The Selling Concept and the Marketing Concept are two different concepts of Marketing that related to the evolution of marketing in the world.
The Selling Concept holds that in order for the firm to be profitable, it must focus on sales of the product regardless of the orientation of the product itself. This concept became popular after World War 2.
On the other hand, the Marketing Concept is one of the recent concepts in marketing. It holds that a firm must identify the needs of the consumer and then plan, price, promote and distribute its product according ton the demands of the consumer.
Selling concept focus on the sales of product regardless of oreintation of product itself while, marketing concept holds on the 4Ps, .i.e. The need for a consumer to plan,price, and promote the product.
The selling concept philosophy was quite common before the emergence of the marketing concept. According to the selling concept, if the customers are not constantly reminded, they will not be motivated to but the product so the firms have to advertise aggressively to remain prominent. By being aggressive, firms will be able to push their products to the customers and make sales. This concept has some draw backs; it considers the customers to be unaware and uninterested while this is not true. Secondly it assumes that firms that advertise a lot will be able to sell well even if the customers don’t want the product which is also not true. On the other hand, marketing concept says that firms have to keep customer demand in their minds while designing products. Those who keep the customers satisfied will get sales and being customer centric will help the firms be successful.
Marketing concept can be define as a way of selling goods&services eg tv&radio services while selling concept can be define as a way of convincing a customer to buy goods
In today’s volatile economy, many note holders are seriously evaluating whether to sell their mortgage note or not. So what are the advantages and disadvantages? Let’s start with the disadvantages.
Disadvantages of Selling a Mortgage Note:
1. First and most obvious, once you sell your note your monthly income is gone forever. 2. If you had a significant gain on the sale of the home that you have spread over the life of the note, you may have to show all of the remaining gain once the note is sold. (Consult your tax adviser.) 3. You will take a discount on the remaining note balance due to the time value of money.
Advantages of Selling a Mortgage Note: 1. You receive a significant lump sum of cash, usually quite quickly. 2. You can utilize this cash for lucrative business opportunities or just as a cushion for these tough economic times to ease anxieties. 3. You no longer are at risk of a default on the note and the hassles of a foreclosure. 4. You no longer have to worry about whether the mortgagor has paid their property taxes or maintained the home. 5. You don’t have to keep monitoring the tax office to see whether the mortgagor has any new liens on the property from a second mortgage or federal or state taxes, etc. 6. Lastly, you no longer have to keep detailed records on the mortgagor’s payment history or report interest to the federal and state tax authorities.
Selling and marketing concepts are one of believes that prevailed in the field of marketing when the field was in its nascent stages. Although, not entirely perfect, they still helped by providing understanding about the customers. The selling concept says that if the customers are not constantly reminded about the presence of the products, they will forget you and will not but the product. Companies have to advertise massively and they have to make an effort to “sell” their products. On the other hand, the marketing concept says that you should keep the customer needs and demands in mind so that there will be a demand for what you produce. It negates the selling concept to some extent because it does not believe entirely selling the product instead it focuses on products that customers want so there will already be a demand.
