MARKETING CONCEPT

I Marketing concept is at the very heart of modern marketing. It helps to develop the goals and directions of the organization. The basic philosophy of any firm should focus on the satisfaction of the customer. Under the concept it is the customer who becomes the centre of the firm, and all the resources and activities of the firm are directed at generating customer satisfaction. To achieve success, the firm should take the following steps. First, the firm communicates with its potential customers to assess their needs for goods and services. Then the firm must develop a good or service to satisfy (to fill, to meet) those needs. And then the firm continues to seek ways to provide customer satisfaction. This process is an application of the marketing concept, or marketing orientation.

II Utility is one of the main principles of the marketing concept. Utility is the ability of a good or service to satisfy a human need. There are four kinds of utility. Form utility is converting production inputs into finished products. The questions of size, shape and features are determined here. Place utility is making a product available at a location where customers wish to purchase it. Time utility is making a product available when customers wish to purchase it. Possession utility is transferring title or ownership of a product to the buyer for an acceptable price.

III The adoption of the marketing concept in the world was caused by several factors. First, there has been an increase in competition in both national and international markets, forcing organizations to place greater emphasis on consumers and their satisfaction.

IV The second factor is the high level of consumer knowledge and sophistication. Consumers are more aware of product alternatives and prices than ever before. As consumers become increasingly aware of the various options available, only those products and services that are ‘need satisfying’ will be purchased.

V The third factor is highly developed communication systems. Due to these systems a high level of consumer awareness has developed. The communication system has informed consumers of faulty products, price increases, and fraudulent advertising. Increased awareness enables people to be more discriminating in their purchase decisions.

VI Finally, the need for innovative products has forced firms to place the customer first. The phrase ‘new and improved’ indicates the consumer appetite for new and supposedly better products. Yet, in spite of this hunger, nearly 80-90% of all new products introduced on the market fail. That is why a successful new product introduction means knowing the needs and buying habits of the target consumers.

VII Implementation of the marketing concept begins and ends with marketing information about customers. First it helps to determine what customers need, and later it helps to evaluate how well the firm is meeting those needs.

Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs so as to make a profit. It is a fundamental idea of marketing that organizations survive and prosper through meeting the needs and wants of customers.

Companies point out how the special characteristics or features of their products and services possess particular benefits that satisfy the needs of the people who buy them.

The marketing concept is about matching a company’s capabilities with customer wants. This matching process takes place in what is called the marketing environment. An organization that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer needs.

2. Define the main idea of each paragraph:

1.Consumers wish new and better goods and services.

2.Types of utility.

3.Consumers communicate and learn much about products in the market.

4.The main task of the marketing concept is to meet customer needs.

5.Marketing information about customers is of great importance.

6.The high level of consumer knowledge.

7.Rivalry as one of the factors of adopting the marketing concept.

3. Match the words with their definitions:

1.Rivalry between businesses in the same market.

2.The aim or objective or target to which a business activity is directed.

3.A right or claim to something, especially property.

4.To invent or apply new methods, ideas, products, services, etc.

5.The ability of a good or service to satisfy a human need.

6.Knowledge or understanding of a subject, issue, or situation.

7.Something that you try to achieve.

8.Something that you own.

9.The quality of knowing and understanding a lot about things such as culture, fashion, and the modern world.

a) innovate b) awareness c) competition d) sophistication

e) utility f) goal g) possession h) target i) title

4. Find words and phrases in the text which fit these meanings:

1.to carefully consider a situation, person or problem to make a judgment (I)

2.to look for something (I)

3.investment (II)

4.characteristics, an important part or aspect of something (II)

5.to officially arrange for someone else to become the owner of something (II)

6.the decision to use or accept a particular idea, method, law, or attitude (III)

7.to make someone do something that they do not want to do (III)

8.what someone knows about a particular subject (IV)

9.to know something (IV)

10.thanks to (V)

11.not working correctly or made correctly (V)

12.made with the intention of tricking someone, especially illegally (V)

13.better than before (VI)

14.to be unsuccessful (VI)

15.the process of fulfillment something (VII)

16.to think carefully about something before making a judgment about its value, importance, or quality (VII)

5. Choose the most suitable word to complete the sentence:

1. Once customers know about the new product, you have to … them to try it.

a) make b) persuade c) force

2. To be successful the firm must … the needs of the customer.

a) satisfy b) provide c) decide

3. A defined set of customers whose needs a company plans to satisfy is … .

a) targeting b) target marketing c) target market

4. The firm must develop necessary goods and services and continue to seek ways … customers’ needs.

a) file b) fill c) fix

5. The aim or objective or target to which a business’s activity is directed is called …

a) globe b) goal c) gate

6. The money or assets that a company can put to use is known as … .

a) possessions b) holdings c) resources

7. Possession utility is created by … title or ownership of a product to a buyer.

a) transforming b) transmitting c) transferring

8. The ability of a good or service to satisfy a human need is called … .

a) usefulness b) utility c) suitability

9. … utility is created by converting production inputs into finished products.

a) place b) time c) form

10. A company’s use of the different promotional tools (advertising, public relations, sales promotions and personal selling) is called … .

a) communications b) connections c) community

11. Place and time utilities are created by making a product … at a location where and when customers want to buy it.

a) marketable b) desirable c) available

12. As far as I’m … , he didn’t say anything of the kind.

a) know b) aware c) sophisticated

13. The feeling of pleasure that you get when you achieve or obtain something you want.

a) satisfaction b) fortune c) happiness

14. To accept or select and follow or use a plan, technique, product, etc.

a) to adapt b) to adobe c) to adapt

15. Something completely necessary that is needed for life, or needed in a particular situation.

a) essential b) major c) main

16. Companies … if they ignore customers’ needs.

a) succeed b) fail c) unfortunate

6. Complete the gaps in the text with the right words below:

business satisfaction service successful satisfy

organization successful personnel goal profit

The marketing concept is the idea that a business should strive to ….. customers’ needs and wants while generating a ….. for the firm. The focus is on the customer. For an organization to be ….., all functions of marketing need to support this idea.

The ….. responsible for those functions must understand the marketing concept and reach for the same ….. in order to send a consistent message to the customer. The message is that the customer ….. is most important. Everyone in an ….. needs to recognize that repeat customers keep a company in ….. . For example, the switchboard operator in a large corporation or the pizza delivery person must understand the marketing concept and be mindful of the company’s goals. Everyone in an organization is an extension of that firm and must provide the best possible ….. to its customers. Businesses that stress the marketing concept with all employees are ….. .

7. Answer the questions:

2.What does marketing help to do?

3.On what should firms focus?

4.What is in the centre of the marketing concept?

5.What is a utility?

6.What are the main kinds of utility?

7.What is form (place, time, possession) utility?

8.What are the factors of the adoption of the marketing concept?

9.What is the essence of each factor?

10.What plays the most important role in implementation of marketing concept?

Date: 2015-01-12; view: 2511