Since its introduction in 1950's the marketing concept has been criticized, broadened, and blamed for the current decline in the competitive world. Have critics failed to recognize what marketing concept really is?
The Marketing Concept was created in the 1950's just after the World War II, more precisely in the 1952 annual report of General Electric. This concept appeared when the variety of products increased and the sales of the products were not based just on the way to sell it or the price to sell it, but based on the questions: what do customers want? And how can we keep our customers satisfied?
Since its creation the Marketing Concept has been applied in most of companies, this concept is based on the philosophy of Adam Smith who wrote in 1776 in The Wealth of Nations that the needs of producers should be considered only with regard to meeting the needs of consumers. It means that it is the demand which induces the supply, so the supply has to listen to the demand's needs.
For the US marketer Philip Kotler, the Marketing Concept holds that the key to achieving organizational goals lies in determining the needs and wants of target markets and delivering the desired satisfaction more efficiently and effectively than the competitors. It means that a company has to create some products based on what the customers want. The aims of Marketing Concept are to satisfy customers and to keep them, because according to the Customer Service Institute, it costs as much as five times as much to acquire a new customer than keep an existing one. To reach these objectives companies had to create tools.
Keywords - modern concept of marketing, production concept marketing, right concept marketing,
the marketing concept.
[...] Then we will show what the weak points of the Marketing Concept are, and what are the sectors that can not use the tools of the Marketing Concept. Then we will deal the strong points and in which sectors it is necessary, and I will give my point of view. Marketing Concept's history Before the Marketing Concept's birth, there were a few other theories about marketing. These theories have changed according to the market's development of the supply and demand especially in the United States of America, because marketing is born there. [...]
[...] Companies do not have to only think to their product but: “will my product satisfy customer? And companies have to use prediction techniques to estimate the future consumer's needs. This concept is not totally agreed with the Marketing Concept, but it takes up the main idea of the Marketing Concept that is: companies have to pay attention of customers and create product based on their needs. Therefore, the Marketing Concept is a good philosophy, which can be applied in many companies. [...]
[...] The Marketing Concept is business orientation or philosophy that holds that organizational success is dependent upon the efficient identification of the needs and wants of target market and the effective satisfaction of them.” (Source: http://www.buseco.monash.edu.au).The Marketing Concept philosophy has created marketing tools like: - The marketing research to know the customers, theirs needs, the importance of the demand. - The marketing mix: the product, the price, the distribution and the promotion. This represents the product's elements that can be changed by the company to make it more attractive. [...]
[...] For Deng and Dart, Marketing Concept is a business (and political) philosophy that holds that long-term profitability (and electoral success) is best achieved by focusing the coordinated activities of the organization toward satisfying the needs of a particular market segment(s)”. This definition means that for the election campaign all the politicians promise to vote laws when they will be president, but these laws are just “products” consumer needs; and the marketing research are opinion pool. The opinion pools show what electors want, like tax less important, and politicians just have to promise a fall of tax, of course the fall will be according to the politic movement of the candidate. [...]
[...] The Marketing Concept can not be applied to the market of Art, because consumers want to be surprised, the trend can change with the time but the product will be the same, and finally because there is not only one way to sell art. Moreover, it is seldom that paintings are ordered, we can order a painting about a subject, but the picture will represent the artist's interpretation. Paintings represent what an artist want to say, want to denounce. The two last points against the Marketing Concept is about its tools. [...]
Online readingwith our online reader
Content validatedby our reading committee