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) benefits target market product’s ability to satisfy 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 T he 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