Question

‘Premier Ltd.’ is a clothing company known for its high quality apparel and strong commitment to environment sustainability. The company designs its clothing after carefully understanding the needs of its present and prospective buyers and satisfying them in an effective manner.
It assumes that profit can be maximised only when all decisions are taken from the point of view of customer satisfaction. Along with meeting customer needs, ‘Premier Ltd.’ also shows a deep concern for the long-term well-being of the society. To reduce environmental pollution, the company is using organic cotton and recycled polyester.
For reducing waste, they run a programme where customers can return old clothes for recycling and get a discount on new clothes. Not only this, they keep aside a portion of its profits for environmental education programmes in local schools.
Identify and explain two marketing management philosophies followed by ‘Premier Ltd.’.

Hint:

Marketing Concept = Customer Satisfaction is Key.
Societal Marketing = Customer Satisfaction + Social Welfare.

Answer 1

Step 1: Identify what the question is testing.
Premier Ltd. designs clothes after understanding buyer needs and believes profit comes only through customer satisfaction, while also caring about the environment through organic cotton and recycled material. This case is testing the marketing management philosophies followed by the firm.
Step 2: Explain the first philosophy shown in the case.
Designing products after studying what present and prospective customers actually want, and believing profit follows from satisfying them, is the essence of the Marketing Concept. Under this philosophy a firm succeeds by identifying the needs of its target market and satisfying them better than rivals do.
Step 3: Explain the second philosophy shown in the case.
Premier Ltd. goes a step further and shows concern for the environment and long-term social good by using organic cotton and recycled material. This concern for society alongside customer satisfaction is the Societal Marketing Concept, which asks a firm to balance company profit, customer wants and society's welfare together.
Step 4: State the final answer.
Premier Ltd. is following the Marketing Concept, since it satisfies customers to earn profit, and the Societal Marketing Concept, since it also protects the environment and society's long-term interest.