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THE MARKETING CONCEPT
There are five essential concepts in marketing; one of them is called the marketing concept. The marketing concept supposes that the achievement of a company�s purposes depends on the definition of the target-markets� needs and wants and providing desirable satisfaction using more effective and productive ways than its competitors do. In the marketing concept a special attention is paid not to a commodity but to a firm�s client, his needs and wants. A firm gets its profit due to creating and maintaining consumer�s satisfaction. In comparison with the concept of intensification it is used rarely, particularly during elite dwelling houses building.
The marketing concept is often confused with the concept of intensification of commercial effort. This concept represents the approach from the inside the outside . It takes production interests as a starting point and is directed to an already available commodity. The concept of intensification of commercial effort requires aggressive methods of sales combined with intensive sales promotion into the market to get a profitable deal. Company�s activity in such case is led to a conquest of consumer to simultaneous, immediate bargains; a customer doesn�t wonder who purchases the commodity and why. The marketing concept on the contrary uses the approach from the outside to the inside. It takes a clear definition of sales-market as a starting point and is directed to consumer�s needs. The marketing concept co-ordinates all kinds of marketing activity which is headed to a consumer�s satisfaction, it gets a profit by creating long-lasting relationships with a consumer. This concept lets companies provide a consumer with needs, combining satisfaction of consumers with getting a profit.
The essence of the marketing concept can be defined with the help of the following expressions �find out wants and satisfy them�, �produce something you can sell instead of trying to sell something you can produce�, �love not your commodity but the client�. Such approach can be summed by the motto of �J.K. Penin � company: �to do our best in order to repay each dollar, spent by a client, in maximal way with valuable significance, quality and satisfaction�.
The marketing concept is used by a number of companies like �Procter & Gamble�, �IBM�, � Avon �, � McDonald�s�. It has been known that this concept is more often used by the firms that produce consumer goods than by the producers of industrial commodities. Many firms claim to profess this concept but they don�t really use it in practice. These companies limit themselves to formal marketing elements, introduce the posts of Marketing Vice-president, Commodity Managers, they develop marketing plans, make marketing researches, but they go round the concept�s essence. The transformation of a sales-oriented company into the company oriented to a satisfaction of demands on the market can take some years of hard work and efforts.
The following question can arise: is the marketing concept really so perfect? No. It also has its disadvantages. The marketing concept doesn�t correspond to the modern world, because we have serious problems like environment deterioration, shortage of natural resources, sharp growth of population, worldwide inflation and neglected state of social services industry. All these factors have created the socially-ethical marketing concept. Does a firm which provides consumers with goods and services always think about a long-lasting positive effect for a society and its consumers? The marketing concept isn�t concerned with the problems of possible conflicts between consumer�s wants and his long-lasting well-being.
Let�s take �Coca-Cola� company as an example. It is thought to be self-conscious corporation that produces wonderful non-alcohol drinks which satisfy consumer�s wants. But the representatives of clients� protection and environmentalist group have a number of reasons to blame the company. The socially-ethical marketing concept demands combination of three factors: company profit, consumer�s wants and interests of society. A lot of companies have increased their sales and profits due to the concept.
In Ukraine we have just started using the marketing concept, but the cases are rather seldom. Unfortunately, unless we take consumer�s interests and wants into consideration we won�t be able to handle with all social problems which are taking place in our country. We have to admit the fact that the economy of Ukraine and mentality of its citizens are not ready enough for these two concepts, especially for the socially-ethical marketing concept which deals with serious, urgent and really important problems.
