Market Concept Essay

Article from Karl Moore Karl Moore is PHd associate professor in the Faculty of trouble at McGill University was responsible for writing the oblige The Marketing Concept- RIP which was promulgated July 17th, 2006. He discusses the decline and the increasing irrelevance of the marketing belief caprice and how firms argon adapting this dodge in todays market. Moore emphasis on the following points 1. Importance of market research before inst wholeing a ingathering 2. The need to center on the intersection points use by the end users 3. The difficulty firms face to implement the marketing sentiment strategy in todays market place.The author uses the physical exertion of the high-technical school sector and explains why he feels the marketing pattern use in this flair is no longer relevant, then goes into detail closely how it is not just limited to the high-tech sector. To understand Moores condition you need to understand what marketing and the marketing impression it prototypal. Marketing consists of respective(prenominal) and organizational activities that facilitate and expedite run intoing swop relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.The principal(prenominal) principles of marketing atomic number 18 to meet guests, target the right client, facilitate exchange relationships, stay forward of competitors and enhance profitability (Crane, Kerin, Hartley, & Rudelius, 2008, p. 7). The ultimate goal is to satisfy targeted nodes, seeking their loyalty and consumption. The marketing concept jackpot be specify as the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition (Crane, Kerin, Hartley, & Rudelius, 2008, p. 17).In his opening paragraph Moore mentions that the marketing concept is coming to a close and heading towards a semi-retirement. I power amply dis couple w ith this pedagogy. Why? Since the marketing concept era many a(prenominal) companies are now transitioning to the market orientation era (Crane, Kerin, Hartley, & Rudelius, 2008, p. 17). The focus of the market orientation era is mainly on continuously collecting education or so customer needs and competitors capabilities and to use this information to create value, ensure customer satisfaction and develop customer relationships (Crane, Kerin, Hartley, & Rudelius, 2008, p. 7). Let us look at how Netflix took the Marketing concept in stride. Netflix involved the identification of the unmet or underserved customer needs. Reed battle of battle of Hastings, founder and creator of Netflix started off as a delineation renting customer himself, tired of paying late fees and having to run to the characterization store when he wanted to watch a movie, he headstrong to create something simpler and more convenient for customers (Dean. 2010). He was able to draw upon private experience to help establish the opportunity nucleus and survey what some other customers wanted out of a video store.The movie rental application had already established methods surrounding video rental, late return policies, and social rank rules. Hastings believed that without competition, these brick-and-mortar movie rental companies would never have a causal agent to change (Dean. 2010). Reed Hastings, decided to disrupt the traditional video rental business by introducing a newborn twist on the home base movie service (Dean. 2010). A perfect example of advances in technology, edition of DVD media over VHS, and an unmet consumer demand is responsible for the successful launch of Hastings vision of Netflix.Not unlike other innovative start-up companies, Netflix has underg unitary several strategy shifts (Dean. 2010). Each change in focus or direction has secure that the company clay dominate in the movie rental industry. It appears that Hastings has followed the Marketing Concept to a tee, he started off with collection information from customer needs (his own) and the competitors capabilities (video rental companies were not in a coif to change their rules and regulations) and he completed the circle by using customer knowledge to create customer satisfaction as Netflix still remains more popular than Blockbuster or Rogers Video.Moore goes into more detail just about the high tech industry, giving the example of the Sony walkman and how the point of intersection was developed. He alike explains that if Sony followed the Marketing concept theory in creating the walkman, it would have failed. He follows this chronicle of the Sony walkman with the comment with many high tech products you hind endnot get a very(prenominal) reliable data from current customers about the potential uses of your future products. This statement is by far the most ludicrous statement thru out the consummate article and makes absolutely no sense.The vast majority of high tech industries rely solely on how customers perceive new and future products. tonus at the apple IPods. Apple made sure they always stayed ahead of the game by cathartic new hardware, software, or better and newer applications for the iPod (Taber. 2007). slew love new and flashy products so this was a great way to sell a product. The iPod has become a fashion accessory and a must have. People salivate if there hear a new and more updated version of the iPod is coming out, they want a product that can hold more music and data.Why would they want a dinosaur iPod that solely holds 1000 songs when they can get an iPod that holds 2000, takes videos, and has downloadable apps? In this sense, the iPod marketing concept strategy made sense because it pursuant(predicate)ly advanced Apples uphill goal of making the Mac the hub of a digital lifestyle (Taber. 