[6] Strategic Marketing in .NET

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[6] Strategic Marketing
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of all the potential customers who share a particular need or want who might be willing and able to engage in exchange to satisfy that need or want A marketing orientation helps to de ne the organization s business Marketing is concerned with problem solving and customer bene ts The organization must be able to answer the following questions: What is the problem customers are trying to solve What bene ts do customers seek How well does the organization s product solve this problem and provide these bene ts A statement that the organization is in the movie business is not very useful An organization is not in the movie business because that says nothing about customer needs Some movie organizations assumed they were in the movie business when the entertainment business left them behind! Marketing is a philosophy that encourages the organization to ensure that the needs and wants of customers in selected target markets are re ected in all its actions and activities while recognizing constraints imposed by society This marketing concept rst received formal recognition in 1952 by one of its leading exponents, the General Electric Organization the marketing concept:
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introduces the marketing man at the beginning rather than at the end of the production cycle and integrates marketing into each phase of business marketing establishes for the engineer, the design and manufacturing man, what the customer wants in a given product, what price he is willing to pay and where and when it will be wanted Marketing will have authority in product planning, production scheduling and inventory control, as well as in sales distribution or servicing of the product (General Electric Organization, New York, 1952, Annual Report, p 21)
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Three aspects of this statement are interesting: the customer orientation; the pro t orientation; and the emphasis on integrated organization effort These three aspects are fundamental to the adoption of the marketing concept Marketing means, therefore, being oriented to the needs of customers rather than emphasizing what is convenient to produce Effective marketing requires that the organization analyses the needs that its products are supposed to satisfy Customers do not buy coffee ; they buy a warm stimulating drink or a unique caf experience if it is Starbucks Likewise, customers do not buy sisal; e they buy a material to make baling rope to tie things together or bre to serve as backing for a oor covering The organization should realize that many alternative products may satisfy the needs identi ed; there usually are many substitutes for coffee include tea, cocoa, alcohol or soft drinks and for sisal include polypropylene bre or polythene sheeting The real lesson of a marketing philosophy is that better performing organizations recognize the basic and enduring nature of the customer needs they
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Scope of strategic marketing [7]
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are attempting to satisfy It is the technology of want satisfaction which is transitory (Anderson 1982, p 23) The products and services used to satisfy customer needs and wants change constantly The adoption of a marketing philosophy confers speci c authority and responsibility within the organization in regard to the provision, communication and delivery of customer value Marketing is concerned with all parts of the organization; it is more than a set of tools, it is an orientation which pervades the thinking of the organization as a whole
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Internal marketing
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In addition to equipping the organization to cope with the outside world of customers and competitors, it is also necessary to train and motivate all staff within the organization to provide the appropriate level of service to customers Internal marketing is very closely related to human resource management and the way in which the organization develops its own distinctive corporate culture Internal marketing is the task of successfully hiring, training and motivating able employees who want to serve customers well It is obvious that it is necessary to determine the organization s internal culture before venturing forth to serve customers in the external world This internal market must be motivated to react in a certain desired way which is best described as marketing-like (Gronroos 1984, p 3) Internal marketing helps employees make a strong connection to the products and services sold by the organization Without such a connection employees may unwittingly undermine expectations set by the organization s marketing communications When people believe in what the organization does and stands for, they are motivated to work harder and their loyalty to the organization increases According to Mitchell (2002), however, in most organizations internal marketing is done poorly, if at all, and few organizations understand the need to convince employees of the organization s mission and purpose; they take it for granted Since satisfying customers is central to the task of marketing, it is essential that everybody in the organization who deals with customers must be imbued with a sense of marketing which means internal marketing for some and external marketing for others Customers exist, therefore, both within and outside the organization By focusing on customers, in this way a different perspective of the organization is obtained In traditional organizations the chief executive and senior manager appear at the top of the chart with sales and other front-of ce people at the bottom In many such charts customers are not represented at all A contrary view, driven by a strong sense of marketing and especially internal marketing places the customer on top, the front-of ce people next, middle managers below that and nally senior managers (Figure 14) As the front-of ce people meet and serve customers, they should receive a lot of
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