Marketing Fundamentals Essay
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Marketing Role in Creating Value for Customers
Marketing refers to a process that companies use in creating value for their customers and building stronger relationships with the customers to get value from the customers. Marketing aims at understanding the needs of customers and satisfying them by coming up with products and services to meet the needs. Marketing focuses on ensuring that the products are sold easily by ensuring that they are of superior value, reasonable prices and that they are distributed and promoted effectively (Ballantyne and Varey, 2006).
The Process of Marketing
The first step involves understanding the market that the business is operating in and getting to have a better knowledge of what the customer needs in the particular market. Various concepts are involved in this step which includes understanding the customer demands needs and wants. Also, this step involves efforts to fulfill these needs by bringing in the business offering to the already identified market and with the need of the customers already in mind. Market offerings are aimed at fulfilling these needs and ensuring that the customers are satisfied. It involves bringing together services, products, experiences and information to meet the needs or wants that have already been identified. Another concept in this step is ensuring that the expectations that have been formed by customers are met about the satisfaction and the value that the products and services of the business will give them. This is equally important to the business as it is to the customer, as the more the satisfaction the more the customers will be satisfied and pull others towards buying the products of the company. There is also the concept of relationships and exchange which looks at marketing as something that happens as a result of people making decisions to respond to an offering that is offered of a product that is desired by a customer. Strong relationships are built by marketers by ensuring that they are consistent in delivering products and services of superior value to their customers (Baker, 2012).
Markets
Buyers of a particular product, both potential and actual form the market of a product or service. The market concept is brought about by both the concepts of relationships and exchange. The buyers that form a particular market have a common interest in want or need that they aim to satisfy via exchange relationships. It is up to the organisation and its marketing function to find these buyers, get to know their wants and needs, come up with the best market offerings, and also come up with competitive prices for the buyers. The marketing management is also tasked with promoting the products and services of the organisation. Also storing them, and delivering them to ensure that they get to the market, and the buyer (Kerin et al.,2014).
Modern Marketing System Elements
Consumers are interested in searching for products that they need, and which are being sold at prices that they can pay. In this process that the consumers are involved in they end up being part of marketing these products. The extent that the need of the final consumer is served determines the success and the profitability of the business. Thus, the entire system needs to put a major focus on how well a business can meet the need of a customer to build relationships that are profitable for both parties.
The marketing strategy of the business needs also to be designed and it should be customer-driven. This involves the concept of marketing management which is involved in identifying and making choices of target markets and ensuring that profitable relationships are built with these markets. The marketing managers role in a business focuses on identifying, attracting, retaining and growing the target customers. The role involves ensuring that customer value is delivered and communicated. The marketing manager should find the best ways to serve these customers. This involves the development of a value proposition which involves making decisions on the way the business will position and differentiate itself in the market. A value proposition involves describing the values or benefits that a business promises its customers which will be gained by choosing to buy its products and services. A strong value proposition gives the business a great advantage in its target market as customers will be more interested in a product or service that serves their needs in the best way possible (Bose, 2010).
A business also needs to prepare an integrated marketing program and plan aimed at delivering value to the customers that have been targeted. This puts the strategy that has been set into motion thus builds relationships with the customers. It is made up of the business marketing mix which are the tools that enable a business to implement the strategy that it has already set for marketing its products. The major tools in the marketing mix are the four Ps. A business needs to ensure that the value proposition that it has made to the target customers is delivered upon thus the need to come up with a need-satisfying market offering. There is also a decision that needs to be made on the price that will be charged, and how the offering will be delivered to the customers. There is also a need for the business to be in communication with its target consumers about the product or service that it is offering and ensure that they understand the benefits and merits of the product. Therefore, a business needs to ensure that the tools that are used in the marketing mix are well combined, to form a marketing program that is integrated and comprehensive to ensure that the intended communication and delivery of value that is intended reaches the target customers (Sadchenko et al.,2020).
This is followed by ensuring that customer relationships are built which is a critical concept in modern-day marketing. It is important to have proper management of information relating to customers. Delivery of satisfaction and value that is superior to the customers ensures that profitable customer relationships are built and maintained. Thus, the main aspect in this step involves acquiring customers, keeping them, and expanding the customer base which is key in growing the business (Brassington and Pettitt, 2012).
