by Traditional concept of marketing
According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.
Features of Traditional Concept of Marketing
(i) This concept starts with the product or output which is produced in factories.
(ii) It stresses upon the product of the manufacturer.
(iii) This concept focuses on the need and interests of the producer’s.
(iv) The objective of marketing under traditional concept is maximizing profit by maximizing sales.
(v) The means to achieve objective of marketing i.e. profit maximization is achieved through selling and promoting the product.
(vi) This concept aims to achieve short term goals.
(vii) Traditional concept includes production concept, product concept & selling concept.
(viii) The focus of this concept is on production.
Modern concept of marketing
According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organizing business to satisfy these needs.
Marketing in the modern sense involves decisions regarding the following matters:
- Products to be produced
- Prices to be charged from customers
- Promotional techniques to be adopted to contact and influence existing and potential customers.
- Selection of middlemen to be used to distribute goods & services.
Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.
Features of Modern Concept of Marketing
(i) This concept starts with target market selection and finding the needs and wants of the target market so selected.
(ii) It stresses upon the needs and wants of the consumer.
(iii) This concept stress on the need and interest of the consumer.
(iv) The objective of marketing under modern concept is profit, but through consumer satisfaction.
(v) The objective i.e. consumer satisfaction is achieved through coordinated marketing techniques.
(vi) This concept aims to achieve long term goals.
(vii) Modern concept includes consumer-oriented philosophy, societal oriented philosophy.
(viii) The focus of this concept is on the consumer satisfaction.
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Traditional Marketing |
Modern Marketing |
| In traditional marketing the objective is maximum profit. | In modern marketing the objective is maximum customer satisfaction. |
| Traditional marketing is short term oriented. | Modern marketing is long term oriented. |
| Traditional Marketing concepts focuses on products only. | Modern Marketing concepts focuses on customer’s needs and wants. |
| It targets customer in focus of product/service selling and availing high profit. | It targets customer in focus of providing product/service and availing satisfactory profit. |
| In traditional marketing concept there is less promotional activities. | In modern marketing concept there is sustained promotional activities. |
| Traditional marketing is one type of push marketing. | Modern marketing is one type of pull marketing. |
| It is based on production and selling concept. | It is based on social and selling concept. |
| It is based on manual and physical marketing concepts. | It includes digital/automated marketing along with traditional marketing methods. |
| In traditional marketing segments are developed by product portfolio. | In modern marketing segments are developed by differences between customers. |
| It is stuck in existing market. | It is always in search for potential market. |
| It has no target set of customers or any regular customer base. | It has target set of customers or a regular customer base. |
| It ignores the market survey and market competition. | It does the market survey and efforts to know market competition. |
| Geographical scope of traditional market is local area. | Geographical scope of modern market is global area. |
| Traditional Marketing concept is a narrow concept. | Whereas modern marketing is a broader concept. |
