THE MARKETING CONCEPT

Marketing
"Marketing is getting the right product or service in the right quantity, to the
right place, at the right time and making a profit in the process". Marketing is
about identifying and understanding your customer and giving them what they
want. It's not just about advertising and promoting your business.
Company Orientations to the Marketplace
What philosophy should guide a company marketing and selling
efforts? What relative weights should be given to the interests of the
organization, the customers, and society? These interest often clash, however,
an organizations marketing and selling activities should be carried out under a
well-thought-out

philosophy

of

efficiency, effectiveness,

and

socially

responsibility.
Five orientations (philosophical concepts to the marketplace have guided
and continue to guide organizational activities:
1.

The Production Concept

2.

The Product Concept

3.

The Selling Concept

4.

The Marketing Concept

The Five Concepts Described

1.The Production Concept. This concept is the oldest of the concepts in
business. It holds that consumers will prefer products that are widely available
and inexpensive. Managers focusing on this concept concentrate on achieving
high production efficiency, low costs, and mass distribution. They assume that
consumers are primarily interested in product availability and low prices. This

orientation makes sense in developing countries, where consumers are more

interested in obtaining the product than in its features.
2.The Product Concept. This orientation holds that consumers will favour
those products that offer the most quality, performance, or innovative
features. Managers focusing on this concept concentrate on making superior
products and improving them over time. They assume that buyers admire wellmade products and can appraise quality and performance. However, these
managers are sometimes caught up in a love affair with their product and do not
realize what the market needs. Management might commit the bettermousetrap fallacy, believing that a better mousetrap will lead people to beat a
path to its door.
3.The Selling Concept. This is another common business orientation. It holds
that consumers and businesses, if left alone, will ordinarily not buy enough of
the selling companys products. The organization must, therefore, undertake an
aggressive selling and promotion effort. This concept assumes that consumers
typically sho9w buyi8ng inertia or resistance and must be coaxed into
buying. It also assumes that the company has a whole battery of effective
selling and promotional tools to stimulate more buying. Most firms practice the
selling concept when they have overcapacity. Their aim is to sellwhat they
make rather than make what the market wants.
THE MARKETING CONCEPT
The marketing concept emerged in the mid 1950s as a customer- centred,
sense-and-respond philosophy. The job is to find not the right customers for
your products, but the right products for your customers.
OBJECTIVE
It holds that the key to achieving its organizational goals (goals of the selling
company) consists of the company being more effective than competitors in

creating, delivering, and communicating customer value to its selected target

customers. The marketing concept rests on four pillars: target market, customer
needs, integrated marketing and profitability.
Distinctions between the Sales Concept and the Marketing Concept:
1.

The Sales Concept focuses on the needs of the seller. The Marketing

Concept focuses on the needs of the buyer.

2.

The Sales Concept is preoccupied with the sellers need to convert

his/her product into cash. The Marketing Concept is preoccupied with the idea
of satisfying the needs of the customer by means of the product as a solution to
the customers problem (needs).
The Marketing Concept represents the major change in todays company
orientation

that

provides

the

foundation

to

achieve competitive

advantage. This philosophy is the foundation of consultative selling.

The Marketing Concept has evolved into a fifth and more refined
company orientation: The Societal Marketing Concept. This concept is more
theoretical and will undoubtedly influence future forms of marketing and selling
approaches.
Features of Marketing Concept:
In its fullest sense, the marketing concept is a philosophy of business which
states that consumers want satisfaction is the economic and social justification
of a firms existence.

