Significance of Marketing to Organisational Success - Essay Example

Significance of Marketing to Organisational Success Module Significance of Marketing to Organisational Success Marketing is andhas remained an important aspect of every business as it determines the success of every company. Without proper marketing, the customers cannot recognize a business, thus leading to losses or poor profits. Marketing has changed in the 21st century, as there is introduction of technology, which has altered how businesses conduct the marketing process. It has brought more efficiency in the marketing process compared to the olden days when there was no technology. However, classic elements of marketing such as price, promotion, product and placement have not changed. Presently, marketing aspects such as advertising need to utilise persuasive communication, creative strategies and planning in order to capture the interest of the target group. The most significant feature in the marketing environment in the 21st century is the increasing active role of the consumer and the emergence of new technologies. This means that an effective and elaborate communication process must exist for a company to attract consumers (Kotler and Armstrong, 2012). There are various reasons for marketing especially when a product is in the mature stage of the product life cycle. In this stage, the sales are high but they tend to stabilize and without the right marketing channels, they can decrease. Therefore, the company needs to come up with a marketing strategy that stands out from its competitors and promotes the products in an extraordinary way (Kile, 2013). In the maturity stage, marketing plays significant roles with the consumers as it help them to associate with the brand by building trust with the customers. It also helps in increasing sales as more customers are attracted to the brand and since it is an established brand, they can trust the company to provide quality products. The company gains a favourable reputation through marketing (Brown, 2001). Marketing is significant for a company as it helps it to adapt to the constant changes occurring in the marketing environment. As many companies are embracing globalisation, information transparency and the use of the internet, their technological capabilities and business models are changing. This phenomenon has made marketing a crucial function in many organisations as they try to differentiate their products to suit the new consumer needs and expand their markets. Markets are also unpredictable following these changes, therefore, a company has to market its products to ensure that the consumers are retained and also capture the minds of new or prospective customers (Kotler and Armstrong, 2012). Through marketing strategies such as internet advertising, a company can appeal to more consumers and attract those that are in a younger age bracket, thus increasing its market share. In short, effective marketing is more important in the 21st century than it was in the olden days when few companies existed and substitute products were not available. The global market is overcrowded and companies need to market their products utilising unique methods in order to make a mark in the global marketplace. Marketing and Promotions Process Model A marketing and promotions process model of an organisation depends on its business strategy. The marketing process is fundamental to attracting customers and starts with identifying their needs. The organisation then attempts to satisfy the customers’ needs by producing the required products and selling them at affordable price depending on the target market. The organisation also makes sure that the products are available to the consumers whenever they need to purchase (Brown, 2001). The marketing and promotional process model has four components. These include the organisation’s marketing strategy and analysis, the target marketing process, the target market and the marketing planning program development. The most difficult part of the marketing process to implement is usually the marketing strategy and analysis (Brown, 2001). Marketing strategies and analysis The reason why this process is the most difficult to implement is that it requires careful planning and involves a lot of research on different elements of the organisation and the consumers as well. This process usually commences the marketing process; therefore, many crucial activities that decide the success or failure of the organisation are carried out in this process. The marketing strategy relates with the business strategy and aims at establishing new services or products category in specific markets that the organisation wants to compete. This means that the individual conducting the marketing analysis has to review the organisation’s strategy to ensure that the marketing programmes and the policies formulated are in line with the organisation’s goals (Mooij, 2011). Developing a marketing strategy also involves a situation analysis, which can be conducted through research. The research should aim at different elements affecting the market. It should provide a better understanding of the market by indicating the opportunities available, establish the target markets and various segments that the organisation wants to pursue and show the competition. These activities are summarised in the process of developing a marketing strategy, which include, opportunity analysis, competitive analysis and target market section. Opportunity analysis shows the researcher the different opportunities in the market and the trends that the organisation should follow in order to capture a significant market share (Kile, 2013). Competitive analysis helps in establishing marketing programmes that will assist in defeating the competition by gaining competitive advantage. Target market selection helps to evaluate the different consumers and establish a marketing program that will enable the organisation to increase sales by focusing on the right consumers (Mooij, 2011). Centralized or decentralized system for marketing firms or departments For an individual to choose between centralized and decentralized system for marketing firms, he or she has to consider several market factors. These include the maturity of markets, the similarity of the market segments and the diversity or breadth of the product lines. Centralizing the marketing firm means that the top management will make most of the decisions concerning marketing. This can be used in companies that produce closely related products because the company’s focus is on a few products. In case there are diverse products, the company can use decentralized marketing approach to allocate different marketing roles to different departments that are conversant with the products. In a case where the company serves different market segments, decentralized marketing approach is suitable as it will ensure that different departments will deal with different kinds of customers since they have the relevant information and knowledge in that field (Ygge and Akkermans, 2011). Centralized marketing approach can be used for companies that serve few or a certain kind of market segment since the marketers require the same knowledge to run the process successfully (Ernst, 2012). Decentralized marketing for firms can be used where the product is in the early market stages because the marketing teams in the middle management need to be in the front line and collaborating with different departments to ensure marketing success. When the product is in the maturity stage of the product cycle, like in this report’s case, centralizing the market firm is appropriate, as it will help create an association between the product and the company and enhance brand loyalty. This shows that the appropriate marketing approach should be selected according to the maturity of markets, the similarity of the market segments and the diversity or breadth of the product lines (Ygge and Akkermans, 2011). References Brown, M. (2001). Marketing in the 21st century: Revisiting the 4 P’s. Cincinnati, The ChemQuest Group, Inc. Ernst, J. (2012, February 14). Where Are You On The Centralization/Decentralization Pendulum? Retrieved January 22, 2014, from http://blogs.forrester.com/jeff_ernst/12-02-14-where_are_you_on_the_centralizationdecentralization_pendulum Kile, K. (2013, April 23). Find the Best Marketing Strategy for Your Organization. Retrieved January 22, 2014, from http://email.tailorednews.com/u/CCI/kXfaoksPORJCXQ/103781/Feature-Landing-Centralized-or-Decentralized-Global-Channel-Program-Whats-Best.htm Kotler, P., & Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall. Mooij, M. K. (2011). Consumer behavior and culture: consequences for global marketing and advertising. Thousand Oaks: SAGE Publications. Ygge, F., & Akkermans, H. (2011). ‘Decentralized Markets versus Central Control: A Comparative Study,’ Journal of Artificial Intelligence Research, 11, 301-333. Read More