Describe the core marketing functions within an organization.

Instructions:-

Be sure to save an electronic copy of your answer before submitting it for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Your response should be four (4) double?spaced pages; refer to the “Format Requirements? page located at the beginning of this learning guide for specific format requirements.

1. Describe the core marketing functions within an organization.

2. Discuss the goals and expected outcomes of this organizational function.

3. Explain how companies create customer-centered businesses.

4. Describe how customer-centered businesses impact the consumer decision-making process.

5. Describe what tools are used to make effective marketing decisions.

Answer

Core Marketing Functions

Marketing is an essential organizational process that involves moving a product from concept to the consumer. The process involves numerous functions. Some of the core marketing functions include distribution, promotion, and pricing. The distribution function involves determining how the product or service will reach its targeted consumer. Organizations may engage in a variety of distribution channels to achieve this function. These distribution channels assist in bridging the gap between the producer and the final consumer (Lancaster & Massingham, 2010). Distribution is an important function since it moderates the consumer’s access to the product. The second core function is pricing, which involves determining how much to charge consumers for the product/service. The organization needs to set the right price, which is one that is commensurate to the value being delivered to the consumer. A third core function is product/service management. Under this function, marketers develop, improve, maintain, design, redesign, and acquire products/services that respond to opportunities in the market.

A fourth core function of marketing is promotion. This process entails communicating with potential customers to drive them towards the desired outcome, such as a purchase. There are at least three other core functions of marketing. The fifth function is financing or market planning, which entails determining how the organization will introduce its products into the market. Marketing information management is a marketing function wherein the business collects information about its customers, which it then uses in decision-making and marketing activities. The final marketing function is selling. Through this function, the organization delivers the product/service to its customers.

Goals and Expected Outcomes of Core Marketing Functions

Each marketing function described above usually aims to achieve particular goals and certain expected outcomes. For instance, the goal of channel management is to ensure that a company’s products and services are accessible to a consumer. Channel management is an important strategic consideration as it affects other aspects such as product pricing (Lancaster & Massingham, 2010). An expected outcome of channel management for any organization is that it will be able to deliver its goods or services to the consumer. The goal of market planning is to ensure the organization has the resources it requires to market the product or service. The expected outcome, therefore, is that the organization will be prepared to respond to the situation in its external market. Marketing planning takes into account the different characteristics of different markets at different stages (Lancaster & Massingham, 2010). The core function of pricing is a particularly sensitive one, as it is the avenue through which the organization can monetize its market offering. The goal of pricing, therefore, is to allow the organization to achieve its financial objectives. The expected outcome for any organization is that the price set will be competitive enough to allow the organization to be profitable.

Product/service management aims to ensure that a product/service management is commensurate to the needs in the environment. Its goal is to ensure that the product/service on offer can meet the consumer’s needs satisfactorily. The expected outcome for any organization is that the product/service will satisfy the customer, thereby leading to conversion through sales. When it comes to promotion, the goal of this core function is to communicate the availability of a product/service and its benefits. The expected outcome for this core function is that it will lead to increased uptake of the organization’s products/services. The goal of marketing information management is to supply marketers with the information that they require about consumers for effective decision making. The expected outcome of this core function, therefore, is that marketing decision-makers will have the information they require to make effective marketing decisions (Strydom, 2005). The final core function is selling, whose goal is to exchange a product/service for cash. The expected outcome is that the organization will acquire money while the consumer will acquire a product or receive a service.

Creating a Customer-Centered Business

A customer-centered business is one that focuses on satisfying the needs of a select set of customers. Galbraith (2011) indicates that being customer-centric entails establishing a relationship with the customer. This relationship allows the organization is to learn more about the consumer and understand their needs better. Fader (2012) points out that implementing a customer-centric model is a daunting task, and only a few organizations are currently practicing it. It is naturally revolutionary requiring the organization to implement structural, cultural, and strategic changes. According to Ravi and Sun (2016), there are three key components in the decision-making processes of customer-centric enterprises. The first is learning about customers, whereby organizations acquire information that enables them to understand the customer better. The next component is a forward-looking orientation, which prepares the organization for the customer’s future reaction. Additionally, it involves evaluating business decisions based on their impact on future profitability outcomes. The final component is dynamic optimization, which entails tailoring marketing activities to suit the needs of the customer, based on a trade-off between the long-term revenue contributed by the client, and the short-term costs of marketing.

Impact of Customer-Centered Model on Consumer Decision-Making

The customer-centered business model has significant implications on the decision-making process of consumers. According to Lancaster and Massingham (2010), the consumer decision-making process is influenced by a variety of factors. These include behavioral forces inherent in the consumer, as well as other factors beyond the user’s control and sometimes even their awareness. This is reflected in the impact of organizational marketing activities on the purchase decisions of consumers. Adopting a customer-centric business model allows the organization to mediate the consumer decision-making process, which typically involves activities such as search, evaluation, and purchase choice. The customer-centric model puts the customer in control and empowers them. Adopting such an approach allows the business to influence the consumer decision-making process both directly and indirectly (Faulds et al., 2017). Organizations can achieve this influence by investing in three strategic areas. These are consumer analytics, employee empowerment and engagement, and omnichannel marketing. Together, these factors allow the organization to understand the consumer better and deliver a more satisfactory solution.

Tools for Effective Marketing Decisions

Organizations harness a variety of tools to make effective marketing decisions. These tools range from organizational analysis frameworks to market review models. One such tool is marketing research, which enables the organization to understand its market better. The SWOT analysis allows the organization to assess its capabilities against various opportunities and threats that are in the market. The cost-benefit analysis enables the organization to evaluate whether an investment is worthwhile by analyzing the associated benefits against the cost of marketing implementation. Organizations should also perform feasibility studies to determine the profitability of a project. These tools allow an organization to assess conditions in the market and make those decisions that will promote the attainment of marketing and organizational objectives.

References

Fader, P. (2012). Customer centricity: Focus on the right customers for strategic advantage. Wharton digital press.

Faulds, D. J., Mangold, W. G., Raju, P. S., & Valsalan, S. (2018). The mobile shopping revolution: Redefining the consumer decision process. Business Horizons, 61(2), 323-338.

Galbraith, J. R. (2011). Designing the customer-centric organization: A guide to strategy, structure, and process. John Wiley & Sons.

Lancaster, G., & Massingham, L. (2010). Essentials of marketing management. Routledge.

Ravi, R., & Sun, B. (2016). Customer-centric marketing: A pragmatic framework. MIT Press.

Strydom, J. (Ed.). (2005). Introduction to marketing. Juta and Company Ltd.

Solution

Describe the core marketing functions within an organization.