Resultantly, all the firms activities in the areas of production, engineering,

finance as well as marketing must be dovetailed primarily to determine what the
consumer wants are and then satisfy these wants, of course, making a
reasonable profit.
In the words of Mr. Fred. J. Poorch, marketing is a fundamental philosophy ;
fundamental to this philosophy is the recognition and acceptance of a customer
oriented way of doing the business ; under making, the customer becomes the
fulcrum, the first point about which the business moves in operating for the
balanced best interests of all concerned.
To be very precise, the modern marketing concept is one which starts with an
interpretation of consumer needs and desires both qualitative and quantitative,
follows through all the activities involved in the flow of goods and services
from the producers to consumers, and ends with those services essential to assist
the consumer in getting the expected utility from the products he has purchased.
CHARACTERSTICS

1. Customer orientation:
New concept is one that replaced product by customer in the centre of the whole
scheme of marketing. Consumer is the King and the pivot around which all the
business philosophy or thinking rotates. This is a revolutionary change in the line
of thinking where it is shifted from product to consumer or from factory to market.
What is important is that consumer is placed both at the alpha and omega of the
chain of business activities.

2. Customer satisfaction:
Modern marketing concept is also founded on the consumer satisfaction. The
success of a firm is not measured by its capacity to pass on the products lucratively

or making huge profits and building up additional assets; contrary to this, its
success lies in its ability to satisfy the consumer, his needs and aspirations.
Consumer purchases are made with certain purposes and expectations.
These expectations are normally related with say, price, quality, quantity and
timely supply. A marketer who fails to identify these consumer preferences has
failed to satisfy the consumer.

The present and the future organizational success is hinged on this consumer
satisfaction which an alert marketer cannot afford to forget.
3. Integrated managerial action:
Marketing activities are only a part of total managerial activities. That is,
marketing management cannot be an independent function; it is a phase of
overall management functions. The management functional areas are
interdependent and not independent.
The marketing function influences production, finance, and personnel and in
turn is influenced by these functions. Any firm wedded to modern marketing
concept cannot think of working in isolation. For instance, the production
manager has to think not as per his idea or plans of production maximization,
limited varieties and slicing down the cost for he is to produce what is
determined by the marketing manager.
The finance manager cannot think of fixing product prices as per his
calculations but take into account the cost calculation of production and
marketing manager. In short, in an integrated marketing setup, all the functions
of management are aligned and integrated in tune and tone with marketing
variables.

4. Realisation of organisational goals:

Though consumer satisfaction is the mainstay of modern marketing concept, it
is not the final aim. On the contrary, it is the means to attain the organisational
goals. Among other goals, the basic aims of an organisation may be survival,
growth, innovation, productivity, profits, and social obligations and so on.
These goals can be achieved effectively through consumer orientation. When a
firm has succeeded in maximizing consumer satisfaction, it means that it has
delivered a quality product, at a reasonable price, at convenient place and in
sufficient quantity.
The marks of consumer satisfaction are product and, hence, company image that
is being created in the minds of consumers. Among these goals, profit
maximization is also important. Marketing concept is for profit and not for
profiteering. Reasonable profits are a must for survival and growth and
innovation. The modern marketing concept allows earning reasonable profit
through enhanced consumer satisfaction.
In a nutshell, modern marketing concept or integrated concept underscores the
fundamental end of consumer satisfaction; consumer- orientation and integrated
management action are its means and that organisational goals are achieved
through consumer satisfaction including profit maximisation.
Consumer Orientation: Definition and Benefits
Consumer (or customer) orientation is the focal issue (or central theme) in
todays marketing practices. There are four pillars of the modern marketing
concept consumer orientation (may be said as consumer satisfaction), target
market, integrated marketing, and profitability. Consumer orientation is a key to
achieve business goals. A firm can achieve marketing goals by concentrating on

customer satisfaction. Those companies who actualize consumer orientation can

achieve better marketing performance.
It makes the marketers think:
i. Customers are king in our business.
ii. Satisfy customer needs to satisfy companys needs.
iii. Customers are the best judges of our offers (goods and services).
iv. Customer is the most important person in our business.
v. He never complains but suggests. He complains for companys benefits.
He complains on behalf of product.
vi. Customer is not dependent on uswe are dependent on him.
vii. He is our business partner, he is our well-wisher. He is doing favour by
giving us opportunity to serve him.

