The marketing concept proposes that the success of the firm depends on the marketing efforts of the company and in delivering a better value proposition as compared to its competitors in its own target market.
Example of Marketing concept
Lets take an example of 2 eternal rivals – Pepsi and Coke – Both of these companies have similar products. However the value proposition presented by both is different. These companies thrive on the marketing concept. Where Pepsi focuses on youngsters, Coke delivers on a holistic approach. Also the value proposition by Coke has been better over ages as compared to Pepsi which shows that coke especially thrives on the marketing concept, i.e it delivers a better value proposition as compared to its competitor.
The marketing concept also demands that the strategic decisions made by the company are taken keeping the customer in mind. Especially the needs wants and demands of the customers. A holistic approach is taken with the whole orgnization striving to make the customer experience better. Applying the marketing concept also means knowing what the market needs and expects from the company as a result of which companies which apply the marketing concept need to carry out more of market research.
The marketing concept is the most followed ideology by top companies. This is because, with the rise of economy, consumers have become more knowledgeable and choosy as a result of which the organization cannot concentrate on what it sells but rather it has to concentrate on what the customer wants to buy.
As we are ultimately satisfying the customer, the marketing concept also demands that the organization integrate all its different departments to give value to the customer. This means that all the departments including Marketing, Finance, HR or Operations should have an idea of the core objectives of the company as well as the goal of the company.
How to implement the marketing concept?
To implement the marketing concept, you need to ask 3 basic questions to yourself or your organisation.
1) What is the target market – The first step is to determine exactly which is the target market. This can be by market research and deciding which target market will give the best returns.
2) What are the needs wants and demands of the target market – A further step in marketing research is the consumer preferences study. This study will help the firm determine the needs wants and demands of the target market thereby helping the firm in deciding their strategies.
3) How best can we deliver a value proposition – In this step, the firm decided what strategy it needs to adopt. What combination of ATL and BTL activities should be adopted. What kind of value should the firm create and deliver. How should it integrate its different departments. Ultimately, the firm decides how to apply the marketing concept within itself to deliver a better customer experience.
To summarise, The concept of marketing relies on market research and determining needs of the customer such that a better marketing strategy can be devised which satisfies the needs of the customer. The marketing concept also demands a holistic approach from the organization.
Also read – Company orientation towards the marketplace