Influence of Marketing Philosophy on the Organizational Strategy - Coursework Example

Marketing Name: Course: Code: Tutor: Date: The marketing concept It is a philosophy that makes a customer and the satisfaction of his or her needs a central point of the organization’s business activities. The philosophy is steered the top management whose focus is to make their customers very delightful. This concept holds that the success of every organization mainly depends on identifying the needs and wants of certain target markets and providing the best services better than those of other competitors. This marketing concept has a lot of implication for the management of an organization. For instance, it is not something that is only administered by the marketing department, neither is it the single dominance of the marketing department. Relatively, it applies to the entire organization. It is a way of doing business or philosophy ranging from top management to the lowest levels and across various departments of the organization. The needs, wants, and customers’ satisfaction must always be at the top in the mind of every manager and employees. A very good example of the marketing concept is Wal-Mart's motto that states "satisfaction guaranteed." Whether the Wal-Mart employee is a cashier or an accountant, the customer is always the leading (Rodgers, 2013). Influence of marketing philosophy on the organizational strategy This marketing concept means that every organization aims at satisfying the wants and needs of its customers while pursuing the achievement of its organizational goals. The best way in which an organization can achieve its goals is to meeting the needs and wants of its customer. Therefore, the marketing concept emphasizes on understanding the customers before designing and producing any product for them. With the incorporation of the customer's wants and needs into the design and production of the product, it is most likely to meet the sales and profit goals. Occasionally, in the passion for satisfying the wants and needs of the customers, the marketing concept is interpreted to mean that customers are always right. Nevertheless, the marketing concept suggests that it is imperative to meet organizational goals besides satisfying the customer’s wants and needs. Ensuring that a customer is satisfied demands that organizational strategy should involve conflicts conflict management practices since sometimes conflicts may not be resolved. Any organization that embraces the marketing concept will do everything in its power to meet the customers’ needs, at the same time making a profit. At times, the wants and needs of the customers may comprise of features or low prices that are not achievable for an organization if it has to make a profit. As a result, an organization should hope for a compromise between the demands of a consumer and what applies to the business to offer. Balancing all these may affect the organizational strategy that may be to make profits. Buyer decision process This is a process used by the process used by consumers for market transactions before, during, and after buying a product or a service. In most occasions, decision making is the cognitive selection process of a course of action to be undertaken from various alternatives. Some of the common examples may include deciding what to eat and shopping. Decision making is regarded a psychological construct meaning that though a decision may not be "seen", it can be inferred from visible behavior that a decision has been made. Thus, it can be concluded that a psychological "decision making" event has happened. It is a construction that ascribes a commitment to an action. i.e., based on clear actions, it can be assumed that people have been committed to making a decision (Nicosia, 2006). Generally, there are three ways used to analyze consumer buying decisions i. Psychological models - cognitive and psychological processes like need recognition and motivation. They are more of a qualitative than quantitative and based on sociological factors like family and cultural influences. ii. Economic models – they are mostly quantitative and are built on the assumptions of near perfect knowledge and rationality. The consumer regarded to maximize their utility iii. Consumer behavior models – these are practical models used by marketers. They typically combine both psychological and economic models. As a result of normal psychology, there are five stages of consumer buying decision-making process: Problem/Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behavior i. Problem/Need Recognition – a consumer recognizes a problem or a need and identifies the product or type of product which is needed ii. Information Search- The consumer searches the information relating to a product which would satisfy the identified need. iii. Evaluation of Alternatives - The consumer assesses the existing alternatives. Usually, the information search shows various products for one to appraise and understand which product would be suitable. iv. Purchase- After the evaluation of all the possible options, a consumer could be left with only two things which might just alter his decision of purchasing the product that is what the other friend thinks of the product and any unanticipated conditions. For instance, unforeseen conditions in this case could be financial losses which may result to not purchasing the product. v. Post Purchase Behavior- After a purchase has been made; a consumer may be faced with purchase dissonance feeling that it could have been better to buy another product. Dealing with post purchase dissonance increases the chance of frequent repurchase. The Importance of understanding the buying behavior of your customers In most cases, everyone could like his or her business to be successful especially after working hard to achieve it. Therefore, understanding the buying behavior of your customers is one of the elements that make a business to be successful. Without this knowledge, it becomes difficult to gain more customers, especially in the current competitive world. Understanding their buying behavior helps when you want your customers to purchase more often from your business. Understanding customer buying behavior is one of the essential elements one has to know for a customer profile. Since most customers make their buying decisions basing on both emotional and rational reasons, they tend look at a category of goods and services on a rational basis, e.g. a need for an accountants’ tax service. They make a decision, particularly for repeat customers on the brand on an emotional basis. Making your customers be emotionally attached to your brand is one of the ways of keeping them loyal. It is also one of the key factors