Marketing concept of British Gas - Essay Example

?INTRODUCTION This report will discuss the importance and application of the marketing concept to the changing trends of the industry as the time is passing. The marketing concept focuses on the principle that an organization needs to satisfy its customers fully to become successful (Lindgreen & Wynstra, 2005). Marketing relates to all the steps or processes that are linked with providing the end product to the customers. This is done by monitoring the manufacturing process, distribution activities, promoting the goods or services and pricing them accordingly to cater the needs of the customers (Fill, 2005). Marketing concept aims to satisfy the customer needs and act in accordance to the trends that are preferred by the customers. The customers of the 21st century are more socially responsive (Kumar & Shah, 2004). The companies today are required to produce products which cater the needs and requirements of the customers and serve the long term interests of the individuals and the society (Snow, Miles, & Coleman Jr, 2000). MARKETING CONCEPT All the firms strive to make profits. The core objectives of most of the firms are to maximize sales to increase revenues. The management of the company targets a particular customer segment and aims at catering their needs. The marketing concept is an important component of marketing. It is a totally different concept which signifies that marketing must aim at catering the needs of the customers. In other words it can be explained that the product is made for the customers so the needs of the customers must be primarily satisfied by the product. The factors which derive satisfaction of the customers may vary from product to product. In some cases the customers are concerned about the social issues which impact directly on the society and in some cases the customers are price conscious. These deriving factors which change with the preferences of the customers result in their satisfaction level (Lovelock & Gummesson, 2004). Marketing concepts have evolved with the passage of time. Earlier marketers worked with the products under the following philosophy stated that (Reibstein, Day, & Wind, 2009): Demand always exists for the product Quality products speak for themselves and attract customers Hire an extensive sales team for the company to increase the sales by cover larger areas geographically These philosophies were used extensively in the past but with time the trends of the industry have evolved. The consumers have become conscious of what they buy and are in constant search for the products which cater their needs in the most appropriate manner (Reibstein, Day, & Wind, 2009). Marketing concept is a theory to support the customer oriented philosophy. It aims to cater the customers in the most effective and efficient manner as compared to the competitors. This method of attracting customers and increasing sales aims at increasing the profitability of the customers in the long-run rather than in the short-run (Reibstein, Day, & Wind, 2009; Vargo, & Lusch, 2004). The marketing concept has evolved with the passage of time. The relevance of the concept has increased in the 21st century because of the increasing number of competitors. Entities have to ensure that the products which they are offering to the customers must deliver more value to them then the value that was delivered when they used a competitor product. The marketers are of the view that maximizing the quality of the product and is increasing the product offering is not sufficient to gain popularity with the customers. The competitors can also somehow manage to offer the same offerings, so in the 21st century the sellers require ensuring that they acquire a competitive edge on the product of the competitor and offer something beyond to exactly cater the requirements of the customers. This practice will attract the customers towards the product (Reibstein, Day, & Wind, 2009; Drucker, 2007). INTRODUCTION TO BRITISH GAS British Gas Group is a global business which deals with diversified tasks related to exploration and production. The company specializes in exploring gas reserves and producing it for commercial and domestic use. This requires operating in a responsible manner and delivering values to the shareholders. The resources of the company are competitively priced and are directed to aim at high value markets. The company is operating under the parent name of Centrica which have different businesses in energy related sectors. This provides the company with another competitive advantage over its competitors. Centrica is operating in several countries with different brand names and hence have vast experience of managing and marketing energy companies. British Gas is one of the leading energy and other related service provider companies in UK (Centrica, 2012; British Gas, 2013). The aim of the strategic management of the company is to progress and acquire success. The strategy of the company is growing with constant exploration. This can be ensured by reviewing the business strategy of the British Gas. The strategy of the company is to provide competitive prices to the customers in high value markets to gain a sustainable competitive edge from that of its competitors. EXPLAINING RELEVANCE OF THE MARKETING CONCEPT The company’s marketing practices are relevant to the marketing concept. The strategy of satisfying the needs of the customers is ensured from the practice of the marketing concept which the company applies properly. Marketing concept is about getting to know the exact needs of the customers and catering them according to the changing time. Strategy that is used by British Gas is that it provides most competitive rates to the customers in the high value markets. Acquiring a cost advantage from the competitors gives a sustainable edge to the company. British Gas depicts application of marketing concept in its marketing strategy. In the utility business the rates are pre determined and the only thing which helps in