Page 18 - DMGT408DMGT203_Marketing Management

Unit 1: Marketing: Scope and Concepts

trying to please customers. Customers have strong preferences for certain features and price Notes
ranges. Maruti has even started selling second-hand, reconditioned, and reliable cars from its
outlets to customers looking for such deals, is order to expand its hold on the market.
Figure 1.2: Typical Organisational Pyramid and its Inverted Position

Customer
CEO
Frontline Managers and
Employees
Top
Management
Middle
Management
Middle
Management
Top
Management
Frontline Managers and
Employees
CEO
Customer

In line with the marketing concept, it is imperative that the typical pyramid depicting an
organisation needs to be inverted to pursue marketing concept. In an inverted position, the
customer will occupy the highest pedestal and top management will be at the bottom position.
The communication flow will start from the customer, and the employees and executives will
look up to learn what the customer wants and then respond to the inputs. This is the way to offer
desired value, deliver more satisfaction, and help retain the customer.

Did u know? Marketing concept is sometimes interpreted as a philosophy of attempting
to satisfy all customers' needs with no concern for the cost. This would seem to be a sure
way to financial disaster. The marketing concept is consistent with the idea of taking into
consideration only those customer segments that the company can satisfy both effectively
and profitably. The firm has to earn profits to survive, offer new and better products and
services, and be a meaningful member of society. A company might therefore choose to
offer less costly products and services to unprofitable customer segments, or even avoid
them altogether. Being market-oriented pays dividends and has a significant effect on
company performance.

Caselet Indian Automobiles Market: Low on Marketing
Orientation

ot long ago, Indian auto companies, Hindustan Motors, Premier Automobiles,
and Bajaj Auto hardly showed any consideration for customers, producing
Nobsolete models in large numbers (demand exceeded the supply). Though the
prices kept on increasing, little was done to improve the models. Bajaj was the only
manufacturer of scooters preferred by customers and to own one, customers had to deposit
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