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The Marketing Concept is so ubiquitous in the mar- ined. This examination concludes with the recognition
keting classroom that the naive student of marketing that the marketing concept has suffered in two ways:
is generally led to believe that firms who fail to em-
ploy this philosophy are business criminals. first, it has been established as the optimal manage-
Jolson (1978, p. 81) ment philosophy when it is not necessarily so in all
instances, and second, we can see many examples of
Is is not time to discard the marketing concept?
Sachs and Benson (1978, p. 74) poor marketing practice that have been adopted in the
name of the marketing concept. It is time that we re-
F OR years the marketing concept has been so her-
alded by marketing academics and practitioners that
its acceptance as the optimal marketing management
leam the marketing concept.
Joumal of Marketing
Vol. 50 (April 1986), 81-87. The Marketing Concept / 81
come synonymous with having a customer orienta- Few, if any, of these organizations come into being
tion. through altruism; that is, organizations do not come
into being to achieve the goals of a nonmember con-
The marketing concept means that an organization stituency. Instead, it is the set of objectives defined
aims all its efforts at satisfying its customers—at a
profit (McCarthy and Perreault 1984, p. 35). by the membership that guides the organization.
The marketing concept . . . holds that the key to The initiators of a commercial venture do so to
achieving organizational goals consists of . . . de- satisfy their own needs. The initiators of public pro-
termining the needs and wants of target markets . . . grams, such as an infant immunization program or a
(Kotier 1980, p. 22).
myriad of other public policy efforts, do so for the
The marketing concept . . . calls for most of the ef- benefit of the citizens of that political body. It is the
fort to be spent on discovering the wants of a target
audience and then creating the goods and services to goals of the membership which define the organiza-
satisfy them (Kotier and Zaltman 1971, p. 5). tion's purpose.^
Some organizations are self-sufficient; the satis-
faction of the organizational needs do not depend on
The Origin of . . . nonmembers (e.g., a bridge club). Many, however,
Keith's article (1960) on the marketing concept is one depend on the behavior of nonmembers for the at-
of the earliest and most popular. It is a descriptive tainment of the organization's satisfaction. To the ex-
article illustrating the adoption of the marketing con- tent that the organization relies on exchange as the
cept in an applied setting. The intuitive appeal of the means of obtaining compliance with the organiza-
concept and the illustration of its use in practice played tion's needs, we describe that organization as engag-
an important role in its acceptance.' ing in "marketing" (cf Bagozzi 1975, Kotier 1972).
In the article, Keith describes the Pillsbury Com- One source of marketing expenditure for an or-
pany's evolution through three managerial phases, fi- ganization is the time, effort, and financial expense
nally reaching what he calls a marketing control phase. of gathering information about present or prospective
His description suggests that movement from the pro- exchange partners. If, as the marketing concept sug-
duction through the sales and later through the mar- gests, we are to strive to understand exchange partners
keting phase has been an evolutionary process which and tailor offerings for them, information is a nec-
left the organization a stronger entity. The implication essary preparatory step to developing that proper blend
for the reader is that this evolutionary process is the Borden (1964) calls the marketing mix. He notes that
correct one for all organizations. The goal of any or- each mix is necessarily unique.
ganization intending to be a viable entity is a mar- Expenditures, financial and otherwise, resulting
keting dominated perspective. from research into who might engage in exchanges
with the organization or what those exchange partners
need and/or want, represent an increase in the value
The "Why" of . . . given up by an organization in any exchange. This
Knowing the customer and satisfying him/her has be- added expenditure furthers the organization's objec-
come the shibboleth of the marketing community since tives only to the extent that this added information
Keith's time, yet the marketing concept has not been increases the value received in the exchange or iden-
subjected to formal scmtiny. What follows is an at- tifies ways in which the organization can reduce the
tempt to assess the conditions under which the mar- value it gives up in the exchange.
keting concept offers the proper guidance to the mar- The value received in exchange is increased by
keter and the conditions under which the marketer creating more individual exchanges and by getting more
should not follow its prescription. value from each exchange. The value given up in an
In a commercial venture, the ultimate goal is some exchange is reduced by expending less effort in mak-
form of profit achievement, whether that be described ing those exchanges and by giving up less in the ex-
as profit maximization or the attainment of some sat- change. To restate this, an organization benefits from
isfactory profitability (cf. Ackoff 1970). Similady, a additional information about its exchange partners
nonprofit group will have a goal or set of goals which through:
defines the organization's reason for existing.^
• more exchanges,
• an increase in value received from each ex-
'One bit of evidence as to the article's significance is that it appears change.
in two separate collections purporting to contain seminal works in
marketing: Classics in Marketing (Walters and Robin 1978) and Mar-
keting Classics (Enis and Cox 1981).
^The following discussion describes the marketer-to-be or one who 'Some organizations change their objectives (e.g., the March of
represents an organization. Clearly, the entity could be a single person Dimes) or lose sight of their original purpose (see Houston and Ho-
as well. mans 1977 for a discussion of this).
REFERENCES
Ackoff, Russell L. (1970), A Concept of Corporate Planning, Keith, R. J. (1960), "The Marketing Revolution," Journal of
New York: Wiley. Marketing, 24 (January), 35-38.
Bagozzi, Richard P. (1975), "Marketing as Exchange," Jour- Kerby. J. K. (1972). "The Marketing Concept: Suitable Guide
nal of Marketing, 39 (October). 32-39. to Product Strategy," Business Quarterly, 37 (Summer), 3 1 -
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42. Marketing Concept by Large Northeastern Ohio Manufac-
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the Limits of the Marketing Concept." Journal of Market- Discard the Marketing Concept?." Business Horizons, 21
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