But a new and better product may not be always successful, unless it is marketed properly. The idea behind the marketing concept is to build an extended term relationship between the firm’s products and its customers.
Companies that hold this philosophy believe that their consumers are the driving force of their business. The marketing concept is based on the philosophy that sale depends on a customer’s decision regarding a product rather than excessive sales, unlike the sales philosophy. This concept can be considered as an opposite to product concept, which emphasises on finding the right products for the customers rather than finding the right customers for the products. Organisations usually undertake aggressive promotional and selling activities that enable sale of products/services. Consumer oriented marketing has given rise to a business philosophy known as “marketing concept”.
The goal of marketing is to get people interested in your product or service no matter where they are in the sales cycle. The old marketing concept grew out of the need to serve customers created by the conditions of post-World War II affluence and population growth. By operating within this particular marketing concepts firms tend to take into consideration both social and ethical issues when developing the strategy for the company’s marketing efforts.
The marketing concept is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires. The marketing concept focuses on discovering and responding to consumer needs. Firms produce what the market demands, rather than expecting potential customers to purchase whatever they make. Research and development methods uncover consumer perceptions and needs. Rather than distributing to the masses, companies focus on market segments with distinct sets of needs and preferences.
For it to be effectively followed, these firms must be willing to forego profitability or a market opportunity if it is not consistent with their social goals. This creates a challenge for publicly listed companies that have significant shareholders expectations for growth and profit.
The marketing concept emphasises the determination of the requirements of potential customers and supplying products to satisfy their requirements. The firms following customer orientation regard the creation of customer and satisfaction of his needs and wants as the justification of business. The emphasis on production concept led to the difficulty in selling the products, which eventually forced the businesses to go for product differentiation. It was also found out that customers prefer those products that offer the most quality, performance or innovative features.