Basic Principles of the modern marketing concept

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.