Benefits of Consumer Orientation:

Note that consumer orientation is not a marketing philosophy only, but it is a
dominant business philosophy and it deserves many practical implications for
better managing. Company can achieve its goals effectively by practicing
consumer orientation philosophy. Consumer orientation leads to consumer
satisfaction. Consumer satisfaction offers several benefits to company.

Company can have following benefits if it satisfies its consumers:

1. Satisfied consumer buys more quantity of companys products.
2. Satisfied consumer buys the companys products more frequently.

3. Satisfied consumer talks favourably about the company and its products.
4. Satisfied consumer is not easily impressed or attracted by competitors.
5. Satisfied consumer tries and buys new products as and when the company
introduces them.
6. Satisfied consumer extends necessary support during bad (adverse) time. He
compromises with the companys offer and continues buying the product even
at a little loss.
7. Satisfied consumer remains loyal to the company, gives valuable suggestions,
and protects companys interest in all possible ways.
8. Satisfied consumer extends all possible support to the company to carry out
its operations effectively.
Example:
Dell doesnt prepare a perfect computer for its target market, rather it provides
product platforms on which each person customizes the features he or she desire
in the computer.
IMPORTACE OF MARKETING CONCEPT
A key premise of the marketing concept is that it gives customer-centric
organizations benefits over production-centric organizations that fail to take
customer preferences into account when developing solutions. By focusing on
what customers want, a company is more likely to deliver a product or service
solution with the features that customers desire. Customer satisfaction is one of
the primary goals of the marketing concept. On an initial offering, the goal is to
deliver what customers want. Ongoing research is used to identify problems or
concerns and to develop solutions, upgrades or product improvements.

In the long run, companies that apply the marketing concept do so because they
feel it is the best approach to generate profits. Satisfied customers are more
likely to repeat purchases and become loyal buyers who are willing to pay
relatively high prices. The marketing concept also gives companies a structure
that includes close collaboration between marketing, research and production
divisions or departments to achieve quality objectives.
CRITICISM OF THE MARKETING CONCEPT
Interpreted literally, the marketing concept only advocates discovering
consumers' wants and needs and satisfying them. Critics assert that consumers
may not be aware of all of their wants and needs. In the 1950s, were consumers
aware of a need to cook their food by sending microwaves through their food?
In the 1960s, were consumers aware of a need to have personal computers in
their homes? Critics argue that the marketing concept's concentration on
consumers' wants and needs stifle innovation. Organizations will no longer
concentrate on research and development in hopes that one product in ten might
meet with consumer acceptance, and will less likely come up with innovative
products such as microwaves and personal computers.
Supporters of the marketing concept have contended that it does not stifle
innovation and that it does recognize that consumers cannot conceive of every
product that they may want or need. However, need is defined in a very broad
sense. In the microwave and personal computer examples, the need was not for
the specific product, but there was a need to cook food faster and a need for
writing and calculating. The microwave and personal computer satisfied those
needs though the consumer never imagined these products. The marketing
concept does not stifle creativity and innovation. It seeks to encourage creativity
to satisfy customer needs.

The marketing concept is a relative newcomer as a philosophy of doing

business. However, its evolution started before the Industrial Revolution. As
time progressed, customer and business needs also evolved. The product and
selling philosophies eventually evolved into the marketing concept and
philosophy. Today, the marketing concept and philosophy stands as a formula
for doing business and many believe it is a prescription for success. It aims to
satisfy customers by guiding the organization to meet the customers' needs and
wants while meeting the organization's goals.

Conclusion
In conclusion, I know that the Marketing concept is the philosophy that firms
should analyse the needs of their customers and then make decisions to satisfy
those needs, better than the competition. To better understand the marketing
concept, it is worthwhile to put it in perspective by reviewing other philosophies
that once were predominant.