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   THE MARKETING CONCEPT
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--></style><body lang=EN-US style=tab-interval:.5in><div class=Section1><p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal"> <font color=#FF0000> HOSPITALITY SALES MANAGEMENT <o:p> </o:p> </font> </b><p align=center class=MsoNormal style=text-align:center><font color=#FF0000> <b style="mso-bidi-font-weight:
normal">     <o:p> </o:p> </b> </font><p align=center class=MsoNormal style=text-align:center><font color=#FF0000> <b style="mso-bidi-font-weight:
normal"> HA- 400 <o:p> </o:p> </b> </font> <b style="mso-bidi-font-weight:
normal"> <o:p> </o:p> </b><p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal">     <o:p> </o:p> </b><p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal">     <o:p> </o:p> </b><hr><p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal"> <o:p> </o:p> </b><p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal"> <font color=#008000> THE MARKETING CONCEPT <o:p> </o:p> </font> <o:p> </o:p> </b><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal>Source: <span style="mso-spacerun: yes">   </span> Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New Jersey: Prentice Hall.<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal>    <o:p> </o:p><p align=center class=MsoNormal style=text-align:center> <p align=center class=MsoNormal style=text-align:center><b style="mso-bidi-font-weight:
normal"> <font color=#0000FF> Introduction <o:p> </o:p> </font> <o:p> </o:p> </b><p class=MsoNormal>   <hr><p class=MsoNormal><o:p> </o:p><p class=MsoNormal><b style=mso-bidi-font-weight:normal> <font color=#0000FF> Company Orientations to the Marketplace <o:p> </o:p> </font> <o:p> </o:p> </b><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal style=text-indent:.5in>What philosophy should guide a company marketing and selling efforts? <span style="mso-spacerun: yes">   </span> What relative weights should be given to the interests of the organization, the customers, and society? <span style="mso-spacerun: yes">   </span> These interest often clash, however, an organization’s marketing and selling activities should be carried out under a well-thought-out philosophy of efficiency, effectiveness, and socially responsibility.<p class=MsoNormal style=text-indent:.5in>    <o:p> </o:p><p class=MsoNormal style=text-indent:.5in>Five orientations (philosophical concepts to the marketplace have guided and continue to guide organizational activities:<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal>1. <span style=mso-tab-count:1>          </span> The Production Concept<p class=MsoNormal>2. <span style=mso-tab-count:1>          </span> The Product Concept<p class=MsoNormal>3. <span style=mso-tab-count:1>          </span> The Selling Concept<p class=MsoNormal>4. <span style=mso-tab-count:1>          </span> The Marketing Concept<p class=MsoNormal>5. <span style=mso-tab-count:1>          </span> The Societal Marketing Concept<p class=MsoNormal><font color=#0000FF>     <o:p> </o:p> </font><hr><p class=MsoNormal><font color=#0000FF> <o:p> </o:p> </font><p class=MsoNormal><font color=#0000FF> <b style=mso-bidi-font-weight:normal> The Five Concepts Described <o:p> </o:p> </b> </font> <b style=mso-bidi-font-weight:normal> <o:p> </o:p> </b><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> <b style=mso-bidi-font-weight:normal> <font color=#FF0000> The Production Concept. </font> </b> This concept is the oldest of the concepts in business. <span style="mso-spacerun: yes">   </span> It holds that consumers will prefer products that are widely available and inexpensive. <span style="mso-spacerun: yes">   </span> Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. <span style="mso-spacerun: yes">   </span> They assume that consumers are primarily interested in product availability and low prices. <span style="mso-spacerun: yes">   </span> This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> <b style=mso-bidi-font-weight:normal> <font color=#FF0000> The Product Concept. </font> </b> This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. <span style="mso-spacerun: yes">   </span> Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. <span style="mso-spacerun:
yes">   </span> However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. <span style="mso-spacerun: yes">   </span> Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door. <span style="mso-spacerun: yes">   </span><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> <b style=mso-bidi-font-weight:normal> <font color=#FF0000> The Selling Concept. </font> </b> <font color=#FF0000> <span style="mso-spacerun: yes">   </span> </font> This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. <span style="mso-spacerun: yes">   </span> The organization must, therefore, undertake an aggressive selling and promotion effort. <span style="mso-spacerun: yes">   </span> This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. <span style="mso-spacerun: yes">   </span> It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. <span style="mso-spacerun: yes">   </span> <i> Their aim is to </i> sell <i> what they make rather than make what the market wants. </i><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> <b style=mso-bidi-font-weight:normal> <font color=#FF0000> The Marketing Concept. </font> </b> <span style="mso-spacerun: yes">   </span> This is a business philosophy that challenges the above three business orientations. <span style="mso-spacerun:
yes">   </span> Its central tenets crystallized in the 1950s. <span style="mso-spacerun: yes">   </span> It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: <span style="mso-spacerun: yes">   </span> target market, customer needs, integrated marketing and profitability.<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> Distinctions between the Sales Concept and the Marketing Concept:<p class=MsoNormal><span style=mso-tab-count:1>             </span><p class=MsoNormal>1. <span style=mso-tab-count:1>          </span> The Sales Concept focuses on the needs of the seller. <span style="mso-spacerun: yes">   </span> The Marketing Concept focuses on the needs of the buyer. <span style="mso-spacerun: yes">   </span><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal>2. <span style=mso-tab-count:1>          </span> The Sales Concept is preoccupied with the seller’s need to convert his/her product into cash. <span style="mso-spacerun: yes">   </span> The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs).<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve <b style=mso-bidi-font-weight:normal> <i> competitive advantage </i> </b> . <span style="mso-spacerun: yes">   </span> This philosophy is the foundation of <b style=mso-bidi-font-weight:normal> <i> <font color=#008000> consultative selling </font> </i> </b> <font color=#008000> . <span style="mso-spacerun: yes">   </span> </font> <span style="mso-spacerun: yes"> </span><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> The Marketing Concept has evolved into a fifth and more refined company orientation: <span style="mso-spacerun: yes">   </span> The Societal Marketing Concept. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches.<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> <b style=mso-bidi-font-weight:normal> <font color=#FF0000> The Societal Marketing Concept. </font> </b> <font color=#FF0000> </font> This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). <span style="mso-spacerun: yes">   </span> Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being.<p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. <span style="mso-spacerun: yes">   </span><p class=MsoNormal>Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society? <span style="mso-spacerun: yes">    </span><p class=MsoNormal>    <o:p> </o:p><p class=MsoNormal><span style=mso-tab-count:1>             </span> The marketing concept possibily sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider:<p class=MsoNormal><i> The fast-food hamburger industry offers tasty buty unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. <span style="mso-spacerun:
yes">   </span> The products are wrapped in convenient packaging, which leads to much waste. <span style="mso-spacerun: yes">   </span> In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems. <o:p> </o:p> </i><p class=MsoNormal><span style=mso-tab-count:1>             </span><hr><p align=center class=MsoNormal><b style=mso-bidi-font-weight:normal> <font color=#0000FF> What do you think? <o:p> </o:p> </font> <o:p> </o:p> </b><p class=MsoNormal>    <o:p> </o:p></div>