The development of a marketing concept

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The classic definition of a marketing concept is an articulation of how a product or service is going to make a consumers life better and strong reasons to believe it. As such, the process of developing a marketing concept includes identifying relevant benefits for your target audience, then identifying the relevant reasons to believe this promise as well as the relevant insights that set up the challenge. This generally involves a variety of steps including: competitive analysis, target audience identification, market research, and ideation.

The field of consumer behavior is rooted in the marketing concept. Every business needs three things, 'production concept, the product concept and the selling concept.

We have great example of the production concept which come from Mr. Henry ford. Before early19s, only wealthy consumer could afford automobiles because cars were assembled for an individual consumer which takes considerable time and obviously high production rate. On the other hand, in 1913 he introduced assembly line method to produce a car, which was more productive, good quality and it was taking low time to produce a single car. He sold that car in $360 and that was the industrial revolution.

The product concept assumes that consumer will buy the product that offers them the highest quality, the best performance and the most features. For example: Designers and engineers working on a new model of personal digital assistant(PDA) must always remember that people do not buy PDAs-they buy ways to organize and retrieve data in a manner that will save them time and effort. If PDA designers and engineers forget this simple fact, they may improve product in ways that make sense to them but do not correspond with consumer needs.

Many organizations follow the selling concept, which holds that consumers will not buy enough of the organization's products unless it undertakes a large scale selling and promotion effort. The concept is typically practiced with unsought goods, those that buyers do not normally think of buying such as encyclopedias or insurance. These industries must excel at tracking down prospects and selling them on product benefits.

The marketing concept:

The philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.

The key questions became:

* What do customers want?

* Can we develop it while they still want it?

* How can we keep our customers satisfied?

In response to these discerning customers, firms began to adopt the marketing concept, which involves:

* Focusing on customer needs before developing the product

* Aligning all functions of the company to focus on those needs

* Realizing a profit by successfully satisfying customer needs over the long-term

When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs. Often these departments were sales departments with expanded responsibilities. While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company-wide customer focus. Since the entire organization exists to satisfy customer needs, nobody can neglect a customer issue by declaring it a "marketing problem" - everybody must be concerned with customer satisfaction.

Market segmentation:

A process of dividing a market into sub-set of consumers with common needs or characteristics. The variable methods used to form such sub-set are geographic factors, demographic factors, psychological factors, psychographic (lifestyle) characteristics, socio-cultural variables, use-related characteristics, use situation factors and benefits sought etc.


To identify unsatisfied consumer needs companies had to engage in extensive marketing research. In so doing, they discovered the consumers were highly complex individuals subjects to a variety of psychological and social need quite apart from their survival needs. They discovered that the needs and priorities of different consumer segments differed dramatically and in order to design new products they have to study consumption behavior in depth which is called consumption research. This research is represents they process and tools used to study consumer behavior.


The focus of the marketing concepts is consumer needs. At the same time, recognizing the high degree of diversity among us, consumer researches seek to identify the many similarities- or constants- that exist among the people of the world

As we have discussed above the first step which mostly marketer take is market segmentations. They divide their potential customers into sub-sets on the bases of all the methods which we discuss above, to get an idea about their product who will consume that product. Most companies have limited recourses; only few can pursue all of the market segments identified.

Market targeting is the selection of one or more of the segments identified for the company to pursue.

Positioning refers to development of a distinct image for the product or service in the mind of the consumer, a image that will differentiate the offering from competing once and squarely communicate to the target audience that the particular product or service will fulfill their needs better than competing brands. Successful positioning centers around two key principles; first, communicating the benefits that the product will provides rather than the product's features. As one marketing sage pointed out''. Consumer does not buy drill bits- they buy ways to make holes'.

'Second, because they are many similar products in almost any marketplace, an effective positioning strategy must develop and communicate a unique selling proposition'.


This whole topic covers the whole process and ways to make a market strategy, as all the examples shows that these rules and ways are made after the long experiences of those people who now called the BUSINESS GAINTS like Henry ford. He changed the world of market.

In the same way, by taking these rules in our marketing strategies a normal person can become the GAINT of new market by competing those who are playing there games traditionally.