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. For example they could choose a product that was of better quality, this product may have been more expensive than others but the customer could afford this expense if it was going to last longer. Also the customers needs and wants were starting to change, but this was not obvious straight away as to what they were changing to. So the questions that companies were now considering before producing their products were, what do customers want? Can we develop it while they still want it? And, how can we keep our customers satisfied? The marketing concept was adopted due to the customers being so unsatisfied with the goods that they had been buying, so the companies were then loosing business. The marketing concept involves companies focusing on their customers needs and wants before developing any products. Therefore the company’s functions also had to focus on the needs and wants of their customers. At the same time companies needed to still be making a profit whilst being able to satisfy their customers needs and wants long term as well as short term.
When the marketing concept was first starting to be adopted most companies started up their marketing departments as a separate part of their businesses, but some companies would actually give the sales department the extra responsibility of dealing with the marketing side as well rather than keeping the two separate. The marketing departments main objectives were to make sure that the customers needs and wants where being satisfied. Nowadays you will still find a few companies who’s sales and marketing departments are together, but most companies nowadays have structured themselves into marketing organisations which have a company-wide customer focus. The whole organisations existence is to make sure that the customers needs and wants are totally satisfied, so therefore no-one at all can ignore a customers problem and blame it on a sales issue rather than a marketing issue, as every-one has to look after the customers total satisfaction within the company.
Basically marketing is a particular approach to business that puts the customer at the centre of everything they do. The marketing department has to find out what it is the customer wants and needs before it can even think about marketing a product. Therefore the marketing concept is basically a management’s attitude in reflection to customers and their wants and needs. This must be applied to the whole company everything you do must be customer orientated and only produce products that the customer actually requires.
One company that follows this concept today is, McDonalds. McDonalds is a worldwide company that has over 26,500 restaurants in over 119 countries serving about 39 million customers every day. McDonalds is one the largest food chains in the world. When McDonalds first open in the UK their customers would travel miles to visit them. Through listening to their customers they found out that they wanted to be able to visit a McDonalds restaurant wherever they were and at any time during the day. They now have restaurants in most towns and cities they can also be found in places like supermarkets, bowling alleys, service stations and cross channel ferries, amongst other places. They are now open from 6.30am to10pm every day with a very varied menu. They do a breakfast menu for those customers who are looking for a quick high quality, value for money convenience food in the mornings. Recently through customer demand there has been a lot of changes to the menu due to a healthier outlook on life. These changes have been, various types of salads and fruit bags being added to the menu and also the chicken McNuggets are now only made with chicken breast and have 30% less salt in them than they used to. McDonalds is continually focused on customer satisfaction and finding out what it is the customer wants from them. They only use the best suppliers for their food to assure high quality food reaches the customer. They also fully train their staff so that there is always a high level of satisfactory service. McDonalds also do some great offers like Buy One Get One Free and also in local newspapers they put in vouchers for meal deals and money off particular items on their menu. On the kids Happy Meal box sometimes there are tickets on them for kids to go free with one paying adult and see a particular film that’s on at the cinema at that time. In some of their restaurants they have children’s play areas and colouring for them to do, this makes it a family friendly environment to take the kids. Parents are then therefore able to relax more whilst eating their meals. McDonalds also do children’s parties that are great fun for all the family. Also to make the customers life a bit easier for those who are in a rush they introduced the drive thro. McDonalds has a great advertising campaign, from adverts on the television, on the radio, billboards, on the side of their trucks, internet, magazines and newspapers. They have stuck to the same image with the golden arches all this time and Ronald McDonald. This all sticks into the customers mind and they will always remember that if they see Ronald McDonald or the golden arches that that’s McDonalds. Also McDonalds has a really catchy tune to go with its adverts, which everyone remembers. The McDonalds web site offers the customer’s a chance too see what food they do and have a nutrition counter on there as well amongst lots more information and a part for the kids to go on as well. Basically McDonalds is interested in the satisfaction of their customer’s wants and needs and they see to this in every way possible.
Another example is, Tesco. Tesco’s is one of the largest supermarkets in the country and is known for its value for money. They have a great way of continually collecting information on the customers buying and also at the same time giving the customer something back in return for their loyalty. This is done through using a Tesco Club Card. Every time a customer has their card swiped it saves all the information of what products the customer is buying and how regularly they are buying them. This helps Tesco know what they are ordering and what offer vouchers to send out with the Club Card vouchers. Each customer gets vouchers with money off or extra Club Card points on those products that they actually buy. Club Card vouchers are where the customer gets 1p for every pound that they spend instore back in vouchers every quarter either to be used in store or against great deals for example, towards bowling, magazine subscriptions, air miles, Tussauds group annual passes, weekend breaks, meals out etc. When the customer uses the vouchers against one of the deals the amount that their voucher is worth is multiplied by four, therefore giving a much better deal. It makes the customer feel appreciated and actually get something that they want or need. Not only do Tesco just sell the usual things you would find in a supermarket they also sell a wide range of other products too. This means that it is a more convenient way for a customer to shop. The other products that they sell for example are, books, CD’s, DVD’s, computer games, toys, cards, mobiles, electrical appliances, petrol and clothes. Also they do credit cards, loans, mortgages, savings, breakdown cover, car insurance, home insurance, life insurance, pet insurance, travel insurance, broadband, home phone call packages, Tesco mobile network, Tesco mobile top up, holidays and flights. There is also the Tesco web site that customers can access all of these products on. As well as that the customer can now do home shopping and order their shopping online and have it delivered straight to their front door. This is great for those customers that either hate going shopping or don’t have the time to do it. Tesco also do great offers for schools as well with their computers for schools and sports for schools vouchers. So they are helping and considering the future of the customers children as well. In store they have offers on hundreds of their products everyday for example Buy One Get One Free, earn extra Club Card points on certain products and Two For The Price Of Three. Their advertising campaign is very strong with memorable. They have numerous television adverts, radio adverts, adverts in newspapers and magazines, also on billboards, carrier bags and their trucks. Tesco also do great offers in store and are constantly doing price checks against other supermarkets to maintain the low price that Tesco are known for. Basically Tesco is constantly looking after their customers and supplying them with what they want and need and give them something back in return and all at great value for money, which all customers love.
These two examples of company’s that have adopted the marketing concept have both done it very successfully. They both take into consideration the wants and needs of their customers and have done everything they can to provide their customers with them. They are both top in their markets beating away their competition successfully.
Reference
* www.netmba.com/marketing/concept/
Bibliography
Marketing Strategy - Paul Fifield
The Marketing Customer Interface - CIM Companion
Marketing - Everybody's Business - Dave Needham and Rob Dransfield
Marketing Principles and Practice, Third Edition - Dennis Adcock, Ray Bradfield, Al Halborg and Caroline Ross
The Marketing Book, Fifth Edition - Michael J. Baker
www.marketingteacher.com
www.zeromillion.com
www.netmba.com
www.tutor2u.net
www.udel.edu
www.mcdonalds.co.uk
www.tesco.com