* LO1: Delivering Value to Customers
* The Marketing Philosophy and its Relevance to Corporate Culture * Marketing philosophy: holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. * Takes an outside-in perspective:
* Starts with the well-defined market, focuses on customer needs, coordinates all the marketing activities affecting customers, and makes profits by creating long-term customer relationships based on customer value and satisfaction Companies produce what consumers want, thereby satisfying consumers and making profits. *
* The Role of culture in delivering value
* Most visible reflection of culture: the behaviours that people exhibit as they make choices about how they spend their time and what is important. * Culture is defined as ‘what we do around here’
* Culture is formed by the industry, past strategies, important events, remembered style, personality and behaviours of past leaders. * E.g.: Ritz-Carlton has a strong market culture - which has become synonymous with luxury high-end hotels. * Reason why culture is important to marketing: all company departments have an impact on the value delivered to customers. * E.g. Telestra – part of its mission: ‘To know customers better than anyone else’. *
* A strong market-oriented culture drives strong business performance * Market culture: practical embodiment of marketing philosophy when it is adopted across the business. * Market culture is defined by:
* Overarching culture of business, relating to attention it focuses on market * The level of belief that the ultimate purpose of the business is to create superior value, profitably * Degree to which practices, systems and skills across the business are focused on creating value for...