increasing pollution, lack of resources, population explosion, worldwide inflation, negligence towards social services etc. consumerism movement practiced in developed countries has become a complete shame. According to the marketing concept, a business firm may be giving full satisfaction to its customers but at the same time it may be adversely affecting the society. There may be contradiction between the supply of needs to certain customers and long-term welfare. So, the societal marketing concept was developed in 1970s.

                   Also Read: Production Concept Of Marketing And Its Features

Societal marketing concept cares for the effect of the business activities on the interest or welfare of society. Beside the needs of consumers, it also cares for social needs. The objective of the societal marketing concept is to earn profit through conduct of integrated and socially responsible marketing activities and customers' satisfaction. In this way, this concept believes in linking the fulfillment of customers needs with the welfare of the entire human society for the success of any business firm. While formulating marketing policies, the societal marketing concept should achieve proper balance between the three main aspects i.e. firm's profit, consumers' satisfaction and social well-being.
Features Of Societal Marketing Concept

1. Social Responsibility Orientation
A business firm should bear social responsibility to increase consumers' interest and social welfare.
2. Customer Need Satisfaction
The societal marketing concept believes in supplying better quality goods than those of competitors to satisfy the needs of target customers.

3. Integrated Marketing Efforts
The societal marketing concept gives emphasis to integration and coordination among all the organizational activities and efforts.

4. Profit Through Social Well-being And Consumers' Welfare
Proper harmony is compulsory among social well-being, supply of customers' needs, profit earning and other objectives of any business organization. In other words, societal marketing concept believes that profit can be earned only through proper care for the interest and well being of the society, consumers and firm itself.

Marketing Concept,Its Fundamentals And Features

  The Marketing Concept
The marketing concept is relatively new concept of business . This concept was developed after 1950s. The marketing concept gives priority to achieve the objective of the firm through fulfillment of customers' needs and wants. Not any business organization can achieve its objectives of marketing until it produces goods or services according to the needs and wants of customers. So, the main task of the firm is to identify the needs and wants of target markets and provide more satisfaction to the customers at less cost than the competitors. For this, all the marketing activities should be directed towards providing satisfaction to the consumers.

Marketing concept gives emphasis to the satisfaction of customers' needs, Its ultimate goal is to earn profit through the use of integrated and coordinated marketing method. Satisfied customers express loyalty to the firm and buy its products regularly. This helps achieve the organizational goal.

               Also Read: Production Concept Of Marketing And Its Features

Fundamentals Of Marketing Concepts

1. Target Market Focus
Marketing concept clearly defines target market. A business firm can define target market using the techniques like market segmentation and targeting. Besides this, market price should be properly evaluated through market analysis.

2. Customer Orientation
All the activities of the firm should be customer oriented. In other words, all the activities of the firm should be focused on or directed to identify customers' needs and wants and to satisfy them. Customers' needs and wants should be identified and defined from customers' point of view. The main objective of marketing is customers' satisfaction. Only fulfilling their needs after study, research and proper evaluation can satisfy them.

3. Integrated Marketing Activities
The other important fundamental of marketing concept is the integration and coordination of all the activities of marketing. Only then, customers' wants and needs can be satisfied. Different marketing activities like advertising, sale-force mobilization etc. should be systematically as well as properly integrated and coordinated. Along with this, marketing executive should have all the authorities and responsibilities to conduct marketing activities. Marketing mix should be integrated in such a way that the objectives of marketing can be achieved. Similarly, there should be proper coordination among production, finance, personnel and sales departments to achieve the objectives of the business firm.

                  Also Read: Product Concept Of Marketing And Its Features

4. Achievement Of Organization's Performance Objectives
The objective of marketing concept is to achieve performance objective of a business organization. The objective of any business organization is to earn profit by satisfying its customers. In order to achieve this objective, needs of the customers should be identified and all the marketing activities coordinated.
Features Of Marketing Concept

1. Well-defined Target Market
The marketing concept clearly defines target market of the organization. Remains effortful to conduct more attractive and effective programs than the competitors.

2. Focus On Customer Needs
The marketing concept pays attention to identify the customers and provide them. So, it gives emphasis to create goods that can satisfy the customers.

           Also Read: Selling Concept Of Marketing And Its Features

3. Integrated Activities
The marketing concept believes that customers' needs can be satisfied through integrated and coordinated activities.

4. Organizational Goal
The profit maximizing goal of an organization can be achieved by only through customers' satisfaction.

Selling Concept Of Marketing And Its Features

The Selling Concept Of Marketing

Selling concept was developed after production and product concepts of marketing. The product concept could not be fully successful in the business sector. Despite production of quality goods, there appeared serious problem in selling. As a result, selling concept was developed. This concept believes that the consumers do not buy the product until they are motivated through sales promotion efforts. In other words, the consumers do not buy products with their own initiative rather they should be motivated. More quantity of products can be sold to the consumers by creating need and arousing interest in them through different promotional activities.

