Externalities on a free market / marketing and innovation - Essay Example

(Harvey S. Rosen) If we study the Mission statements of the successful business organizations, we will notice that almost all of them contain one thing in common i.e. Customer Satisfaction. It is also true that the satisfaction of a customer has become the most important factor of the success of a business. The contented customers themselves become the advertisers of the organization. The concepts describing the importance of a customer for a business and the ways of gaining their maximum confidence are called concepts of marketing and innovation.

Thus, the marketing and innovation concepts are considered to be basic in the success of a business. These concepts are readily applied by the companies as their marketing strategies. That is why, in the present day world, the application of these concepts is paid special attention by all the leading and successful companies of the world. With the gradual evolution of business, marketing emerged as a basic factor for the success of a business. Different concepts for the business success were presented including product concept, production concept and selling concept but the marketing concept gained much popularity.

That is why, this concept is presently used worldwide. The main purpose of any business is to earn profit. Greater profits can be earned through customer satisfaction. This satisfaction can be achieved by using marketing concept. Marketing concept illustrates that the company should first find what the customer wants. Then, it should devise its strategies so as to fulfill the wants of the customers. It directs its production processes to produce such goods which may better satisfy the wants of the consumers.

The company also directs their activities of quality control, manufacturing, distribution and selling for the consumer satisfaction. Using this concept, the companies make profits by creating a network