Managing Director Financial Director

What do you think we should do? I think we should ….. because …..

I don’t think we should ….. because ….. I agree…../I don’t agree ….. because …..

Why don’t we …../ How about …..?

The Marketing Concept.

Its Evolution and Implementation

Learning Objectives:

Trace the development of the marketing concept

Understand how it is implemented

Study and Learn the Words:

English	English equivalents	Romanian	Russian
potential (adj)	would-be	potenţial, posibil	возможный
assess (v)	appreciate	a aprecia, a evalua	оценивать
bank on (v)	rely on	a se bizui pe	полагаться на
output (n)	production	producţie	продукция, выпуск
catch up with (ph.v)	to attain	a ajunge, a se apropia de un nivel oarecare	догнать
consistently (adv)		consecutiv, logic, corespunzător	логично, совместимо, последовательно
approach (n)	means of attaining a goal	abordare	подход
to fill the needs	to satisfy the needs	a satisface necesităţile	удовлетворять нужды
to meet expectations		a atinge aşteptările	соответствовать ожиданиям
to pinpoint	to point out	a evidenţia	выделять

The process that leads any business to success seems simple. First, the firm must talk to its potential customers to assess their needs for its products or services. Then the firm must develop a product or service to satisfy those needs. Finally, the firm must continue to seek ways to provide customer satisfaction. This process is an application of the marketing concept, or marketing orientation. As simple as it seems, American business took about a hundred years to accept it.

From the start of Industrial Revolution until the early twentieth century, business effort was directed mainly toward the production of goods. Consumer demand for manufactured products was so great that manufacturers could almost bank on selling everything they produced. Business had a strong production orientation, in which emphasis was placed on increased output and production efficiency. Marketing was limited to taking orders and distributing finished goods.

In the 1920s, production began to catch up with demand. Now producers had to direct their efforts toward selling goods to consumers whose basic wants were already satisfied. This new sales orientation was characterized by increased advertising, enlarged sales forces, and occasionally high-pressure selling techniques. Manufacturers produced the goods they expected consumers to want, and marketing consisted primarily of taking orders and delivering goods, along with personal selling and advertising.

During the 1950s, however, business people started to realize that even enormous advertising expenditures and the most thoroughly proven sales techniques were not enough. Something else was needed if products were to sell as well as expected. It was then that business managers recognized that they were not primarily producers or sellers but rather were in the business of satisfying customers’ wants. As Philip E. Benton, Jr., president of Ford Automotive Group, states, “What our customers define as quality is what we must deliver. We have re-learned in recent years that the successful automakers consistently provide customers with what they need and want, at a price they feel offers good value, in a product that meets their expectations of safety and quality. Our challenge is to go beyond that – to exceed customer expectations, and, indeed, to generate customer enthusiasm.” Marketers realized that the best approach was to adopt a customer orientation – in other words, the organization had to first determine what customers need and then develop goods and services to fill those particular needs. (see Figure 1.1)

This marketing concept is a business philosophy that involves the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals. All functional areas - from product development through production to finance and, of course, marketing - are viewed as playing a role in providing customer satisfaction.

Figure 1.1

Some firms, such as Ford Motor Company and Apple Computer, have gone through minor or major reorganizations in the process. Because the marketing concept is essentially a business philosophy, anyone can say, “I believe in it.” But to make it work, management must fully adopt and then implement it.

To implement the marketing concept, a firm must first obtain information about its present and potential customers. The firm must first determine not only what customers’ needs are but also how well those needs are being satisfied by products currently on the market-both its own products and those of competitors. It must ascertain how its products might be improved and what opinions customers have of the firm and its marketing efforts.

The firm must then use this information to pinpoint the specific needs and potential customers toward which it will direct its marketing activities and resources. (Obviously, no firm can expect to satisfy all needs. And not every individual or firm can be considered a potential customer for every product manufactured or sold by a firm.) Next, the firm must mobilize its marketing resources to (1) provide a product that will satisfy its customers; (2) price the product at a level that is acceptable to buyers and that will yield a profit; (3) promote the product so that potential customers will be aware of its existence and its ability to satisfy their needs; and (4) ensure that the product is distributed so that it is available to customers where and when needed.

Finally, the firm must again obtain marketing information – this time regarding the effectiveness of its efforts. Can the product be improved? Is it being promoted properly? Is it being distributed efficiently? Is the price too high? The firm must be ready to modify any or all of its marketing activities on the basis of this feedback.

I. COMPREHENSION

A) Answer the following questions:

1. Which are the steps that lead any business to success?

2. What was the orientation of business from the beginning of Industrial Revolution?

3. What happened in 1920s?

4. What did business people start to realize in 1950s?

5. Define the term “marketing concept.”

6. Why is the marketing concept essentially a business philosophy?

7. Which are the steps to implement the marketing concept?

B) Say if the statements are True or False:

1. From the start of Industrial Revolution until the early twentieth century, business effort was directed mainly toward the selling of goods.

2. In the 1920s, production began to catch up with demand.

3. In 1950s marketers realized that the best approach was to adopt a customer orientation – in other words, the organization had to first determine what customers need and then develop goods and services to fill those particular needs.

4. Management must fully adopt the accounting concept and then implement it.

5. To implement the marketing concept, a firm must first determine not only what customers’ needs are but also how well those needs are being satisfied by products currently on the market-both its own products and those of competitors.

6. Every individual or firm can be considered a potential customer for every product manufactured or sold by a firm.

II. FOCUS ON GRAMMAR

A) Insert prepositions:

1. Some firms, such as Ford Motor Company and Apple Computer, have gone …… minor or major reorganizations in the process. 2. All functional areas - …… product development through production to finance and, of course, marketing - are viewed as playing a role ……. providing customer satisfaction. 3. Business had a strong production orientation, in which emphasis was placed …. increased output and production efficiency. 4. It was then that business managers recognized that they were not primarily producers or sellers but rather were ….. the business of satisfying customers’ wants. 5. We have re-learned in recent years that the successful automakers consistently provide customers …… what they need and want, …… a price they feel offers good value, in a product that meets their expectations of safety and quality.

B) Some words are commonly followed by certain prepositions. Add appropriate prepositions – for, on, upon, by, in, to, with, of, over, at, toward, from, - to complete the remaining phrases. Use your dictionaries.

take responsibility ____ distinguish ____

according ____ purpose ____

appeal ____ means ____

aimed ____ deal ____

compromise ____ respond ____

be faced ____ search ____

put emphasis ____ rely ____

be subject ____ be consistent ____

be applicable ____ arrange ____

the result ____ be dominant ____

give consideration ____ pay ____

be composed ____ look ____