The Marketing Concept Essay, Research Paper

Introduction

The purpose of this study is to sketch the basic construct of selling and the ways in which concerns have benefited from implementing the procedure.

The study besides hopes to aim specific concern maps and show ways of utilizing the selling construct to better them. It will besides place ways in which selling can assist accomplish assorted ends within the administration.

The Marketing Concept

The Marketing Concept ( instead known as a & # 8216 ; concern doctrine & # 8217 ; or & # 8216 ; a manner of making concern & # 8217 ; ) has become an effectual manner of bettering the overall public presentation of many concerns in recent old ages. Companies have realised that in order to do net incomes and prolong them, they must see the demands and wants of their clients. They must so compare these demands and wants to the merchandise or service that they presently offer.

The construct of selling is based upon the thought that if the client has a demand and is satisfied with the merchandise, so finally gross revenues will be good & # 8211 ; hence net income will be good. It goes without stating that every company & # 8217 ; s purpose is to maximize their net income border, but in order to make this, some tend to concentrate excessively much on the merchandising facet and non plenty on the existent client.

A Company can be orientated in different ways:

Gross saless Orientation

A gross revenues orientated company will concentrate strictly on the sum that they sell, working on the premise that gross revenues and gross revenues merely can do money. Companies following this attitude have come under examination, due to the actions of over-zealous salesmen who will halt at nil to acquire a sale & # 8211 ; you are likely familiar with the phrase & # 8220 ; ne’er trust a salesman & # 8221 ; . This manner of making concern is no longer acceptable as it has become evident that in order to sell something, person must desire to purchase it. The old manner of & # 8220 ; victimizing & # 8221 ; the client into purchasing goods whether they need them or non, strictly to guarantee a sale, is now shunned by most industries.

Marketing Orientation

A selling orientated company is a client orientated company. They take into history client demands and concentrate on them. Communication between a company and their clients is indispensable to guarantee the success of any selling method. Market research is used to place specific demands of both bing and possible clients. Satisfied clients are loyal clients who will necessarily make repetition concern every bit good as supplying free viva-voce advertisement. This would doubtless ensue in increased net incomes.

Production Orientation

A production orientated company will concentrate strictly on the production of their merchandise. A company who cares enough about their ability to bring forth goods of merely the highest quality possible must be admired for their dedication. However, dedication does non needfully warrant net income, and without net income, a company could easy turn up.

Merchandise Orientation

Although a similar construct to the 1 of the production orientated company ( above ) , the merchandise orientated company focuses on the merchandise itself. The purpose is to do the best merchandise possible. Research and development is normally involved in the procedure, guaranting that there is a significant demand for the merchandise. It is hoped that a company will stop up with a high quality merchandise that will sell.

The Marketing Mix

The selling mix consists of assorted factors that a company can blend to find of there is a lucifer between the demands of the client and what the company presently offers them.

There are four chief elements of the selling mix & # 8211 ;

Merchandise

Specifying the features of the merchandise to run into client demands e.g. presenting optional characteristics with a merchandise that are non standard or supplying an extra guarantee that may non be deemed necessary in jurisprudence, i.e. supplying more than lawfully necessary with respect to the merchandise.

Monetary value

An of import component of the selling mix, the monetary value places a value on the merchandise. It is possible for the purchaser and the marketer to compare this monetary value to that of viing merchandises. It is so possible to change the client & # 8217 ; s perceptual experience of the value by offering extra elements such as hard currency / trade price reductions, recognition installations and easy payment footings. From the selling point of position, the monetary value is the ultimate manner of ciphering net income.

Topographic point

Another word for distribution of the merchandise. The merchandise must be easy available to the client in order for it to sell good. There are assorted channels in which a merchandise can be distributed. For illustration, TJ600 would likely take to administer their goods by manner of a provider, but they could besides present a direct mail order service to increase gross revenues.

In make up one’s minding which methods to utilize, you must first see who your possible clients are and where they are likely to shop for these merchandises.

Promotion

Although portion of the selling mix, publicity consists of four elements of its ain called the & # 8220 ; Promotion Mix & # 8221 ; . These are & # 8211 ;

Advertising & # 8211 ; paid presentations such as telecasting advertisement, newspapers and postings / flyers etc

Public Relations & # 8211 ; the launch of a new merchandise and the ways it can be promoted to the trade and consumer imperativeness

Personal Selling & # 8211 ; a method of advancing gross revenues by agencies of unwritten communicating. This can be either face to face or over the telephone.

Gross saless Promotion & # 8211 ; a manner of heightening consumer buying. This normally consists of shows, shows and exhibitions.

Market Research

Market Research is used to place non merely client demands but to place any selling jobs that the company may be sing. Planning is highly of import when roll uping the information to be used in the market research. In order for the consequences to be accurate, the inquiries asked must be relevant. This will affect treatments with selling direction and on juncture, outside advisers. Research can be used to better any component of the merchandise ( detailed in the selling mix ) .

