The Marketing Concept
The marketing concept refers to the common notion that marketing organizations succeed when they effectively meet the needs of their customers. The concept identifies one of the fundamental roles of marketing organizations as recognizing and satisfying the needs and wants of the customers (Brassington & Pettitt, 2005). As such, the marketing concept entails matching the capabilities of the company with the needs and wants of the customers. This takes place in a marketing environment where the marketers and the customers meet. Another common notion is that the success is directly related to the wants of the customers. This means that any marketing oriented organization must be guided by the marketing concept formulated and aligned to effectiveness, social responsibility, and efficiency (Bickhoff, Hollensen, & Opresnik, 2014).
The marketing concept of an organization is guided by various basic marketing concepts. Firstly is the production concept suggests consumers prefer buying the products that are easily available and cheap. Secondly, the product concept states that customers are motivated to buy products that are of higher quality and performance, and they exhibit innovative features (Brassington & Pettitt, 2005). Thirdly is the selling concept. For a product to be preferred by the customers, and then the selling organization must have aggressive promotional and marketing efforts, which seek to educate the customer on the benefits of the product. Finally is the marketing concept believes that for an organization to be successful, it must exceptionally meet the needs of the customers in an exceptional and more effective approach.
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Activities of a Marketing Oriented Organization under the Marketing Process Perspective
The Marketing process and the marketing concept are two closely interlinked terms. The marketing concept holds that any marketing-oriented organization is required to identify the unsatisfied needs of a particular market and avail goods and services that are likely to satisfy those needs effectively. This process is what is referred to as the marketing process. Too often, marketing-oriented organizations will need to engage in activities such as situation analysis, marketing strategy. Marketing mix decision making, and implantation and control (Perreault, Cannon, & McCarthy, 2011).
Firstly is the situational analysis. This activity involves the organization scanning the present situation to identify all opportunities present. This helps in identifying its capabilities and enhancing a better understanding of its environment. For instance, an organization may conduct SWOT Analysis to scrutinize its external and internal environment with the aim of identifying its strengths, weaknesses, opportunities, and threats.
Secondly is the formulation of a marketing strategy. This activity is conducted after an organization identifies the unsatisfied needs in the market. Market research is conducted to provide information that allows proper selection of the target market (Perreault, Cannon, & McCarthy, 2011; Bickhoff, Hollensen, & Opresnik, 2014). As such, the marketing strategy encompasses practice such as market segmentation, target marketing, market positioning, and value proposition. For example, an organization offering cloth products will need to scrutinize its market to identify the best segment of the market to which promotional and marketing efforts should be directed. Segmentation can be conducted based on demographic variables such as gender, age, or race. If market research shows that younger women are the optimal market segment, then the market should concentrate on this segment.
Other activities are that a marketing-oriented organization participates in are making marketing mix decisions and execution and control of the marketing plan. Marketing mix decisions include activities such as product development, pricing decision, and promotional campaigns. The execution and control entail implementation of the marketing plan and launching of the product. What follows is a careful monitoring of the marketing effort to identify changes. Appropriate changes should be implemented to match the market conditions. This allows consistent fulfillment of customer needs.
Benefits and Costs of the Marketing Approach
The organization that adapt the marketing approach are deemed to enjoy some benefits while incurring some costs. To start with are the benefits. Firstly, the marketing approach responds to the needs of customers. As such, an organization may not need to forecast or guess on the likely product trends and customer demands. This allows streamlining of the product development cycle to avoid unnecessary costs of producing unwanted goods. Secondly, it enhances customer loyalty by ensuring that customers get what they want at the right time and place. It allows an organization to please its customers thus leading to increased sales.
On the other hand are the disadvantages. Implementing the marketing approach is very expensive. It requires high developmental costs and much time for market research and analysis. Also, the approach focuses on increasing the value for the customers. This leads to increased production costs for goods and services.