by Merlin Hernandez


Innovation in communication technology and the Information Age have shifted the face of marketing from an emphasis on product placement to a to a heightened customer orientation. The traditional production concept of mass production and distribution, high inventories and high risk is giving way to customization and customer empowerment where the customer is seen as a partner to product development and production processes. This allows manufacturers to be more responsive to customer need, carry less inventory, and minimize surplus and waste.

The ease of Internet comparisons has led to a more savvy buyer with greater price sensitivity and much less brand loyalty. Businesses have to do much more to gain and hold market share and maintain a customer base. Companies are now finding that the old production concept of production efficiency, low cost, and mass distribution needs more service and value overlays in order to maintain competitive advantage.

This has implications for the product concept itself. While performance and innovation remain key elements to success, the idea of relationship marketing has undermined the old notion that a good product will create its own market (the selling concept). This kind of orientation presupposes an aggressive approach to placing the product in the hands of the consumer, without factoring, in any meaningful way, the consumer perspective.

Business operations today however, seek to satisfy a broad base of stakeholders – suppliers, distributers, customers, shareholders – to the benefit of more long-term relationships and more holistic strategies for maximizing profits (the marketing concept). It is based on delivery efficiencies that include product quality, performance, innovation, availability, price, service, and intangible value through added value creation. This may include a unique service culture, new uses for the product, or new technological integration and applications for expanded product usage.

The selling concept epitomizes a philosophy of selling what is made rather that making what the market needs. In the contemporary business environment, success will of necessity need to be aligned with a marketing culture that places the customer at the center. As the heightened competition inherent in globalization offers multiple options and greater capacity for comparison to consumers, businesses need to offer more than just a well-made product.

Products will need to resonate more specifically with customer need, fit into their lifestyles and aspirations, and provide some intrinsic value that extends beyond the product – enhanced social status, group leadership, luxury etc. The selling concept has shifted to more of a marketing concept which requires sound research into what customers want and need, at a price they can afford, and the most efficient methods of getting it to them. Businesses need to be market-driven with customer satisfaction as the primary focus.

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Merlin Hernandez is an entrepreneurial development and management consultant who operates mainly in the small and medium enterprise sector. For more information on this and other topics, please send enquiries to