It is also important for a business to ensure that value is captured from its customers to make it more profitable. The business builds relationships with its customers by ensuring the creation and delivery of customer value that is superior. On the other hand, the business also needs to capture value from the relationships that have already been built. The value can be captured through selling to the customers, increasing its market share and making profits through the sales made. The creation of superior value for the customers ensures the creation of customers that are highly satisfied and gain their loyalty thus creating more business. This ensures that the firm continues to enjoy greater returns in the long term.
The Concept of Marketing
The achievement of business success requires that identifying the needs of potential customers, as well as the existing customers. This needs to be followed by coming up with superior products to satisfy the needs that have already been identified. Then efforts should be made to ensure that all the people that work in an organisation and all the departments are engaged in ensuring that the identified customer needs are satisfied. The needs should be met alongside ensuring that the goals of the business which includes growth and profitability are met as indicated by the marketing concept. However, this concept states that the customer needs to be considered as the priority. It is important to ensure that there is a healthy balance between satisfying the customers and ensuring the survival of the business. Many organisations fail to find that balance and therefore losing market share. For example, the telecommunication company Nokia, which was a leader in the industry at the beginning of the century but recently has been struggling to provide a product that fully satisfies its customers. For this reason, the company experience hard times. Various concepts are involved by businesses in conducting marketing activities (Sanclemente-Téllez,2017).
It is formed based on producing more thus increasing the level of profits that a business makes. The approach is that the choice of the customers is influenced by widely available and low-cost products. Its application leads to services of low quality.
It proposes that products of high quality, innovative features, and performance will be favoured by customers in the market. The focus of the managers using this concept is on the development of superior products and improvement of the existing lines of products.
It proposes that unless customers are persuaded, they cannot buy enough of the products that are being offered by businesses. It encourages the taking up of selling and promotion by companies.
Marketing Concept
It proposes that a company succeeds due to its ability to create, delivering and creating value propositions that are better in its offer, as compared to the competing businesses (Khan,2010).
Engagement of Stakeholders on Organisations Marketing Activities and their Impact
Stakeholders have an interest in an organisation, and the desire to see the organisation succeed. The actions of the stakeholders can affect the organisations positively or negatively and they can also be affected by various changes in the organization. Both internal and external stakeholders are engaged in the marketing activities of the organization. The internal stakeholders include the organisation’s employees, Owners, board of directors, and managers. The external stakeholders are interested parties who affect the organisations work indirectly part is not in the management of the organiсation. They include customers, suppliers, creditors, government, society, competitors and intermediaries.
Engaging both the internal and external stakeholders in the marketing activities is critical and has a positive impact on an organisation. The stakeholders are powerful and influential to an organisation as they give it the social license that allows it to be in operation, and approves its expansion and innovations. Improved relationships between the organisation and its stakeholders significantly boost its marketing abilities. It creates a public image that is positive for the organisation and improves its reputation. Engagement of the stakeholders, both internal and external also assists the organisation in identifying trends that are emerging, in addition to assisting the organisation to be proactive in approaching these trends, and take advantage of the trends ahead of the competition.
Employees
Employees in an organisation are key and have a huge impact on the marketing activities in an organisation. Loyalty and commitment of the employees play a key role as it boosts the satisfaction of the customers. The engagement of the employees ensures that more is delivered to the customers as well as to the organization. Organisations have a specific department for marketing with a marketing manager and a team that they work with to ensure the success of marketing activities. However, every employee in the company is part of marketing as they participate in ensuring that the needs and wants of the customers are met and superior value is delivered. The marketing manager in an organisation is responsible for formulating policies and marketing plans and he or she consults with the managing director or the chief executive in the organisation. The role also involves developing marketing programs and the marketing mix for the products of the organisation. It also involves supervising product managers, sales and advertising managers. The functions that are involved with the role include integrated marketing where the manager takes decisions that involve elements in the marketing mix. Purchasing a product by a customer involves more than appearance, price, or utility. The marketing manager is tasked with integrating various elements that are involved in the mix to ensure that the deal is attractive to the customer. The attractiveness of the deal is what drives the customers towards the purchase of a product that is offered by an organisation. At the same time, the marketing manager is responsible for ensuring that marketing costs are reduced and the customer’s goodwill is won. Also, the objectives of the organisation with relation to marketing and the marketing activities are determined by the marketing manager.
