What is the Marketing Concept? — Transcript

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1. 0:00Okay so what is this thing called the marketing concept?
2. 0:04Well the marketing concept is actually a philosophy
3. 0:07of marketing and really the dominant philosophy
4. 0:11behind marketing today, and so what is this philosophy dictate?
5. 0:16Well the marketing concept says that as a company
6. 0:20we should have what's called a market orientation,
7. 0:24what does that mean? Well a market orientation means that
8. 0:27everything that we do as a company whether that's in
9. 0:30marketing department the production group our
10. 0:33finance folks everybody and everything we do
11. 0:38should be geared towards creating customer satisfaction.
12. 0:42So that's what a market orientation is everything that we do
13. 0:46all of our activities are geared towards creating customer satisfaction.
14. 0:50So what do we mean when we say satisfaction?
15. 0:54Well as you can see here satisfaction is the difference
16. 0:58between the actual value that we create and deliver
17. 1:02and the expectations of the customer or the market, so think about that for a
18. 1:08minute if you go and buy a cheap hamburger your
19. 1:12expectations are probably not that high but if the value is decent to okay
20. 1:19you're going to be satisfied, on the other hand if you go buy a
21. 1:22expensive you know boutique hamburger eight dollars
22. 1:26nine dollars whatever you're going to have pretty high expectations so the
23. 1:31value you get better be pretty high or you're not
24. 1:34going to be satisfied, so that's how satisfaction works we need
25. 1:38to create more value than what is actually expected and as
26. 1:42long as we exceed those expectations our customer will be satisfied.
27. 1:48So value now is the next question I guess what do we mean when we say value? Well
28. 1:53that's pretty simple really as long as we deliver more than what we
29. 1:58charge, in other words we give more benefit
30. 2:02than the cost of our product or service we are going to create value so as long
31. 2:08as we're creating more value than is expected we'll create
32. 2:12satisfaction, and as long as we do that we'll have a
33. 2:15market orientation and we'll be following the marketing
34. 2:19concept.