In recent years we have seen increasing efforts to meet the individual wants and needs of customers-a process known as customisation. This has been particularly noticeable in service industries.
Understanding and keeping ahead of competition
One of the key factors in any market is the existence and strength of competition. In a competitive environment organisations are forced to be on their toes. They cannot allow rivals to gain advantages by offering lower prices or goods customers perceive to substantially better.
In order to be successful, organisations will gear their activities to being better than their competitors, and to be keeping up with any improvements competitors make.
Marketing in any organisation must constantly seek to enable the organisation to mange the effects of change and competition by coming up with new products, advertising promotions, price alternations and special offers.
As competitor activity is one of the biggest threats to a business organisation, many markets spend a lot of time finding out what their competitors are doing. It has been argued that most companies react to competitions responses. Competition orientation, therefore sites alongside marketing orientation. This is based on the belief that, if organisations do not satisfy the needs of customers, they will not survive. It is therefore essential to match the production and development of goods and services with the identification and anticipation of customers’ desires and requirements.
Finding out about competitors involves a considerable amount of research. This will start with finding out as much as possible about competitors products and other elements of their marketing mix. It is necessary to identify points of difference between an organisation and its competitors, as well as areas of competitive advantages.
It is important for the organisations not just to look at their competitors products but also how they deal with their customers. Customer needs and requirements are identified in every area of organisational activity, from the original idea and design right up until the final sale and after sales support.
Communicating effectively with customers to satisfy their expectations
An effective network of communications is essential for any form of promotional activity. It enables an organisation not only to communicate with its customers and satisfy their expectations but also to build an image with the world at large. Such as an image which will help others to form judgements about what the organisation stands for, and will influence their dealings with it.
The various tools used to communicate effectively with customers to satisfy their expectations fall within what is known as the promotional mix.
The promotional mix comprises all the marketing and promotional communications method used to achieve the promotional objectives. These methods can be broken down into two different areas:
Non-controllable- communication consists of marketing messages that occur as a result of word of mouth, personal recommendation or a customer’s overall perception of a particular product or service.
Controllable- communication consists of marketing messages that are carefully directed to achieve an organisation’s promotional objectives. These may include the following:
- Advertising
- Direct mail
- Sales promotions
- Sponsorship
- Product presentation
- Direct selling
Co-ordinating marketing functions to achieve marketing aims
Business strategy is concerned with the big decisions organisations make. This may have substantial implications for the whole organisation and influence the future of a business for a long time to come.
An organisation with a strategy knows where it is going because it is planning ahead. Marketing strategy is concerned with identifying and meeting the requirements of customers successfully so that the organisation can meet a range of objectives.
Marketing strategies are the means by which organisations attempt to find out exactly what their customers want, and then to influence customers in a way that is favourable to the organisation.
Marketing strategies require detailed research to find out about:
- Customer requirements
- The right products to develop to meet customer needs
- How to position the product or service in relation to other products and services
- The right marketing mix
Constraints on marketing activities
Every organisation involved in marketing activity is faced with a number of constraints that may limit their activity. They then need to work within these constraints.
Internal constraints- relate to the resource capabilities of an organisation.
External constraints- involve a series of factors within the business environment in which an organisation operates that limit, in one way or another, the organisation activities. These include:
- Consumer
- Competitors
- Economy
- The law
Maintaining a relationship with other stakeholders
As individuals, groups or organisations are affected by what an organisation does, they are said to have a stake or interest in the decisions the organisation makes.
A company’s stakeholder, therefore, include not only its customers and owners but also its workplace, its supplier (and their families), those living near to its sites, special interest groups and, of course, society as a whole, including the environment.
