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The Marketing Concept

The concept of marketing has changed and evolved over time. Whilst in today’s business world, the customer is at the forefront,  not all businesses in the past followed this concept.  Their thinking, orientation or ideology put other factors rather than the customer first.  Let us examine these below.


Production Oriented

The focus of the business is not the needs of the customer,  but of reducing costs by mass production. By reaching economies of scale the business will maximize profits by reducing costs.


Product Orientation

The company believes that they have a superior product,  based on quality and features,  and because of this they feel their customers will like it also.


Sales Orientation

The focus here is to make the product,  and then try to sell it to the target market.  However, the problem could be that consumers do not like what is being sold to them.


Market Orientation

It puts the customer at the heart of the business. The organization tries to understand the needs of the customer s by using appropriate research methods,  Appropriate processes are developed to make sure information from customers is fed back into the heart of the organisation. In essence all activities in the organisation are based around the customer. The customer is truly king!

In today’s competitive world putting the customer at the heart of the operation is strategically important.  Whilst some organizations in certain industries may follow anything other than the market orientation concept, those that follow the market orientation concept have a greater chance of being successful.



Product Life cycle

The product life cycle concept suggests that a product passes through four stages of evolution.

Introduction, growth, maturity and decline. As a product evolves and passes through theses four stages profit is affected,  and different strategies have to be employed to ensure that the product is a success within its market.
Stages of Product Life Cycle:
As a new product much time will be spent by the organisation to create awareness of it presence amongst its target market. Profits are negative or low because of this reason.
Growth: If consumer clearly feel that this product will benefit them in some ways and they accept it,  the organisation will see a period of rapid sales growth.
Maturity: Rapid sales growth cannot last forever.  Sales slow down as the product sales reach peak as it has been accepted by most buyers.
Decline: Sales and profits start to decline,  the organisation may try to change their pricing strategy to stimulate growth,  however the product will either have to be re-modified,  or replaced within the market.

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