The marketing concept development, stakeholders and future directions

Introduction

Businesses are established with the sole aim of making profits. To achieve this, attracting and retaining customers is paramount. To realize the aforementioned, firms have been seeking to attract the best marketing brains in the world to drive this objective (Gainer & Padanyi 2005). Global marketers have advanced several ways of understanding consumers. Most have employed market research techniques while others are applying the traditional marketing techniques. However, it is apparent that consumer satisfaction is paramount if a company is to attract and retain clients. With the mad rush for new customers, several new firms have become casualties. The larger firms have employed their financial muscle to outdo the smaller firms in the employment of qualified marketers.  The result of this scramble has seen most small business depend on fate resulting to customer loss and subsequent collapse.

The following essay focuses on several aspects of marketing including definitions and the marketing concept development. In addition, it looks to analyse various key stakeholders in a marketing orientated organizations while analysing the future directions of marketing itself in the contemporary business world.

Definitions of Marketing

 Several scholars have advanced different definitions of marketing. Marketing is a process of understanding consumer needs (Ronell 2005). Businesses that understand the interests and preferences of their consumers are better placed to adopt a sound sales strategy. Having a vivid knowledge about the preferred consumer products and services also enhances the choice of communication media. Secondly, marketing is defined as an entwined process that develops a strong bonding between an organization and her clients (Hampton 2004). Companies which have natured a strong relationship with their customers easily understand change in consumer interests and preferences.  From the two definitions, it is apparent that marketing has a sole strategy. The strategy seeks to enable firms understand the consumer needs and adopt viable marketing strategies that could increase sales and subsequently firms’ revenue. In addition, selling techniques adopted by firms are guided by the intensity of consumer-firm relationship. Many big firms that have adopted accurate strategy have thrived in business by the nurturing of strong product value for their clients. Moreover, the strong client relationships help a firm nature loyalty and hence keep consumers.

Being a component of business management, marketing is a process that focuses mostly on the consumer. In addition, the adopted strategy is aimed at raising the firms’ sales while paying attention to consumer utility. Moreover, the process of making customers loyal to a given brand is based on sound communication. With a profitability intention, marketing strategy ought to be based on innovation. Businesses in the 21st century have changed their marketing strategy from the primary focus on the production side. Most businesses are now keen on the interests and need of their clients (Antorini & Andersen 2005).

Marketing concept development

For organization to realize their respective goals, marketing concept is important. Marketing concept is a term that relates company goals with a given target consumer market (Muniz & O'Guinn 2001). According to Rentz (2005), organization knowledge on a given market is paramount in the realization of their goals. The needs and wants of consumers and their preferences call for consideration in the application of market concept. Despite the basic knowledge of various target markets, companies should be striving to satisfy fully the needs of their clients. In addition, marketing concept is based on the assertion that an organization should be able to satisfy her customers more than her competitor. The philosophy of market concept has helped decision-making organs advance valid organization decisions that seek to beat competitors. According to this philosophy, producers ought to develop products that satisfy client needs fully. There are a number of ways to realize superior production over competitors. First, market research is important to ascertain the special needs of different consumers. Most companies in the 21^st century have adopted the marketing concept philosophy. However, the philosophy was not fully functional in the past. According to Adam smith, production ought to be based on the ability of a given good and service to satisfy customer needs (Lings 2004). Although this scholar advanced his theory in the 16^th century, it was much neglected by business marketing executives. However, the marketing theory has developed over a long period.  The 1776 wealth of nation’s philosophy by Adam smith is much in accordance with the marketing strategy.

To understand the marketing concept, we are going to look at a brief history of development. During the agrarian revolution, production concept was primarily used. This agrarian revolution lasted up to 20^th century (Hampton 2004). Firms’ production was based on those goods that could be produced at low costs. In addition, the quantity supplied to the market was those of efficiently produced goods. Moreover, the philosophy enhanced firm specialization as quantity supplied to the market depended on the quantity demanded.  Production during this industrial revolution age had two crucial questions to answer. These questions were, ‘can we produce the product? And can we produce enough of it?’ (Thomson & Hecker 2000, p.163).  During agrarian revolution, the production concept worked pretty well. The goods supplied to the market were guided by the consumer demand.  The production costs were used in the determination of commodity prices. This eased the operations of selling executives. However, the functioning of the production concept was short lived as it ended in 1920.

With the collapse of production concept in the 1920, the sales concept was introduced in the 1930’s. During this period, capitalism was taking over, and production was in large quantities. In addition, competition was rampant and quantity demanded was lowed.  With increased levels of production, companies employed the selling concept to woo customers.  To convince and attract clients, firms considered advertisement and personal selling strategies. The firms had different questions to consider at this stage. These were, ‘Can we sell the product? And can we charge enough for it?’ (Thomson & Hecker 2000, p.164).  The sales strategy was unique in the sense that firms failed to consider the needs and wants of customer. However, the organizational goal was to have a competitive advantage over other firms. The 1930’s concept was employed after product output was readily available in the market.  The sales concept developed a notion that related marketing to hard selling (Ind & Watt 2000). It is apparent that even in today business world, marketing and selling are terms used interchangeably.

