There are four important parts of the marketing concept. They often are referred to as the four Ps of marketing.
The first component is the product itself. Companies need to determine what products consumers need and want. Then, a company needs to determine which consumer needs have not been satisfied, and they should work to satisfy those needs. The product could be a physical product, or it could be a service.
Another component is the price of the product or service. Market forces such as supply and demand should determine the price. When supply equals demand, profits tend to be maximized. The company should do a careful analysis of the market in which it is doing business.
A third component of the marketing concept is place and distribution. This means that the product needs to be available to the consumers. The company must develop the proper distribution channels to distribute the product or service.
A final component is the use of promotion. People need to be aware that the product or service is available. A company will often offer free samples, coupons, or low starting prices to attract customers. The company also will do a great deal of advertising so people will know about the availability of the product or service. The company may also want to have good public relations by being involved in charitable activities in the places where it is doing business.
There are four components of the marketing concept.
http://www.businessstudynotes.com/marketing/principle-of-marketing/4ps-of-marketing-mix/
As an entrepreneur, it is important to know how to create products and service in order to satisfy the needs of customers and market. Whereas, marketing concepts helps to focus on business growth and think about customers and their goals. This will help in competition in globalized marketing environment. The three components will ensure the marketing concepts such as company goals, customer needs and deliver products.
Company’s goal is a primary component for marketing concept. A plan can be made that includes the achievement to be made in a year, sales volume, introduction of new product, new media advertising and retaining customers. Customer needs are to be analyzed because without customers, there is decline in the profit which eventually means the closure of the firm. A research should be done in order to make sure their taste and identify the needs of audience. Deliver the products to customers that will help customers to improve their lives. The product may help in one or the other way such as help to relax, save money, save time, restoring energy or may be productive.
The four major ingredients, or components, of the marketing concept are the organization's goal of profit through competitive advantage; motive driven by customer satisfaction; identification of target markets; and development of an integrated, coordinated marketing system focusing on price, product, promotion, and place of distribution channels.
Organization's goal of profit through competitive advantage: Competitive advantage is the factor that makes a company's goods or products more desirable to customers. The competitive advantage comes through offering goods or services with greater value, lower prices, or higher quality than competitors' identical goods or services.
Motive driven by customer satisfaction: Customer satisfaction comes through customer orientation, foreseeing what customers need and want, and producing what meets those needs and wants. Orienting to the customer is the key to attaining competitive advantage, which comes through understanding the benefits the customer seeks to buy. Customer orientation is different from product, production, and sales orientations.
Identifying target markets: The key to attaining competitive advantage through a customer orientation is to deeply understand the target market, the needs and wants of which your firm chooses to meet. Not every good or product will be received in the various demographic groups in the same way; some won't even have a use for what a firm sells. For example, not everyone has a use for a forklift. Identifying the needs and wants of the target market that does have a use for a forklift leads to the firm gaining competitive advantage over other less attentive forklift manufacturers.
Integrated marketing, coordinated system: An integrated and coordinated marketing system—unified marketing approach from manufacturer to retail outlet—operates effectively and efficiently when the whole firm focuses on the Marketing Mix, Marketing Target, and "the Four Ps" of marketing: Price, Product, Promotion, and Place of distribution channels. An integrated marketing system extends to all departments of the company and is coordinated throughout the whole vertical marketing system.
Ted Mitchell, "Marketing Concept."
http://www2.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.html
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