Q.
a) Explain three (3) marketing concepts adopted by organisations to carry out their marketing strategies. (15 marks)
b) Explain the role of marketing in a company's strategic planning to create and deliver customer value. (10 marks)
(25 marks, 2019 Q1)
A.
a) Marketing concepts - select 3 out of the below 5.
There are 5 marketing concepts. The concepts are:
- The Production Concept
- The Product Concept
- The Selling Concept
- The Marketing Concept
- The Societal Marketing Concept
The Production Concept - Consumers favour products that are available and highly affordable, and therefore, management should concentrate on improving production and distribution efficiency. Example of this type of market is fast moving consumer products - food stuff, usually essential item and brand awareness is not important.
The Product Concept - Consumers favour products that offer the most quality, performance and features and, therefore, management should concentrate on improving product features. Example of this type of market is electronic goods - like hand phone with improved features.
The Selling Concept - Consumers will not buy enough of a product unless the seller undertakes a substantial selling and promotion effort. Matching product with buyers in then essential. Example of this type of market is clothing and decorative items/cosmetics - like certain brand of apparel.
The Marketing Concept - The key to achieving organization's goal consists of determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. Example of this type of market is premium items - hotel or entertainment industries including sports items.
The Societal Marketing Concept - An organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and society's well-being. Example of this type of market is society driven - club memberships and holiday packages.
Ref:
Abdul Hamid, Mar Iman (2002) An introduction to property marketing. Penerbit UTM. Pg 22.
b) Role of marketing in a company's strategic planning
- Provides a guiding philosophy. Marketing concept—company strategy should create customer value and build profitable relationships with the key customers.
- Provides inputs to strategic planners. Helps identify market opportunities and assess the firm’s potential to take advantage of them.
- Designs strategies for reaching the unit’s objectives.
Marketing plays a key role in the company’s strategic planning in several ways. First, marketing provides a guiding philosophy. The marketing concept suggests the company strategy should revolve around creating customer value and building profitable relationships with important consumer groups. Second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities and assessing the firm’s potential to take advantage of them. Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives.
