Download MARKETING AND THE ORGANIZATION`S PURPOSE

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.
Determinants of Customer
Delivered Value
Product value
Services value
Personnel value
Total
customer
value
Image value
Customer
delivered
value
Monetary cost
Time cost
Energy cost
Psychic cost
Total
customer
cost
Value Chain or Value Delivery
Network
– Primary Activities:
– Support Activities
• Inbound Logistics
• Firm Infrastructure
• Operations
• Human Resource
Management
• Outbound
• Marketing and Sales • Technology
Development
• Service
• Procurement
Value Chain or Value Delivery
Network
Support
Activities
Firm infrastructure
Human resource management
Technology development
Procurement
Inbound
logistics
Operations
Marketing
Outbound
Service
and
logistics
sales
Primary Activities
Levi Strauss’
Value-Delivery Network
Order
Du Pont
(Fibers)
Order
Milliken
(Fabric)
Delivery
Order
Levi’s
(Apparel)
Delivery
Order
Sears
(Retail)
Delivery
Customer
Delivery
Competition is between networks, not companies.
The winner is the company with the better network.
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