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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.

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MARKETING AND THE ORGANIZATION'S PURPOSE

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  1. MARKETING AND THE ORGANIZATION'S PURPOSE

  2. 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.

  3. The Marketing Concept: Operationalized • Focus on customers who comprise a target market • Identify markets to be satisfied • Create products that satisfy

  4. 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.

  5. Determinants of Customer Delivered Value Product value Services value Total customer value Personnel value Image value Customer delivered value Monetary cost Time cost Total customer cost Energy cost Psychic cost

  6. Primary Activities: Inbound Logistics Operations Outbound Marketing and Sales Service Support Activities Firm Infrastructure Human Resource Management Technology Development Procurement Value Chain or Value Delivery Network

  7. Value Chain or Value Delivery Network Firm infrastructure Human resource management Support Activities Technology development Procurement Marketing and sales Inbound logistics Opera- tions Outbound logistics Service Primary Activities

  8. Levi Strauss’ Value-Delivery Network Order Order Order Order Du Pont (Fibers) Milliken (Fabric) Levi’s (Apparel) Sears (Retail) Customer Delivery Delivery Delivery Delivery Competition is between networks, not companies. The winner is the company with the better network.

  9. Adoption of the Marketing Concept by Business • Consumer goods manufacturers first • Services next • Commodity goods manufacturers someday

  10. 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

  11. Marketing Concept Spreading rapidly throughout the world

  12. 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.

  13. 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

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