Marketing and the organization s purpose
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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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Marketing and the organization s purpose

MARKETING AND THE ORGANIZATION'S PURPOSE


You will understand

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

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

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.


Marketing and the organization s purpose

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


Value chain or value delivery network

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


Value chain or value delivery network1

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


Levi strauss value delivery network

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.


Adoption of the marketing concept by business

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

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

Marketing Concept

Spreading rapidly throughout the world


Societal marketing concept

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

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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