The role also involves the development of the product policy especially in defining the target customers and making decisions on the production of a line of products or single products to meet the needs of the customers. Also, the manager decides on the policy to be used on pricing and the strategy for distributing the products to ensure that they get to the customer. However, this is guided by the policies of the company as the manager has to ensure maximum profit is obtained at the same time looking at the interests of the customers. The role is also responsible for sales promotion, and advertising where the decision lies with the marketing executive and making policies on the same. Decisions on whether to use departments in the organisation or outside professionals are made by the marketing manager. The manager also has the responsibility of directing the regulation of sales by the sales managers, fixing sales quotas, and organising sales territories. Also, the role involves ensuring the sales departments personnel are well selected and trained the motivation of the personnel and the development of distribution channels.
Board of Directors
They are involved in making decisions that are critical for every department in the organization. The members contribute to the strategy in leading the organisation which affects all aspects of the organisation including the marketing department.
Suppliers
They are key to the provision of inputs for the organisation to make products to meet the identified needs of the consumer. Their contribution is immense as the final offer by the organisation has a significant dependence on the type of inputs and equipment’s that are used.
Creditors
The organisation depends on funds that are provided by the banks, individuals and financial institutions to run their operations. These operations range from the initial stages of identifying markets, creating products, marketing the products and distributing them to the markets that have been identified. Without adequate funding, an organisation cannot succeed in carrying out these activities. Therefore, the creditors have a significant impact on the organisations marketing concept.
Intermediaries
They have a high impact as they act as the channels of marketing that enables the organisation to reach the target customers for its products. These include the wholesalers and retailers who act as a link to get the product offering closer to the target customer who may not be easily reachable by the organisation. Through these channels, the organisation can meet the need of its customer and create relationships that benefit both the organization and the customers whose need is served. Also, they ensure that value is created for both parties.
Competitors
They have a great influence on the marketing decisions that an organisation makes as it tries to win over the market. The competition also influences the type and quality of the product offering that an organisation presents in the market. The stronger the competitors that an organisation faces, the higher the quality of the product that it offers and the higher the investment in its marketing activities and campaigns. The competition presents a significant threat to a business, therefore, forcing it to be more proactive to ensure that it is not pushed out by other businesses offering products that meet the same need to potential customers.
Society
Society influences the type of product offering that a firm makes as it owes a responsibility to the society from which it gets its resources. The firm needs to conform to specific values and expectations of the society in which it operates.
Government
The government has an impact on an organisations marketing decision as the organization needs to follow laws and other regulations that have been set in the jurisdiction in which it operates. Failure to follow the law may be detrimental to the operations of the organization in specific jurisdictions (Hughes and Dann, 2009).
Customers
Recommendations from customers are powerful tools in marketing an organisation. They are especially useful as they have a significant influence on new customers. Organisations that succeed in building strong customer relationships are also likely to gain from customer marketing whereby the existing customers attract other potential customers by the way that they appreciate the value that is offered by the organization in terms of their products. This is quite important especially for modern businesses that are operating in an environment that is highly competitive. Organisations can take the advantage of authentic experiences that are shared by the customers and their voices that are highly credible (Schultz, 2007).
Reference List
Baker, M., 2012. The marketing book. Routledge.
Brassington, F. and Pettitt, S. (2012) Essentials of Marketing. 3rd Ed. Harlow: Pearson.
Ballantyne, D. and Varey, R.J., 2006. Creating value-in-use through marketing interaction: the exchange logic of relating, communicating and knowing. Marketing theory, 6(3), pp.335-348.
Bose, D.C., 2010. Modern marketing: principles and practice. PHI Learning Pvt. Ltd..
Hughes, A. and Dann, S., 2009. Political marketing and stakeholder engagement. Marketing Theory, 9(2), pp.243-256.
Khan, M.T., 2014. The concept of’marketing mix’and its elements (a conceptual review paper). International journal of information, business and management, 6(2), p.95.
Kerin, R., Hartley, S. and Rudelius, W., 2014. Marketing. McGraw-Hill.
Sanclemente-Téllez, J.C., 2017. Marketing and Corporate Social Responsibility (CSR). Moving between broadening the concept of marketing and social factors as a marketing strategy. Spanish journal of marketing-ESIC, 21, pp.4-25.
Sadchenko, О., Davydova, I., Yakymyshyn, L., Kovalchuk, S., Chernenko, D. and Zaitseva, A., 2020. Modern marketing to scale the business. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(4)., О., Davydova, I., Yakymyshyn, L., Kovalchuk, S., Chernenko, D.
Shultz, C.J., 2007. Marketing as constructive engagement. Journal of Public Policy & Marketing, 26(2), pp.293-301.
Zaitseva, A., 2020. Modern marketing to scale the business. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(4).
