Marketing is one of the most premier disciplines of business. It concerns itself with business management exchange strategies and tactics. It is the main tool that is used to balance the market's demand and supply interplay to an equilibrium. Advertising, francisation, product promotion, branding, free delivery and public relations are some of the main examples of the major components and compositions of marketing strategies and techniques. Marketing, therefore, can be defined to be the process of introducing goods and services to potential customers, maintain them as frequent customers, with an aim of satisfying their needs, while making a profit.
Fundamental Concepts in Marketing
Marketing concepts or orientations encompasses the strategies adopted, executed and implemented by business firms to minimize input cost while simultaneously maximizing output per head and thereby making a profit. They are the philosophies that dictate and seek to identify the type of cost-effective, economical and efficient tools that a business can employ to counter possible inhibitors like competitors, for it to achieve its stated goals and objectives. Production, product, selling, marketing and societal marketing concepts are the main five examples of marketing concepts description, as discussed below.
Production concept is one of the oldest marketing approaches employed by most firms and corporations. It is an approach that is based on a French Says Law, which states that ‘supply creates its own demand. ‘As such it supposes that if products are produced or manufactured, they will attract consumers automatically. It is an orientation that is mostly applicable in developing countries, where most buyers go for the readily available and relatively cheap products. Much focus rests on the affordability rather than on the effectiveness or durability of the product in question. This assumption is according to a famous French economist, Jean Baptiste Say. The concept revolves around the availability, accessibility, and affordability of products in the market. It asserts that customers' preference mostly falls in favour of the readily available and most affordable products. Firms that apply this approach focus on high production at low cost and massive distribution and dispensation of the produced products. Therefore, this approach seeks to exploit economies of scale for profitability hence generating an expanded market, which has been marked by economist practitioners as a business survival strategy.
This is a business philosophy that is grounded in the products' features, quality and performance. It is based on the idea that customers' preference mostly lies on products of best quality, good features, and excellent performance. Therefore, to showcase the best qualities and maximum features of best performance and durability of a product, it calls for time for informed research about a product in question. The research helps in understanding the dynamics of products including their nature, makeup, efficiency and effectiveness over other related products. Additionally, research acts as a guide and an equipment to attend to questions raised by potential customers about the products involved. Consequently, this approach is a modified staircase to marketing, since it seeks to give a product its identity, functional value and the due advantages of using it over its related products. The constant release of new or improved products in the market are owed to this approach. It is aimed at making potential customers and customers a central focus and satisfying their contemporary needs.
Societal Marketing Concept
The emergence of the concept is traced back to the early 1970s, as having been introduced by Philp Kotler, to counter criticism of marketing that had risen during that historical time, from the consumerist movement (Kotler, 2014). It is founded claiming that apart from availing products and seeking to satisfy consumers' needs, marketers have a greater responsibility in the environmental conservation, adherence to moral conduct and ethical values in business and working in conjunction with stakeholders, customers, employees and local communities to promote the well-being of the society. This approach can, therefore, be defined as a business management strategy that is held accountable for the interests and welfare of the local communities in the society besides just greedy profitability.
Marketing concept refers to a unique type of business approach since it seeks to challenge the other three concepts of marketing discussed above. It is founded on for main pillars including; identifying target market (potential customers), satisfying customers' needs as per their demand, creating an enabling environment for effective market integration and making a profit. This concept holds that for any business firm to achieve its stated objectives, it must adopt and employ more effective business skills and strategies to counter its competitors.
Peter Alexander sleepwear enterprise embraced and adopted this business orientation in identifying the main target customers as women, and their demand as the classic, chic and sexy nightwear (Alexander, 2018). Furthermore, this enterprising entrepreneur ever seeks and samples opinions from different customers about his unique themes in his designed pyjamas inspired from his trips to Paris, African Safaris and other places around the world's globe. He ensures that he retains his customers, draw potential customers and establish a long-term good customer value and relationship with them (Roering & Seibert, 1973). This is what has made him keep improving his volume of sales and increasing his profit margins perpetually.