2007). It too aligned with the companys strategic goal of frequently releasing innovative new products in an effort to stay ahead of a curve of consumers who quickly get tired of old gadgets.As usual, it was a strategy that leveraged the benefits of existing technology, and it made sense from the point of view that it was consistent with what historically drove the company, is bringing products to people that were stylish and easy to use. So if Apple didnt use the marketing concept strategy, it would have failed. The one paragraph in Moores article that I do agree with is when he mentions that a great deal of high tech industries do spend more time launching a new product then developing the product.Models of new product development prescribe fine stages that organizations should go through to have a successful product launch (Crane, Kerin, Hartley, & Rudelius, 2008, p. 262-271). Regardless of the model, critical phases include product idea generation, idea screening, concept testing, and business analysis, marketing mix development, test marketing and commercialization (Crane, Kerin, Hartley, & Rudelius, 2008, p. 262-271).In theory, going through these stages systematically helps organizations weed out the potential failures. customer focus is an integral component of the product development process that is much ignored. The need to incorporate the voice of the customer (adopt the marketing concept) at each phase is imbedded in these models of new product development, each phase alter additional knowledge as to what customers want (Crane, Kerin, Hartley, & Rudelius, 2008, p. 263-264). Yet concept testing and test marketing are most often overlooked y new product development teams as they rush to get their product to market before the competition (Crane, Kerin, Hartley, & Rudelius, 2008, p. 259-260). Unfortunately, this can lead to fatal errors when customer expectations are extremely high or when dealing with a school customer as is the case for high tech products. An example of this was the Apple Newton Apple pre-announced the Newton before it was ready. In terms of the product o ffering, it was neither a complete product nor a fully available product (Hormby. 006). In the hurry to get to the market, Apple had not fully developed the handwriting recognition software, one of the featured attributes (Hormby. 2006). While innovators and premature adopters are willing to take risks on new products, they do expect a minimal level of performance which the Apple Newton could not deliver. Moore also makes a valid statement in his end paragraph with respect for non-tech marketers have to know who their key customers will be and how the marketers should focus their research efforts.Customer focus, a core element of the marketing concept, is sure a widely adopted buzzword today, one which is stressed in all introductory marketing texts. While the marketing concept applies to all industries, it is particularly important in technologically driven industries that have been among the first to introduce quality techniques, many of which begin with capturing the voice of the customer. (Crane, Kerin, Hartley, & Rudelius, 2008, p. 259). pure tone at how Apple launched its iPod back in 2001 to appeal to customers.When you watch the iPod commercials on television what did you see? You see a bunch of people bounce on a colored background. There are women and men, but you fathert know anything else about them. This advertisement is ingenious for many reasons. For one, you adoptt know where these people are. They could be anywhere in the world. Secondly, you bustt know who they are or what they do for a living. They can be anyone. All you know is that they are enjoying the music and rocking out. This is what makes that commercial so great and such an excellent idea.It allows anyone in the world to be that person. In conclusion, Moore is correct in his assumption that many high tech industries are in a rush to release their product before rattling developing their product. However, it is very unrealistic of him to state that if companies follow the ma rketing concept they would be doomed to fail, he needs to look at many of the successes of the high tech market such as the Apple iPod or Netflix and how many non-tech industries can learn from Apples/Netflix marketing strategy.Although this article was written back in 2006, many advances of technology have taken place and its foolish to think that the marketing concept had nobody to do with this advancement. Refernces Crane, F. G. , Kerin, R. A. , Hartley, S. W. & Rudelius W. (2008). Marketing. (7th Canadian ed. ). Toronto, ON McGraw-Hill Ryerson. Taber, David. (17 Sept. 2007 ). The Taber Report on IPod Marketing. The Taber Report. Retrieved April 25, 2011, from http//www. taberconsulting. com/download/dtr-35. htm. Weisbein, Jeff. 1 March. 2008). The iPod Success Thank the Marketing Department. Retrieved May 5, 2011, from http//www. besttechie. net/2008/03/01/the-ipod-success-thank-the-marketing-department/. Hormby, Tom. (7 Feb. 2006). The yarn Behind Apples Newton. Retrieved A pril 25th, 2011 from http//lowendmac. com/orchard/06/john-sculley-newton-origin. html. Dean, Gregory. (10 Nov. 2010). Netflix An Online Business beyond Genius. Retrieved May 15, 2011 from http//marketography. com/2010/11/10/online-business-beyond-genius/.