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Marketing Strategy For A Service Based Organization

2650 words - 11 pages

The philosophy of marketing concept and marketing management in service organizations are merely outward manifestations of a basic and important development in marketing. In the past decade, marketing executives in service organizations have adopted a new perspective. Embracing a systems perspective, they tend to see marketing operations as complete systems. Marketing management in service organizations is responsible for designing and directing a total system of marketing action to achieve predetermined objectives. The systems approach is essential for effective decision making, for the utilization of models in marketing, and for the application of computer technology. Systems analysis is a managerial breakthrough, somewhat akin to breakthroughs in various sciences, and has given rise to powerful concepts and tools of analysis. The systems approach is based on the work of Von Bertalanffy, who is credited with coining the phrase "general systems theory." He conceived of a set of objects, their interrelationships, and their attributes as systems. The objects were merely components of a system. Therefore, any groups of marketing activities and elements that can be delineated physically or conceptually constitute a system. Marketing systems in service organizations are collections of entities that form coherent groups. The fact that entities or activities are capable of being understood as a coherent group, rather than as a collection of parts, makes them a system. This conceptual insight has led to the development of new disciplines such as industrial dynamics and systems engineering (1). In marketing, the systems approach turns on the central theme that marketing reality occurs in systems. A service organization, part of it, or its connection with others, can be represented by some suitable system that may culminate in a physical replica, chart, flow diagram, series of equations, simulation model, or just a concept. The survival and growth of systems is largely determined by the effectiveness of flows and communications. Marketing systems contain "flows" of products, services, finances, and equipment through channels and communications to and from marketplace. Two units of action of a marketing system have been described as "transaction" and "transvection." Transaction focuses -- on negotiations and exchange. Transvection represents a unit of action of the whole marketing system, the matching of original producers with ultimate consumers. Marketing planning in service organizations, a critical management activity, cannot logically be separated from assessment of opportunity. Fundamental to the systems perspective advocated, it brings a coordinated effort to the enterprise, adjusting and balancing its resources, and producing programs of logical action. Since marketing executives are faced with the necessity of utilizing scarce capabilities and resources in limited periods of time, allocation is a major problem. Effective allocation can only...

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