This is a principle which states that a business merely exists to satisfy the needs (and wants) of its customers. Therefore all marketing activities are geared towards (or aimed at) identifying the needs of consumers, designing and producing goods to satisfy these needs while at the same time meeting the goals of the organization (i.e. maximization of profits).
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A company adopts marketing concept when all its efforts are directed towards meeting the needs and aspirations of the consumers.
Marketing concept includes:
- Identifying the needs of consumers
- Development of products to suit these needs
- Planning and organizing programmes to bring the product to the consumers
- Carrying out post sales activities that will ensure that the products are satisfactory in use.
This refers to the combination of FOUR controllable variables employed by a business enterprise to set up its marketing policy which has the aim of satisfying the needs of the consumers and to increase the sale of the goods.
The four variables are usually called the 4P’s i.e.
- Product Mix: This is a concerned with developing the right product for the target market. It involves decision taken by the firm about packaging, labeling, branding, trade marks, designs, modifications, durability and quality of their products.
- Price Mix: This relates to the placing of the right, profitable and justifiable price on a particular product that will suit the customers and at the same time fetch higher revenue to the manufacturer. The components of price mix are discounts, credit terms, allowances, margins, mark-up, freight etc.
- Promotion Mix: This involves the procedure employed by a business to let the public know about their products and services. The various forms of production that the firm can use include:
- Personal Selling
- Sales Promotion
- Public Relations
Place Mix: This relates to all the activities carried outin the movement of goods and services to the consumers. It involves how the producer distributes his goods to the consumers at the right market (place), time, quantity and quality.
DEFINITION OF MARKETING TERMS
- Consumer Sovereignty: This concept assumes that consumers are always right. It is also known as the supremacy of the consumer in determining what a firm has to produce. Therefore, the planning and operations of the organisation must be consumer-oriented i.e. having the consumer in mind while planning.
- Market Research: This is the study conducted by a firm and aimed at determining consumers demand and guide the firm in its production and marketing activities.
- Market Segmentation: This relates to grouping consumers based on their purchasing habits. It helps in defining target markets.
- Consumer orientation: This is the concept of marketing which begins and ends with the needs and wants of the consumers rather than that of the organisation. Consumer satisfaction is the major aim of this concept.