What is Marketing Concept
The marketing concept is a strategy businesses use to understand what their customers need and create plans to meet those needs. This helps increase sales, make more profit, and stay ahead of competitors.
Although the marketing concept is widely used today, it wasn't always the case. The idea was first introduced by Adam Smith in his book The Wealth of Nations in 1776, but it became popular only after 200 years.
The concept says that for a business to reach its goals, it must focus on satisfying its customers' needs and wants. In simple terms, marketing is about attracting customers, building relationships with them, and offering products or services that meet their needs. By doing this, businesses can make customers happy and earn long-term profits.
Marketing Concept Example
A good example of the marketing concept is Coca-Cola. The company listens to what customers want, like refreshing drinks, and then creates products that meet those needs. Coca-Cola not only focuses on making tasty drinks but also on connecting with customers through fun advertisements and sponsoring events. This way, they build strong relationships with customers, and in return, they enjoy high sales and continue to grow their business.
Needs, Wants and Demands
The marketing concept revolves around understanding the needs, wants, and demands of customers. Let's break them down:
Needs: Needs are basic things required for a healthy and active life. Without fulfilling these needs, a person’s well-being can be harmed. These include essential things like food, water, and shelter.
Wants: Wants are things a person desires but are not essential for survival. These desires are often shaped by culture and personal preferences. For example, a person may want a new phone or a luxury car, but they can live without them.
Demands: When a person’s needs and wants are backed by the ability to pay for them, they become demands. Essentially, demand happens when a person can afford to buy what they desire.
Types of Marketing Concept
Production Concept
This concept is based on the idea that customers prefer products that are easy to find and affordable. It was introduced when businesses focused mostly on making products. The idea is that businesses can lower costs by producing large quantities or mass-producing goods. However, focusing only on production may lead a company to lose sight of other important goals.
Product Concept
The product concept assumes that customers are more likely to choose products that are of higher quality, have innovative features, and perform well. This type of marketing focuses on improving and refining products constantly to make them better and more attractive to customers.
Selling Concept
The selling concept is focused on sales, not production. It believes that customers will only buy products if they are aggressively marketed. This concept does not prioritize building customer relationships or ensuring customer satisfaction.
Marketing Concept
The marketing concept focuses on the customer. In this approach, everything a business does is centred around meeting the needs and wants of customers. The main goal is to create value for customers, which helps the business stand out from competitors.
Societal Marketing Concept
The societal marketing concept is the most advanced of the five. It focuses on satisfying customers' needs while also ensuring the well-being of both customers and society. This concept encourages businesses to give back to society and work towards making the world a better place for everyone.
Evaluation of Marketing Concept
The marketing concept is a strategy that puts customers at the centre of a business. It helps companies understand customer needs and create products or services that meet those needs. Here’s an evaluation of the marketing concept based on its pros and cons:
Strengths:
Focuses on Customers: The marketing concept helps businesses understand what customers want, which leads to products and services that make customers happy. This can result in loyal customers and more sales.
Builds Good Relationships: By focusing on customer satisfaction, businesses can build long-lasting relationships with their customers, leading to repeat business and positive reviews.
Helps Stay Ahead of Competitors: Businesses using the marketing concept can stand out by offering what customers need and want, giving them an edge over competitors.
Adapts to Changes: The marketing concept encourages businesses to listen to customers and stay updated on trends, allowing them to change when necessary and stay relevant.
Limitations:
Can Be Expensive: To understand customer needs and create products that meet them, businesses need to invest in market research and improving products. This can be costly, especially for smaller businesses.
Takes Time and Effort: Continuously listening to customers and making changes takes a lot of time and effort, which can be hard for businesses to manage.
May Focus Too Much on Short-Term Needs: Sometimes, focusing too much on what customers want right now can make businesses forget about long-term goals or bigger ideas.
May Miss New Ideas: Businesses may get too focused on current customer needs and forget to innovate or create new things that customers didn’t know they wanted yet.
Features of Marketing Concept
Customer Focus:
The main goal is to understand what customers need and want. By meeting their needs, businesses can make customers happy and keep them coming back.
Market Research:
Companies need to study the market to know what customers like, what is trending, and what competitors are doing. This helps them create products people want.
Working Together:
The marketing concept encourages different parts of the business, like marketing, sales, and customer service, to work together to make customers happy.
Profitability:
It’s not just about making customers happy, but also about making money. When customers are satisfied, sales and profits grow.
Building Relationships:
Businesses should aim to build long-term relationships with customers, not just focus on one-time sales. This helps keep customers loyal and returning.
Customer First:
Every decision in the company, like designing products or setting prices, should be made with the customer in mind.
Always Improving:
Businesses need to keep improving their products, services, and how they treat customers to stay competitive and meet changing needs.
FAQs on Understand Everything About Marketing Concept
1. Why is the marketing concept important?
It helps businesses focus on customer satisfaction, which leads to increased sales, loyalty, and long-term growth.
2. What are the key principles of the marketing concept?
The key principles include understanding customer needs, integrating all business functions, focusing on long-term relationships, and making a profit.
3. How does the marketing concept differ from the selling concept?
The marketing concept focuses on customer needs, while the selling concept focuses on pushing products onto customers through aggressive sales tactics.
4. Can the marketing concept be used by all types of businesses?
Yes, the marketing concept can be applied by any business that wants to satisfy customers and grow in the long term.
5. What role does market research play in the marketing concept?
Market research helps businesses understand customer needs, preferences, and market trends, which are essential to implementing the marketing concept effectively.
6. How does the marketing concept improve customer satisfaction?
By focusing on the needs and wants of customers, businesses can offer better products, services, and experiences, leading to higher customer satisfaction.
7. What is the difference between the marketing concept and the production concept?
The marketing concept focuses on customer satisfaction, while the production concept focuses on producing goods efficiently and making them widely available.
8. How does the marketing concept benefit a business?
It helps businesses gain a competitive advantage, build strong customer relationships, and increase profitability by creating value for customers.
9. Does the marketing concept apply only to large businesses?
No, both small and large businesses can use the marketing concept to understand and meet the needs of their customers.
10. What are some examples of businesses using the marketing concept?
Companies like Amazon, Apple, and McDonald’s use the marketing concept by focusing on customer satisfaction and continuously improving their products and services.
