Marketing Concept Report

MarketingConcept Report

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MarketingConcept Report

Abstracts

Inthe modern business world, the importance of customers has been madean essential element towards the success of any organization. Withthe adoption if human resource management theories, not only hasorganization addressed the satisfaction of their employee but alsothat of their customers. This in turn brings out the link between thebusiness, and customer, which is brought forth by the aspect ofmarketing. In a simple definition, marketing is the way in which abusiness entity communicates with its customers, with the mainintention being to sell. It entails, an organization establishing away to communicate the value of its products to the potential buyers.With this idea in mind, there comes the concept of marketing“Marketing Concept”. This paper is a report of two marketingconcepts and their application in real businesses.

Introduction

Mostorganizations exist to make the profit through the satisfaction ofcustomer’s needs. According to Pride &amp Ferrell (2008),“Marketing is the management role of identifying, anticipating, andsatisfying customer’s needs profitably.” Therefore, theorganizations are required to divert their attention to the needs,interests, and preferences of the customers which are constantlychanging to influence the plans and strategies used to market theirproducts leading to a new philosophy known as the marketing concept.Marketing Concept is a key approach to the satisfaction of customer’sneeds and is centered on “the customer is always right” phrase.The concept implies that the achievement of organizational goals isdependent on the identification of the needs of the target market andproviding the desired satisfactions of these needs better than thecompetitors. It entails the integration of all the activities of thebusiness to supply customers with the products they want, in the way,time, place, and the price they want to promote sales.

TheMarketing Concept suggests that, for organizations to meet theirgoals/objectives and at the same time maximize their profits, theyought to focus on the development of marketing mixes that best meetsthe customer’s needs. The Marketing Mix, therefore, forms part ofthe marketing concept. However, since the needs of the consumers varyfrom one market to the other, the marketing mix does not adequatelysatisfy the needs of the entire market. Market segmentation is henceadvised to ensure the satisfaction of the entire market. The marketmix is divided into four controllable categories which arerepresented by the four P’s. The categories that make up the marketmix are product, price, place, and promotion. The product sold by thebusiness should be what the customer specifically wants to buy.Therefore, the marketing manager should know the wants and needs ofthe customers so as to attract them by providing what they want. Thevariety, design, packaging, size, product features should be as perthe customers’ needs and preferences. The marketing mix has becomean essential tool as a marketing concept that helps the company tounderstand what are the services/products on offer to their customer,at what price, place, or through what promotion. This concept bringsalong the concept of 4P’s, hence.

Thereare different marketing concepts in existence, or rather differentapproaches that can be adopted by organizations to ensure effectivemarketing is achieved by a business organization. These conceptsentail examples such as product concept (organizations focus on theprovision of products that are accessible, and inexpensive).Production concept (the products of the quality comes first for theclient). Selling concept marketing, (which focus on selling andcustomer satisfaction)? Finally, there is the societal marketingconcept. However, it should be noted that marketing concept aren’tlimited to the five mentioned but rather, different have differentmarketing concepts, with reference to their culture. Other conceptsin marketing entail practices such as segmentation, marketing mix,and customer oriented concepts are not forgetting product basedconcepts.

Theprice is the total amount paid by the customer therefore, theorganization should set a price that is complementary to the othermarketing mix elements. The organization should provide discounts andfavorable payment terms to attract customers. In addition, themarketing manager should consider the customer perceived value beforesetting the price. The place where the product is found should beconvenient to the customer for easy reach. Intensive and selectivedistribution should be used to promote easy accessibility of theproduct by the target customer. Finally, promotion involves theprovision of information regarding the product to the customers. Thepromotion is made up of activities such as advertisement and publicrelations.

Thesecond marketing concept is Segmentation. Market segmentationinvolves the division of the market into subgroups with similarneeds, interests, and preferences so as to tailor the marketing mixesto the specific segments to meet their needs better (Blythe, 2009).The identical market groups reduce the marketing costs and ensurethat all the consumer needs are met adequately in each cohort. Thisgives the company a competitive edge by avoiding competition in theentire market but limiting it to specific groups. Different criteriaare used to segment the market: demographical, geographical, andbehavioral characteristics can be the basis for market segmentation.The idea of marketing concept is basically the idea that a firm takesinto account its customer’s needs, and in turn develops solutionsto their needs. This in turn aligns with the idea of marketsegmentation.

Thoughsubject to internal and external constraints, the marketer cancontrol the 4 P’s (Blythe, 2009). The decisions regarding these 4P’s should be centered on the target market consumers so as togenerate a positive response and increase sales. Madiba andRoberts-Lombard (2006) state that it is important for organizationssuch as fast food providers to spend huge amounts of money onadvertising their brands. Advertising falls on the promotion elementof the marketing mix and ensures that the customer have the knowledgeon the existence of the product. It also highlights the benefitsoffered by the product over the competitors, thus, appealing to thecustomer to purchase.

Theyalso cite that organizations should also reinvent food and productofferings so as to retain customers. This implies that the productcomponent of the marketing mix ought to put into consideration whiledevising a marketing strategy. The older products should be adjustedas per the evolving needs of the customer. As a result of this, thecustomers are purchase more increasing sales and profits. Inaddition, customer loyalty is enhanced promoting retention andincreasing the market share.

