THE MARKETING CONCEPT

AND SEGMENTATION.
WHAT IS A CONCEPT ?
 It is , none the less a philosophy and an attitude of
mind towards the way you run your business .
 It is a philosophy based on belief that profitable sales
and satisfactory returns on business are best
achieved by ;
 IDENTIFYING
 ANTICIPATING
 SOLVING
 the customer’s problems
COCEPT CONTINUED
 It is a way an attitude of mind which places the customer at the
forefront and focuses the firm towards its markets & customers
rather than towards its factories & laboratories .
 Its both a way of thinking about the purpose of business (why
are we here) and a way of doing business (how to operate our
activities).
 According to the marketing concept a business firm exists to
IDENTIFY, CREATE & DELIVER optimum customer values at
minimum possible cost. A firm neither has a moral nor social
responsibility to provide customer value at a cost that is
irrecoverable.
 To survive & grow a firm must earn a satisfactory long-run rate
of profit if it is to continue over a long period of time.
 None of this is new. The old style entrepreneur knew quite a lot
about marketing.
 THE ENTREPRENEUR

An entrepreneur is someone who identifies and

anticipates a market need, plans accordingly and
organizes resources to satisfy that need.
All businesses (even the big multinationals)
started out in an entrepreneurial manner. As all
businesses initially developed around a narrow
product base.
THE LINK BETWEEN
ENTREPRENEUR & MARKETING
 Entrepreneurial activity is concerned
with identifying market opportunities
where as marketing is concerned with
investigating and forecasting future
market developments along with
customer requirements and their overall
impact on company’s future growth.
THE LINK CONTINUED
 Marketing concept LINKS
entrepreneurship with operations.
Making it easier, more beneficial for the
organization to convert the opportunity
into a successful business venture. The
marketing concept can turn the dream
of the entrepreneur into concrete
reality.
SEGMENTATION
 It is impossible to serve all products to all
customers. Each customer requires a different
product. The market is divided into segments
and out of that more profitable segments are
targeted.
 Segmentation facilitates a more customer
oriented approach.
 Segmentation also enables to identify new
product opportunities as well as new potential
users.
CRITERIA FOR SEGMENTATION
 QUANTIFABLE: Must be possible to measure segment
size and purchasing power.
 ACCESSIBLE: Must be approachable (geographic
location is important ).
 COMMERCIALLY VIABLE: Large enough and
profitable enough for specific marketing efforts but
small enough to ensure uniqueness. Also it must be
manageable.
 RESOURCES: necessary to exploit each segment
should be available.
 MORE PROFITABLE: segments should be on priority.