Marketing Concept and the possible limitations Essay

Marketing is delimit as a social and managerial process by which individuals and groups arrest what they lease and want through creating and ex changing productions and values with others.(Kotler.P 2002 5) The goals of merchandise is to attract newfound customers by promising superior value and keep and grow new customers by digesting satisfaction. in that location ar five core archetypes of trade, which includes ineluctably, wants and demand products, service and experience value, satisfaction and quality exchanges, transactions and relationships and finally, market and marketing.After dry land War II, the variety of products increased and hard selling no eight-day could be relied upon to generate sales. Customers afford to be selective and buy products which ignore precisely met their changing needs with increased discretionary in tot up. The key questions arose What do customers want? Can we develop it while they still want it, and how cease we keep our customers satisfied?In order to response to these discerning customers, firms began to necessitate the marketing impression. This involves focussing on customer needs before underdeveloped the product, aligning all functions of the company to focus on those needs, and realizing a emolument by successfully satisfying customer needs in long- boundary. In other words, in the context of marketing concept, company must get-go de terminationine what the consumer wants, then produces what they wants, then sells the consumer what they wants.In marketing concept, much earshot to and eventual accommodation of the target market occurs. Two-way communication is emphasize in marketing so learning can take gift and product offerings can be improved. Business must world-class assemble consumers needs and wants. Marketing concept holds that the key to achieving organisational goals consists in find the needs and wants of target markets and delivering the desired satisfactions more effectively an d efficiently than competitors (online existent 5)To illustrate the marketing concept, rooster Drucker, in 1954 saidIf we want to subsist what business is, we must first start with its purposethither is only(prenominal) one and only(a) valid definition of business purpose to create a customer. What business thinks it produces is not of first importance especially not to the future(a) of the business or to its success. What the customer thinks he/she is buying, what he/she considers value is important it determines what a business is, what it produces, and whether it will prosper. (Online squ be 4)Marketing concept was considered a breakthrough in business philosophy. Its because it represented the antithesis of the product, production, and selling concepts. The marketing concept holds that businesses should first determine the existing needs in the securities industry and then design and produce a product to satisfy this need rather than taking an existing product and end eavoring to modify demand for it by reducing price or varying promotional technique.Marketing concept plays an important part in an organization. According to the Customer Service Institute, it cost as untold as five successions as much to acquire a new customer than it does to service an existing one and that the customers tell twice as many people about a bad experience over a good one. According to their studies, 65% of the business of an average company comes from its presently satisfied customers. (Online material 4)There ar a range of firms gain success and earns at a very high profit through the use of marketing concept. peerless of the spokespersons of successful organization implementing marketing concept is JVC. JVC has been building and expanding its mobile electronics capabilities throughout the last decade, and it now markets a complete line of mobile audio recording equipment and accessories. In the December of 1998, JVC celebrated its success. (Online material 3) JVC launched revolutionary and market-making products like the universe of discourses smallest CD changer, cutting-edge MD-to-CD receiver for audio aficionados, as considerably as JVCs loadedcar A/V system. JVC sees customers needs and wants and made an attempt to fill their needs and wants, and satisfy them by expanding its product offerings and adding more varied and exciting features. They atomic number 18 very successful in satisfying theircustomer that their customers hunch forward that with JVC, they are getting the very beaver sound for their dollar. JVC is so successful with its marketing concepts that they start out become a global leader in the developing and manufacturing of innovative audio and telly hardware, as well as related software products.Another example of successful firm is the Thayer Interactive Group (TIG), an online hospitality marketing firm. TIG sees that consumer mien has changed. People are using the internet more than ever to cause research o f different options prior to booking travel, and that they are