Table of Contents

Introduction...................................................................................................................2
Definitions of Marketing - Compare and Contrast:.......................................................2
Advantages of Marketing Orientation for Commercial Organisation............................4
Non Profit Organization and Marketing orientation....................................................................5
Major Criticisms of Marketing.......................................................................................6
Marketing Encourages People to Purchase What They Do Not Need....................................6
Marketers Enhance Product Claims.............................................................................................6
Marketing Discriminates in Customer Selection.........................................................................7
Marketing Contributes to Environmental Waste.........................................................................7
Four successful organisation who adopt a Marketing orientation................................8
Bibliography................................................................................................................11

1
Introduction

Marketing is one of most important and basic part of any organization. In this report I

have tried to give definition of marketing by different authors its comparison and

contrast, advantages of marketing to commercial and nonprofit organizations,

criticisms of marketing. I have also given examples of four organizations which are

successful using marketing orientation and explaining how marketing orientation

helps them to be successful.

Definitions of Marketing - Compare and Contrast:

Philip Kotler defines marketing as 'satisfying needs and wants through an exchange

process' (Kotler, 2005)

P.Tailor suggests that ‘Marketing is not about providing products or services it is

essentially about providing changing benefits to the changing needs and demands of

the customer (P.Tailor 7/00)’

According to American Marketing Association recommends the following definition;

Marketing is a activity, set of institutions and processes for creating, communicating,

delivering and exchanging offerings that have value for customers , clients, partners

and society at large.(AMA,2004)

The Chartered Institute of Marketing define marketing as ‘The management process

responsible for identifying, anticipating and satisfying customer requirements

profitably’ (CIM)

This customer focused philosophy is known as the ‘marketing concept’. The

marketing concept is a philosophy, not a system of marketing or an organizational

structure. It is founded on the belief that profitable sales and satisfactory returns on

2
investment can only be achieved by identifying, anticipating and satisfying customer

needs and desires. (Barwell)

One of the common things in all above definitions is that marketing is a process and

not a sole responsibility. To make any process successful co-ordination, co-

operation, planning and implementation is required. In doing so marketing research

would have a great impact on the process. Secondly, customer satisfaction is the

most important aim for whole process of marketing. These definitions also

concentrate on keeping eye on changing needs of customer and satisfying them.

The CIM definition (in common with Barwell’s definition of the marketing concept)

looks not only at identifying customer needs, but also satisfying them (short-term)

and anticipating them in the future (long-term retention).

Thus in nut shell common things in above definition is to meet requirements to get

and provide benefits, which can also be explained with help of below diagram.

(http://learnmarketing.net/marketing.htm)

3
Main aim of marketing from Definition of CIM is profitability; on other hand Philip

Kotler stress more on customer satisfaction, due to this reason we can also

implement this definition for not for profit organisations such as government

departments.

Advantages of Marketing Orientation for Commercial Organisation

Main objective of marketing orientation is customer satisfaction. Following

advantages can be gained from marketing orientation.

Advantages can be divided into three main parts i.e. Core capabilities, competitive

advantages and company performance.

Core Capabilities:- This is mainly relates to products and services. It can further be

dived into

Customer service: - Collecting feedback from consumers and finding requirements of

existing and prospective consumers, companies can focus on expectations of

customers, thus giving more than what customers are expecting will increase

customer satisfaction resulting in better customer services.

Quality: - Quality of product will also improve from the feedback received from

customers.

Innovation: - Consumers’ needs always changes. Thus to satisfy the needs of

consumer, companies will always try to change product to satisfy consumer needs.

This will result in innovation of different types of product.

Competitive Advantages: - This includes as follows.

Customer loyalty – Company will try to satisfy by giving required services to

customers, this will hold customer not to shift to different company. Thus marketing

orientation will also help to increase customer loyalty.

4
New Product Success: - Marketing Orientation also suggests a research of new

product. Introduction of new product will be based on suggestion and requirements

of customers this will let the product successful.

Market Share: - Innovative product, better customer service will result in higher

customer satisfaction. Thus new customers will also attract to the business. This will

increase market share of an organization.

