The Marketing Concept
The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
The marketing concept highlights the following:
- Identification of market or target customers
- Understanding of needs and wants of customers in the target market
- Developing of products or services according to needs and wants of customers
- Satisfying their needs better than the competitors
- Doing all this at a profit
The marketing concept centers on market orientation. Market orientation is the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. The marketing orientation is perhaps the most common orientation used in contemporary marketing. It includes monitoring competitors' actions and their effect on customer preferences as well as analyzing the effect of other exogenous factors.
Market orientation can be achieved with market research, contacting surveys, or interviews with the help of customers to identify their needs and preferences. These methods may also lead to updates on your competitors' products or services. For a market oriented company, product innovation is very important. Furthermore, all company resources must make an effort to reach the common goal.
Marketing Concept versus Market Concept
The marketing concept is a business philosophy that holds that long term profitability is best achieved by focusing the coordinated activities of the organization toward satisfying the needs of a particular market segment(s). The attempt to define the concept of market orientation has led to a number of arguments in the academic field.
The market concept is the generation of appropriate market intelligence pertaining to current and future customer needs and the relative abilities of competitive entities to satisfy these needs. It is the integration and dissemination of such intelligence across departments and the coordinated design and execution of the organization's strategic response to market opportunities. Market orientation is implementation of the marketing concept, which is a particular business philosophy.
The Various Components of Marketing
Successful marketing strategies include the consideration of a variety of factors, such as market research and product branding.