Old concept of market focuses to earn maximum amount of profit by selling large quantity of products. On the other hand, new concept focuses on customer satisfaction.
The differences between old and new concept of marketing are as follows:
The differences between old and new concept of marketing are as follows:
1. Consumer Satisfaction
The old concept of marketing gives emphasis to earn maximum profit by selling more and more products while the modern concept gives emphasis to provide maximum satisfaction to the customers and only then earn profit. Modern concept is customer-oriented whereas old concept is sales-oriented.
2. Integrated Process
According to the modern concept, marketing is a dynamic and integrated process in which it is not only necessary to have relationship among all the marketing activities, it is also essential to have proper plan of all activities and coordination among them. Modern concept gives more emphasis to the study of the needs, wants of customers and their behavioral system.
3. Marketing As A Social System
In the old concept of marketing more emphasis was given to selling. Searching future customers, giving information about goods or services to them, making them willingness to buy etc. are the functions of marketing. According to the modern concept, marketing is supposed to be a social system in which involves various business activities and functions. They remain affecting one another.
4. System Approach
The modern concept of marketing gives emphasis to systematic study of marketing and systems approach. This means, all the activities of marketing should, in a coordinated and integrated manner, be directed towards the main objective of the organization.
5. Marketing Information System
The modern concept of marketing also gives emphasis to the use of information system in order to increase benefit and productivity of the firm. Consumer research is necessary for consumer satisfaction for which adequate information need to be collected. So, information system occupies an important place in the modern concept of marketing. Old concept of marketing lacks it.
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6. Social Responsibility
The nature of modern concept of marketing is based on social responsibility. Peoples' welfare, high living standard, protection of environment, maximum satisfaction of consumer etc. are such factors which motivate business organization to adopt marketing policy full of social responsibility.
