Distinguish between the marketing concept and the selling concept.

Selling concept is used when a company wants to get rid of
its inventory, irrespective of customer needs. To achieve this, the company will use
aggressive marketing, discounts, strong publicity, etc. A good example is insurance. The
emphasis is on getting the sale volumes, rather than building long term customer
relationships. The company generates profits by selling the commodity and the price is
determined by the cost incurred by the company. Generally, the company will use existing
technology and services and sell them by aggressive marketing. This approach is a short
term method to achieve targets.

Marketing concept, on the
other hand, relies on customer needs and emphasizes customer satisfaction, thereby
hoping to build long-term relations. Here, the product is manufactured as per the needs
of the customer and the company tries to be as innovative as possible (to stay ahead of
competition). The customer decides the price (how much money is the customer planning to
obtain this product or service?, etc.) and this price will determine the cost of the
product. This long-term strategy relies on innovation. All the departments of the
company work in conjunction to bring out a product that will, hopefully, satisfy the
customer, unlike selling concept, where departments work in
isolation.

hope this
helps.