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

    is likely that customers will assume that the company deals with them appropriately at all times so they are more likely to purchase from the company in future. Effective inter-functional co-ordination ensures that all departments of a business work in conjunction with each other to provide the best possible service and price to consumers.

  1. 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.

  2. Strategic Marketing Report - Virgin Trains

    going to effect any business not just Virgin Trains since the government needs to keep a close eye on business to make sure no harm comes to the People of Britain. Since the rail incident law hasn't had too much of an effect upon Virgin by now Law is being revised and could be implemented.

  1. Business Studies Assignment Marketing

    Starbowl -�4.45 for one game of adult bowling. Ten pin bowling-�4.00 for one game for adult bowling. This shows the prices for each of the bowling alleys. The cheapest is ten pin bowling at whitley bay, this creates a link to where it is in the product life cycle it

  2. Marketing Thorpe Park and London Dungeons.

    copywriters, designers and media buyers. Businesses need to be fully aware of the laws that govern advertising. The main law is the Trade Descriptions Act - goods advertised for sale must be as they are described. Also the advertising industry has its own Code of Practice, and is regulated by

  1. 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.

  2. This report will focus on the adult palliative care provided by SAH proposing a ...

    The macro analysis highlighted growing choice to the consumer, St Ann's must be proactive with regards to strategies to meet this change within the market. Figure 8 - Key Public's Relationship to SAH (Source) Primary Research 4.2.2 Competition St Ann's does not necessarily compete with other organisations on an enterprise specific level; however competition does exist.

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