To what extent do you agree with this statement?
Marketing used to be considered as the most important part of business because marketing sold the companies' goods to achieve most profit of the whole income. At that time marketing was generally defined as a set of processes which focus on the sale and the relationship between customers and the company. In the last decade, an increasing number of enterprises become to put marketing on less significant role of their corporate organization. Thereby marketing seems to be losing its core position of the needs of business. However, this essay will attempt to argue that marketing is still a vital element of business through two aspects. This paper will first discuss the advancement of marketing theory, especially about the definition. Second, it will analyse the changes of marketing in company operation.
Based on the change of economic environment, the definition of marketing is constantly improved and the theories develop on several aspects. In the traditional definition the central point of marketing is good. Marketers' major responsibility is to make the maximum profit by selling so that most marketing activities are around how to deliver to the consumer (Vargo and Lusch, 2004). And the theory is founded on 4Ps which include price, place, product and promotion, which compose the marketing structure.
However, the redefinition of marketing produced by AMA (American Marketing Association) in 2007 involves individuals, exchanging marketing offerings and society duty to adjust to the changing market (cited in Parsons and Maclaran, 2009). First, costumers are encouraged to participate in the process of production, which is called 'co-creation'. Second, the new definition asks the company pay more attention to service not only the goods. The company should not only sell the good but also offer the satisfactory service in the process of both sale and after sale. Third, the company needs to bear the societal responsibility which used to be often ignored. Even though consumers sometimes want products that are not good for them or some goods can make a large profit but do harmful to the society (Sheth and Sisodia, 2005), the enterprise should lead the citizens to the correct realization. In addition, the eight foundational premises replace the 4Ps in current major marketing theory. The new theory looks at the specialized skills and service-centered view (Vargo and Lusch, 2004) so that it requires marketers own higher academic knowledge and enterprises enable the customer become coproducer. The improving definition and theory guides the enterprises' right organizational and functional development which conformance with the needs of customers and companies themselves. As a result, the companies can well run long-term business; meanwhile it can earn more profit.
Another point that shows marketing still play an irreplaceable position on companies' organization is the continually improved company operation. Enterprise optimizes its tactics, strategy and organization to play the role of marketing. Several changes such as using new technology, practicing promises management and improving the marketers' position at board level contribute to play the role of marketing.
Internet is regarded as a threat to marketing because online shopping channel cuts off the connection between customers and marketers. And the consumers can buy the goods by the way called 'do it yourself'. Amazon