The marketing concept plays an important role in any business or company. Each company have their ideas and philosophy regarding their business.
Manufacturing base companies need to understand the product they will manufacture for the consumers, its quality, price, etc., to influence its consumers. Thus management needs to understand the role of the marketing concept and its importance.
What is Marketing Concept In Management ?
The Philosophy of marketing concept lies in the meaning of marketing, the definition of the marketing concept, and marketing concepts.
The Meaning of Marketing
"The term Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others" is known as Marketing. (Philip Kotler)
Marketing overall is defined as the economic process through which goods and services are exchanged with money value.
Here is the Term "What is Marketing:
Marketing includes all the activities regarding the transfer of goods and services from manufacturer to consumers or prospective buyers. The transactions are taken place with the help of money in this way of defining marketing represents 'Product Orientation'.
The Concept Of The Marketing
It is well said that: "marketing is incomplete without the term market". The term market represents the following concept: Needs or wants of the potential customers who might be willing and able to engage in exchanging goods and services to satisfy that need or want.
Thus, there might be a shoe market, some malls, teenager market, restaurants, labour market, complexes. As stated earlier on marketing, marketing is an activity performed by business and non-business people with equal force.
Besides business, there are also other marketing forms like social marketing, marketing for education, and government organizations' marketing.
What is Sales and Marketing
Marketing is the technique to identify, anticipate, and then meet customers' wants and requirements to earn a profit. In contradiction, sales involve the customers' assurance that the products or services you provide are beneficial.
Hence, a carefully formulated combination of sales and marketing is key to successful business and growth.
The Meaning of Marketing Concept
Marketing Concept is a kind of Management Philosophy through which a marketing manager can set goals and objectives for the firm. The goals and objectives are set in according to the market situation to satisfy the consumers' needs and wants.
Concept of marketing activities
The marketing manager should keep certain activities in mind while setting up the marketing goals and objectives. These concepts of marketing are:
- Production concept;
- Sales Concept;
- Marketing concept;
- Product concept;
- Societal Marketing Concept.
Marketing System Affect the Company's Strategies – Marketing has its sub-system, which interacts with each other and helps form a complete marketing system in response to the company marketing strategy.
Thus, a marketing system can easily affect the company's strategies. The marketing system is also one of the important systems which affect the company's nature of marketing.
Customer Focus
As we know, the main focus of marketing is the customers. Thus, the marketing intends to satisfy the needs or wants of the customers. Due to this, a marketer can optimize its cost for the customer and allow the organization to focus on its core competencies to achieve its goals.
Delivery Value
Delivery is the key objective of marketing to satisfy customer needs and wants. In this case, we can determine customer value by dividing the benefit by cost. Delivery Value is one of the nature of marketing.
Surrounded by Customer Needs
Marketing always starts with identifying the needs of the customers. Thus, the needs are turns into the product's features that might satisfy the basic need of the customer. Customers Need also a part of the nature of marketing.
Part of The Environment
Marketing is a part of the environment. Here, the environment is the total of all the resources and institutions related to the production and distribution of goods and services to satisfy human wants. The environment is also a necessary part of the nature of marketing.
What is Sales in Marketing Concept?
Marketing and Revenue
Sales and Marketing both aims at increasing revenue. They are closely connected that people often complicate these two, although marketing is different from sales.
Marketing is all about searching out what the customer needs. Selling is just about showing the customer that you can induce them to buy your goods and services.
The sale is the interchanging of products and services for money or in return for money and the action of selling goods and services.
Push Strategy to Make Sales
Sales follow the push strategy that aims at fulfilling needs tactfully, individual method (usually one to one), directed by human interaction. There is no thesis of brand status or its continuity.
It is just the ability to meet the wants at the correct time. It focuses on fulfilling sales volume objectives for a short period. Its scope is limited as once a product is created for several customers according to their needs, the only thing is to persuade the customer to purchase the product to meet their requirements.
The seller of the goods and services furnishes a sale in return for an acquisition or a demand. The seller executes the sale, and a person who sells goods and services on behalf of the seller is known as a salesman or saleswoman.
Marketing Activities
Sales Activities in Marketing
Sales activities are focused on converting prospects to actual paying customers. Sales involve direct interaction to persuade them to purchase the product.
In marketing, there is a wider range of activities to sell products and services, customer relationship. That determines future requirements, and it has a pull strategy that focuses on fulfilling the customers' demands to maintain a long-term relationship with them. It also has scope in market research, sales; advertising; public relations, etc.
The marketing concept shows the way to reach customers and build long term relationships. It targets the development of a brand status to establish easily with the fulfilment of customers' requirements.
Concept of Marketing Techniques
Marketing techniques choose the target markets by analyzing the market, knowing consumer behaviour, and advertising a product's value. From a societal view, marketing is the vital link between a society's material requirements and its economic response.
The marketing concept satisfies the consumers' needs through exchange processes and builds relationships in the long run. Marketing combines art and applied science that makes use of information technology. It is applied in enterprise and organizations by marketing management.
