Business Philosophy & Business Plan Essay
“Marketing is the business study about social and managerial process by which persons group to achieve what they need and want through create and exchange products, service and value with others”(Mercer, 1992, p.5). However, marketing in organization is affected by internal factors such as internal or company resources and external factors such as customer and business environment. By understanding marketing, it enables managers to recognize and understand the importance of marketing concepts, theories and framework that can be applied in the organization.
The objectives of this report are to analyze and to find the relationship between marketing and business philosophy in the organization using Google Inc. as the example. First, this report will show about the theory of business philosophy and business plan in organization. Second, this report will define marketing through marketing philosophy, theories, concept, function, and framework system. Finally, By using Google Inc. the report will relate the business and marketing philosophies over there followed with a conclusion.
1. Business Philosophy & Business Plan “Business Philosophy refers to fundamental theory of businesses in any range of accounting, investment, public relations, executive time manager, marketing, training, labor relations and corporate governance advances claimed to develop business performance in some provable way” (wordiq,
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To achieve the organization’s goals perfectly, managers must build business plan as an essential item in organization. Organization has only one main goal, however with business plan as an overall business philosophy, that goal can be divided in some specialist functional areas that have their own goals. “Business plan consists of: background and purpose, market analysis, product or service development, marketing, financial data, organization structure and management” (Findlaw, 2010).
1. Marketing “Marketing refers to an organizational function and a social managerial process for creating, communicating, and delivering value to customers and managing relationships in ways that benefit the organization and its stakeholders” (Kotler et al, 2007, p. 7). 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, 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.
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.