If we want to determine why marketing is necessary to business development we first must define marketing. Marketing is simply a process that businesses use to help determine which of their products or services customers are interested in. It also is used to determine a strategy for sales and communications and business development. Marketing integrates all of these functions to create value and build stronger customer relationships.
When you have set up your marketing process in an efficient manner, you will be able to identify, satisfy and keep your customers. Customer centered marketing is the key to this process. If you are going to properly manage your business then managing your marketing process is a must. This is a change from past years when the focus of business management was production focused. It would be helpful to look at the evolution of orientation of companies from a marketing context over time.
In its infancy, marketing had a production based focus. This meant that companies would specialize in the production of a given product or service. This meant that they were going to base profit on the use of economies of scale. This approach is most useful when there is a high demand for a product or service. In order to continue to be effective it is also important that there is a high probability that customer demand or desire for the product or service will not change. This approach was most popular until the 1950’s.
Then in the 1960’s the focus changed from production to product orientation. This meant that companies were focused on the quality of their product or service. They would look for innovations to improve quality. The thought was that if the quality standards were kept high then people would naturally buy and use your product or service.
This leads us to the next step in the evolution of the orientation of companies. The sales approach was used in both the 1950s and 60s. Selling became the way for a company to develop its business model. In this approach, the focus in not on determining what the customer desires. Instead the focus is on promoting an existing product or service. The goal is to achieve the highest sales possible. This is usually most effective in situations where a company has stores of product that is no longer moving at an acceptable rate. This is also used in situations similar to the production orientation. That is when there is high demand for a product and little chance of a change in customer desire for the product.
In today’s environment, the marketing approach is the most commonly used and most effective orientation. This is when a company bases its marketing strategies on supplying the products or services around consumer tastes or desires. Firms will use research to help determine customer desires. The next step is to use research and development to fine tune products to meet those customer desires. The final step is to use promotions to ensure that the consumer is aware the product exists. The effectiveness of this approach is why it is used the most. By Sharon Denise Talbot