Tuesday, January 19, 2010

Difference between marketing and product concept:

The marketing concept is a philosophy for the firm that says that the production of the firms should be based on customer needs. The products should be developed after analyzing the customer needs and market research and producing the products that are demanded by the consumers. On the other hand the product concept has no concern with customer demands, it advises the firms to produce products that the firm can produce efficiently and cost effectively even if there is less or no demand. The low cost and hence the low price will itself create demand. Marketing concept talks about catering to customer demand while the product concept talks about stimulating demand through a low cost offering. The product concept can only be applicable to mass production for low value products like pens but the marketing concept is applicable for all products.