            Also Read: Production Concept Of Marketing And Its Features

Selling concept focuses attention on the needs of seller but not on consumers'. It aims to increase sales volume and earn profit through different promotional activities. This concept became very popular during 1930-1950. That period is called 'Ideal Sales Era'. During that period, except during the second World War period, supply became more than demand. The premise of the product concept that the ' customers easily buy quality goods of low price' could not work. As a result, many firms appointed sales employees, and focused attention on advertisement and sales promotional activities. On order to attract customers' attention, the techniques such as advertisement, decoration and display of goods, publicity, exhibition or trade fair etc were started. Even then the management would give more emphasis to the product rather than to the customers' need.

               Also Read: Product Concept Of Marketing And Its Features

Some firms are found to believe in selling concept even today. Life Insurance companies, Encyclopedia Publications etc. gives emphasis to selling concept. Such companies give arguments that use of 'hard sell techniques' can help to identify needs of customers and motivate them to buy. This technique believes that efforts should be made the customers realize needs and so that they can buy products. Selling concept emphasis to sell products but does not care for the after-sale services.
Features Of Selling Concept Of Marketing

1. Selling-orientation
Selling concept of marketing gives emphasis to fulfillment of needs of the sellers, it believes that product must be sold out.

             Also Read: Marketing Concept, Its Fundamentals And Features

2. Aggressive Selling And Promotion
Aggressive sale promotional activities should be conducted to attract customers. Only care is taken to increase sales quantity in the market.

3. No Concern With Consumers' Needs
Selling concept is not concerned with the consumers' needs. It lays emphasis on how to sell goods but not on what kind of goods should be produced for the customers.

4. Customer Persuasion
It persuades customers to buy goods convincing them about the high quality and price of the products.

Product Concept Of Marketing And Its Features

The Product Concept

Product concept of marketing is also taken as an old concept of business. Both production and product concepts give emphasis to production of goods. Production concept gives more emphasis to increase production of goods whereas product concept gives emphasis to produce quality goods.

The production concept of marketing focuses attention on producing quality goods at lower cost. This concept believes that customers' attitude becomes positive towards quality goods with reasonable cost. So, the producers or sellers need not make hard efforts to sell products. The consumers buy the goods of the competing brands, which they like and are comparatively good in quality with low cost. So, the success of business depends on production of relatively quality goods of lower cost. The ultimate goal of product concept is to earn maximum profit by increasing production of high quality goods of low price using high efficiency and selling them in mass quantity.

After the industrial revolution, the product concept had great influence on America until 1920s. The manufacturers of television set, air-conditioner, digital watch, food processing etc, are found to have believed in product concept even today. They are trying to attract more and more customers by increasing production of higher quality goods at lower cost.
Features Of Product Concept

1. Emphasis On Product Quality
Product concept of marketing gives emphasis to produce quality goods in large quantity.

2. Reasonable Price
The product concept believes that no hard effort needs to sell quality products at reasonable price.

3. No Concern With Customers' Need
The product concept does not care for customers' needs, wants or interest, preference etc. rather it focuses attention on producing quality and durable goods at lower cost.

4. Quality Improvement
The product concept believes that quality product should be improved to attract customers.

Production Concept Of Marketing And Its Features

The Production Concept
The production concept is the oldest concept of marketing . This concept believes that the consumers give preference to easily available low cost goods. Any production oriented organization aims to have high productive capacity and cover wide distribution area. This concept gives emphasis to reduce cost by increasing quantity of production.
The ultimate goal of production concept of marketing is to earn profit through mass scale production and sale. Production efficiency is used to achieve this goal. Many companies can be found working with the premise that consumers can be attracted by mass production efficiency and cost minimization. Some American companies had adopted 'price-cut policy in the beginning of 19th century. Some Japanese companies had adopted this concept in the 1960s and 70s in international markets. Many companies have been conducting their activities with production concept even today.
Features Of Production Concept

1. Production Oriented
The production concept gives emphasis to mass production and mass selling.

2. High Production Efficiency
The production concept believes that high production efficiency can be achieved through the use of modern technology, standardization and large-scale production.

3. Low Price
The production concept believes that price of products should be cut down to attract customers.

4. Wide Distribution
Arrangement for wide sales and distribution should be made to make the product available everywhere.

Development Of Marketing Concepts

The study of the philosophy of marketing and system of thought is marketing concept. Marketing is concerned with the activities for fulfilling the needs of customers while marketing concept indicates the thought or philosophy of systematic study of the activities. Marketing indicates activities activities but marketing concept indicates theory and principles. So, there is basic difference between marketing and marketing concept. After getting knowledge about the development of marketing activities, it becomes contextual to study the gradual development of the marketing concept.

The development of modern concept of marketing is the outcome of the past business background. The present concept of of marketing ' earning profit by bearing social responsibilities and satisfying customers' did not exist in past. Marketing concept is found to have gradually developed with the development of business principles and management thought. The scholars of marketing have presented five alternative concepts of business in the development of marketing concept as follows:

1. The production concept
2. The product concept
3. The selling concept
4. The marketing concept
5. The societal marketing concept