Marketing Function and Value - Essay Example

Running head: marketing Marketing - Value Marketing function has earned a critical position on the strategy table and has the responsibility of creating growth opportunities for the organization. The role of marketing is to create value profitability for customers and also deliver at least acceptable levels of satisfaction to the firm’s other stakeholders (Kotler & Keller, 2009). Customer satisfaction from products bought is related to the product's performance relative to their expectations.

Customer satisfaction thus does not specifically depend upon the product features, quality, cost, and/or performance. The role of the marketing function in customers’ value proposition lies in highlighting the value hidden in products and services that are of significance for the customers. Secondly, highlighting the excellence of the product or its use or attribute that could be of use to the customer can increase the value of the specific product/service in customers’ perception. Thirdly, providing the best quality product at a reasonable price and providing a greater variety of product differentiation can attract more customers.

Innovative products are of great value to marketing activity as they provide more opportunities for advertisement and sales. In relation to this, branding and advertising, marketing can enhance customers’ perceptions related to a specific product of a company and eventually increase their sales. The marketing function can play a central role in identifying customers’ needs and changing preferences; the marketing function can communicate these aspects to the research and development department.

The R&D can then design products as per customers’ preferences and also increase the variety of products thereby widening the product lines. . The role of marketing in creating shareholder value is a strategic function and depends upon the operational efficiency of the firm which uses shareholders’ funds. Shareholders' value can be created only when they are able to receive a total return on their investments that is greater than the return they would receive from investment elsewhere. This certainly depends upon the overall performance of the firm and its profits.

Marketing function can create value for its shareholders by giving higher priority to the shareholders than to the organizations or the functional goals with respect to growth. Demonstration of financial return on marketing as well as connecting customer preferences to financial drivers is value-creating propositions for shareholders. Organizations need to focus investments in the right places in terms of operations and markets. Enhancing brand value and customer satisfaction are two critical areas that can enhance value for shareholders.

However, high customer satisfaction should be aligned with operational efficiency. High operational costs and great customer numbers will not guarantee increased value for shareholders. The creation of marketing assets can increase competitive advantage in terms of shareholders’ value sustainability. Marketing assets include strategies that can provide a sustainable competitive advantage to the firm, which competitors cannot match that easily. These assets can include branding, channels of distribution, low unit costs, superior technology, licenses, etc (Ward, 2004).

In conclusion, the marketing function plays a significant role in the creation of value to customers and shareholders through various marketing strategies. Main marketing strategies that can contribute towards value proposition include branding, assessment of customer needs, operational efficiency, advertisement and sales, and development of strategies/practices that provide a sustainable competitive advantage to the firm.