3.1 Marketing Concepts
“The most basic concept of marketing is that of human needs, human have almost unlimited wants but limited resources” (Kotler et al, 1998, pp. 6-7). Thus, they want to choose products or services that offer the most satisfaction and value to exchange their money into their needs with products or services. However, human needs are not enough to make marketing exist. Organization need to make products and services that can be offered to customers to satisfy their needs. Marketing is not only about fulfillment of human needs, which is why there are: ‘customer value’, ‘customer satisfaction’ and ‘total quality management’. Customer Value is the values that customer gain after they get their product or service. Customer Satisfaction is the customer’s expectation of the product. Total Quality Management is a system to keep the company product quality that has ability to give customer value and satisfaction. These three concepts must work in sync to ensure maximum customer satisfaction.
Other essential concepts that must be fulfilled in marketing are Exchange and Transaction as the way for customers to obtain their product or service by offering something in returns that agreed upon conditions. In addition, Relationship also needed to maintain and enhance strong relationship with customer and stakeholders.
“The human need and exchange concept leads to the Market Concept which is a group of potential customers with needs who are willing to exchange something of value to fulfill their needs” (Perreault, jr. & McCarthy, 1999, p. 15). Thus, to manage the markets, people need to keep the process of marketing in which people as individual or group must satisfy their need by creating and exchanging product and value with others.
3.2 Marketing Functions
To keep marketing process exists and works correctly, organization need to accomplish the important marketing functions. Marketing function has nine main functions, which are (asbcentral, n.d.):
1). Buying to make opportunity for people for buying product that they need,
2). Selling to sell producer’s product to consumer,
3). Financing to provide money for production and marketing of the product,
4). Storage to store and protect the product,
5). Transportation to distribute the product,
6). Processing to process the raw material into something valuable,
7). Risk-Taking to give producer and marketer protection through insurance service,
8). Market Information to help producer and marketer analyze the market,
9). Grading and Standardizing to keep the product quality.
Thus, by accomplishing the marketing function, organization can do the marketing system perfectly.
3.3 Marketing System
Figure 3.3.1: Simple Marketing System
According to Figure 3.3.1, it informs about the relationship between industry and the market that show exchange of information, goods, and money. In this marketing system the industry as sellers send their communications, products and services to the market, in return market as buyer trade their money and information to products or services from the sellers.
Figure 3.3.2: Modern Marketing System
According to Figure 3.3.2, it shows major component in a modern marketing system where the process starts from the supplier’s product send to company and competitor, then the product will be send to both through marketing intermediaries or end users directly. Each party in the organization attaches value for the next level. In summary, the success of the company is not only from its own actions, but also depends on how the organization can satisfy the need of their customers. This entire process requires the company to maintain excellent relationship with both customers and supplier where information sharing is the key factor. Thus, company could earn more profit by adding value for customers to ensure maximum satisfaction.
- Business and Marketing Philosophies in Google Inc.
In this section, Google Inc will be used to show the relationship between business and marketing philosophies.
4.1 Google Inc. Company Profile:
“Google Inc., incorporated in September 1998, maintains an index of Websites and other online content, and makes this information freely available through its search engine to anyone with an Internet connection. The Company’s automated search technology helps people obtain nearly instant access to relevant information from its online index. The Company generates revenue primarily by delivering online advertising. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the thousands of third-party Websites that comprise the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience” (Routers, 2010). For more details, refer to the attached file in this report which contain Google company’s profile.
- Google Inc. Ten Philosophies (Google, 2009):
Google Inc. have ten business philosophies, they are:
- Focus on the user and all else will follow.
- It’s best to do one thing really, really well.
- Fast is better than slow.
- Democracy on the web works.
- You don’t need to be at your desk to need an answer.
- You can make money without doing evil.
- There’s always more information out there.
- The need for information crosses all borders.
- You can be serious without a suit.
- Great just isn’t good enough.
For more details about Google Inc. ten philosophies, refer to the attached file in this report which contain Google’s business philosophies.
According to Google’s Company profile and Google’s philosophy, it provides business as Internet information provider and using internet by offering product and service that fulfills consumer wants and needs. These products and services include information search engine, email provider, Google adsense and adword for advertising purposes.
Google Inc. has work through with marketing philosophies, which are: marketing concept and marketing function to work in marketing system perfectly. The figures below show exactly this.
“According to Figure 4.1 (refer to appendix), it shows the percentage of searches done by US web surfers in July 2006, that where performed at a particular websites” (Sullivan, 2006). It shows that Google got the most visitors than other sites.
According to Figure 4.2, Figure 4.3 and Figure 4.4 (refer to appendix), it shows that Google becomes the most visited web in United Kingdom at October 2006, and Google retained first ranking with 16,8 million French visitors and becomes the most visited web in France at December 2006. Not only that, at September 2009 Google site becomes the most popular property in Turkey in September 2009 with 18.4 million Turkish visitors, which reaching 93.0 percent of the total online population in Turkish (Comscore, 2006-2009).
From the exaplaination above and data in the figures, it means that Google can do the business philosophies perfectly with support from marketing philosophies, that make the stronger relationship between Google Inc. and customers.
- Conclusions
According to business philosophy and business plan, marketing is the part of business philosophy and business plan that govern the activities of the organization. Without marketing, organization cannot work correctly which resulted in the organization unable to achieve the main goal.
According to marketing itself, it is a specialist functional area of management in the organization. With marketing management as specialized area, organization can manage better exchange and product transaction with consumer, but also manager can increase the relationship between company and customer in the every aspect. With value and satisfaction from the customer, company can earn profit and achieve both goals, which are the marketing management goal and the business plan that is part of organization’s goal.
In summary, marketing is considered to be both an overall business philosophy that govern the activities of the organization and as a specialist functional area.
- Appendix
Figure 4.1: Search Engine Ratings in US, July 2006 (Source: Sullivan, 2006)
Figure 4.2: Total U.K. Internet Visitors at October 2006
(Source: Comscore, 2006)
Figure 4.3: Total France internet Visitors at December 2006
(Source: Comscore, 2006)
Figure 4.4: Total Turkey Internet Visitors at September 2009
(Source: Comscore, 2009)
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