THE MARKETING CONCEPT
The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.
The marketing concept rests on four pillars
1. Target Market
2. Custom needs.
3. Coordinated marketing.
A group of customers at whom an organization specifically aims its marketing effort. No company can operate in every market and satisfy every need. Nor can it even do a good job within one broad market.
A company can define its target market but fail to fully understand the customerâ€™s needs. Consider the following example:
Customer-oriented thinking requires the company to define customer needs from the customer point of view. In general, a company can always comply with the customer requests. Each level involves more probing, but the end result will be more appreciative customers. The key to professional marketing is to meet the customerâ€™s real needs better than other competitors.
Coordinated marketing means two things. First, the various marketing functions— sales force, advertising, product management, marketing research etc. must be coordinated among themselves.
Second, marketing must be well coordinated with the other company departments.
The purpose of the marketing concept is to help organizations to achieve their goals. In case of private firms, the major goal is profit. Most companies do not really grasp or embrace the marketing concept until driven into circumstances . The following situations can make the firm more customer-oriented :
Ã˜ Sales decline.
Ã˜ Slow growth.
Ã˜ Changing business patterns.
Ã˜ Increasing competition.
Ã˜ Increasing marketing expenditure.