Getting started.

The days when companies could quite happily operate on the basis of ‘selling what they can make’ are over, even for those in mass production industries such as car manufacturing. To a greater or lesser extent all companies must ‘make what they can sell’. Marketing therefore becomes the central function in the organization, undertaking the following activities:

- identifying suitable markets;

- identifying customer requirements (quality, design, and price);

- becoming aware of the organization’s ability to produce what the customer wants;

- communicating customer requirements to the organization;

- working with other functions to ensure that requirements are met;

- liasing constantly with customers.

The marketing personnel are therefore the eyes and ears of the organization. Their aim must be to enable the organization to target the right markets, within a long-term strategic plan. Marketing thus involves analysis, planning, and control of satisfying customer requirements.

A production-led company will emphasise the use of techniques to maximise output and minimise cost, with products designed to be standardised. A sales-led company will emphasise product differentials, and advertising to create and retain market share, without reference to the need of customers. A marketing-led company will seek to ‘identify, anticipate and supply customer requirements efficiently and profitably’. In this unit we seek to set out the nature and process of decision making in marketing.

Discuss the following points.

1. Can we say that marketing is a dynamic activity, which should lead the organization? Why?

2. Businessmen say that marketing is both the philosophy of the business and the set of behaviours needed to make it effective. Comment on this statement.

3. Why do you think in the modern business environment companies must be market oriented, not production or even sales led?

Date: 2015-01-02; view: 1437