UNDERSTANDING

MARKETING
CONCEPT
MARKETING CONCEPT
A philosophy that an organization
should try to provide products that
satisfy customers’ needs through
coordinated set of activities that
would also allow organization to
achieve its goals.
 EVOLUTION OF
MARKETING CONCEPT
2nd half of nineteenth
Production century, Industrial
Orientation Revolution was its full
swing.

In 1920-1950, business
Sales Orientation people viewed sales as
the major

In the 1950s, they began to

recognize efficient
Market production and extensive
Orientation promotion will not guarantee
that customers would buy
products.
MARKET ORIENTATION

An organization wide commitment to

researching and responding to
customer needs
IMPLEMENTING
MARKETING CONCEPT
 Must accept general conditions and
recognize and deal with several
problems. It must be accepted to all
businesses.
Steps:
1. Plan.
2. Implement information system.
3. Restructure the operations and overall
objectives of one or more departments.
MANAGING
CUSTOMER
RELATIONSHIPS
MANAGING CUSTOMER
RELATIONSHIPS
Acquire new customers;
Enhancing profitability of
existing customers; and
 Extending duration of customer
relationships.
MANAGING CUSTOMER
RELATIONSHIPS
 Relationship marketing – establishing a long-
term mutually satisfying buyer-seller
relationships.
 Customer-centric marketing – developing
collaborative relationships with customers
based on focusing on their individual needs
and concerns.
 Customer Relationship Management – using
information about customers to create
marketing strategies that develop and sustain
desirable customer relationship.
VALUE-DRIVEN MARKETING
 Value – a customer’s subjective
assessment of benefits relative to
costs in determining the worth of the
product.

Customer Value = customers benefit –

customer cost