The Marketing Concept
The marketing concept puts the customer at the centre of the organizational decision making process. This is sometimes referred to as a the business philosophy or concept. There are other concepts that a company can have that allows them to effectively compete in the prevailing market conditions.
These are sometimes linked to the development of markets over time. For example initially a company must focus on the product until the generic form is developed and accepted by the marketplace. Initially in a new market the demand might exceed supply, so focusing on the production is needed to enable production levels to build in order to meet demand, as production builds and supply begins to exceed demand companies need to ensure that they have effective sales methods to ensure there market share. Finally as markets mature companies need focus on the needs of the customer and ensure that they are meeting the needs as individually and as a society. This need to meet the need of society was initially seen as a distinct orientation, with organizations such as the body shop and Cooperative bank positioning themselves using ethical statements, however as issues such as global warming and exploitation of third world economies have become more main stream it is expected that an organization with a marketing orientation will have an acceptable ethical policy.
The above shows that the marketing philosophy anticipates profits through increased levels of satisfaction this might be through a premium on the price or through increased life time value of customers.
Implementing the Marketing Concept
The marketing concept once identified has to be implemented, this is often very difficult as financial imperatives often dictate what a business needs to do in order to survive. An organization might be fully aware of the benefits it could achieve through a marketing organization, but is unable to make the organizational changes necessary to implement it fully. The marketing function needs to inform all aspects of the business, so we are all 'Part Time Marketers', however organizations tend to focus on marketing's functional aspects and apply it tactically to meet specific problems rather than strategically. However there are some guiding principles.
Howards Pillars
This links with the development of the total product concept were the product is clearly defined in terms of the core benefit. The orientation to the customer rather than competitors or stakeholders.The points 3,4 & 5 are central to the philosophy, the collecting of information and using it to understand and model customer segments is central. Using market information throughout the organization to inform decision making and creating a customer awareness is essential. Finally the need for marketing to inform in the long-term, strategic role as well as a tactical role.
POISE
Hugh Davidson's POISE acronym makes a very similar point and emphasizes the strategic role
Profitable
Offensive not defensive
Integrated
Strategic
Effective
Clearly there are some very practical issues raised - profitability is the key measure used to evaluate the success of a business. While marketing strategies can and should offer effective defense to competitive forces the best form of defense is attack.
The final point effectiveness is important, marketing activity must achieve the aims and objectives set. It must deliver the benefits being sort - "The right product in the right place at the right time and at the right price!"
References
Adcock, et Al, Marketing Principles and Practice, Pitman 1995
Howard.J, Marketing Management and Planning, Irwin 1963