The marketing concept can be thought of as having four parts as follows:
Part I – Understand and meet customers needs, said another way, provide satisfying products and services to your target customers
Part II – Meet organizational goals – this is applicable for both for-profit and not-for-profit organizations. For-profit organizations should have goals other than profit, a for-profit goal being ‘make a fifteen percent return on investment’. A longer-term goal that is ultimately tied to profits but immediately is tied to customer satisfaction might be: “Be a recognized leader in customer satisfaction in our industry.” Not-for-profit organizations have goals non-financial performance such as ‘provide thirty hours of client services per week consistent with our organizational mission.’
Part III – Integrate marketing activities – this part can be the most complex, but also the most critical. That is, when the organization has agreed on a marketing strategy, it must execute the strategy in an efficient and effective way. For example, “fifty-percent-off” coupons appearing in the Sunday newspaper will not reach the goal of inducing new product trial if the product is not available in stores due to a problem with product distribution and if sale catalogs are printed by a central office without coordination with local business outlets, there will be regular inventory understocks or overstocks.
Part IV – Satisfy customers better than the competition. A indicated above, EVERY ORGANIZATION has competition. If there are not similar product solutions that provide similar benefits available then there will be competing uses for expenditure of the customer’s income.
Like the Seven Step Marketing Process, the Marketing Concept serves as a guide for applying organizational resources directed at marketing.
Marketing – “The conceptualization and delivery of customer satisfaction”
Upstream marketing activities – understanding, selecting, describing target markets, and creating a product or service to meet the needs of those target markets
Downstream marketing activities – communicating a product or service concept to the chosen target market and providing customer satisfaction in the process by delivering that product or service
Customer as Monarch, or marketing concept – a philosophy of doing business in which the organization places utmost importance on delivering customer satisfaction, meeting organizational goals, and outperforming the competition while integrating all marketing activities.