Q: If marketing is more than advertising – then what is it and why is it important?

As you progress through the e-book you will realise how the well-being of consumers, organisations, and society is related to the adoption and practice of the marketing concept.

It is commonly acknowledged that there are 3 main business concepts [production, selling, & marketing]. The marketing concept is based on the premise that organisations that best satisfy the needs of their customers are best placed to satisfy their own needs. This is regarded as an axiom of business and the basis of a competitive advantage.

Marketing is about simultaneously working towards short-term and long-term objectives – often referred to as the short and long of marketing. The marketing concept works like this – if an organisation measures, manages, and improves collective customer satisfaction [the satisfaction score of all customers] – then the sales baseline will rise over time [the sales baseline is the sales volume that can be achieved regardless of any other sales tactics]. Building the sales baseline is working today for tomorrow – reducing the organisation’s long-term dependence on short-term sales promotional tactics and discounting. If, in the short-term there is a need to boost immediate sales – then organisations [practicing the marketing concept] will implement tactics that are congruent with collective satisfaction and the sales baseline objectives.

On the other hand, if collective satisfaction and the sales baseline are not measured, managed, and improved then every sales promotion will start from a low or zero base – this will increase costs as a % of sales and will result in a competitive disadvantage.

From this brief outline we can conclude that the long-term financial benefits of practicing the marketing concept are an increase in sales revenue, a reduction in costs as a % of sales, and building the value of the business – therefore, the marketing concept is about profitable exchange relationships.

As you progress through the e-book you will discover more about the philosophy and theory of marketing and how to apply this knowledge to measure, manage, and improve collective customer satisfaction, you will learn how to identify the situational factors that influence customers and organisations – and learn how to undertake the CADDIE business-marketing planning process to achieve the marketing objectives of the organisation.

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