The customer is always right. This is a proposition that bears a great weight when it comes to today’s highly competitive business world. It is important for an organization to carry out sales and marketing activities under a well-orchestrated philosophy of effectiveness, efficiency and social responsibility (Phillip, 2000). Currently, there are five concepts guiding organizational activities. These are: the marketing concept, the production concept, the selling concept, the product concept, and the societal marketing concept. The author of this paper seeks to deliberate on how the leaders have changed their perception of the customers over years, as well as compare the production and selling marketing concepts.
Comparing and contrasting the production concept against selling concept, the following is eminent. While the production concept focuses on increasing the production irrespective of the level of demand by the customer, the selling concept suggests that customers will not buy unless convinced to do so, after deliberate promotion efforts by the organization (Bhasin, 2011). Production concept is associated with developing economies where product availability and low price are of concern. On the other hand, the selling concept is applied when the firms have overcapacity, thus selling what they make instead of meeting the demands of the customers.
Production concept emphasizes on mass production and distribution efforts making it easily available and affordable. For example, ‘sun chips’ in Bangladesh follow the production concept (Drummond & Ensor, 2005). Most unsought products and services like life insurance, and fire extinguishers make the organization to sell and promote their products for marketing success (Drummond & Ensor, 2005). These industries must have a strong sales team.
Driven by customers’ needs and values, a firm undertakes a one-to-one marketing integration, and the value chain with a view to gain profitable growth by acquiring customers’ loyalty, share and lifetime value (Phillip, 2000). Essentially, an organization grows by capturing and most importantly by retaining its customers. Satisfied customers become repeat customers.
In conclusion, it is worth noting that neglecting customers’ needs is dangerous as the business success depends entirely on the customers.