in gaining recommendations and referrals. Understanding their buying behavior makes it easier for an organization to select the best marketing strategy especially when they need more customers for their business (Foxall, 2005). Having the knowledge of the buying behavior of your customers is based on the following questions Why do they buy? You must have a clear understanding both the rational, emotional reasons as to why the customers buy. Taking the above example why customers may experience a tax problem and need some advice. Therefore, their pain is pretty sensitive and will make them look for a business that will provide them with peace of mind and assist them to stop worrying. All these emotional reasons will be a much bigger driver than price itself in the consumer buying decision process. How frequently do they buy? Understanding this assists you to the time when to implement your marketing tactics. For instance, if they make their purchases once after every two months, then if you adopt email marketing you can ensure that those on your list get offers after every two months. Knowing how frequent do they buy assist in deciding which type of products or services to be provided. Are they making purchases for others? At times, some customers buy on behalf of others. A good example is a mother buying for her children. Those who consume or use your products or services may significantly influence those who buyer therefore you have to consider them when marketing your products or services. What do they buy? In case you have a variety of products and services, it is important to understand which products or services are purchased more often. Knowing this helps especially during the process of making strategic decisions, for instance whether to keep the entire range or only focus on one or two primary products or services. Where do they buy from? Currently, there are various channels that are available for customers. Besides, some clients are even buying directly from online stores or websites. Knowing their preferences accords you with an opportunity of focusing on the important channels to increase the chances for them to buy from you. Where are they getting their information? Nowadays there are various sources of information. It critical to understand their source of information and the kind of people they listen to. Some of these sources could be from friends, online reviews, websites, or influencers. Since most customers will be visiting your website as part of the decision-making process, it is good to make sure your content is rich. Product concept This is a concept where marketers understand the dynamics of a certain product so as to showcase the maximum features and best qualities of the product. Marketers take much of their time and research in targeting and attending their audience. They will look into a product concept before offering their product to their customers. While this concept is based upon the notion that customers prefer high-quality products, features, and performance, some customers have a preference for a product which is simple and easy to use. This product concept suggests that consumers do prefer products with better quality, features and performance as compared to a normal product. It is truly used in such market niches as mobile handsets and electronics. Importance of Product concept to marketers Organizations that follow the product concept must concentrate much on their technology such that offers products with excellent and innovative features for maximum customer satisfaction. Marketers study the product concept before marketing any product so as provide the best products to their customers. It says that customers prefer products with high quality, features and performance as compared to normal products. Innovation helps to get new product concepts. This assists companies in making innovative features of a product so as to offer those which are demanded by the customers. All this is achieved by putting the customer a priority Internal marketing This is the process where employees of a company are motivated and empowered so as to work as a team for the entire benefit of its customers and thus the company itself. This is regarded as the core of a company’s success. A well-coordinated effort in the company is the greatest necessity to offer customers with services at a preferred level. If we as a company don’t offer the services we promise during our marketing campaign, we will be doomed to fail in the long run. This promise can only be fulfilled if all the employees at various levels understand what we are going to offer. With the company’s internal marketing strategy, employees are regarded as internal customers who have to be persuaded of a vision of the company and worth as aggressively as external customers. The main aim of internal marketing is to align every part of a company’s inside operations in ensuring that they are as competent as possible of offering value to its customers. If an organization operates in a standardized and coordinated way, that organization can offer a more reliable experience to its customers (Blythe, 2008). Internal marketing is based on the notion that the attitudes of the customers toward an organization are based on their total experience with that organization, but not only on their experience with the products of that organization. Every time a customer interacts with an employee, it affects their entire satisfaction. Everybody ranging from a sales executive to an over-the-phone technical support specialist assist to shape the experience that customer. Therefore, the customer’s satisfaction is deeply dependent on the performance of an organization’s staff. How internal marketing can be used to enhance external customer satisfaction Aligning the objectives of an organizational with the attitude of its employee is the greatest step in the internal marketing process. We should always keep our employees updated about our goals. We should convey the message clearly to the employees that “this is the main reason as to why we are in the market. Then we have to take required steps in ensuring that employees harmonize their attitude or behavior. By introducing the organization’s core values of to employees is another step in enhancing customer satisfaction. Every employee should understand the core value of the organization. Organizing the tasks of each and every employee is a major step in the whole process. Introducing the total quality management (TQM) is an enormous way of achieving this coordination. If employees do not know what to do; how to do; when to do; for whom to do, and then it becomes very difficult to achieve the organizational objectives. Thus inability to coordinate is parallels to the lack