Marketing: Concept, Features and Factors

Concept :

The question arises as to which concept is the best? The most ideal approach would be an integrated one in which the sequence of events of a firm begins with market-research and product-research working together on the need for the product and the feasibility and the capacity for producing it.

This approach is superior to other approaches and represents directions that many advanced and progressive marketing firms are taking. The production-oriented firm suffers from producing the products that are not really needed by the market thereby increasing the cost of promotion and selling; when the technological orientation is carried to extremes, the products can be an engineer’s dream and a marketer’s nightmare; an overriding marketing orientation creates problems in opposite direction.

This easily results in the proliferation of products none of which is profitable. By contrast, the integrated approach or system is an open approach or system that guarantees two-way communication among all the events on one hand, and the efforts on the other.

In a nutshell, modern concept says that marketing is not mere selling; it is something more than that. Prof. Theodore Levitt, in his article, “Marketing Myopia” brings home very succinctly the distinction between ‘selling’ and ‘marketing’.

These points of distinction are:

1. Selling focuses its attention on seller’s needs while marketing on buyer’s needs.

2. Seller is interested in converting a commodity into cash while marketer in consumer satisfaction.

3. Selling aims at profits through sales while the marketing through serving the consumer needs.

Therefore, the ‘total’ or ‘integrated’ marketing concept implies that the fundamental strategies of business and all aspects of both its long-term and short-term management decisions are based on a thorough understanding of the needs and desires of the customers who compose the market.

Features of Integrated Marketing Concept:

In its fullest sense, the marketing concept is a philosophy of business which states that consumers’ want satisfaction is the economic and social justification of a firm’s existence.

Resultantly, all the firm’s activities in the areas of production, engineering, finance as well as marketing must be dovetailed primarily to determine what the consumer wants are and then satisfy these wants, of course, making a reasonable profit.

In the words of Mr. Fred. J. Poorch, “marketing is a fundamental philosophy ; fundamental to this philosophy is the recognition and acceptance of a customer oriented way of doing the business ; under making, the customer becomes the fulcrum, the first point about which the business moves in operating for the balanced best interests of all concerned.”

To be very precise, the modern marketing concept is one which starts with an interpretation of consumer needs and desires both qualitative and quantitative, follows through all the activities involved in the flow of goods and services from the producers to consumers, and ends with those services essential to assist the consumer in getting the expected utility from the products he has purchased.

These expressions bring home the following outstanding features of this integrated marketing concept:

1. Consumer orientation:

New concept is one that replaced ‘product’ by ‘customer’ in the centre of the whole scheme of marketing. Consumer is the ‘King’ and the pivot around which all the business philosophy or thinking rotates. This is a revolutionary change in the line of thinking where it is shifted from product to consumer or from factory to market. What is important is that consumer is placed both at the alpha and omega of the chain of business activities.

2. Consumer satisfaction:

Modern marketing concept is also founded on the consumer satisfaction. The success of a firm is not measured by its capacity to pass on the products lucratively or making huge profits and building up additional assets; contrary to this, its success lies in its ability to satisfy the consumer, his needs and aspirations. Consumer purchases are made with certain purposes and expectations.

These expectations are normally related with say, price, quality, quantity and timely supply. A marketer who fails to identify these consumer preferences has failed to satisfy the consumer.

The present and the future organizational success is hinged on this consumer satisfaction which an alert marketer cannot afford to forget.

3. Integrated managerial action:

Marketing activities are only a part of total managerial activities. That is, marketing management cannot be an independent function; it is a phase of overall management functions. The management functional areas are interdependent and not independent.

The marketing function influences production, finance, and personnel and in turn is influenced by these functions. Any firm wedded to modern marketing concept cannot think of working in isolation. For instance, the production manager has to think not as per his idea or plans of production maximization, limited varieties and slicing down the cost for he is to produce what is determined by the marketing manager.

The finance manager cannot think of fixing product prices as per his calculations but take into account the cost calculation of production and marketing manager. In short, in an integrated marketing setup, all the functions of management are aligned and integrated in tune and tone with marketing variables.

4. Realisation of organisational goals:

Though consumer satisfaction is the mainstay of modern marketing concept, it is not the final aim. On the contrary, it is the means to attain the organisational goals. Among other goals, the basic aims of an organisation may be survival, growth, innovation, productivity, profits, and social obligations and so on.

These goals can be achieved effectively through consumer orientation. When a firm has succeeded in maximizing consumer satisfaction, it means that it has delivered a quality product, at a reasonable price, at convenient place and in sufficient quantity.

The marks of consumer satisfaction are product and, hence, company image that is being created in the minds of consumers. Among these goals, profit maximization is also important. Marketing concept is for profit and not for profiteering. Reasonable profits are a must for survival and growth and innovation. The modern marketing concept allows earning reasonable profit through enhanced consumer satisfaction.

In a nutshell, modern marketing concept or integrated concept underscores the fundamental end of consumer satisfaction; consumer- orientation and integrated management action are its means and that organisational goals are achieved through consumer satisfaction including profit maximisation.

Factors Influencing Marketing Concept:

There are good many factors that influence the marketing concept. Any firm operating under the marketing concept receives signals from the market place. That is, detailed information regarding the consumer needs, wants, desires and the desire backing or supporting parameters.

These factors are:

1. Growth of Population:

It goes without saying that an increase in population leads to increase in demand for goods and services. Market we mean people their diverse needs desires and wants.

2. Changing concept of family:

Over the years, the concept of joint family has lost its importance though it has many plus points.

In place of joint families, we come across the nucleus families which are divided which are a product of Western World. This is based on astute individual freedom, supported by education, occupational mobility, migration and self- relevance. More families mean more goods and services needed.

3. More Disposable Income:

The young generation has the advantage of increased and new job opportunities caused by changing values of culture, life-style and quality of life. That is, their income avenues are increasing, leading to enhanced purchasing power. Increased purchasing power backs up needs and desires and finally buying action.

4. More Discretionary Income:

The people are left with more surplus even after meeting their needs that enables to cross the barrier of hand to mouth fashion of living. This discretionary income is now meant for not necessities but comforts and luxuries. In fact, all are not lucky enough to have such surplus. However, it affects the very cycle of thinking and course of action.

5. Technological Advancement:

The process of science and technology is never ending. One invention or discovery leads to another.

The technological advancement is so fast that people are greatly and deeply influenced by the wave of planned obsolescence. They shorten the life of products though they can last longer. Thus, in earlier generations, the watch lasted for 20 years, 30 years and even 50 years.

People used to take pride in its longer life. Now a wrist watch, if it comes to repairs, they exchange or dispose off as a scrap and go for new.

6. Mass-Communication Media:

The people learn about the arrival of new products and services because of the onslaught of mass- communication media print audio visuals that hasten the speed of change and exchange. Modern ad world has revolutionized the marketing process.

7. Credit Facilities:

Credit is the greatest weapon that makes the people to go in for those products which they cannot easily afford. Now credit cards, zero per cent interest schemes have further made the people to meet their pressing needs. A person speaks of car which he used to dream. Dreams are a reality caused by modern credit and the plastic money.