The marketing concept is “consumer-oriented, market-driven, value-driven, integrated, and goal-oriented.” Although this “textbook” definition gives us the basic idea of what the marketing concept is it does nothing in aiding us to understand it for ourselves or apply it to the real world. Breaking this definition down into 5 unique parts will allow us to better understand the marketing concept as a whole.
Consumer-oriented. Being consumer-oriented means that a firm is capable of analyzing current market needs and making decisions based upon their findings. This market includes what consumers want, how much they are willing to pay for it, and where they will buy it. This aspect of the marketing concept could be considered the “research” section where a business is able to look at what consumers want and make smart business decisions based on the market the product will be going into.
Market-driven. A firm’s ability to be market-driven is firmly linked with being consumer-oriented. The ability to be market-driven means a company and it’s polices are fluid enough to adapt to market fluctuations. Being market-driven allows a company to take advantage of a larger segment of a market because they contain the ability to adapt to sudden changes and to quickly compensate to continue to serve consumers and their needs.
Value-driven. This means that the products which you make are perceived to be superior to other similar products on the market. It also means that the consumer sees your product as being worth more than the price you charge and how much it costs to make. By instilling value-driven aspects into the business and marketing plan the company will more easily turn a profit because consumers will be more willing to buy their products.
Integrated. Integrated and efficient can be synonymous when it comes to the marketing concept. Having integration in your company means that no single group, such as finance or sales, is too far away from the rest of the company. By keeping all of the groups close together with open lines of communication the company is open to make smarter decisions. Integration and efficiency can go hand in hand as both aid the company in cutting costs. Successful companies must be integrated or risk failure due to lack of communication.
Goal-oriented. The ability of a firm to be goal oriented means the business can lay out plans, both short-term and long-term, and successfully strive to reach the goals. By planning well thought out goals and achieving the goals the company can stay on task and accomplish all of the other aspects of the marketing concept.
The marketing concept can be hard to understand at once but by breaking it down into sections and analyzing the five topics individually the marketing concept becomes easier to understand and interpret.