Introduction to the Marketing Concept - Essay Example

It stresses the aim of business organizations to generate profit from their operations. Thus, the definition of CIM involves assessing the marketing strategy which will be mutually beneficial for customers and companies. Business organizations as this definition implies are profit-maximizing entities. Lastly, this definition highlights that marketing is not just about providing the current needs by “anticipating” the future requirements of the markets. In summary, CIM’s definition of marketing balances the satisfaction of customers and the profit-maximizing goal of business organizations.

According to the American Marketing Association (AMA), “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals”. Like the CIM, AMA also recognizes that the main purpose of marketing which is to satisfy customers. However, it elaborated that customers can be grouped into individuals and organizations. Thus, it indicates its deeper understanding that companies should market to individuals and organizations differently. Compared to the definition of CIM, AMA defines the functional aspect of marketing. The definition highlights the components of the marketing mix—product, promotion, price, and place. This specifically elaborates on the function that marketing managers make, that is, to plan and execute a strategy through an integrated and complementary component of the marketing mix. In comparison to CIM’s definition, AMA focuses more on marketing as a management function.

Marketing is primarily concerned with the satisfaction of customers profitably. Marketing can be adequately understood through different marketing concepts such as the following:

Target market and segmentation. For a business organization to create an effective marketing strategy, companies need to divide their market based on demographic, psychographic, and other factors (Kotler, 2002). The target market is the segment that presents the greatest opportunity. In the case of Haagen Dasz, its customers are segmented based on their age. The company targets the adult market.

Marketplace, marketspace, and meta market. These are where business organizations conduct their business operations. Marketplace refers to the traditional marketplace while marketspace is digital and is created through the internet technology (Kotler, 2002). Metamarket is a complementary market of products and services which are related in the mind of customers.

Marketers and prospects. A marketer is an institution seeking the response of a prospect (Kotler, 2002). In the case of Haagen Dazs, it is a marketer seeking the response of the adult market.

Needs, wants, and demands. Needs are basic human needs. Wants are the products where the needs are directed. Demand is a want backed by purchasing power. In the case of Haagen Dazs, food is a need and ice cream is a want. Demand is when an individual has the money needed to buy the ice cream.

Product, offering, and brand. Product is the value proposition in a physical form while brand is an offering from a known source. In the case given, Haagen Dazs is the brand offering the product which is ice cream.

Value and satisfaction. Value is the benefits derived by the customers relative to the cost of the products (Kotler, 2002). Satisfaction is attained when the perceived benefit is greater than the costs.

Marketing Mix. The marketing mix is the set of marketing tools the firm uses to pursue marketing objectives in the target market. This is composed of product, price, promotion, and place. Applying it to Haagen Dazs, the variety of ice cream is the product. The pricing strategy is high to maintain its upscale image. Promotions are the advertisements which are used and place are the marketing channels used to distribute ice creams.

The marketing approach rests on the tenet that marketing should be customer driven, that is, it should primarily look at the satisfaction of customer needs and wants. In comparison with other approaches, the marketing approach is more customer-centric because it takes an outside-in perspective. Business organizations should consider the needs of the market that they want to serve in creating their products.

The marketing approach, compared to the traditional product, production, and selling approaches has more benefits. First, the marketing approach assures companies of a market for their offerings. Since the company has started from the needs of the customer, then, it is more likely that the product will sell because the features preferred by the customers have already been identified in the planning and production process. The marketing approach also leads to a better understanding of customer requirements which implies the generation of higher revenue and profitability. However, the marketing approach entails higher costs than the other approaches, especially in terms of research. Designing, planning, and executing market research is very costly in terms of financial resources. Also, even if the need is identified, it is still hard to create the perfect product to satisfy that need. Read More