The modern marketing concept is based on the following
four fundamental principles:
Target
market focus
The principle of marketing concept emphasizes that no
organization-business or non-business, big or small-can operates in every
market and satisfy every category of needs of the market. An organization can
do better if it can define the boundaries of its operation and follow a market tailored
business strategy. The target market focus is achieved through the following
activities:
·
Organization
begins applying marketing concept with the definition of its target market.
·
The
organization has to use the tool of market segmentation and targeting in order
to define its target market.
·
The value of
the market has to be correctly assessed through market analysis.
Customer
Orientation
The principle of customer orientation calls for the
organization to carefully and accurately define customer needs from the
customers’ point of view. Once an organization adopts the marketing concept
customer satisfaction becomes its main focus. Customer orientation is achieved
through the following realizations:
·
Customer
satisfaction is possible only when the organization correctly assesses the
needs and wants of the customers.
·
Customers
should be allowed to say what they need and prefer.
·
Organization
should realize that its success depends on satisfied customers who make repeat
buying of the organizations product and also relate their good experience to
friends and acquaintances so that the organization gets new customers.
·
Organization
must use the tool of market research to understand the customers’ needs.
Integrated
Marketing
The principle of integrated marketing calls for a full
coordination and integration of the various marketing activities performed
within the organization. The coordination has to be achieved at the following
three levels:
·
First, all
marketing activities such as product development, marketing research, pricing,
distribution, sales-force management, advertising and customer relations should
be coordinated and integrated to achieve the marketing goals.
·
Second, the
marketing activities need to be coordinated with the activities of the other
departments within the organization such as purchasing production, personnel,
and finance.
·
Third, there
should be effective coordination of the organization’s activities with the
external institutions such as marketing intermediates, transporters,
advertising agencies, market research companies, etc.
Profitability
The principle of profitability calls for an analysis
of every business opportunity from the view point of profitability and survival
of the organization. Profitability concept is applied with the following
realizations:
·
Profit is a
major goal of every business organization and the organization can not
sacrifice profit in any situation.
·
The
organization sacrifices short-term profit opportunities and target at long term
profit through creating and retaining satisfied customers.
·
For
non-profit organizations, the quality of service offered to public becomes the
survival factor.
