Question 1 (d)

Selling concept (inside-out) versus marketing concept (outside-in), with examples

9 marks

Time to write
About 18 minutes
Topic
Marketing philosophies

Question

Question 1 (d) · 9 marks

"While the marketing concept takes an outside-in perspective, the selling concept takes an inside-out one." Discuss this statement, and with examples highlight the key differences between them.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • DiscussTie the answer to the quoted statement: say what it means first, and come back to it at the end.
  • differences betweenSet the differences out in a table, basis by basis, not as two separate essays.
  • with examplesExamples are asked for: one short example with each point.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Explanation of the statement and the two concepts 4 marks 7 min
  3. 2 Key differences with examples 5 marks 9 min
  4. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

The statement

The statement contrasts two business philosophies by their starting points. An inside-out perspective begins inside the firm, with its factory, existing products and capacity, and works outward to find buyers. An outside-in perspective begins outside the firm, with the market and customer needs, and works inward, shaping products and operations to meet those needs.

The selling concept

The selling concept took hold once firms could make more than buyers would take of their own accord. Assuming that people will not buy enough unless pushed, the firm puts its effort into hard selling, advertising and sales promotion, and expects its profit to come from the volume of sales. The firm sells what it has made rather than making what the market wants. It is still seen with unsought goods (such as some insurance policies) and with firms that have spare capacity. Its aim is the sale, not a lasting relationship, and customers pushed into buying what they did not need tend to be dissatisfied and to spread bad word of mouth.

The marketing concept

The marketing concept reverses the direction. Profit is to come from satisfied customers, not from the volume pushed out: so the firm first chooses which buyers it will serve, finds out what they want, and shapes its whole offer to serve them better than rivals do. Every department's work is coordinated around the customer, and the aim is a lasting relationship rather than one sale.

Key differences

BasisSelling concept (inside-out)Marketing concept (outside-in)
First questionWe have made this; how do we sell it?What do our customers need?
Product decisionMake first, then sellResearch first, then make
Role of researchLittleCentral
Who drives decisionsProduction and salesThe customer, through every department
Time horizonShort-term transactionsLong-term relationships
Customer after saleLittle concernContinued service and loyalty
Typical riskDissatisfied buyers who do not returnHigher cost of research and adaptation

Examples

  1. Selling concept: a company with unsold stock of an outdated model pushes it through heavy discounts and high-pressure salespeople; telecallers pushing loans or policies regardless of the caller's needs.
  2. Marketing concept: a car maker that studies city buyers' need for compact, fuel-efficient cars with low running costs and a wide service network, and designs, prices and supports its cars accordingly.
  3. Marketing concept: a food company that notices demand for healthy snacking and develops baked, millet-based snacks in small packs.

Conclusion

The statement is correct. The selling concept looks from the firm outward and focuses on the sale; the marketing concept looks from the customer inward and focuses on satisfaction. Modern firms still sell actively, but within a marketing approach that begins with the customer.

Where the 9 marks sit

#ComponentMarks
1Explanation of the statement and the two concepts4
2Key differences with examples5
Total9
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