• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain the marketing concept and its importance to an organisation making particular reference to developing relationships with customers.

Extracts from this document...

Introduction

Explain the marketing concept and its importance to an organisation making particular reference to developing relationships with customers. Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.1 The main principles of marketing are to satisfy customers, target the 'right' customers, facilitate exchange relationships, stay ahead of competitors and enhance profitability. The ultimate goal is to satisfy targeted customers, seeking their loyalty and consumption. Creating good relationships with customers is an important factor. The buyer must be satisfied with the goods or service received from the exchange, and the seller must likewise be satisfied with the financial reward received in the exchange. "The marketing concept can be defined as "the philosophy that an organisation should try to provide products that satisfy customers' needs through a co-ordinated set of activities that also allows the organisation to achieve its goals"2 The marketing concept is the idea that to be successful the organisation should focus on meeting customer needs - "The customer is king". A company that adopts the marketing concept is likely to adopt the following principles such as; identify customer needs, provide products at an acceptable price and stress the benefits through promotion. ...read more.

Middle

They are: The Production era, pre - 1920s. Businesses concerned themselves primarily with production. This viewpoint was encapsulated in 'Says Law', which states 'Supply creates its own demand. If a product is made, somebody will want to buy it'.7 The Sales era ran from the 1920s to the 1950s. Businesses realised that products would have to be "sold" to customers. Businesses viewed sales as the major means of increasing profits. The Marketing era developed in the early 1950s. Businesses found that they had to first determine what customers wanted and then produce it. We are currently in the Relationship marketing era. Here the focus is on developing bonds with customers. The focus lies on maintaining a customer's loyalty and making a multi-purchase agreement. Businesses believe brand loyalty is the future and that customers naturally favour a certain brand. To try and gain the custom of consumers, marketing managers have to implement the marketing mix. The marketing mix consists of five factors; price, place, product, promotion and gradually, people. Each one of these components is crucial as a slight alteration of one of these factors may cause the balance of the product to be altered.8 According to Kotler et al. ...read more.

Conclusion

'Achieving customer loyalty can be very gratifying for many organisations and businesses. It is well known that it is generally more profitable to preserve an established client than continually be searching for new ones'.11 'The loyalty of existing customers also represents an entry barrier to competitors because the cost of enticing customers to change loyalties is often prohibitively expensive'.12 "With a recognition that existing customers are the source of most companies' profits, there has been an explosion of interest in understanding customers from a long-term, relationship view. Frequently though this "relationship" view just means trying to sell more things to more customers. If companies are really going to embrace the concept of relationships they have to understand more about what their customers need to build a "shared future" with them. A shared future is a challenging concept since it means that both parties have to understand how the other will help them get to where they want to go and what has happened in the past."13 The survival, growth and profitability of an organisation in a competitive environment are dependent on good customer relations. Businesses understand the need to form bonds with their customers, as this relationship will ultimately decide their potential in the future. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. What is the marketing concept? Explain the importance of customer orientation and use examples ...

    He suggested that instead of this the company should 'take his cue from the buyer in such a way that the product becomes a consequences of the marketing effort, not vice versa'. His model of 'good practice' also suggested that to build an effective customer-orientated, the organisation can't just use

  2. What is 'The Marketing Concept' and how has it developed over time? The ...

    The marketing concept then came in after World War Two. There were now a larger variety of products being sold and hard selling was not working as well as before. Customers seemed to have a larger disposable income, so they could now be a bit fussier about what they were buying.

  1. Describe and examine the major components of market orientation in relation to the marketing ...

    For example, websites such as Kelkoo (www.kelkoo.co.uk) and Pricerunner (www.pricerunner.co.uk) allow consumers to compare prices and delivery times on a range of products, as well as read reviews from other consumers to evaluate whether the item is suitable. 'The marketing mix' is one of the most well known phrases in

  2. Business Studies Assignment Marketing

    They also use special offers and TV advertisements too. The flyer advertisements are effective although they can get ignored and chucked in the bin as junk mail so the most effective method for XS Superbowl I would recommend are posters, this Is because many people drive past XS Superbowl because it is beside a busy road.

  1. Strategic Marketing Report - Virgin Trains

    6 Internal Analysis 6.1 Marketing Objective Virgins' objective will be: An improvement must be shown with timing figures and by field research with a vast majority of virgin train users (70% Must state an increase in timing and efficiency <times when there are difficulties with the train or Rail track will be excluded>)

  2. Marketing Thorpe Park and London Dungeons.

    Mostly done by the government (e.g. health campaigns, new welfare benefits). Sometimes a business will employ an advertising agency to deal with its needs. An agency plans, organises and produces advertising campaigns for other businesses. The advantage of an agency managing the campaign is that it has the expertise a business may not have, e.g.

  1. Produce a marketing strategy for a new or existing product

    From the help of the Matrix I have decided to launch out a new magazine recognized as the Cosmo-Chat that customers will subscribe in order to buy it. Therefore they will receive a better understanding of the issues and other topics that will be designed to gain the readers interests.

  2. RELATIONSHIP MARKETING AND CUSTOMER LOYALTY

    Foundations of relational marketing Th? fundamental marketing theories underlying th? virtues of relationship marketing, such as trust (Morgan and Hunt, 1994, pp 45-189; Veloutsou et al., 2002 pp 34-189), commitment (Grossman, 1998; and Ndubisi Chan, 2004) , conflict management (Dwyer et al. 1987, pp 34-128; Ndubisi and Chan, 2005, pp 23-90), and communication or sharing of secrets.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work