TITLE: Market concept
Abstract
Topic: literature review investigating several different journal articles on the topic of the marketing concept. Background: The proof of customer-driven markets is well documented, and the complications some of the markets faced with a lack of customer interaction have been investigated. This literature review aims to review research studies that have investigated strategies to overcome the ignorance and lack of attention towards consumers and to investigate the policies that are in place to conduct a consumer/company relationship in business. Method: Research journal articles from 1991-2011 were selected and studied to find mostly consistent, and some contrasting views. The themes relating to problem-solving and understanding the Consumer will be discussed throughout this literature review. Findings: Literature revealed that most companies have a customer-centric strategy in action to aid in customer satisfaction and to, therefore, help the company to gain profit and flourish.
Introduction
The marketing concept gives customer-centric organizations benefits over production-centric organizations that fail to take customer preferences into account when developing solutions. By focusing on what customers want, a company is more likely to deliver a product or service solution with the features that the customers desire. One of the primary goals of the marketing concept is customer satisfaction. Companies use ongoing research to aid them in identifying problems or concerns and, thus, to develop solutions and product improvements (Quitzow et al., 2014).
Companies choose to apply the marketing concept as they find it is the best approach in generating profits and helping the company to flourish. Satisfied customers are more likely to become loyal purchasers and therefore, may be willing to pay relatively high prices (Fernández‐Huerga, 2013).
The relationships between the company and the customer are essential, they are the foundation of customer choice and company alteration. Above all, what is a successful brand without an exclusive relationship? (McKenna, 1991). As Akramov (2011) states, in the present highly competitive marketplace, a strategy that consistently secures your product or service to outsell the competition is crucial.
Kotler (2006) suggests that if CEOs are to serve as their company’s visionaries, then they must be aware of how the markets are proceeding and how their company should be advancing. CEOs can then ask more probing questions concerning how well the company is equipped to strive forward.
The present article is set out to examine the continued development of the following themes associated with the marketing concept.
The Marketing Concept
The marketing concept is a competition concept; this is where it is believed that for a business to be successful, the marketing efforts should be at the top-notch (Homburg et al., 2017). Reading the articles published over the past twenty-five years that have touched upon the marketing concept, similar accounts are often presented. Kotler and Westman (2006) propose that marketing will only work if every employee adopts the philosophy of delivering products/services of the highest quality to its’ customers better than its competitors. For instance, let’s say the company makes the best Floppy disk. But instead, the Floppy disk is not needed by the customer? The customer needs something that can be used for data storage. This can be attained by the portable hard disk, S.D. memory card, USB flash drive, and many more so that the company should not look to make the best floppy disk. Instead, they should put their focus on meeting customers’ data storage needs (Sargeant et al., 2002). The main aim of the marketing concept is to find the right product for your customer and not finding the right customer. In short terms, the marketing concept is a customer cantered “sense and respond” philosophy (Lusch & Webster, 2011).
Likewise, in McKenna’s (1991) interpretation, the solution to retain customers is to incorporate the customer into the company to create and sustain a relationship through better marketing.
According to Akramov (2011), many marketers who strive to satisfy customers can have benefits to both the customers and the business, although they declare that marketing strategy should focus on customers. Through this strategy, when customers are satisfied, they tend to stay loyal to a specific brand. Start-ups and restaurants always follow the marketing concept. They always make sure that they understand their customers and deliver the best services or products, which is still better for the competition. For example, the dollar shave club changed the Men’s grooming market. They came to knew that their customers were not happy with their previous prices and grooming products. While it cost hundreds to buy other company’s grooming products for just one month. A couple of bucks were charged by Dollar shave club a month with their products being of high quality and convenience of home delivery (Smolová et al., 2018).
Registering the presence of the Consumer
The CEO must make marketing their top priority. The days of marginalizing marketing departments are far gone in the past. The CEO must cooperate with the marketing department on how to gain, maintain, and increase profitable customers. Kotler & Westman (2006).
In the 1950s, more advanced management theories emerged that put emphasis on customer-centered business strategy. This orientation was not brought in to remain temporary, but to persist long-term (Akramov, 2011).
“The real goal of marketing is to own the market – not just to make or sell products… Because in marketing, what you lead, you own. Leadership is ownership” McKenna ( 1991) pp.65-79).
As McKenna (1991) describes, when you own the market, you do different things, and you do things differently. You develop your products around serving the customers and your suppliers. Your possession of the market deepens when you dominate the field. Conclusively, your relationship deepens with your customers.
Conclusion
It is purely evident that the market concept plays a significant role in the success of a business, and it is also the concept of competition. For you to win the market, you have to deliver the products and services that are of high quality than those of your competitors. For you to maintain a good relationship with your customers is to find the right product for your customer and not finding the right customer. The quality of your products is the one that will keep them coming (Akramov, 2011)
Akramov (2011) also praises the advantage that technology has on company development. Competitive advantage is gained by the successful implementation of the concepts of marketing strategy. It is easy to facilitate the production of marketing models by making use of the spreadsheet and marketing software.
It is clear to say that all three of my study’s articles are in favor of the marketing concept and prioritize the needs and satisfaction of the Consumer. “CEOs must embrace a customer first-mindset, and they must use the marketing function to drive the company’s strategy and culture… realizing the success that comes to the market-focused and customer-centered company” (Kotler & Westman, 2006, p.28).
References
Akramov, T, (2011), “Marketing Strategy: Concepts and Implication” European Journal of Business and Economics, pp.52-53
Kotler, P & Westman, J, C, (2006), “What CEOs need to know and do about marketing” Leader to Leader, pp.20-28
McKenna, R, (1991), “Marketing is Everything” Harvard Business Review, pp.65-79
Quitzow, R., Walz, R., Köhler, J., & Rennings, K. (2014). The concept of “lead markets” revisited: Contribution to environmental innovation theory. Environmental innovation and societal transitions, 10, 4-19.
Fernández‐Huerga, E., 2013. The Market Concept: A Characterization from Institutional and Post‐Keynesian Economics. American Journal of Economics and Sociology, 72(2), pp.361-385.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), pp.377-401.
Sargeant, A., Foreman, S. and Liao, M.N., 2002. Operationalizing the marketing concept in the nonprofit sector. Journal of Nonprofit & Public Sector Marketing, 10(2), pp.41-65.
Lusch, R.F. and Webster Jr, F.E., 2011. A stakeholder-unifying, cocreation philosophy for marketing. Journal of Macromarketing, 31(2), pp.129-134.
Smolová, H., Kubová, P. and Urbancová, H., 2018. Success factors for start-ups related to agriculture, food and nutrition and their relevance to education. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(3), pp.791-801.