However,the article assumes the perspective of the marketer alone withoutputting into consideration that of the consumers. It gives themarketer the responsibility of determining the best product for theconsumer despite the fact that it is the consumer who uses theproduct. To maximize on the market mix concept, the consumer shouldbe responsible for determining the products he/she prefers. Thearticle’s assumption that the marketer knows what’s best for theconsumer is misleading. Therefore, the consumer should determine theproduct that he/she wants.

Anotherarticle by Londhe addresses the marketing mix for the next generationmarketing. According to Londhe, “the creation and delivery ofunique value to prospective customers and acquiring a sustainedcompetitive advantage is of prime importance in marketing” (p 1).Therefore, consumers seek for value for their money in products.Marketers should concentrate on the value the consumers get fromtheir products at the right price. The modification of the marketingmix from the 4Ps to 4Vs to make it more consumers oriented has beendone. The 4Vs model improves the marketing mix by looking atmarketing from the consumer’s perspective instead of the marketerswhich the premise of the 4Ps. The 4Vs are Value, Validity, Venue, andVogue. However, both models emphasize the need for value at the rightin the products that the consumer receives to promote marketing.

Accordingto Lynn (2011) “the mass market consists of some number ofrelatively homogeneous groups, each with distinct needs and desires”(p 2). The needs of the different market segments are alwaysconflicting and hence their satisfaction is mutually exclusive. Theidentification of these markets by the marketers enables them to plantheir marketing activities effectively by only targeting the marketswhich they can fulfill its needs better than their competitors.Therefore, market segmentation helps organizations to position theirproducts for the targeted market segment and ignoring the large partof the market that do not utilize their products. As a result, theorganization is able to concentrate on the small markets, satisfyingits needs entirely and in the process promoting sales and customerloyalty.

Goyat(2011), states that “the needs of the target market should beaddressed according demographic variables of age, race, education,income levels, and gender” (p 5). Non-demographic traits are also abasis for segmentation with variables such as values, tastes, andpreferences being used to segment the market. For example, olderadults may prefer quiet restaurant environments as opposed to theyoung, therefore, influencing the customers who visit. Therefore,sound marketing strategies should be receptive to either group.

Application

McDonaldsis an example of a successful company that utilizes the market mixand segmentation concept to promote its products worldwide. It usesthe segmentation concept by dividing its customers into the followinggroups: children who are taken to their restaurants for a treat. Thecompany has come up with different products for children such aschildren play zones. It has also identified employed adults as asegment for their products. Most of the employed adults are in ahurry to rush back to work. As a result, McDonalds have adopted aquick service to avoid time wastages attracting the busy customers.The company has also considered the needs of this group by offeringfood products that can be eaten in the car without interfering withthe busy work schedules thus satisfying such customers’ needs andpromoting sales. This in turn has worked in the favor of the companyas more increased customer satisfaction has resulted into increasedsales

Finally,the company has also identified teenagers as a segment of its own andprovided a saver menu with cheaper products which address the Pricein the 4 Ps market mix. In addition, McDonald’s restaurants provideinternet services that attract teenagers. The target group being theyoung people has in turn resulted to the introduction of servicessuch as free Wi-Fi, which has in turn coincided with the increasedinflux of young customers. Therefore, McDonalds uses the needs of thedifferent cohorts to determine the products to offer, prices charged,promotions created and place to locate their restaurants. Thisutilization of the marketing concept has made it the leading globalfast food retailer.

Inconclusion, the marketing concept is based on the premise that firmsonly exist to serve their customers through the provision of valuableproduct. Therefore, such firms have to consider the customer needs interms of the Product, Price, Place, and Promotion and satisfy themaccordingly. They also have to subdivide the market into cohorts soas to satisfy their needs fully. Consequently, the success or failureof an organization is influenced by its ability to integrate themarketing concepts into the overall marketing strategy. In the modernmanagement of business entities, the satisfaction of customer’sneeds has become an integral part of evaluating the performance ofevery business. This in turn explains why companies invest heavily ontheir marketing sector, and with the growing extent of businesscompetition, marketing concepts remains essential to any organizationsuccess. With companies such as McDonald’s, it is clear that themarketing concept adopted by every organization is one that focuseson increasing their performance, both in terms of business, andcustomer satisfaction.

References

Blythe,J. (2009). Keyconcepts in marketing.Los Angeles, Calif.: SAGE.

Goyat,S. (2011). The basis of market segmentation: a critical review ofliterature. EuropeanJournal of Business and Management,3(9),45-56. Retrieved fromhttp://iiste.org/Journals/index.php/EJBM/article/download/647/540

Lynn,M. (2011). Segmentingand targeting your market: Strategies and limitations [Electronicversion]. Retrieved from Cornell University, School of HospitalityAdministration site: http://scholarship.sha.cornell.edu/articles/243

Londhe,B. (2014). Marketing Mix for Next Generation Marketing. ProcediaEconomics and Finance,11,335-340.

Madiba,G., &amp Roberts-Lombard, M. (2011). Measuring the attitude andintention to purchase different cohorts towards a fast food retailer.AfricanJournal of Business Management,5(9),3650-3662. Retrieved fromhttps://ujdigispace.uj.ac.za/bitstream/handle/10210/7964/Madiba%20and%20Lombard_2011.pdf?sequence=1&ampisAllowed=y

Pride,W., &amp Ferrell, O. (2008). Marketing.Boston: Houghton Mifflin Co.