Definitely, the marketing concept is a new way of thinking about the organization's entire activities. Failure of the three concepts i.e. the production concept, the product concept and the selling concept to achieve the organizational goal forced the organizations where they went wrong. They found business slogan of "We sell what we make" inappropriate to deal the competitive marketing environment. They integrated the buyer variable in the marketing decision making and changed the business slogan to "We make what we can sell."
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Meaning and Features of Marketing |
The marketing concept is the guiding philosophy by which organizations that have adopted a marketing orientation coordinate their activities and evaluate their success. In its fullest sense, the marketing concept is a philosophy of business that states that the customer's want-satisfaction is the economic and social justification for an organization's existence. The concept is based on the notion that the main task of the organization is to know the needs, wants and value of the target market, and then, delivering products that satisfy those needs and wants.
The major principles listed below comprise the essence of what the 1950s has become known as the marketing concept.
- Focus on target marketing: Organization cannot operate within one brand market and satisfy every need of the customers. So now the organization needs to focus on target market that is a group of customers whose needs can be satisfied.
- Consumer orientation: The marketing concept views the customer's wants and needs as primary. Through its marketing department the organization gathers market information to determine what to produce and how it should be marketed.
- Integrated marketing efforts: Based on the marketing information that has been collected, the organization puts together a marketing offering that includes the product, together with its price, promotion and distribution. Every department in the organization is integrated in this effort by a unified marketing orientation.
- Resulting profit: The effectiveness of the process as a whole is determined by the profit yardstick. When costs are deducted from sales, the resulting profit is what remains. This profit, as a percent of assets, is called return on investment (ROI). The assets represent all of the organization's capabilities (marketing, production, personal and the like) in serving the market. ROI (Return On Investment) as a sign of probability measures whether it is in the company's best interest to pursue business in one area or another.
Since its emergence in the 1950s, the concept has been continually redefined by the many changes in the marketing environment and in society at large. The concept was born out of the awareness that marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept puts the consumer both at the beginning and at the end of the business cycle. It stipulates that nay business should be organized and the marketing function, anticipating, stimulating and meeting customer's requirements. The customer has to be the center of the business world. A business cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers. It proclaims that "the entire business has to be seen from the point of view of the customer." In a company practicing this concept, all departments will recognize that their actions have a profound impact on the company's ability to create and retain customers. Every department and every worker and manager will 'think customer' and 'act customer'. For the implementation of the marketing concept requires a complete alternation of the organizational goal and structure, internal marketing, change in authority and responsibility, relationships and a careful planning of the marketing mix.
Thus, the above explanation proves that the marketing concept is a new way of thinking about the organization's entire activities. If you have any such statements to prove marketing concept is a new way of thinking about the organization's entire activities, feel free to write comments on the post.
When an organization moves from the selling concept to the marketing concept, some strategic changes are required. It means some factors are needed for successful implementation of marketing concept in the organization. The most important factors are as follows:
- Top management concept: All levels of management should be supportive for the marketing concept. Top management should give the financial support to adopt the marketing concept easily in an organization and marketing department should be given facilities and authority to implement the marketing concept.
- Information system: Effective marketing information system should be established in an organization to determine customer’s need and satisfaction. Through the external system producer can collect one of the customer comments about the product and service. On the other hand, internal information system of the organization i.e. communication between marketing and other department should be effective to implement the marketing concept.
- Organization restructure: To implement the new marketing concept in the organization, organization structure should be changed appropriately. For effective implementation of the marketing concept, the marketing personnel should be involved in top level management.
- Appropriate marketing: To implement marketing concept, appropriate marketing functions should be done. Product should have good quality, price and promotion should be effective. Without meeting the market needs, marketing concept cannot be applied in an organization.
- Authority and responsibility: To motivate the marketing personnel, related authorities and responsibilities should be given to them. Marketing personnel give positive feedback, if they are given appropriate authority and responsibilities.
- Human resource management: For the implementation of the marketing concept, human resource department should be given the necessary training to become customer oriented and direct all the activities towards customer needs and satisfaction because the trained employees will be motivated to do the job and capability will be increased.
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