The four major ingredients, or components, of the marketing concept are the organization's goal of profit through competitive advantage; motive driven by customer satisfaction; identification of target markets; and development of an integrated, coordinated marketing system focusing on price, product, promotion, and place of distribution channels.
Organization's goal of profit through competitive advantage:Competitive advantage is the factor that makes a company's goods or products more desirable to customers. The competitive advantage comes through offering...
The four major ingredients, or components, of the marketing concept are the organization's goal of profit through competitive advantage; motive driven by customer satisfaction; identification of target markets; and development of an integrated, coordinated marketing system focusing on price, product, promotion, and place of distribution channels.
Organization's goal of profit through competitive advantage: Competitive advantage is the factor that makes a company's goods or products more desirable to customers. The competitive advantage comes through offering goods or services with greater value, lower prices, or higher quality than competitors' identical goods or services.
Motive driven by customer satisfaction: Customer satisfaction comes through customer orientation, foreseeing what customers need and want, and producing what meets those needs and wants. Orienting to the customer is the key to attaining competitive advantage, which comes through understanding the benefits the customer seeks to buy. Customer orientation is different from product, production, and sales orientations.
Identifying target markets: The key to attaining competitive advantage through a customer orientation is to deeply understand the target market, the needs and wants of which your firm chooses to meet. Not every good or product will be received in the various demographic groups in the same way; some won't even have a use for what a firm sells. For example, not everyone has a use for a forklift. Identifying the needs and wants of the target market that does have a use for a forklift leads to the firm gaining competitive advantage over other less attentive forklift manufacturers.
Integrated marketing, coordinated system: An integrated and coordinated marketing system—unified marketing approach from manufacturer to retail outlet—operates effectively and efficiently when the whole firm focuses on the Marketing Mix, Marketing Target, and "the Four Ps" of marketing: Price, Product, Promotion, and Place of distribution channels. An integrated marketing system extends to all departments of the company and is coordinated throughout the whole vertical marketing system.
Ted Mitchell, "Marketing Concept."
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