Marketing concept involves the following activities:
What is Internet Marketing and How it Involves The Marketing Concept
Internet marketing is generally known as digital or online marketing, which offers the best link building.
Marketing Concept through the Internet Marketing
Online marketing is one of the fastest and most cost-effective ways to make that a reality. A business website is the most valuable piece of any small business' online marketing strategy by driving your ads – including research, display, re-targeting, and social media.
Internet marketing is important because it aligns with the way consumers make recurring decisions. It enables us to build relations with customers and prospects through continuous, low-cost communication and moving away from mass marketing.
5 Advantages of Internet Marketing
Convenience
Internet marketing enables you to be open for business around the clock. Offering products on the Internet is also convenient for customers. They can reach you by your online store at any time and place orders when it is convenient for them.
Reach More People
By marketing on the Internet, you can diminish the barriers of distance and sell goods in any part of the country without setting up local outlets, widening your target market.
However, to sell internationally, you should localize the services to ensure that your products are suitable for local markets and comply with local business regulations. It is important that you take the time to create a concept of your marketing strategy and coordinate all of your efforts.
Online Marketing Is Inexpensive
Marketing products through a physical retail outlet is much more expensive than marketing them online. The costs for property maintenance and rental are not included in Internet marketing.
Build Relationships
The Internet provides an important platform for building relationships with customers and increasing customer retention levels. When a customer purchases a product from your online store, you can begin the relationship out on the right foot by sending a follow-up email to confirm the transaction and thank the customer.
Advantage of Social Media
Internet marketing concept enables you to take advantage of the growing importance of social media. The consumers that responded most strongly to the influence of social networks generated increased sales. You can take advantage of this type of influence by incorporating social networking tools.
Understanding About What is Internet Marketing Concept
The Internet Marketing concept is growing rapidly, and getting your business out there is important. It also refers to advertising and marketing efforts that use the web and email to drive direct sales, along with sales that leads from websites or emails.
Marketing products on the Internet costs less than marketing them through a physical retail outlet. There is no need to get property rental and maintenance costs or to purchase stock for display in a store. Though, you can order stock online with demand, keeping low inventory costs.
What is the Plan of MarketingConcept? Explaining Of its 5 Elements
A marketing concept plan is a well-written document or a blueprint that outlines incomplete details in which the organization accomplishes by following the plan. The plan should consist of specific strategies when implemented and will help the organization achieve its aim.
What is Marketing Plan
The marketing plan's main context lies in the "corporate mission," which briefly outlines these corporate objectives. In sales-oriented organizations, the marketing planning function designs incentive pay plans to motivate the staff and align marketing activities with the corporate mission.
The marketing plan generally aims to provide the business with the awareness of the expected customers. This "corporate mission" should not be too congested, which will restrict the organization's development.
It must also not be too broad that it will become meaningless; "We want to earn a profit" is not too helpful in developing specific plans for the entire marketing concept.
Perhaps the most important factor in successful marketing is the "corporate sight." Surprisingly, it is largely neglected by marketing theories. In Search of Excellence, nothing drives progress like the creative imagination.
The idea precedes the deed." Suppose the organization overall, and its chief executive specifically, has a solid vision of where its future stands. In that case, there is a reasonable chance that the organization can achieve a firm position in its marketing concept and attain that future.
It is not the least because its strategies will be specific and supported by its staff at all levels. In this relation, all of IBM's marketing activities were determined by its "customer service" philosophy. The concentration at this stage is on obtaining a complete and accurate picture as an outcome.
5 The Most Important Elements of Marketing Plan
Clear
They should be a statement of 'exactly' what is to be done, i.e. absolutely correct, clear and concise.
Realistic
The plans should be real, not virtual.
Focused
The desire to appreciate activities over the numbers which we can control should be avoided.
Quantified
The predetermined outcome of every activity should be, as much as possible, quantified so that its performance can be controlled and overlooked.
Agreed
Those who are to implement them should be committed to them and agree that they are achievable and reachable. The plan's outcome should become a working document that will guide the campaigns taking place throughout the organization over the plan.
The Benefits of Integrated Marketing Plan
- A stronger, more consistent university image
- Increased support from funding publics such as the legislature
- Greater loyalty among stakeholders
- A general public that is more aware of UCR's local and global impact
- The ability to attract and retain the best employees, students and faculty
- The ability to establish partnerships within the community
- The ability to show supporters that our brand equity is a valuable commodity
- Greater employee satisfaction, including an increased sense of pride and loyalty
A marketing plan refers to a part of a whole business plan. A strong marketing strategy and marketing concept are the foundations of the marketing plan. Whereas the marketing plan contains a list of actions, a marketing plan without an ideal strategic foundation is less efficient.
12 Types of Strategies For Marketing Concept
There are numerous marketing concepts and strategies to consider when growing your business. The majorly determined as follows:
Social Marketing
It refers to the structure, implementation and control of programs to benefit individuals and communities that increase the acceptability of a social cause or practice among people like, No Smoking campaign in a University, Publicity campaign, etc.
