Read the following case study and answer question.

Sumit and Rachit are running a company processing coffee powder with a unique name 'Mad over Coffee'. It has a widely established market because of its excellent quality and distinct flavours. They don't have too many competitors in the market. As a result, they are in a position to keep the price of their products high. But the company is not providing after sales service. It doesn't take feedback from its customers. They soon realised this and bounced back. They appointed Raghav, a young energetic, as marketing manager. Raghav suggested diversification and expansion of staff. They added new flavours to their existing product range. They also ventured into tea processing, cocoa powder, and protein mix.

For this, he estimated the additional manpower requirement and finally after completing the staffing process, he managed to get a good team of sales personnel. He modified their packaging, making it more attractive and reusable. They started providing more details about their products on their labels. To promote their sales they started offering extra quantity (20% extra) in each pack.

A variety of programmes were designed by him to promote or protect the company's image and its individual products in the eyes of public.

They started advertising their products on TV and Social media.

"Mad over cofee" has a widely established market because of its excellent quality and distinct flavours. Which marketing management philosophy is being followed by the company ?

Product Concept

The correct answer is option (2) : Product Concept

Production Concept: Production concept is based on the idea that customers will prefer products that are affordable and are produced in bulk. In this marketing concept, the aim of organisations is to produce in bulk, increasing production efficiency, reducing costs and distribution performed on a large scale.

The idea of consumer demand for affordable products comes from the Say's law that states that "supply will create its own demand".

Product Concept: This is another marketing philosophy that is concerned with quality of the product rather than the quantity of the product. The consumers are always looking out for quality products and are not worried about price and the availability of the product.

Companies following this approach will be creating high quality products that will satisfy the requirements of such customers, but it will be expensive in the process.

Selling Concept: This is the third philosophy and it is based on actual selling of the product. In the earlier two philosophies or concepts the emphasis was on production whereas selling concept is more focused on making sales for every product, which is irrespective of quality of the product or the needs of the customer.

Companies following this approach have a short life span and thus have very less repeat customers.

Marketing Concept: The selling concept is not for a long duration. The market is customer centric, therefore any product that should be able to fulfill the customer needs. Marketing concept is based on the assumption that a consumer will purchase products.

Companies conduct research in order to identify customer needs and create a product that meets those needs in a better way than their competitors. it results in businesses developing relationships with customers that leads to profit generation in the long run.

Societal Marketing Concept: This is the fifth marketing concept that is mainly concerned with meeting the needs of customers as well as working towards protecting the environment, its natural resources and overall well being of the society.

This marketing philosophy believes that business is a part of the society and therefore businesses should give it back to society in the form of social services like poverty eradication, promoting literacy, etc.