What is an enterprise-centered concept?

The concept of production is one of the oldest marketing concepts. According to the production concept, consumers like products that can be bought everywhere at low prices. Therefore, enterprises should devote themselves to improving production efficiency and distribution efficiency, expanding production and reducing costs in order to expand the market. Enterprises that guide marketing management activities with production ideas are called production-oriented enterprises, and their typical slogan is "what we produce, we sell".

Before the beginning of the 20th century, the concept of production prevailed in the West. At that time, capitalist countries were in the early stage of industrialization, the market demand was strong, and the supply capacity of the whole society was relatively insufficient. As long as enterprises increase output and reduce costs, they can get rich profits. Therefore, the central problem of enterprises is to expand the production of cheap and good quality products, and not to care too much about the differences in market demand. In this case, the concept of production is accepted by many enterprises. In addition to the shortage of materials and products, when the technical content and production cost of a product with good market prospects are high, it is necessary to expand the market by improving production efficiency and reducing costs. For example, Ford Motor Company's Model T (a low-priced car with four cylinders and 20 horsepower) was put into production in 19 14, which created a miracle under the guidance of Ford's business philosophy of "improving the production efficiency of Model T, reducing costs and making it affordable for more people". By 192 1 year, the share of Ford Model T in the American automobile market will reach 56%. Before 1985, China was in the era of shortage economy, and most enterprises also operated according to the concept of production.

The concept of production is a management philosophy that emphasizes production and ignores the market. It may be possible to "create brilliance" in the era of material shortage, but with the development of production and the change of supply and demand situation, this concept will inevitably put enterprises in trouble. For example, Ford Motor Company developed its Model T by leaps and bounds, and declared that "no matter what color cars customers need, I only provide black cars", and soon it got into trouble and almost went bankrupt.

2. Product concept

According to the product concept, consumers like products with high quality, multi-function and certain characteristics best, and enterprises should devote themselves to producing high-value products and constantly improve them. Enterprises with product concept believe that consumers appreciate well-made products, believe that they can identify the quality and function of products, and are willing to pay higher prices to buy high-quality products. In the mid-1980s, the managers of some excellent domestic enterprises praised "People without me, people with me being good, people with me changing", which is a typical representative of this business philosophy. Managers of these enterprises rely more on the design inspiration of engineers and technicians and ignore the reaction of the market, and rarely let consumers participate in product design.

Product concept is a business concept that comes into being when there is certain competition in the market, and it is also a typical marketing concept of "fixing sales by production". Paying too much attention to product quality and product variety, while ignoring the actual needs of customers, is most likely to lead to "marketing myopia", that is, improperly paying attention to products instead of market demand, lacking foresight in marketing management, and only seeing the good quality of their own products, but not the changes in market demand, thus leading to the dilemma of enterprise management. For example, the railway industry thinks that customers need trains instead of transportation services, ignoring the influence of the development of transportation modes such as aviation and highways; Slide rule manufacturers think that engineers need slide rule instead of computing power, ignoring the challenge of pocket calculator and PC development; Film manufacturers only pay attention to how to make films with higher quality, but ignore the impact and influence brought by the development of digital technology to the whole industry, resulting in long-term passivity and predicament.

3. Sales creativity

According to the concept of promotion, consumers usually have an inertia or rebellious mentality. If let nature take its course, consumers will generally not buy enough products of a certain enterprise. Therefore, enterprises must actively promote sales and vigorously promote sales to stimulate consumers to buy their products in large quantities. The slogan commonly used by business managers who hold this business philosophy is "Let people buy what we sell".

The concept of promotion prevailed in the west in 1930s and 1940s. During this period, due to the progress of science and technology, scientific management and the promotion of mass production, the output of goods increased rapidly, and the whole society entered a period of surplus goods, and the competition among sellers became increasingly fierce. 1929 The severe economic crisis made it impossible to sell a mountain of goods, many industrial and commercial enterprises closed down one after another, and the market was extremely depressed. Many entrepreneurs are beginning to realize that enterprises can't just focus on production, even if the products are good and cheap, but only by trying to sell them can people be guaranteed to buy them. During this period, enterprises are committed to product promotion activities and advertising activities to persuade or even force customers to buy. Many sales promotion, promotion and advertising skill tools have been developed. Through a large number of promotional experts to do a lot of advertising, exaggerate the "benefits" of products, bombard consumers with pervasive promotional information, and induce people to buy. At the end of 20th century, China began to enter the period of sales promotion concept. Enterprises have great enthusiasm for promotion and advertising. For example, Zhu San's carpet promotion and advertising model, and Qin Chi's hegemony in CCTV, have made enterprises gain short-lived glory in a short time.

Under the condition of modern market economy, the concept of promotion is widely used to promote those goods that are not expected, that is, buyers generally do not think of buying products or services. Many enterprises often pursue the concept of promotion when there is a surplus of products.