Evolution of the Marketing Concept

Evolution of the Marketing Concept

1. 
   Production Concept
   Demand for goods and services > Supply ... therefore consumers gladly purchased what was being produced. Producers have a captive market. Investment on increasing the efficiencies of production had the greatest impact on company profitability. Thus smart businesses focused on increasing productivity, rather than understanding the consumer. Henry Ford's quote: "The customer can have any color car as long as it is black" is closely identified with this era! This is appropriate for developing countries, and evolved in the US with the advent of the industrial revolution.
   
2. 
   Sales Concept
   Demand = Supply ... therefore producers had to convince consumers to purchase their products. Focus of business investment starts shifting towards developing a robust sales mechanism in order to communicate with consumers. The sales concept is also relevant for products consumers do not seek out ordinarily, such as life insurance and dental treatment.
   
3. 
   
   
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