Explanation of Marketing Concept - Essay Example

The Marketing Teacher (2000) cited Barwell to expound on the term by indicating that “the marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires” (Marketing Teacher, par. 13).Both definitions focused on the term being a philosophy or an orientation designed by management where the important elements for success and profitable financial performance of a firm is anchored in satisfying the needs of the target market or the potential customers – more than competitors do.

Bhasin (2010) described in his article that “the marketing concept proposes that the success of the firm depends on the marketing efforts of the company and in delivering a better value proposition as compared to its competitors in its own target market” (Bhasin, par. 1).Coke’s marketing strategy is to provide customers with a product that has been envisioned to be timeless, not restricted in boundaries, applies to all ages and generations, and is able to captivate and satisfy the thirst and refresh its clientele.

The marketing concept was to encompass a more holistic approach by producing a product that could satisfy a wide range of the target market and consistently be packaged as a high-quality yet affordable product. On the other hand, Pepsi’s response to Coke’s marketing concept was to target the young generation where their advertisements and promotional campaigns focused on this specific group.As averred by Bhasin (par. 2), “the value proposition by Coke has been better overages as compared to Pepsi which shows that Coke especially thrives on the marketing concept, i.

e it delivers a better value proposition as compared to its competitor”. The extensive and comprehensive multidimensional approach used by Coke involves research and development of appropriate and effective strategies involving the product (taste and packaging), the price (competitive and affordable), the place (marketed in every retail outlet even in remote rural areas), and promotions (advertisements in all medium and promotional campaigns, where needed). The result is market leadership globally in the soft drinks industry spanning lengths of time.

As the actual experience has proven, the marketing concept encompasses the total package to achieve the purpose of satisfying one’s customers more than competitors do. As aptly summed by Drucker: “if we want to know what business is we must first start with its purpose.There is only one valid definition of business purpose: to create a customer. What a business thinks it produces is not of first importance-especially not to the future of the business or to its success. What the customer thinks he/she is buying, what he/she considers "value" is decisive-it determines what a business is, what it produces, and whether it will prosper" (Drucker, 37).

The marketing concept incorporates designing all the elements of the marketing mix to achieve organizational goals.