Marketing as an Organizational Philosophy

An organization typically has some type of philosophy that directs the efforts of everyone in it. The philosophy might be stated formally, as in a mission statement, or it might become established informally through the communications and actions of top management. An organizational philosophy indicates the types of activities the organization values. Three different philosophies deserve mention.

A production philosophy exists when an organization emphasizes the production function. An organization following such a philosophy values activities related to improving production efficiency or producing sophisticated products and services. Production drives the organization. Marketing plays a secondary role because the organization thinks the best-produced products can be easily marketed. High-technology companies often follow a production philosophy.

A selling philosophy predominates where the selling function is most valued. The assumption is that any product can be sold if enough selling effort is given to it. Marketing’s job is to sell whatever the organization decides to produce. Although selling is one component of marketing, organizations driven by a selling philosophy emphasize selling efforts to the exclusion of other marketing activities.

A marketing philosophy suggests that the organization focuses on satisfying the needs of customers. This focus applies to people in the marketing function as well as to those in production, personnel, accounting, finance, and other functions. Production and selling are still important, but the organization is driven by satisfying customer needs. Applied Materials reinforced the importance of a marketing philosophy every payday. “Your payroll dollars are provided by Applied Materials customers” appears on the front of every employee’s paycheck.

Marketing as an organizational philosophy has been based on the marketing concept. This concept consists of three interrelated principles:

· An organization’s basic purpose is to satisfy customer needs.

· Satisfying customer needs requires integrated and coordinated efforts throughout the organization.

· Organization should focus on long-term success.

The marketing concept has been embraced by many firms since the 1950s. However, the competitive business climate of the 2000s suggests that merely satisfying customers is not enough.

Comprehension questions:

1. What type of philosophy has an organization?

2. What does the organizational philosophy indicate?

3. What kinds of philosophies do you know?

4. What has marketing been based on?

5. What are the three interrelated principles of marketing concept?

Дата добавления: 2015-11-16