Thursday, February 25, 2010

The Marketing Concept (New Marketing Concept)

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The Marketing Concept (New Marketing Concept)This concept holds that the key to achieving organizational objectives consists of market orientation. Integration of marketing activities to satisfy the needs of customers. This concept has the following features:

a. Target Market: Well defined target market. Tailored making programme which is efficient and effective than competitors.
b. Customer Orientation: Under the marketing concept all organizational activities are customer-oriented. All activities of the organization are focused on determining and satisfying customer needs. Customer needs are defined from the customer’s point of view. The concern for customer is the uppermost. Customer is regarded as the key to organizational success.
• The marketing activities begin and end with customers. The customer is the King/ Queen. The key to organizational success is customer satisfaction. What is good for the customer is good for the organization. Marketing is customer-driven.
• All departments in the organization “think customer”. They work together to satisfy customer needs. Top management adopts customer-oriented philosophy, values and beliefs.

c. Integrated Marketing: Under the marketing concept all marketing activities are organizationally coordinated under the marketing department to satisfy customer needs.
i) Various marketing functions work together. Such functions can be product management, marketing research, pricing distribution, promotion etc. The marketing department is the focal point for all such activities.

ii) Marketing department is well coordinated with other departments like finance, production, human resources and research and development to foster team work. All employees work toward customer satisfaction. All departments work together to serve the customer’s interests. Service support to customer is strengthened.
d. Objectives Achievement:
I) The ultimate purpose of the marketing concept is the achievement of organization’s objectives. For private business, the objective is profit, market share, sales etc. For public and non-profit organizations, it is surviving and attracting funds to provide service.

II) The marketing concept stresses that organizations can best achieve objectives through customer value and satisfaction. Organizations should not only satisfy but also delight the customers by delivering more than they promise. For example, helmet and leg-guard with motorbike.

The marketing concept is a new way of thinking about organizational activities. Managers focus all activities at determining customer needs in the target market. Profit through customer satisfaction is the objective of a business organization. All departments “think customer”.



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