Meaning and Definition of Marketing Concept
The concept of marketing has its origin to find out the role of the customer in the field of business. The ever-increasing importance of the customer in the field of business has given rise to a new concept in the business which is called ‘Marketing Concept’. According to Mr. John E. Wakefield, “The marketing concept is the philosophy of business.” Marketing concept is that philosophy of business which emphasizes on earning reasonable profit through customer satisfaction. It gladly accepts the sovereignty of the customer. The basic goal of modern business is to create customer and provide maximum satisfaction to him and earn proper profit to the businessman. The business accomplishes this task through the marketing concept. If seen, marketing concept is a managerial process under which goods are produced according to the needs of the consumers and by providing them satisfaction, proper profit is earned.
(1) a. According to A. Felton, “Marketing concept is a philosophy applied in the conduct of business in which customer and consumer needs are of paramount importance. These requirements will operate separate planning for each and every work of the business, whose goal is to achieve the predetermined profit objectives.
(2) According to Shoell and Guiltinan, “Marketing concept is a new philosophy of business which assumes that business acts to meet the needs of its customers, takes decisions based on managerial method approach and earns a reasonable profit as a result of the investment of its owners. ,
Traditional or Old Concept of Marketing
Generally, the meaning of the micro or traditional concept of marketing is taken from the buying and selling of goods. The micro or traditional concept of marketing is the process undertaken by a firm to create and implement strategies (such as evaluation, product development, promotion, distribution, etc.) holds. According to this concept, the subtle or traditional concepts focused only on providing satisfaction to specific types of customers. According to this, the basic function of marketing was to transport goods from producer or producer to consumers. This object was operational. The basic objective of the micro or traditional concept of marketing was to maximize profit, there was no place for consumer welfare, research or social responsibility etc. in the micro or traditional concept of marketing. The type of product was also not taken into account. The goods were sold as they came. This is a very ancient or narrow ideology of marketing, in which the activities of buying to produce various goods and selling these products to reach the customers are included in marketing, that is, according to this ideology, the production of goods and their physical The activities related to distribution come under the domain of marketing. According to this ideology marketing is defined as
(1) According to Pyle, “Marketing includes both buying and selling activities. ,
(2) According to Tousley, Clark and Clark, “Marketing includes all those efforts which facilitate the transfer of ownership of goods and services and their physical distribution. ,
(3) According to Edward and David, “Marketing is an economic method. by which goods and services are exchanged and valued in money. (4) According to the American Marketing Association, “Marketing refers to the performance of business activities that designate the flow of goods and services from producer to consumer, user”.
It is clear from the above that according to this ideology the marketing function starts after the production is done and the producers themselves know that what should be produced for the customer. Simultaneously, the marketing work ends there when the product is sold to the customer or the consumer. This ideology does not seem appropriate in today’s era because marketing activities are needed before production and also after sales, so it would be correct to say that marketing includes activities before production and after sale of goods.
Modern Marketing Concept or Marketing Concept
Marketing has special importance in modern management and it is one of the important concepts of management. Unless it is well understood and put into practice, most of the commercial or industrial institutions will either end up powerless or will fail, it is absolutely necessary to understand the meaning of modern marketing concept and put it into practice. This will become clear when we are ready to accept that marketing is a customer oriented activity. It is based on the following three basic concepts-
(i) The policies and actions of the company are customer oriented. Therefore all business decisions should be customer oriented and not production oriented. It has to be emphasized that the primary objective of all business activities is to effectively satisfy the wants and needs of the customers.
(ii) The goal of the business is to make a reasonable profit. Modern marketing concept is not just an action but it includes all those activities which hand over the product to its place of origin – end consumers and user industries and provide them satisfaction.
(iii) Modern marketing concept starts from the time when the idea to manufacture a product is created and ends when the customer gets complete satisfaction on the one hand and the manufacturer on the other hand. A fair return (profit) is obtained from the sale of the product. This modern ideology gives more importance to the customers rather than the commodity. That’s why it is called customer oriented approach. According to this ideology such items are manufactured which suit the different needs, tastes etc. of most of the customers. After this, the sale of goods is also done keeping in mind the convenience of the customer and if necessary, after sales service is also arranged. According to this ideology, marketing has been defined as:
(1) According to Paul Mazur, “Marketing provides a standard of living to the society.
(2) Prof. According to Malcolm Menair, “Marketing means creating and achieving a standard of living.”
(3) According to Condiff, Still and Govoni, “Marketing is a managerial activity by which goods are made according to the needs of the markets and their ownership is transferred.”
(4) According to McCarthy, the answer given by the merchants to the need to adjust the production capabilities according to the needs of the consumer demands is called marketing.
It is clear from the above discussion that production oriented ideology can prove useful in seller market. Seller’s market refers to a market in which sellers can sell whatever they want, that is, in such a situation, customers are not given much importance, but the product-oriented ideology can never succeed in the buyer’s market. In modern times, due to the characteristics of large-scale production of goods, strong competition, rapid market change rate, etc., customer oriented ideology is very necessary. According to this ideology, marketing action starts with the generation of the commodity idea and continues till the customer is satisfied. Therefore, it can be said that according to this ideology the marketing action starts with the customer and ends by reaching the customer.
Importance of Modern Marketing Concept
The importance of modern marketing concept can be clarified by the following headings (1) Promotion of industrialization – Today, the countries which have modern marketing system, those countries are on the top in the industrial sector. Thus, having a good marketing system encourages industrialization, which is a dire need of developing countries like India.
(2) Increase in exports – History is witness to the fact that countries which are at the peak of industrialization, like America, Germany, England, Japan etc., due to modern strong marketing system, they export more and import less in developing countries like India. The country today needs the most to increase exports and that is why modern marketing is important in developing countries (including India).
(3) Optimum use of natural resources Modern strong marketing system provides active support for exploitation and maximum use of natural resources in the interest of the country, which is absolutely needed in developing countries.
(4) Decrease in the prices of goods Due to the presence of a well-organized and effective modern marketing system, where on the one hand there is more demand, the quantity of production increases as a result of which the cost of production is reduced and on the other hand, there is a substantial reduction in the distribution costs. Is. The result of all this is that competition increases and as a result the prices of goods fall. As a result, consumers start consuming more goods.
(5) Customer satisfaction- Customer satisfaction is the cornerstone of modern marketing idea. Under this, all the decisions of the business are taken with the customer as the focal point and every effort is made that the needs of the customers are fully satisfied. Thus marketing benefits the society by satisfying the needs of the people.
(6) Increase in the knowledge of the customers- Marketing makes the customers aware of their hidden needs and by creating products and services according to those needs, gives their information to the customers, so that the satisfaction of those needs is not possible. Due to marketing, customers also get information about the manufacture and use of new goods.
(7) Raising the standard of living – Modern marketing concept provides active support in raising the standard of living by providing information and making available new items to the general public on a large scale.
(8) Facilitation of employment – Modern marketing concept provides active support in eradicating unemployment and under-employment by increasing employment opportunities. For example, today in India more than 20 million people are engaged in marketing activities. Today the marketing sector is considered to be the major source of employment in India.
(9) Increase in National Income – When goods are produced and manufactured according to the needs of different types of customers due to modern marketing facilities, there is an increase in the total goods and services of the country, resulting in an increase in both the total national income of the country. Is.