This business orientation asserts that a firm will sell whatever it produces, and not produces what the market demands. It operates from an assumption that consumers will always buy whatever is produced, and as such, firms must undertake a massive promotional effort to ensure that customers and potential customers are persuaded and convinced to buy as frequently as possible (Kotler, Shaw, FitzRoy & Chandler, 1983). However, caution needs to be taken not to confuse these two orientations, since they are exhibit more similarities and fewer contracts. A central point of focus in the marketing concept is the satisfaction of the customers' needs derived through the market demand, while the Sales concept is cantered on the seller to convert his goods to cash for profit (Hoffman & Bateson, 2017). As such a lot of emphasizing is put on promotional activities like advertising, to draw and win more buyers, in the sales concept while the marketing concept undertakes activities like market research in large scale to improve the quality of products and attend to questions raised by potential customers concerning products in question.
In Australia, Peter Alexander sleepwear firm thrives following his determination and candid personality to be successful (Alexander, 2018). Creativity and constant innovations define his well-being and success as an entrepreneur. He innovated his enterprise from mail order to online internet, and this marked the onset of increased sales from customers worldwide. Peter also innovated his pajamas brand to a modern lifestyle brand of stylish tracksuits and cosy bed linen, as a strategy of business expansion and profitability.
Customer Value Relations and its Importance.
The evolution and development of Customer relationship management can be traced back to the corporate complaint department, which noted and sought the customer's negated experiences, opinions, and comments about products. For instance, Peter Alexander, The pajamas King of Australia, confesses that his late father Joe advised him to treat his customer's right, as an iconic aspect of in his sleepwear enterprise and he would do well. He adds that he has lived by that advice, and that to date, it is the reason for the success of his sleepwear championship in Australia.
Establishing customer's loyalty, retaining them as frequent consumers and attracting potential customers as consumers are among the contents of good customer relations. It is a strategy build on customer, maintenance, retention, and satisfaction. To achieve this, a seller needs to understand the prevailing dynamics in the market to attend to any arising question, complaint or opinion from any customer (Smith & Colgate, 2007). Equally, sellers should adopt investment convergence philosophy to the most reliable and valuable customer's. Such customers can be trusted to make and give an honest evaluation and feedback on new products, what needs to be improved and the opinion of other customers (Hostetter, 2017). Additionally, the well-attended customers recommend and refer other potential customers to the products' seller hence increasing sales and profit margins of the firm. To realize this, corporations and other business organizations need to streamline their customer service through the provision of discounts, after sale services, free delivery of goods among other customer motivational offers.
Marketing, marketing concepts, and customer value relations are major pillars of economic growth and job creation, not only in Australia but worldwide at large. This, in return, raises Gross Domestic Product, GDP of a state. Marketing seeks to establish a good customer relation ground, avail customers with quality effective products according to their tastes and preferences with an aim of satisfying their needs and simultaneously earning a profit. Provision of a wide range of products in the market enables the potential customers and customers to choose from a variety in the suitability of their affordability and preferences over other related products. To achieve its set objectives firms, need to employ effective improvised technological strategies and approaches to counter their competitors and inhibitors, develop good customer value and relations besides undertaking market research.
However, marketing, its approaches and strategies have faced economic criticism from most economic practitioners including Philip Kotler, internationally known as ‘father of modern marketing.' This American commentator argues that, besides the worldwide celebrated advantages attributed to marketing, marketing has been challenged by several drawbacks. First is the motivation behind marketers marketing anything for customers with very less or no consideration of the harmful (health) consumption impacts. For instance, cigars were sold with no notification of the dangers of smoking on the smokers' health for a long time until legal reforms of warning took effect. This practice is dismissed as unethical and an inconsiderate greed for profit. Secondly, marketers do not pay attention to the poor and low-income earners since they operate under the slogan of the more you buy the more you earn(discount and after sale services). Contrarily, the poor are exploited since small units of packaged products are more expensive than their respective larger lots. Thirdly, there is little emphasis on the environmental pollution in the production and marketing processes.
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