After 1945, firms produced different products rendering the sales concept ineffective. The sales concept failed to increase firms’ revenues as consumers’ choice was increased. Consumer needs change from time to time. With increase in personal income, consumers were able to diversify their purchase of goods and services. With this concept, three questions are asked, ‘what do consumers want? , can we develop it while they still want it? And how can we keep our customers satisfied?’ (Keller 2005, p. 19) .The adoption of market strategy after the Second World War sought to answer the aforementioned questions. According to this strategy, the consumer is the boss. Organizations are keen in ascertain the needs and wants of her clients before designing and producing a product. In addition, the decision organ of the company bases her policies on the interests of the clients. Moreover, the main organizational objective is to increase her profits while attracting and retaining more consumers.

Upon the introduction of the marketing concept, firms were forced to establish marketing departments (Kee-hung & Cheng 2005). Firms’ primary intention in these establishments was to have a unique body to look into the divergent needs and wants of consumers.  Initials firms had sales departments that performed marketing department functions. Strong marketing departments are responsible for improved firm performance. Innovativeness is paramount if marketers are to reach diverse individuals in the market. In addition, good working relationship between marketing department and other departments is important. However, this departmental relationship calls for transparency and accountability of parties. Competent marketers are responsible for the dissemination of information and subsequent advice to their respective companies. Marketing is a field that has standardized methods of reaching consumers. However, experienced marketers are free to adopt any mode of marketing that is in accordance to the market needs at a particular time. The adopted modes may be necessitated by local circumstances. Organizations exist to address the divergent needs and wants of clients.  This is evident in the manner in which modern companies have been structured. Modern company structures are marketing oriented and seek to unravel the mystery of consumer change of preferences while fostering competition (Denison 200).

Key stakeholder groups in a marketing oriented organisation

In a marketing oriented organizations, there are several stakeholders. Organizations are formed with the primary objective of making profits. To earn revenue, individuals who are willing and able to buy are of necessity. The individuals who are the nerve to any business survival are called customers. To survive in a competitive world, organizations have to be sensitive to consumer needs.  Marketing is a good component of creating consumer awareness on the existence of a firm or a product. However, innovativeness and accountability are important maintaining customer satisfaction and keeping competitors at bay. The ever-changing preferences of customers have encouraged the adoption of different marketing strategies to ensure that their needs are satisfied (Kee-hung & Cheng 2005).

Shareholders form an integral part of an organization. This vital component of a company is responsible for the company decisions. In addition, shareholders are the nerve an organization. They inject their fortune on the business with the sole aim of earning a return. In addition, they seek to attract and keep consumers. To achieve this, shareholders review marketing strategies more often to meet customer needs and wants. Quality production is also paramount to attract new consumers. To maintain product quality, shareholders need to satisfy their employees by rewarding them for increased revenue. In addition, the formulated policies ought to be all-inclusive for individuals to feel cared (Ind & Bjerke 2007).

Employees are responsible for the day-to-day operations of an organization. The success of an organization lies on these individuals. The important need of the employee is an excellent working environment that ensures the taking care of his health and welfare.  They should be incorporated in the decision making process. Organizational culture of a company is important to develop employee relations with the customers and the organization. Due to the rampant competition, organizations need to treat their employees well to prevent exodus to other companies. In addition, Conducting workshops and training is important for a firm to develop her staff. Employee creativity has enhanced the bonding with company consumers. Employee expertise in consumer relations helps nature consumer connection on a personalized level that attracts consumers to a firm.

Future direction of marketing

              The future looks bright for marketing companies. To manage the cutthroat competition, companies will pay attention to the slight changes of consumer interests. It is apparent that in the future, marketing departments will have to establish consumer preferences before marketing a good or service. From the aforementioned, management decisions have to be client oriented for a firm to survive in future business. Lack of sound marketing concepts will lock out companies that are reluctant to adopt market changes. In addition, individuals’ income and choice of basic products id bound to change in the future. It is therefore prudent that companies are aligned to these needs to ensure that goods produced meet the needs of the customer. Nowadays some companies have merged marketing and sales department, however this is bound to change in the future. Many companies in the future will focus mostly on consumer satisfaction, this will encourage them consider a marketing department as an integral part to their firms survival.

Conclusion

            In conclusion, marketing plays an important role in modern organizations. It puts the customer in a position where every company decision is made with him/her in mind.  Its developments in relation to customer needs and wants have improved over time. It is apparent that organizations that have adopted marketing strategy are successful. Companies that take into serious consideration the interests of their consumers are able to stay ahead of their competitors (Ind & Bjerke 2007). However, the aforementioned advantages are limited to the type of marketing strategy adopted. Therefore, for organizations to thrive they need to advocate for qualified marketers who are well versed to changes in consumer preferences.

References

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