BM 2004

FUNDAMENTALS OF MARKETING

May 2015
Lecturer: Eddy Bala
Individual Written Assignment

Name
Sidney Chang Kah Heng

ID No.
00005024

Title: Why marketing strategy is considered as an important aspect to an organisations

success

As we know that a successful company depends on the cooperation of functional areas.

The examples of functional areas of the organization are accounting and finance, human
resource, administration and marketing, etc. However, todays successful companies
depend on marketing which is mainly focusing on creation and retention of customer
value (Jobber 2010). For example, Zappos is one of the successful companies in today
because of their powerful marketing strategy which mainly take good care of their
customers in term of understanding what their customers wants and needs; then creating
customer value in order to fulfil their customers satisfactions (Armstrong 2011).
Therefore, here we are going to explain why the marketing strategy can become an
important aspect to an organizations success nowadays.
In the old concept, marketing is defined as the task of creating, promoting and delivering
goods and services to customers (Kolter 2003). In the new concept, marketing means
managing profitable customers relationships then only building brand awareness and
positioning the brand as customers best choice which is more related to the relationship
marketing (Ambassador n.d.). Actually, marketing is more than just persuading
consumers while it focus on how to attract new customers by promising superior value
and also how to retain current customers by delivering higher satisfaction (Armstrong
2011). Besides, marketing is also the performance of activities that seek to accomplish an
organizations vision, mission and objectives by designing a perfect marketing strategy
planning to satisfy the needs and wants of customers (William 2009).
Every successful company definitely have their own game plan for a long run survival
and growth in the market. The purpose of marketing planning process is to establish a
clear direction to fit between the organizations intentions and capabilities and its
changing marketing opportunities. Therefore, there are 4 steps which are defining the
company mission, goal setting, designing a business portfolio and developing functional
plans.
In order to survive in the competitive market today, a successful company will start in
defining the company mission as a clear mission acts like an Invisible hand in
directing and guiding the whole company. However, the company mission should be
market-oriented, realistic, competence, motivating, consistent and fit current market
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environment (Handlin n.d.).

For example, the mission of McDonald is not aimed to become the world largest and
profitable quick- service restaurant while it is aimed to become the most preference place
and way for their customers to eat in every time then only follow by the profit earning.
From the mission of McDonald, it seems like more market-oriented which is more
focusing on discovering and meeting the needs and desires of their customers through
their product mix.That is why McDonald is awarded under the worlds most visited fastfood chain with a high market share in the world. This is because; McDonald study and
understand what their customers wants and needs in well then only provide special
products and services to serve their customers; by this way, it can help McDonald to
attract and retain more and more loyalty customers (Armstrong 2011).
After that, the company mission will be turned into a detailed supportive goals and
objectives in order to come out with a strong business portfolio which can fit its strength
and weaknesses to opportunities in the environment. In the process of designing a
business portfolio, it must analyze and evaluate the current business portfolio or strategic
business units (SBU), finding out what are the strengths and weaknesses from its,
deciding which SBUs should be focused and invested more or less then only developing
more powerful and flexible strategies for growth and downsizing for the future market.
For instance, SWOT Analysis is one of the most essential elements in the business
portfolio analysis which can help the company to detect what are the strengths,
weaknesses, opportunities and threats from the internal and external factors in the market
(Joseph n.d.).
In the strategy planning, it involves also the cooperation between functional departments
in developing a functional plans and strategies in order to be success. This is because; the
successful organization depends not only on how perfect every department accomplishes
its work but also on how well each department coordinates their activities. For example,
the major functional departments will be marketing, finance, accounting, operation,
human resource and others who must work together in order to accomplish the goal of the
company.
However, in the strategy planning, marketing play a vital role the companys strategy
planning as marketers who are the most close with customers and the understand well in
the needs and wants of customers in the market. For instance, the marketers need to
conduct survey and Research and Development (R&D) in the market insight, customers
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perception, competitors, other forces and factors in the internal and external environment
in order to collect all valuable information. After collecting all valuable information,
marketers have to explain the ideas and concept of marketing philosophy to every head of
functional departments so that those functional departments can coordinate their activities
and also practice an effective value chain management in a ready for serving customers
(Jobber 2010).
Furthermore, marketers have to work closely with the operation, production, finance and
accounting managers by expensing less in resources and cost overhead in order to
maximize profit in the market (Armstrong 2011). For example, if there are more products
an organization manufacturers, the organization can have a warehouse full of products
but without marketing, those products in the warehouse may be profitless inventory
(Lowe n.d.). That is why we said marketing strategy is the most important aspect to an
organization success.
Normally, an organizations success rests on a well-known reputation in the market.
When the company meet the high expectations of public, the business will expand and
the sales will increase. In other word, once the brand awareness becomes a reality,
customers will start to spread the brand by telling friends and family about the products
that they discovered. Then the sale of the organization will increase steadily.
Actually the reputation of an organization is built up by marketers through active
participation in marketing programs, community programs and effective publicity and
communication events no matter internally or externally. In term of the marketing
program, the examples can be website development, public relations, broadcast
advertising and trade show, etc (Lorette n.d.). That is why we strongly argue that
marketing can help to build a strong brand awareness in the market.
In a nutshell, the goal of every business is to maximize profit and expand the business,
and without marketing, this is impossible to happen. This is because; none of the
potential customers would know about the business offerings when there is no marketing;
then the sales of the business may be declined and finally shut down and leave from the
market. Therefore, marketing strategy is considered as an important aspect to an
organisations success.

(1148 Words)
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References List
Ambassador. (n.d.). What is Relationship Marketing? [Online]. Retrieved on 17 August
2015 from: https://www.getambassador.com/blog/what-is-relationship-marketing
Armstrong, G and Kotler, P. (2011). Marketing. 10th ed. Pearson Education International
Handlin, A. (n.d.). 5 Steps Strategies Marketing Process. [Online]. Retrieved on 18
August 2015 from: http://smallbusiness.chron.com/5step-strategic-marketingprocess-15753.html

Jobber, D. (2010). Principles and Practice of Marketing. McGraw-Hill

Joseph, C. (n.d.). Strategies for Success in Business. [Online]. Retrieved on 16 August
2015 from: http://smallbusiness.chron.com/strategies-success-business4670.html

Kotler, P. (2003). Marketing Management. 11th ed. Pearson Education International

Lorette, K. (n.d.). The Importance of Marketing for the Success of a Business. [Online].
Retrieved on 16 August 2015 from: http://smallbusiness.chron.com/importancemarketing-success-business-589.html

Lowe, K. (n.d.). Five Functions That Illustrate the Important of Marketing. [Online].
Retrieved on 18 August 2015 from: http://smallbusiness.chron.com/five-functionsillustrate-importance-marketing-23498.html

William, D, Joseph, P.C and McCarthy, E.J. Basic Marketing. 17 ed. McGraw-Hill

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