What is marketing concept? How does it help in the effective marketing of goods and services.
Marketing concept of marketing management lays emphasis on customer satisfaction. It believes that customer satisfaction plays a vital role in the success of any organisation. In the long run, any organisation can survive and maximise profits only if it identifies customer needs and effectively works towards fulfilling them. This concept identifies the fact that people purchase a product for satisfaction of a specific need (such as functional need, social need, psychological need, etc.). Any organisation must aim towards identifying such needs and satisfy them in an effective manner. That is, it must take all decisions based on needs and requirements of the customers. An organisation works and sells not according to what it has, but according to what the customer wants.
The marketing concept is based on the following points.
1. The efforts of all marketing activities must be directed towards a particular segment of market or group of customers.
2. The organisations must clearly identify the needs and requirements of the target customer.
3. It should develop such products and services that satisfy the needs of the customers.
4. It should not just independently work towards customer satisfaction, but should also aim at satisfying the customers better than its competitors.
5. The crux of all efforts of marketing is profit.
Marketing concept helps in effective marketing of goods and services. If all marketing activities are directed towards customer satisfaction, marketing of goods and services would take place in an effective and smooth manner. If decisions of production, pricing, designing, etc. are based on the needs of the customers, selling would not be a problem. For example, if customers want dual sim mobile phones, high pixel camera, GPS, etc. the company produces mobile phones with such features. Similarly, other decisions of the company such as pricing, branding, etc. are also based on the requirements of the customers.