- Role of the Marketing Function
What is the role of the marketing function in business?
In business, the marketing function consists of five key functions, namely, strategic marketing, corporate marketing, product marketing, product management, and field marketing. Strategic marketing is involved in the setting up of strategies to ensure business growth. Corporate marketing entails investor relations and public relations (Kotler & Armstrong, 2013). Product marketing involves such activities as product launching and sales training programs. Product management involves managing product price, research and development, and release strategy of a product. Finally, field marketing involves marketing of a service or product in the field. It also entails reaching out to the mass market.
What are some activities of the marketing department?
The marketing department of a firm engages in several activities. First, it has to focus on the customer. This involves spending time to listen to existing and prospective customers to understand their wants and needs on a given service or product (Armstrong et al., 2014). The marketing department must also monitor and understand both its direct and indirect competitors in terms of whom they serve, that they communicate, and why customers choose your rivals over you. It is also the duty of the marketing department to create meaningful messages via ideas, images, words, and names, in a manner that delivers the organization’s benefits/promises to its customers. In addition, the marketing department should create new ideas for use in the promotion of new products, and customer acquisition campaigns.
Explain how the marketing function determines customer value
The marketing function determines customer value by weighing the perceived benefits of a product or service by the customer against its price. It does so by developing a price and offering of the product or service in such a manner as to have customers attracted by its value, and in the process, attain a profitable bottom line.
- Products and Services
There are five categories of classifying services: consumer, convenience, shopping, specialty, and unsought (Kotler & Armstrong, 2013). An example of unsought service is Life Insurance. Like the other services, Life insurance shares the four characteristics of a product namely, intangible, inseparable, variable, and perishable. As a service, life insurance is intangible. As such, buyers cannot feel or touch the product prior to its purchase. Marketers of life insurance therefore have to make sure that they convince buyers that the product being sold is good value for money and will bring satisfaction to them. They can do this by having customers who are satisfied with the product give testimonies for its use.
Life Insurance is inseparable from the insurance company selling it. To enhance customer satisfaction, the company selling life insurance should ensure that the quality of interaction between customers and its sales people has been improved. Owing to the varying nature of services from one provider to another, to ensure consistency in service provision, the company marketing life insurance should consider investing extensively on staff training and development. This will help to reduce variation in the consistency of service provided.
Services are generally perishable as they cannot be stored, until the next buyer comes along. In an industry facing fluctuating demand, perishability is a key issue that warrants serious consideration. In the insurance industry, there are certain times when Life Insurance is in high demand, such as when institutions like schools, hospitals, and the disciplined forces are recruiting. At such times, insurance companies need to hire additional sales people to counter perishability.
Armstrong, G., Adam, S., Denize, S., & Kotler, P (2014). Principles of Marketing. New York:
Kotler, P., & Armstrong, G. (2013). Principles of Marketing (15th Edition). New York: Prentice