approaching hotels preemptively. Therefore, TIG targets individuals who are actively looking for lodging solutions at the precise place and time that they wanted to get.Because they know that the consumers nowadays are buying based on get more, pay little, their program offers the industrys first and only comprehensive suite of Web marketing services knowing to administer all aspects of a hotels internet presence, AND bypass unjustified fees charged by third-party travel sites.TIG even provides a customized five-part program website development and content management search engine marketing guerilla marketing and online advertising reporting and analysis and proactive account management. The objective is to deliver the travel consumer directly to individually managed hotel Web sites which allows them to maintain control of determine and avoid excessive third-party fees.TIG is so successful that it is already generati ng an average of more than $1 million in incremental revenue per participating hotel. (Online material 2)Other successful firms which project adopted the marketing concept are such(prenominal) asProcter and Gamble, Wal-Mart, Marriott, Dell Computer etc.The marketing concept is founded upon the assumption that consumers are knowledgeable, intelligent, and rational, and base their product purchases upon a careful thoughtfulness of the relationship between their own needs and product attributes.However, do the consumers invariably know what is needed? In many cases, customers do not know what they want or even what is possible. For example, 30 years ago, how many consumers would have thought to ask for 24-hour Internet brokerage accounts and DVD players?Moreover, by focusing on customers needs, marketing concept ignore other important stakeholders. In order to implement marketing concept, a lot of research are needed to be carried out and it is very expensive to do such marketing re searches.In U.S., the latest consumerism movement has caused limitations to marketing concept as well. Nowadays, consumers assert their rights to products which are safe, economic, reliable, honestly labeled and advertised, and products push upon the environment. Moreover, consumerists have been very proactive in seeing that these rights are guaranteed, every by the firms selling the products or by the government of the U.S. In this, Peter Drucker blamed the marketers for failing their consumers and publics in using the marketing conceptWe have asked ourselves where in the marketing concept consumerism fits or belong. I have come to conclusion that the only way one can really regulate it within the marketing concept is as the shame it. It is essentially a mark of failure of the concept (Drucker P. 1969). (Online material 5)It is often taken for disposed(p) that the marketing concept is true. The concept is usually expressed as the presumption that firms which are marketing orient ed will do better than firms which are not. This assertion is being put to test empirically by Massey University by comparing the financial events of firms exhibiting high levels of marketing orientation with those of lower levels. The result showed that there is actually no clear association between adapting in line with marketing concept and success. (Online material 1)In order to adapt and implement marketing concept, firms have to be able to meet changing customer needs and wants, as well as competitor strategies. There are a number of firms such as General Motors and Zenith, which lose substantial market share because they failed to adjust their marketing strategies to the changing market. abstract management in an organization must ensue that all employees are driven by marketing concept. They must be driven by the marketing concept before they can expect employees to whole-heartedly commit to it. In addition, top management should foster an organizational culture and set o rganizational values that embody the concept by encouraging cross-functional communication and coordination tell toward satisfying the needs of the customers.BibliographyArmstrong G & Kotler P, 2002, Marketing An Introduction 6th ed, learnerHall, New JerseyOnline framework 1 Marketing Bulletin,1991,2,1-7,http//marketing-bulletin.massey.ac.nz/article2/article1b.asp 22/9/2003Online Material 2 Business Editors,2002,Thayer Interactive Group Proves Marketing Concept to Hotel Industry,http//www.findarticles.com/cf_0/mOEIN/2002_Oct_7/92536200/p1/article.jhtml?term=%22marketing+concept%22 20/9/2003Online Material 3 Business Editors,1998,JVC Celebrates winner in Mobile Electronics With New Image and New Marketing Concept,http//www.findarticles.com/cf_0/m4PRN/1998_Dec_15/53402065/p1/article.jhtml?term=%22marketing+concept%22 20/9/2003Online Material 4 The Research alternate Vol.5, http//www.ncddr.org/du/researchexchange/v05n01/adapting%20Marketing%20Concept.htm 23/9/2003Online Material 5 Robert D,Social Responsibility,Consumerism,and The Marketing Concept,1999,http//www.sbaer.uca.edu/Research/1999/SMA/99sma110.htm 24/9/2003