Why Is Marketing Important to Contemporary Organizations?

Why is marketing important to contemporary organizations?

- It addresses the challenges of an unforgiving economic environment

- Without having marketing various departments such as finance, operations, accounting will not be in business because there will not be enough demand for products and services so the firm can make a profit

- Successful marketing builds demands for goods and services which in turn creates jobs

Understand the core concept of marketing

- Needs are the basic human requirements for air, food, water, clothing, and shelter.

- Wants when they are directed to specific objects that might satisfy the need

- Demands are wants for specific products backed by an ability to pay

- 5 Types of needs: Stated needs , Real needs, Unstated needs, Delight needs, Secret needs

Know the basic tasks performed by marketing organizations and managers?

Understand the differences between the various orientations to the marketplace

- Production Concept- one of the oldest concepts in business consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. Frequently used to expand the market, Strategy used by developing countries

- Product Concept- proposes that consumers favor products offering the most quality performance, or innovative features. Managers are sometimes caught in a love affair with their products. A better product will by itself lead people to beat a path to their door.

- Selling Concept- Holds that consumers and businesses if left alone won't buy enough of the organization's products, so the organization must undertake an aggressive selling effort. Focus on the need of the seller

- Marketing Concept- Finding the right products for your customers. Focus on the need of the buyer. Assumes the key to achieving organizational goals consists of being more effective than competitors in integrating marketing actitivies toward determining and satisfying the needs and wants of target markets.

- Holistic Marketing Concept- Everything matters in marketing

Know the components of the marketing concept and why they are critical to successful marketing practices (page 10)

- The key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target market

- Target Market-

- Customer