It was once thought that the business is just a set of functions that can work independently from each other. Marketing was a function of, the sale was function, the production function. These functions are implemented by independent departments of the company.
In organizational and directional marketing needs of the consumer have traditionally been considered on the basis of the four “P” which includes a product or service (product), place (place), price (price) and promotion (promotion).
/ Note. Sometimes the four “P” was added three more: process (process), people (people) and material evidence (physical evidence) — the result is the seven “P”. John Kotter is once added to the complex policy (politics). /
But this approach creates the wrong idea about the purpose of marketing analysis of customer needs in the twenty-first century, therefore, leads to incorrect decisions about the conduct of marketing activities. It is better to consider the needs of consumers (both corporate and end) “through their eyes”, using them the vision of the four “P”.
Separate functional units, such as financial service, production Department or the marketing Department, continue to exist in firms, and you can manage them — either good or bad. However, in itself even a great marketing Department is no longer able to provide the company with a competitive advantage.
All the activities of the marketing Department is only part of the process that happens every time someone buys or uses goods or services of the company. This is the part of the process by which the relationship between the client and the company become stronger, and the needs of the consumer and the other participants are satisfied, which in turn ensures the success of the company. “Golden head” of management John key (John Key) wrote in 1993: “I see the company as a set of relations between different actors — workers, consumers, investors and founders. Successful I believe that organization that creates authentic relationships and a working environment in which the value of this identity is enhanced”.
What characterizes these relationships? Money plays here not last role, whether the level of salaries of personnel, dividends received by shareholders, or invoices issued to the customers. However, the money is not restricted. There are more important things such as loyalty, efficiency and human relations.
No matter people are buying your products or work for you — they are somehow involved, to a greater or lesser extent meet their needs. The objective of the company is to increase the value of these relationships. The use of four “P” was a suitable solution for companies where relations have not paid much attention, and where there was only an independent entity with a hierarchical structure.