Unit code: CIMKT Learning Hours: 210
Understand the changing role of marketing in the modern organisation 1.1. Appreciate the fact that marketing as an organisational philosophy and activity is applicable to almost all types of organisation, whether profit making or not-for-profit, e.g. political marketing. The number and type of organisations adopting marketing principles is expanding. The philosophical aspect of marketing as a long-term company wide business orientation is becoming more important. Understand the fact that marketing is still often merely viewed as a functional area of management usually based in a particular location within the organisation, which uses a collection of techniques, e.g. advertising, public relations, sales promotion and packaging, to achieve specific objectives. Appreciate that many successful firms see marketing as the keystone of their business and that modern marketing has taken a more strategic role in many modern organisations. Marketing in such firms is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. Understand the central mission of the entire organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market place. Internal marketing is also required to achieve this. Appreciate that marketing is not necessarily narrowly confined to a particular office or department, and indeed one of the most frequent problems that companies have is in the vision by other departments (and sometimes even the marketing department itself) that somebody ‘does’ marketing in the process sense. Students will be aware that in its widest sense, marketing is really an attitude of mind or an approach to business problems that should be adopted by the whole organisation. It is only when the discipline is understood in this wider context that management can properly appreciate the role of marketing and its value to an organisation.
Appreciate that some people take a rather myopic view of the subject and see marketing merely as a collection of well-developed management techniques, which when combined, constitute a functional area of the organisation’s management operations. More enlightened practitioners and theorists view the subject as an overriding business philosophy which guides the organisation in everything it does strategically, tactically and operationally. Understand that the marketing system operates in an environment that rarely performs exactly as economic and marketing theory predicts. This does not negate the value of theory, but one should be aware that the world of reality is not perfect and at best theory can only predict what is likely to happen. Be aware that the marketing concept is often criticised when customer satisfaction is not achieved, but the concept at least provides a clear objective against which performance can be measured and necessary remedial action taken. The fact that companies acknowledge the marketing concept and pursue a customer-orientation does not excuse shortfalls in efficiency, but for many, ‘marketing’ has become a generic term for ‘business activity’. Amongst those active in business are firms who pursue a short-term ‘sales orientated’ or ‘product orientated’ approach. Be aware that as well as genuinely marketing-orientated companies which are sometimes less than efficient, consumers must contend with companies whose short-term goal is profit and for whom customer satisfaction is secondary. Criticisms levelled against such companies include: 1. poor...