Marketing has become more and more important, especially as the purposes of marketing expanded into performing marketing researches.
Through marketing researches, it is asserted that marketing starts with a real customer need. Classic marketing, has, nonetheless, focused on making the need that will draw customers, and this stresses the advertising power of marketing (Woodall 2007, p. 1284).This is also called the sales concept of marketing (Woodall 2007, p. 1285).
An example is how advertising lures people into buying a brand, because of the psychological connections it makes with customers or because of the features of the product (Morgan 1996, p. 20). This paper discusses the importance of marketing to business.
Importance of marketing to business Michael Baker suggested the notion of the new marketing, or the “real marketing” which has four essential characteristics: “1. Starts with a customer. 2. A long-run perspective, 3.Full use of company’s resources, and 5.
Innovation” (Mercer 1996, 14). Marketing then is important in making the company focus on the customers, helps provide a long-term relationship with customers, assists in optimizing resources, and drives innovation. Marketing has become a strategic part of doing business, which is more than being related to selling, but ensuring that products and services are customer-centered (Hayden 2008, from Morgan 1996, p. 20).
The first benefit of marketing to business is focusing on the customers and satisfying them.Marketing had been normally seen to have the “primary goal” of creating satisfied customers (Witkowski 2005, from Morgan 1996, p. 20). Indeed, it is asserted that for the business to be successful, marketing should connect “all its thinking to the customer’s needs” (Felton 1959, from Morgan 1996, p. 20). It is not about just making needs through advertisement, but also understanding underlying needs and relating to them. This is why marketing research is crucial, because identified needs must be the rationale for the product.By performing marketing research, products are made and designed based on true needs (Morton 2008).
One way of doing marketing research is to attend forums and observe the concerns and needs expressed by members (Morton 2008). Responding to needs of the customer supports a “normative perspective” of marketing, and yet the marketing concept is broader in agenda (Morgan 1996, p. 20).
Holbrook and Hulbert (2002, p. 707) note Kotler’s 1991 definition, which now consist of the main elements of modern marketing: “exchange, the 4 Ps, customer-centricity, and the key imperative of meeting organisational needs” (Morgan 1996, p. 0). Marketing must also seek long-run customer relationship and the long-term viability of the business. It must pursue a relationship marketing that considers all the needs of stakeholders, namely customers, employees, shareholders, creditors, company itself, government, local communities and other concerned groups and parties. This means that marketing should not just use price to attract customers, but ensure that profits are protected.
Doing long-term business also means having a sense of corporate responsibility.The societal marketing philosophy is an expanded form of the marketing philosophy and has its roots in doubting the legitimacy and satisfactoriness of the marketing philosophy (Morgan 1996, p. 21). The societal marketing philosophy seeks for a “balance between three considerations of company profits, consumer want satisfaction and public interest” (Morgan 1996, p. 20).
This means what for Nike is demonstrating to the public that it does not support sweatshops and that it is willing to take great lengths to conduct audits that focus on maintaining standards of quality work conditions and practices (i. e. bove or equal to minimum wage, workdays, representation). Many customers have also become more conscious of supporting companies that have a social conscience so marketing has also started to consider these social needs of the business.
The use of 4 P’s, on the other hand, ensures maximizing the resources of the company. When considering price, place, product, and promotion, all aspects of the product/service are considered. Both distributors and customers are emphasized. Equally important, the company’s perspective is taken into account, especially in finding cost-effective ways to make, distribute, and promote products and services.The sales philosophy, which “engages an organization to seek out customers aggressively and persuade them to consume existing offerings,” is part only of the promotion part (Morgan 1996, p. 20).
This sales philosophy must be combined with cost philosophy, “The only way to improve our profits is to reduce our marketing and production costs,” to safeguard the profitability of products also. Innovation is also crucial, because it enables the company to differentiate products from competitors. The felt need will still drive the product.This starts with segmenting customers, since satisfying the needs of the mass market will no longer be that effective, unless perhaps for commodity products (Morton 2008). Market segmentation also allows businesses to determine psychographic and other behavioral characteristics (Morton 2008). This will help make a customer profile, which innovation will also respond to. Conclusion Marketing has four essential characteristics: “1.
Starts with a customer. 2. A long-run perspective, 3. Full use of company’s resources, and 5. Innovation” (Mercer 1996, 14).These are linked to making the business strong in as many fronts as possible, and considers the customers, suppliers, the community, and the company, as well as other concerned groups and individuals. Though customers remain at the center of marketing, other agenda of marketing will help keep a balanced perspective of making and selling products.
Indeed, relationship marketing that is so famous now is about establishing good relationships with all stakeholders. This way, the company generates and protects its reputation and competitiveness in the business.Reference list Hayden, CJ 2008, ‘Marketing or Selling — Which is more important? ,’ Business knowhow, 2008, viewed 7 December, 2008, Mercer, D 1996, Marketing, Blackwell Publishing. Morgan, RE 1996, ‘Conceptual foundations of marketing and marketing theory,’ Management Decision, vol. 34, no. 1o, pp.
19-26. Emerald. Morton, LP 2008, ‘Why Is Marketing Research Important? ,’ 2008, viewed 7 December, 2008, Woodall, T 2007, ‘New marketing, improved marketing, apocryphal marketing: Is one marketing concept enough? ,’ European Journal of Marketing, vol. 41, no. 11/12, pp. 1284-1296.