Business Performance:

Profitability: - To achieve customer requirements, organizations will work around

methods and techniques to decrease coast of production, increase sales which

results in profitability in business. Thus implementing marketing orientation

profitability of an organization also increases.

Sales growth: - New products and consumer loyalty will increase sales of an

organization. Satisfied customer will attract more customers form market. Also new

products which can satisfy consumers’ requirements will also attract new customers

Non Profit Organization and Marketing orientation

Nonprofit organizations have to satisfy not only beneficiaries but also resource

donors as they are also important source to fulfill requirements of nonprofit

organization. Orientation towards the donor must be viewed as a means to fulfil the

organisation’s mission, although not as an end in itself (Brannen, 1996; Mullin, 1996)

not all of above commercial organisational benefits of marketing orientation will be

achieved by non profit organisation. Few benefits like customer services in terms –

services to beneficiaries and satisfying resources donors that the money donated by

them is been utilised to achieve organisation goal. Second benefit will be to improve

and maintain quality of services provided by non profit organisation. If quality

services are not provided than beneficiaries will complain and in turn donors will also

5
lose confidence in organisation. Thus marketing orientation in terms to donors’

orientation and beneficiaries’ orientation will help non profit organisation to improve

its services and increase confidence in society which results in achieving

organisational goal and more people will get benefit for this type of organisations.

Major Criticisms of Marketing

Marketing Encourages People to Purchase What They Do Not Need

This is the most common criticism about marketing is : To get maximum or more

customers from market through product’s at right time ,right place, right

customer… Never concerned about what their customer’s actually needs. Is it a

right product for their customers or whether the customers actually want products?

Basically, the root of this criticism is that marketers only want to satisfy their needs

and have no concerned for the needs of customers.

Most of time, marketers are manipulating needs of customers into making unwanted

purchases, these tactics will not allow to lead a loyal customer and it affects long

term success.

Marketers Enhance Product Claims

Marketers are some time elaborating the benefits offered by their products. It’s

happen most of time when customers engage marketing with communication. It

creates trouble when product mislead customer and can’t offer a level of value that

actually have.

But sometimes there is a fine line between what a rational person should accept as a

“reasonable exaggeration” and what is considered downright misleading.

Fortunately, many countries offer customers some level of protection from

6
misleading claims since such business practices may subject the marketer to legal

action. Again, using such tactics is likely to lead to marketing failure as customers

will not be satisfied and will likely not return.

Marketing Discriminates in Customer Selection

This criticism target special group of customer, from this customer they can satisfy

organisational objectives. This called Target marketing, these customers most of

time play good role in marketing decision including product development and price

setting. Most of marketers disagree with that target marketing leads marketers to

focus their efforts primarily on customers, who are financially strong to make

expensive purchases.

Most of time this criticism is valid, now a days it’s happen in most of electronic

market. You can find lower quality product are similar as high quality products, offer

some less feature then it. Thus, this type of product is not offer to certain customer.

Marketing Contributes to Environmental Waste

In the recent years, for marketing the marketers are using different type of product,

and it directly or indirectly affect the environment. The best example is in most of

developed countries are using Neon Signboard for promotion and for advertisement,

it will contribute in pollution and some of material in that are not recyclable.

Exporters and importers are using non-biodegradable packaging for packing large

items. (http://www.knowthis.com/principles-of-marketing-tutorials/)

7
Four successful organisation who adopt a Marketing orientation

Needs of consumers are always changes and thus if a company wants to survive

than they also have to provide products and services according to customers’ needs

and requirements. Best example of changing requirements is computers and other

electronic gad gages. If these companies want to sell their products they have to

fulfill requirements and also have to show how better their products is compared to

other competitors. Thus new concept of marketing orientation emerges. Marketing

orientation is a process of three stages, as described by Kerin in his book “Marketing

the core”, a) collecting information about consumer needs; b) sharing information in

all departments and c) use it for creating/developing products or services satisfying

consumer needs.(Kerin, R et al)

Four companies are taken as an example to explain how they successfully adopted

marketing orientation

Jet Airways: - Airline industries face very acute competition. To stand in this

competition Jet Airways gather information what consumers really want more than

travelling? After gathering all information and sharing information in all departments

they come up with Promotional Schemes to attract more customers and thus to

increase market share and increase profits. These includes frequent flyer schemes,

special benefits, discounts, festive season offs, gifts etc. By offering frequent flyer

points and tying up with different hotels, restaurants and car rentals they attract more

people to use their services. Doing this if a customer wants to upgrade their level or

want to get more benefits they will use Jet Airways more frequently. This will result in

consumer loyalty increase in sales resulting increasing profitability.

