The principles of marketing are nowadays taught in many educational institutions. This knowledge is believed to be crucial for entrepreneurs or managers. Overall, the importance of marketing for modern organizations can be explained by looking at various definitions of this concept.
To a great extent, they explain why this activity is relevant to companies. Moreover, one can argue that marketing is vital for competitive strength of a company, its relations with clients, and its profitability. In the long-term, marketing can shape the positioning of a business or its pricing policies.
First, it should be noted that there is no universally accepted definition of marketing because various scholars may emphasize different elements of this term. For instance, in their book William Leader and Nicolas Kyritsis (1994) argue that marketing is the analysis and implementation of various programs in order to transfer goods or services to the customers (22).
Moreover, these authors point out that the concept of marketing includes such components product development, promotion, pricing, and distribution of good or services (Leader & Kyritsis, 1994, p. 22).
Their interpretation attached more importance to the specific tasks or activities that companies should cope with. In turn, it is possible to offer a different explanation of this term. For instance, James Burrow and Jim Bosiljevac (2011) believe that marketing is “the creation and maintenance of satisfying exchange relations (p. 9). According to these authors, their definition has several important implications.
First, they suggest that marketing should be related to product creation, and establishing long-term relations with clients (Burrow & Bosiljevac, 2011, p. 9). On the basis of these interpretations, I can provide my personal definition of marketing. I think that it is the process that involves the creation of products, explanation of their value or promotion, and the delivery of these products to the customers.
In order to illustrate the importance or marketing, one should look at the policies and practices of different companies. First of all, marketing is closely related to the design of products and services. It can also influence the very process of manufacturing. For instance, one can mention such a model of product development as Kansei engineering which is adopted in many manufacturing companies nowadays (Nagamachi & Lokman, 2010, p. 89).
It is based on the interaction of designers and marketing professionals. In this case, the main task is to interview potential buyers about such aspects of products as usability, physical appearance, or reliability (Nagamachi & Lokman, 2010, p. 89). The responses of interviewees are later codified and on their basis, engineers make necessary modifications in the product. Thus, marketing professionals help to link customers and producers. They provide valuable information that managers should use.
Additionally, marketing greatly contributes to the cost-efficiency and profitability of an organization. As it has been noted before, marketing includes such an activity as pricing. Companies have to determine the amount of money that customers should be ready for a product or service. These professionals must make sure that a company can earn its expected revenues, but at the same time they have to think about the policies of competitors since these businesses can cut down prices in order to gain the attention of buyers.
Thus, their task is quite challenging. One can refer to such as a strategy as value-based pricing which is based on the premise that the most optimal price can be determined by studying the opinions of clients and identifying how much they can be willing to pay (Meehan et al, 2011, p. 7). Overall, this approach helps to increase the revenues of a company (Meehan et al, 2011, p. 7). Therefore, marketing strategies have a profound impact on the profitability of an organization.
Finally, one should mention that marketing can shape the way in which a company positions itself. The thing is that marketing professionals help business to differentiate themselves among others. In some cases, a well-selected marketing strategy can influence long-term development of a business and its reputation. There are some companies that are regarded as luxury brands, for instance, Morgan Motor Company or Aston Martin.
From the very beginning, they have been viewed as manufacturers of high quality sports cars that are intended for very prosperous clients. This strategy enabled them to achieve success in the market. The thing is that these companies do not want to target even middle-income customers. It is not likely that their approach will change in the future. Thus, marketing strategies can greatly influence the public image of an organization.
These cases demonstrate that the success of modern companies is hardly possible provided that entrepreneurs or managers do not understand the main principles of marketing. These people have to know how their products can be differentiated or what customers expect from them. This information is crucial for product development and production process. Without this knowledge, the efforts of businesses are not likely to yield good results. This is why marketing is essential for modern organizations.
Reference List
Burrow, J. & Bosiljevac, J. (2011). Marketing. New York: Cengage Learning.
Leader, W. & Kyritsis N. (1994). Fundamentals of Marketing. New York: Nelson Thornes.
Meehan, J., Simonetto, M., Montan, L. & Goodin, C. (2011). Pricing and Profitability Management: A Practical Guide for Business Leaders. New Haven: John Wiley & Sons.
Nagamachi, M. & Lokman, A. (2010). Innovations of Kansei Engineering. New York: CRC Press.