8.2: The Marketing Concept

The marketing concept is a business philosophy espoused by businesses that focus on achieving organizational success by researching and understanding the needs and wants of their customers in order to deliver value more effectively than their competitors.^[1]

The nature of marketing has evolved over the years.^[2]

• The Industrial Era (1860s–1920s). With the advent of new technologies, mass production became possible for the first time, and factories could generate greater quantities of goods more efficiently than ever before. Companies focused on manufacturing and selling as many products as possible. Products were often marketed based on their durability, quality, and value for money. The auto manufacturer Ford was among the first companies to benefit from the Industrial Revolution, thanks to the assembly lines that made the production of their Model T automobile much more efficient and streamlined. This allowed them to sell their cars for a lower price, making them more affordable for the average consumer. Only a little was needed in terms of marketing or sales tactics during this era, as demand was high and competition was scarce.
• The Sales Era (1920s–1940s). This was a time when more companies were competing for customers. The main goal during the Sales Era was to sell as many units as possible. In most cases, neither customer experience nor product or service quality was of much importance. Companies used eye-catching sales promotions, radio commercials, and door-to-door sales to entice customers to make a purchase.
• The Marketing Era (1950s–1990s). This era was defined by a strong consumer orientation, where businesses prioritized understanding and meeting the needs and preferences of specific customer groups. The development of market research and consumer behaviour studies, including customer segmentation, became essential tools. Marketing strategies began to rely on multiple channels, emphasizing brand relationships, branding, and a growing awareness of social responsibility and ethical practices. During this period, the 4Ps of marketing—product, price, place, and promotion—were introduced, shaping the foundation of modern marketing. The focus shifted toward designing products that truly reflected consumer demand.
• The Relationship Era (1990s–Present). This 1990s marked the rise of customer relationship management (CRM), where businesses began to personalize marketing efforts to build stronger connections with individual consumers. The integration of technology became essential for managing and enhancing customer interactions. With the emergence of social media, consumers gained a powerful voice, enabling two-way communication between brands and their audiences. Advancements in technology allowed companies to engage more personally with customers, creating deeper and more meaningful relationships. Organizations began to recognize the value of long-term connections—not only with customers but also with employees, suppliers, and business partners. Loyalty programs were introduced to encourage repeat purchases and reward consistent engagement. Many companies also began prioritizing social responsibility, recognizing that consumers are more likely to support brands that actively contribute to their communities and reflect their values.
• The Digital and Social Era (2010s–Present). This era continues to see the rise of new ways for businesses and consumers to communicate and share information through the Internet and social media.
• The Sustainability and ESG Era (2010s–Present). During this time, businesses continue to prioritize ethical and sustainable practices, emphasizing green energy, ethical sourcing, and community impact. They aim to balance customer satisfaction, profitability, and societal well-being. Sustainability is integrated into core operations, addressing climate change, fair labour, and social responsibility.

The key principle of the marketing concept is its consumer-centric approach—putting the customer at the heart of all business decisions. This means that everyone within the organization plays a role in meeting customer needs while also maintaining a balance with the company’s goals. To succeed long-term, a business must not only satisfy its customers but also remain profitable, ensuring its ability to sustain and grow.