ICICI Bank [Industrial Credit and Investment Corporation of India]: - India is a

highly populated country. This will result more customers for banking industries.

8
Services like internet banking, phone banking and ATM services available but not

enough to serve such a large customer base. Thus after analyzing marketing

situation and customer needs ICICI embrace old banking practice of building lasting

relationship with their customer by taking initiative of providing 12 hour banking

services. This result in increase in banking branch hours starting 8.00 am to 8.00

pm. Due to this step of ICICI more customers attracted to services and open

account, resulting in higher market share in terms of number of customers which

leads to more deposits to lend money and more income through lending.

Wal-Mart: - Wal-Mart is one of the biggest retailers in USA. It has many stores in

USA as well as international markets. Wal-Mart always research in consumer needs

and invest in making their services better at low cost. They too were depending on

specials like their competitors but after research they decide to drop price of its

products. This will let more customers and greater market share. To do this first step

they take by lowering its costs. They have used better information systems, ordering

and transporting techniques, they also purchase fleet of trucks thus they can

manage whole transportation. Doing this they can deliver goods and services at

lower price and branded products to customers.

Dell: Dell wants to put customers first and remain aggressive about driving

improved customer value across all Dell business. Selling computers through supply

chain and middle person increases price of product and decrease company profit.

Thus to provide computes and its products at less price than its competitors, Dell

eliminated retailers. Dell shipped products directly from factories to end customers.

This also helps customers to give orders as per their requirement instead of having

preconfigured computers. They also introduce Just in Time process for ordering and

9
delivering products. These reduce cost of product and which effectively reduce price

of computers and its parts.

Thus using marketing orientation and marketing principles above companies achieve

customer satisfaction, loyal customers and low costs resulting more profits.

10
Bibliography

American Marketing Association, 2004

Kotler, P. Armstrong, G (2010) Principle of Marketing, 12 th edition, Pearson

Education, Australia.

Kerin, R. McDonnell, J. de Meyrick, J. Rod, M. Garrett, T. Rugimbana, R. Hartley, S.

Rudelius, W. (2008) Marketing – The Core, McGraw-Hill, Australia

Kotler, P. Keller, K. Burton, S. (2009) Marketing Management, 13th Edition, Pearson

Education, Australia.

Armstrong, Gary and Philip Kotler. "Marketing: Managing Profitable Customer

Relationships."

Marketing: An Introduction. 8th Edition. Upper Saddle River: Pearson Prentice Hall,

2007.5

Norris, Brian. What Is Marketing? 2005,2006. 24 August 2007

European Journal of Marketing vol 36 9/10 2001(emerald)

Brannen, P. (1996), "On campaigning as an effective tool to encourage wider

support for a cause", Journal of Non-profit and Voluntary Sector Marketing, Vol. 1

No.1, pp.14-22.

Mullin, R. (1996), "Fundraising in civil society", Journal of Non profit and Voluntary

Sector Marketing, Vol. 1 No.2, pp.152-9.

Market Orientation and Social services in private Non-profit organisations, Rodolfo

Vázquez, Luis Ignacio Álvarez, María Leticia Santos European Journal of Marketing

Volume: 36 Issue: 9/10 2002 (emerald)

11
Market Orientation, Customer value and Superior Performance. Stanley Frazer and

John Nerver, Business Horizons, March April 1994

http://www.marketingteacher.com/lesson-store/lesson-what-is-marketing.html

(29/08/2010)

http://www.knowthis.com/principles-of-marketing-tutorials/what-is-marketing/

criticisms/ (26/08/2010)

http://learnmarketing.net/marketing.htm (31/08/2010)

www.jetairways.com (01/09/2010)

www.icicibank.com (01/09/2010)

www.walmart.com (01/09/2010)

www.dell.com (01/09/2010)

12