Posts bymarketingcompetence

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Industry Definition – inevitable and challenging – Revisiting Ted Levitt’s Marketing Myopia

What business are you in? … Yes, that simple and natural question may turn out to be one of the most important questions a business should provide answer to. It will define the industry the business competes in. Reflect its customers’ needs, wants and problems. It will shape the business mission and vision. It is definitely worth to think of it as an inevitable challenge and the sooner a business accept that challenge, the better.

Defining the industry of a company, which is basically defining the business of a company, is probably one of the toughest challenges management faces. It may seem that it is an easy straightforward task, but that is far from the case. It is not only difficult, it is critical for the success of the business.
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marketingcompetence

Defining Marketing and Its Ingredients

“Marketing is still an art, and the marketing manager, as head chef, must creatively marshal all his marketing activities to advance the short and long term interests of his firm”

Neil Borden famously put it in 1984: “Marketing is still an art, and the marketing manager, as head chef, must creatively marshal all his marketing activities to advance the short and long term interests of his firm”. This was when he first coined the catchy phrase “Marketing Mix.” However, back then he was referring to
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Internal vs External Orientation – The Marketing Concept

Marketing management theory defines several different business concepts based on the “orientation” of the business: internally – towards the product and manufacturing process or externally: towards the market and the customers. Usually the internal orientation is strongly criticized while the outward look is cherished. Well unlike these common papers, we give the pros and cons for each objectively. Enjoy!

You would be shocked now to understand that in 2015 not all companies have adopted marketing concept as the leading business philosophy. It is sort of shameful not to have marketing orientation nowadays. Marketing is trendy, marketing specialists are on demand, marketing departments are emerging. Managers at least will not sacrifice their dignity to actually
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Customer Satisfaction

Customer Satisfaction is the new mantra of marketing. Every business wants its customers to be satisfied. Yes, even utility companies and network operators. But what is actually the nature of customer satisfaction – how does it happen? This article examines customer satisfaction through the Disconfirmation Model and showcases its impact on profits, shareholders value and other aspects of business.

Customer satisfaction is a term that is overused in marketing. We all have heard it. We all have experienced it in both ends – satisfied, dissatisfied. We know it has a great impact on profits and shareholders value. And because it sounds so natural and straightforward we all assume we know everything about it. Many
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The Concept of Value

Value is of vital importance to every business existence. The notion of value carries complex socio-psychological aspects. It is dynamic and multi-dimensional, based on tangible and intangible components. Managers that understand the value of their products and services and study the perception of value of their customers are immensely more competitive.

The concept of value is a corner stone in contemporary marketing and modern business. Yet its construct from a customer point of view, which is the marketing and psychological perspective, remains somewhat vague and shallow. Even the academic literature lacks consensus of opinions on what value is made of. Many entrepreneurs and managers also fail
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What is every business foremost goal?

Have you ever asked yourself “Is there a goal that is so paramount that is applicable to every business in any given situation?” Have you ever asked yourself what that goal might be? Well here is the answer…

Is there something that is of a primary importance for a business, no matter what, no matter when? The business as any living creature foremost goal is to survive. Imagine you are dropped off a helicopter in the tropical forests of Amazon. Your first concern will be how to survive in that new and hostile
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What is the purpose of business?

The famous Peter Drucker once said: If we want to know what a business is, we have to start with its purpose. This article gives the definition of a business organization. It elaborates on the Peter Drucker definition of the purpose of business and provides valuable insights for managers, entrepreneurs and start-ups.

What is the purpose of business? Well that’s an easy one! Generally speaking, every business school on the planet Earth will teach you that the purpose of business is to maximize shareholders value. In other words – make a profit. So the purpose of business is to make money. And here pretty much the argument
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