In this article we will discuss about:- 1. Introduction to Modern Marketing Concept 2. Features of the Marketing Concept 3. Significance 4. Implementation.

Introduction to Modern Marketing Concept:

The consumer-oriented marketing has given rise to a new philosophy in business known as ‘marketing concept’. The marketing concept emphasises the determination of the requirements of potential customers and supplying products to satisfy their requirements.

Under the marketing concept customer is the fulcrum around which the business moves. The objective of a firm is not the maximisation of profitable sales volume but profits through satisfaction of customers. And all the marketing activities in a firm are integrated and directed towards this objective. The managers practicing this philosophy think in terms of what benefits the market or what needs are they satisfying.

The marketing concept considers marketing as an integrated process of identification, assessment and satisfaction of human needs and wants. It regards creation of customer and satisfaction of his wants as the justification of business.

Determination of wants of the customers takes precedence over production and other business activities. In other words, production is carried on according to the needs of the customers. Thus, the emphasis in modern business is on selling satisfaction and not merely on selling goods.

The marketing concept is based on the following pillars:

(i) Identification of the prospective customers or the target market.

(ii) Understanding the needs and wants of the customers or the target market by connecting with them.

(iii) Development of products or services for satisfying the needs of the target market.

(iv) Satisfying the needs of target market better than the competitors.

(v) Ensuring profitable sales for the business.

Features of the Marketing Concept:

The marketing concept is characterised by the following features:

(i) Customer Orientation:

It emphasizes the necessity of consumer- orientation of the entire business. Marketing starts with the determination of customers’ wants and continues until the customers’ wants are completely satisfied and they are delighted with the goods and services.

(ii) Integrated Approach:

Marketing concept forces business firms to use an integrated approach in their operations. Each firm should coordinate the activities of production, finance and marketing departments to satisfy the needs and expectations of customers. Thus, marketing should not be considered merely as a fragmented assortment of marketing functions. Each and every department has to contribute for the satisfaction of customers.

(iii) Long-Term Perspective:

Marketing concept seeks development of the business and profits over a long period of time. The marketers offer value proposition to the customers and build lasting relationships with them so as to attract new customers and retain them in future.

(iv) Profitable Sales Volume:

Marketing is considered successful only when it is capable of maximising profitable sales through customer satisfaction over the long-run.

Significance of the Marketing Concept:

The marketing concept is a consumer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organisational goals. The objective of marketing is not the maximisation of profitable sales volume, but profits through the satisfaction of customers. All the marketing activities are integrated to achieve organisational goals through the satisfaction of customers.

The business firms pursuing the marketing concept achieve the following benefits:

1. Marketing concept has philosophical and strategic implications. It helps the business firm to direct its activities towards the broader and long-range objectives like sustained interaction with the customers, and stability and growth of the firm through customer satisfaction and delight.

2. Implementation of marketing concept results in an integrated and co-ordinated approach to marketing. By concentrating on consumers’ needs and wants, management can evaluate contribution made by the different departments of the firm in a better way.

3. Concern about market or customers’ needs rather than product reduces the chances of a business firm becoming a sick unit. It is obvious that the firm will produce those products which will satisfy the wants of the customers and they will be easily accepted by the customers.

4. Focus on customer needs will lead the business to engage in research and innovation activities. The customers will get better products and services.

5. The business pursuing the marketing concept is always responsive to changing business environment. It will effectively deal with competition, new technology, changing needs of customers, etc.

Despite its merits, the marketing concept is not free from limitations. It does not recognise the wider social dimension of marketing. It focuses attention solely upon satisfying consumers and ignores other stakeholders like employees, investors, suppliers, government, and the public at large. Consequently, the concept may lead the managers to indulge in actions that are harmful to various groups e.g., polluting air or water, evasion of taxes, etc.

Implementation of the Marketing Concept:

Marketing concept is a consumer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organisational goals.

In order to put into practice the marketing concept, a business firm should take the following steps:

(i) Adoption of Customer Orientation:

A business enterprise must take its direction from the customers or the market, i.e., from its knowledge and understanding of customer’s needs, wants and desires. Emphasis should be given on using marketing research to keep abreast of market on developing products according to the requirements of the customers.

Using this philosophy, management must put every effort to keep up-to-date on the changing answers to the following important questions:

(a) What business are we really in?

(b) Who are our customers?

(c) What do the customers want?

(d) How can we distribute our products?

(e) How can we communicate most effectively with the customers?

(ii) Formulation of Objectives:

Objectives provide direction to various operations or activities of a business enterprise. Therefore, the objectives of a business concern must be formulated in unambiguous terms. Under the marketing concept, the chief goal of the business enterprise should be earning of profits through satisfaction of customers. This should form the basis of goals of different organisational units of the enterprise.

In other words, the departmental goals must be subordinate to the overall organisational objectives. Not only marketing but production, finance, purchasing and other organisational units should also be geared towards satisfying customers’ needs, and wants. Thus the philosophy of customer orientation is injected into the total organisational system. Such an organisation also accepts research, creativity and innovation as essential ingredients to business success.

(iii) Integration of Enterprise Operations:

After setting the organisational and departmental objectives or goals, it is essential to ensure that all the activities of various organisational units are directed towards the overall objective. There is a need of complete harmony between the goals of the enterprise and the individuals working therein.

There should also be proper co­ordination of operation of various units to give effect to the consumer orientation by the enterprise. The marketing department should develop the marketing mix which is most appropriate for the achievement of enterprise goals through the satisfaction of customers.