Marketing Concpet

The entrepreneur has first to decide what product he should select. This he can do only if he can identify the needs, which require satisfaction among human beings. Once he has identified the need of a group of human beings (called market segment), he can determine the product, which can help to satisfy that need. This is a part of the modern philosophy of marketing or the marketing concept.

Philip Kotler, a well-known author in the area of marketing, defines marketing as "A human activity directed at satisfying needs and wants through exchange processes.”

Thus the most fundamental concept, which must be realised as being the basis of all marketing activities, is the existence of human needs. The human need is a state in which a person feels deprived of something. Briefly, these needs can be divided into two types.

1 Physiological needs; and
2 Psychological and Sociological needs.

The physiological needs consist of the need for food, clothing, shelter and even sex. Similarly, there are social needs for belonging, affection and love from others. Of course, there are higher order psychological needs of self-actualization.

Peter Drucker stresses this by saying that marketing is so important that it is not enough to have a strong sales department entrusted with marketing. In his view, "concern and responsibility for marketing must permeate all areas of the enterprises".

Normally, a salesman would like to think of his activity as a `selling' process. When he does this, he is more concerned with handing over his product and receiving money in exchange. However, if he adopts the modern philosophy of treating it as a `buying' process, his job becomes easier. He puts himself in the shoes of the customer and asks the question-Why should I buy this article? When he does this, he will start feeling and thinking as the customer does. His job will become smoother, as he will then know both the benefits and the disadvantages of the product or the service he is offering. This is an illustration of customer-oriented focus.