Three Powerful Marketing Concepts
THE THREE MOST POWERFUL MARKETING CONCEPTS
Rachel Pechacek
Tarleton State University
Marketing Management MKTG 508
April 10, 2010
The Three Most Powerful Marketing Concepts
The three most powerful marketing concepts are customer focus, marketing imagination, and market segmentation. Each of the three concepts when used alone establishes an intimate customer following (further described individually below); as they are aimed at satisfying a customer’s needs rather than persuading a customer that they need a certain product or service (“product”). When used in conjunction with one another, these concepts cultivate a relationship with customers that will lead to repeat business, word-of-mouth advertising, and brand loyalty; thus yielding less of a need for the more expensive, traditionally-thought-of advertising and promotional campaigns.
Customer First Focus Schewe and Hiam (1998) noted the importance of getting back to what they believe to be the most fundamental marketing concept: focusing on how to best satisfy consumers (p. 5). This entails looking at your business from the customers’ perspective and giving the customer more for less (instead of vice versa). Without satisfied customers, companies will lose business to competitors and fail to attract new business. That makes this “customer first” concept all the more important, because businesses primarily have only two possible sources of revenue: selling to new customers and selling to repeat customers (Schewe & Hiam, 1998, p. 6). To sell to new customers under this concept, companies may need to redesign products, lower prices, or come up with faster / easier ways to get the product to the consumer. To retain existing customers, companies may need to improve customer service, provide warranties / guaranties, or improve reliability. Of the highest importance is customer satisfaction and paying attention to all of the little details that let the customer know that you care enough to pay
Rachel Pechacek
Tarleton State University
Marketing Management MKTG 508
April 10, 2010
The Three Most Powerful Marketing Concepts
The three most powerful marketing concepts are customer focus, marketing imagination, and market segmentation. Each of the three concepts when used alone establishes an intimate customer following (further described individually below); as they are aimed at satisfying a customer’s needs rather than persuading a customer that they need a certain product or service (“product”). When used in conjunction with one another, these concepts cultivate a relationship with customers that will lead to repeat business, word-of-mouth advertising, and brand loyalty; thus yielding less of a need for the more expensive, traditionally-thought-of advertising and promotional campaigns.
Customer First Focus Schewe and Hiam (1998) noted the importance of getting back to what they believe to be the most fundamental marketing concept: focusing on how to best satisfy consumers (p. 5). This entails looking at your business from the customers’ perspective and giving the customer more for less (instead of vice versa). Without satisfied customers, companies will lose business to competitors and fail to attract new business. That makes this “customer first” concept all the more important, because businesses primarily have only two possible sources of revenue: selling to new customers and selling to repeat customers (Schewe & Hiam, 1998, p. 6). To sell to new customers under this concept, companies may need to redesign products, lower prices, or come up with faster / easier ways to get the product to the consumer. To retain existing customers, companies may need to improve customer service, provide warranties / guaranties, or improve reliability. Of the highest importance is customer satisfaction and paying attention to all of the little details that let the customer know that you care enough to pay
Bibliography: Murray, Chris. (2006). The marketing gurus. New York, NY: The Penguin Group (USA). Schewe, C. D. & Hiam, A. W. (1998). The portable MBA in marketing. New York, NY: John Wiley & Sons, Inc. Leavitt, Theodore. (1975). Marketing Myopia. Harvard Business Review.