acquiring an edge are the services which are provided, the offerings and settlements with the states and the propositions that are made. GLOBAL GAS MAJOR The aim of the company is to become a Global Gas major. It plans to do so by making investment propositions to the state. The more the company diversifies with product offering the competitive edge of the company will increase. This will also improve the customer relationship. The company also plans to offer a resilient global gas strategy for the company. If the company succeeds in maintaining a proper track record of growth, investment and diversification it will depict stability. The investors will invest in the company due to stability of the returns generated by the company. CONNECT GAS TO HIGH-VALUE MARKET The company is successful market leader in the industry. By forming an industry LNG portfolio and integrating sophisticated marketing skills in infrastructure to maintain reserves which are excellently managed in the form of a portfolio. The market knowledge which the company has in catering the needs of local and international customers give it a competitive edge and makes it easier for it to satisfy the customers. The company has distinctive capability from its competitors which gives it an edge from the competitors and helps it in performing the business functions in the most efficient manner. SECURE COMPETITIVELY PRICED RESOURCES The group has an advantage of being a market exploration leader in the industry. The resources which are owned by the company are growing at a rate of 9% per annum. Besides being a competitive leader the Group also has Cost Effectiveness which provides it with an edge from its competitors. Both the skills which the company possesses provide it an edge in the industry. SKILLS TO SUCCEED ACROSS THE GAS CHAIN The group is pursuing to succeed in the industry. It plans to do so by assessing the skills and utilizing the skills that are required for success of the company. This can be done by acquiring new resources and minimizing the cost of the products that are produced to improve the profitability of the group. The group has successfully expanded in the international markets and it plans to acquire a competitive edge further by diversifying with other products. RELATING THE GROWTH STRATEGIES OF THE GROUP TO THE MARKETING CONCEPT Considering all the above mentioned growth strategies of the company it can be assessed that British Gas Group has a very efficient and effective growth strategy. It intends to gain an edge in the industry through competitive pricing and diversifying strategy. The Marketing concept of the 21st century is centered to the customer. This is because the customer is the one who decides whether or not to avail the services. The approach of this age is to emphasize on the customers. This can be done by producing products that are better in quality from those of the competitors and acquiring a cost advantage. Acquiring a competitive advantage is essential for the group to maintain the leading position which it has in the industry (Shaw, Subramaniam, Tan, & Welge, 2001). British Gas is a renowned name as a producer of gas and petroleum related services. Its diversification and expansion strategy in the industry have provided it an edge in the industry. It has an advantage of sustaining in the industry. Similarly the group aims and emphasizes on connecting to the high value market so that it can get the value which it deserves for the products. The company must try to acquire competitive advantage by reducing the cost. This will give the company an edge that will provide it with an advantage to succeed in the industry. REASONING The Marketing concept is significantly important for the companies today to sustain the intense competition (Boone, 2012). The company already has a competitive edge. It has a cost advantage and it also sells its services to the high value markets. British Gas has sustained the markets very competitively. Amongst the utility providers British Gas is a lot more diversified. This is because the company adapts to the change in environment. It has distinctive capability to sustain the commercial agility. The management of the company sticks to the vision that is set by the decision making of the company. The operations of the group are significantly stable because the group has a set direction and it also has the resources which are required for sustaining the company. CONCLUSION Application of the Marketing concept in the 21st century emphasizes on the importance of satisfying the customer needs to ensure that the marketing process is effective. The competition between the competitors is increasing in the industry. This requires for the companies to strive for excellence and acquiring cost advantage that will benefit the company in accomplishing its goals. The traditional concept of marketing comprised of targeting on improving the quality of products which spoke for themselves and improved the productivity of the company. British Gas is a company which operates as a utility provider in more the 20 countries. The group is showing renowned for its excellent services and this is a major contributor to the edge which it has acquired. It is renowned to offer the services precisely tom cater the needs of the customers which shows the application of Marketing concept by the company. The company has successfully acquired the edge from its competitors. This is because the company is a global gas major in the industry. Its practices of businesses have succeeded in attracting the customers. The group has a cost advantage and it also targets on the industries which are high value markets. The competitiveness which the company has acquired will help it succeed in its strategic objective. REFERENCES Boone, L. E. (2012). Contemporary marketing. Cengage Learning. British Gas. (2013). About US. Available from http://www.britishgas.co.uk/about-us.html?bglink_id=i10123 [Accessed 10 August 2013] Centrica. (2012). 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