Marketing Concept Term Paper

Marketing concept is considered a simple and intuitively appealing philosophy. It is one of the best concepts in the marketing management philosophy. The marketing management concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors (Kotler & Armstrong, 1999, pg14).

This concept is based on the understanding that a sale does not depend on an aggressive sales force, but rather on a customer’s decision on buying a particular product. Under this concept, companies design and produce what customers want, therefore satisfying consumers and making profits (Kotler & Armstrong, 1993, pg11). In the market, there are many successful and well-known companies have adopted the marketing concept while following it faithfully, those companies such as McDonald’s, Disney, Toyota, Procter & Gamble (P&G), Nike and many other companies. Later in this essay, I am going to pick two companies which have adopted the marketing concept and bring the company into success.

Case One: How McDonald’s applies the Marketing Concept

McDonald’s is one of the most successful companies who uses marketing concept in operating its business. When someone says “fast-food restaurant”, the first name that will appear in most of the people’s mind is McDonald’s, which is the world’s largest food service organization. From this point of view, we noticed that McDonald’s has strong brand equity and is a very valuable asset. High brand equity enables McDonald’s to gain a lot of competitive advantages. Why McDonald’s becomes so successful in the marketplace? It is all due to how the company delivering the value and satisfaction to their customers. McDonald’s is the word’s leading food service retailer with more than 30000 restaurants serving 47 million customers each day in more than 100 countries. Consumers flock to the McDonald’s system, not just to its fast products. Throughout the world, McDonald’s finely tuned system delivers a high standard of what the company call “Q.S.C & V”, which stands for quality, service, cleanliness, and value (Kotler & Armstrong, 1999, pg553). McDonald’s knows how to serve people and adapt to changing consumer wants. McDonald realizes that their customers have different culture and value which are based on nationality and religion. To suit all the nationalities and cultures they adapt their products to each country’s taste and preferences. In Indonesia, Malaysia and Saudi Arabia for instance, all the meats they use are halal meats and they use no pork. In India McDonald does not serve products which is made of beef.

McDonald’s able to monitors product and service quality through continuous customer surveys and outs great energy into improving hamburger production methods in order to simplify operations, bring down costs, speed up service and brings greater value to customer.

Recently, McDonald’s begins its new brand image by launching the new marketing campaign “i’m lovin’ it” to strengthen and expand its market share amidst the highly competitive fast food service retailing industry. This happened because McDonald’s is planning to double sales in four years time. All of McDonald’s restaurants globally would incorporate the marketing campaign, meanwhile depicting how customers around the world feel about the brand and the way McDonald’s fits into their lives.

From experience in countries I have visited, which have McDonald’s restaurants, in general, McDonald’s has the same services and standard of quality. They provide friendly and fast services to their customers. Understanding customers’ needs, wants and preferences is very crucial. This can be done by building and maintaining the relationship with them.

Case 2: Giordano – Asia biggest casual clothier won’t stop changing Giordano, a Hong Kong retailer chain, provides a satisfaction guarantee for its merchandise. Service at Giordano is excellent and the retail chain has been voted in three successive years as the top retailer in Singapore. Giordano is providing customers with reliable products or services at competitive price and easy available. It sells value-for-money casual cloths with stores located at convenient locations such as near underground train stations and in housing estates. (Kotler, Ang, Leong, & Tan, 1996, 149, 348) While in Malaysia, we are able to find Giordano’s outlet easily in almost every shopping malls. Giordano is a strong emphasis on customer service and on understanding customers’ needs. By being a ‘lean and mean operation’, the group has been able to retain flexibility. This has helped it to innovate faster than anyone else in the same clothier market.

The Core Values of Giordano are Quality, Knowledge, Innovation, Service and Simplicity. The Far Eastern Economic Review ranked Giordano No.1 for being innovative in responding to customer needs for three consecutive years—1994-96. In Singapore, the company won the Excellence Service Award in 1996, 1997 and 1998. Employees were trained to adhere to a list of very strict customer-oriented performance standards. According to the chairman, “We are not just serving our customers, we are managing their needs. If we think we are serving our customers, we are like servants, good service gives people a good feeling. Let’s make the guy feel good leaving our store”. Isn’t all these services are able to build customer satisfaction through quality, service and value? This is why Giordano can survive until today when the biggest attack on economy crisis 1997, still unable to push down its business! Giordano is truly market and customer driven. The success strategies include the company’s positioning and quality service, recruitment and selection policy, training and development, above-market reward and compensation system, flat structure, quick decision making, information systems and logistics

Giordano always change its clothing design to meet the customer expectations. Jeans, whites, khakis and basic tees continue to dominate Giordano’s array of merchandise. Giordano expanded its products to include low-rise, boot cut jeans plus a variety of shirts and tops, and kiddie apparel from its Giordano Juniors line. Giordano keeps innovates its ideas and designs of products for reposition itself against its competitors in its existing and new market.

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