of internal marketing. Therefore, coordination has to be established to enhance external customer satisfaction. Creating friendly atmosphere is also similarly important in enhancing external customer satisfaction. We must create such a corporate culture where every employee can share his or her views with others, even with those in the higher levels of authority within the organization. Empowering and authorizing the employees enhances internal marketing. When the employees feel that they are empowered and authorized to make a decision, they can show their intrinsic creativity that finally help in customer satisfaction. This empowerment and authorization also involve employees’ accountability. Rewarding the best performing employee is another way of doing internal marketing. This also creates a positive competition among the employees therefore leading provision of better services to external customers. Encouraging the fair-play policy ensures that employees are actively involved in the organizational activities which finally makes sure the execution of internal marketing. The circle of satisfaction The Circle of Satisfaction is of the notion that a customer’s loyalty and trust are a result of a positive transaction and forms a basis of competitive advantage within a market. In the simplest way, customer satisfaction is a clear indication of performance to expectation. It is proposed that for an organization to be the first in satisfying its needs, it should first meet the needs of its customers; gone are the days when consumers are inactive believers, brands are no longer an indication of the organization but a sign of the market’s desires or needs. To have an effective marketing, equal attention must be given to attaining the satisfaction of needs both for the customers’ and the organization. For that reason, the purpose of growth is based on the foundations of a clear understanding of past, present and future behavior of the consumers. Relationship marketing acts on the basis that the same objective of growth is achievable through improvement of a long-term relationship with customers rather than attracting new ones. The leading items linked with the circle of satisfaction are found to be related to three themes; the customer’s satisfaction, the product, and the impact the organization Why satisfaction is critical for long-term survival of an organization In spite of the abundance of stimuli to motivate favorable customer behavior, personal communication, and interpretation amid other psychological influences, plays a big role when it comes to the opinion of a consumer. When these influences and interpretations are positive, they can significantly benefit the brand. The Circle of Satisfaction continues the idea that a customer’s loyalty and trust are a result of a positive transaction and forms a basis of competitive advantage within a market. Once a consumer agrees that he has experienced a positive result concerning the exchange, a level of trust is built upon their relationship with the organization. Trust is a critical card in the organizational success as a result of the opinion’s ability to be quickly passed on among people, either providing a very useful advertising tool, or confirming a possible customer’s doubts concerning a product or service. If a customer trusts a product through the constant delivery of value and quality, it may lead to loyalty that may affect future purchases, whether in a larger quantity or more frequently. Given the high cost of attracting new customers towards a brand, businesses would prefer investing time into loyalty programs that make sure that customers do not switch the brand. One long-term satisfied customer who purchases more is far more helpful to an organization than several customers with minimal purchases. One way of measuring a brand’s ability to satisfy the customers is customer loyalty, which is greatly transferable to the general market position of an organization, and results on the basis of an ability to create profit. Marketing audit This is an analysis, assessment, review or evaluation of a company’s marketing activities. It appraises a company’s objectives, marketing environment, policies, plans, and strategies. After evaluation, it identifies different problems, defects, deficiencies, vulnerabilities and other weaknesses encountered during the company's marketing activities. It recommends measures on how to solve, overcome or remove these limitations. It also looks for new marketing opportunities for a company. In general, it tries to improve the company’s marketing performance. In summary, marketing audit is a systematic, independent, extensive and continuous examination process of marketing activities of a company. The importance of marketing audit Marketing audit offers the marketers with an extensive view of the marketing activities that are going around in the concern. It shows a complete picture of all the necessary operations which also leads to leads to efficiency. This process can also be used to improve the marketing plan of an organization (Rodgers, 2013). Carrying out a marketing audit can assist an organization to refine its business practices and improve its profitability and productivity. It also helps top management, marketing executives and investors in ensuring that they do the right things to help in enhancing the growth of their organizations. Since a marketing audit is an extensive evaluation and examination of marketing practices and results of an organization, it provides a baseline for the measurements of performance and an outline for effective business planning so as to maximize positive external perception and generation of demand. Marketing audits mostly leads to strategic marketing change within the organization (Kotler, 2005). Careful evaluation of the changing environment, channels, customers, and competitors results to a review of direction of the firm It also reevaluates the company’s core competencies and competitive advantages and evaluates if it would place them in a better position in future too. It re-evaluates the positioning of the company’s products that are targeted at unpredictable market segments. It also analyzes its product portfolio to ascertain their future strategic objectives. It analyzes every element of its marketing mix with the aim of changing the needs of its customers and competitor activity. References The social responsibility is to increase its profits" Ethical Issues in Business. 2002 Prentice Hall, 2002. Understanding Consumer Choic2005 Palgrave Macmillan, Consumer Decision Process2006 Englewood Cliffs, N.J Prentice Hall, Consumer Behavio2008Thompson Learning A Theory ofMarketing2013Start Publishing LLC Marketing Management, 2009Prentice Hall Read More