When sing any signifier of market research, it is of import that any external factors impacting the consequences are considered. These are normally known as Plague

:

Political & # 8211 ; any new statute law that may impact the merchandise

Economic & # 8211 ; unemployment rates, passing power of the consumer

Social & # 8211 ; environmental issues that may impact the merchandise

Technological & # 8211 ; debut of new engineering that may impact the company

Once a determination has been reached sing the intent and content of the research, it is necessary to find the best manner of acquiring a response. There are legion ways of carry oning market research, including postal studies, telephone studies and face to confront interviews. The best response rate, nevertheless, tends to be with face to confront interviews ( normally questionnaires ) , due to the fact that an immediate response is given by the interviewee.

It is critical that one time informations has been collected that it is carefully reviewed, in order to construe the information given as a consequence of the research. Additional research may be carried out if the information shows that there is another country that can be improved upon.

Organizational Goals

In order for a company to travel frontward in concern, they must put aims / ends. These normally form inquiries associating to the concern, such as:

Where are we at nowadays?

Where would we wish to be?

How could we acquire at that place?

For illustration, the organizational ends of TJ600 may be to:

Retain / addition market portion

Expand merchandise scope & A ; distribution

These aims are normally made at a strategic degree & # 8211 ; in this instance the pull offing manager would be responsible for puting the aims.

It is sensible to presume that TJ600 are cognizant of their place in the fabrication concern, due to the fact that they have been successful for 20 old ages. The ends detailed supra give an thought of where the company would wish to be in the hereafter. All that is left is to calculate out how to acquire at that place and it is at this point that selling plays its function.

Outlined below are ways that selling could assist accomplish the aforesaid ends:

Retain / Increase Market Share

In order to retain client trueness, it is of import that the client is satisfied with the merchandise they presently buy. Market research is highly utile in placing client demands and to set up whether or non they are wholly satisfied with the merchandise. It is at this point that elements of the selling mix can be used to change certain features of an bing merchandise e.g. if market research was to demo that bing clients were fundamentally satisfied with a merchandise supplied by TJ600, but would welcome more after gross revenues service, so direction would desire to look at the merchandise component of the selling mix. It is possible from there to determine whether drawn-out guarantees etc would be feasible to the concern with respects to be effectiveness i.e. would extra staff be required?

Expand Product Range / Distribution

Again, market research is utile to find whether there is a market for enlargement of a certain merchandise or enlargement of an bing merchandise to another state.

Past and present success of a company can non be taken as a warrant for the hereafter. Many big companies invest in regular market research to guarantee that they stay one measure in front of their rivals. Although TJ600 has had go oning success in the yesteryear, it would be instead chesty to anticipate the same success in the hereafter.

Expansion is a good manner of bettering on something that is already popular and offering the client more pick at the same clip. In today & # 8217 ; s concern universe, it is inevitable that at one point person will offer clients an betterment on their current merchandise. Investing in market research will assist to guarantee that, if a merchandise would profit from enlargement, so you will be foremost to make it.

Selling and Business Functions

Once a company has established their organizational ends and the selling methods that they are traveling to utilize to accomplish them, they must guarantee that they have the co-operation of every section. Communication plays a critical portion in selling to guarantee that the alterations are implemented with maximal consequence.

For illustration, utilizing the organizational ends detailed antecedently for TJ600, it would non be possible to do alterations to the merchandise scope by confer withing merely the production section. Outlined below are the functions that other concern maps would play in selling:

Finance Department

The finance section is normally responsible for puting one-year budgets for the whole of the company and expects other sections to adhere to them. They are besides responsible for puting clip bounds on recognition installations and these sometimes tend to be shorter than the client would wish. Communication between the finance section and selling could look to better recognition footings if required and may let room for via media if a certain section required more money. It is the duty of the finance section to guarantee that the company makes a net income and they may non be acute to pass more money or delay longer for clients to pay. This is where communicating plays an of import function ; if it is explained from a selling point of position that these extra costs would ensue in a higher market portion or increased gross revenues, so the finance section would gain that this would take to increased net incomes.

Production

The production section is improbable to welcome the thought of alterations or betterments to the merchandise. They tend to work in long production tallies and like to maintain things every bit standard as possible. Communication between selling and the production section may assist them understand the demand for betterments to a certain merchandise & # 8211 ; it may be that betterments are necessary in order for them to remain in front of rivals in the same market.

Forces

It is critical to the smooth running of any administration that the right people are employed for the right occupations e.g. selling may hold highlighted the demand for customised orders to be introduced, which in bend would intend that staff are required to work more flexible hours. It is the duty of the forces section to guarantee that the company has equal staff to run into these demands.