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MARKETING AND THE
ORGANIZATION'S PURPOSE
You will understand:
• The purpose of an organization is to get
and keep customers.
• To keep customers you must deliver
valued services, at attractive prices and
conditions, to enough customers to make
those prices and conditions possible.
The Marketing Concept:
Operationalized
• Focus on customers who
comprise a target market
• Identify markets to be
satisfied
• Create products that satisfy
The Marketing Concept:
Defined
Creation of value for customers
by means of the product and
every aspect of its enjoyment
and use, acquisition, and
production.
Needs, wants and demands
A need occurs when there is a difference
between a consumer’s current state and
his/her desired state. Needs translate into
wants. Wants become demands when a
consumer has not only the willingness, but
also the ability to make a purchase.
Products
(goods, services, ideas, even personalities)
Anything offered for sale or exchange.
Every product contains features that a
marketer must translate into benefits for
target market. It is these benefits the
consumer perceives to be available in a
product which directly affect that
product’s ability to satisfy his/her need or
want.
Value, Cost, Satisfaction
Value is the consumer’s estimate of a
product’s capacity to satisfy his/her wants.
The consumer will choose the product
believed to produce the most value per dollar
spent. Of course, the value of a product
cannot exceed the cost of obtaining identical
satisfactions in an alternative manner.
Exchange and Transactions
• At least two parties
• Each has something to exchange
• Each can communicate (at a minimum,
offer & acceptance) and deliver
• Each is free to reject the other's offer
Relationships and Networks
Relationships are based trust. Trust is hard to
win, but providing a high-quality product at
a fair price, as well as providing on-going
service to ensure continued satisfaction and
repeat purchase, helps.
The outcome of relationship marketing is a
marketing network, which includes all those
with a stake in the company’s success, who
have built "win-win" relationships with the
marketer.
Market
A group of people with specific wants
and demands (willingness and ability to
pay) comprises a market.
Adoption of the Marketing
Concept by Business
• Consumer goods manufacturers
first
• Services next
• Commodity goods manufacturers
someday
Adoption of the Marketing
Concept in Government: NPM
• A bold use of market-like mechanisms for those parts of
the public sector that cannot be transferred directly into
private ownership
• Intensified organizational and spatial decentralization of
the management and delivery of services
• A constant rhetorical emphasis on the need to improve
service quality
• An equally relentless emphasis on customer satisfaction
Marketing Concept
Spreading rapidly
throughout the world
Societal Marketing Concept
The organization’s task is to determine
the needs, wants, and interests of
target markets and to deliver the
desired satisfactions more effectively
and efficiently than competitors in a
way that preserves or enhances the
consumer’s and the society’ well-being.
Hurdles to Adopting Marketing
Concept
• Organized Resistance - people in some
departments see marketing as a threat to
their power in the organization
• Slow Learning - organizational learning
comes slow
• Fast Forgetting - there is a strong
tendency to forget marketing principles