The idea of maximizing long-term profitability while integrating marketing with other parts of the company and meeting customer needs and wants.
The marketing concept came into existence in the 1960s and continues to develop and expand. To apply this concept, marketers;
- Meet customer needs.
- Achieve and maintain long-term profitability.
- Integrate marketing with the other functions in the company.
1) SENSITIVITY TO CUSTOMER NEEDS AND WANTS
This dedication requires two steps:
a) Understanding what customers expect
b) Meeting those expectations better than your competitors
Customer Orientation: A management philosophy in which the customer is central to everything the company does.
2) LONG-TERM PROFITABILITY
The second component of the marketing concept is maintaining acceptable profit levels year after year while meeting customer needs. Companies that focus on short-term profits are less inclined to invest in research laboratories, support personnel, repair facilities, and other elements needed to satisfy customers.
3) FUNCTIONAL INTEGRATION
One study of new product development projects showed that in cases where “severe disharmony” existed between marketing and R&D, 68% of the projects failed and only 11 percent were commercially successful.