Direct Marketing
Direct response marketing depends on being able to address the members of a target market. Marketing in which various advertising media do direct interaction with consumers, generally calling for the consumer to make a direct response, i.e. Tele-calling, promotional letters, newspaper advertisements.
Organization Marketing Concept
It undertakes the activities to shape or change the attitudes and behaviour of target audiences towards an organization. Sales planning and policies are carried out based on this marketing concept.
It ensures the smooth and systematic executing of the planning, policies, and programs required to control the sales activities to maximize profitability. Organizational marketing brings improvement in customer services for their satisfaction as well.
Relationship Marketing
Maintaining and enhancing the firm's reputation and building long-term relationships with customers to gain their trust. For instance, a hotel can build its relationships with customers by sending them wishes and discount offers on special occasions or events.
De - Marketing Concept
De - marketing is a marketing strategy to reduce demand for a short or long time, change it, or for any other reason. For instance, some supermarkets may offer no or fewer discounts on weekends to reduce overÂcrowd.
Synchro Marketing
In such a marketing concept, a product's shifting demand is stabilized due to reasons like seasons, timing through flexible pricing promotion, or other incentives. For instance, a heavy off-season discount on cotton may raise its demand to some extent.
Services Marketing Concept
Services marketing refers to both business to consumer (B2C) and business to business (B2B) services. It applies the concepts, tools and techniques of marketing services such as telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services.
Person Marketing
This concept contains the activities undertaken to build, maintain or change the behaviour towards particular people like politicians, sports stars, film stars, professionals to promote their careers and income.
Place Marketing
Place marketing includes the activities undertaken to create, maintain, or change attitudes and performance towards particular places like travel and tourism marketing.
Differential Marketing
It refers to the market-coverage strategy in which a firm decides to target different markets through different strategies. For instance, Hindustan Unilever offers different types and qualities of soaps for different markets and customers.
Concentrated Marketing
It is also a market-coverage strategy in which a firm focuses on only one or a few markets to concentrate on them and make the business successful in the long term.
Augmented Marketing
It refers to providing additional services that innovative offerings and benefits to the customers to increase their satisfaction level, e.g. free home delivery service by Supermarkets.
Marketing Concept For Sales Oriented Business
Marketing for a sales-oriented business begins with the customers, carries out their wants, and then generates them. The business objectives are managed primarily by customer satisfaction.
With widespread Internet technologies, electronic commerce, and social media technologies, the customer has become the leading force behind contemporary business strategies. One of the main functions in marketing plays commercial video production. The popularity of video advertisement increases year to year and become the leader in the delivery of visual content.
Marketing-oriented companies move around internal business processes that collect, arrange, and package market brilliance into integrated marketing communications programs. Furthermore, it includes a brand planning its marketing activities around a simple concept – the customer and supplying products to suit diverse tastes.
The History Sales Orientation Marketing Concept
From the Industrial Revolution's origin by the 1950s, companies aimed at maximizing economies of scale and minimizing production costs.
As high-quality products were insufficient in that duration, brands could make products on a huge scale that were functional and durable but ignored marketing elements such as add-on features and design. It was excessive because of the rising numbers of rich and middle-class people who raised capitalism's creation.
Along with the Second World War, it shortly became recognizable that products were not easily selling during the Industrial era due to a dripped market. Throughout the 1950s and 1960s, companies responded by acquiring a sales orientation model that aimed first to develop products and then sell them to customers.
Hence, the organizations' moved from product-oriented to sales-oriented strategies; customers were still not included in the product development process.
In the evolution of the 1970s, Harvard Professor Theodore Levitt and other academics argued that the sales orientation model was ill-equipped to deliver products tailored to customer requirements. Despite producing products for the sole purpose of achieving profit, they argued for businesses to change or move their strategy toward developing products based on customers' desires, insights, and opinions. Here comes 'The Shift Towards Marketing Orientation' strategy.
Competitive Analysis
Competitive analysis is also a remarkable component of the market orientation concept. Companies get this information using market research, survey consumers, and core groups with prospective customers to find requirements, desires, and competitor strengths and weaknesses.
A marketing orientation has been reformulated and repackaged under customer orientation, marketing logic, customer experiences, etc.
Marketing Orientation Concept
Market orientation can also be defined as "the organization culture that most effectively and efficiently creates the necessary behaviours for creating superior value for buyers and, hence, continuous superior performance for the business."
It focuses on delivering the products designed as per customers' desire with better functionality and efficiency as a business model.
In the "Marketing Journal ", marketing orientation is the "The organization advanced generation of market intelligence relating to present and future customer needs, circulation of the brilliance over the departmental and organizational wide responsiveness to it."
Conclusion
The marketing concept is a business principle. On the other hand, the term market orientation relates to the actual implementation of the marketing itself. A market orientation appears to provide a mixed focus for the efforts and projects of individuals and departments within the organization."
Companies could manufacture products that backed their overall business strategy, competed with present and future customer needs using customer intelligence. The strategy for competitive benefit is based on the understanding of customers' needs and business operators.