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Marketing's Role in the Organization

Topic: If the premise is that marketing creates value, then explain marketings role in the
In the modern economic society, marketing has been very close to everyones life. There are also
some organizations such as enterprises, schools, institutions and government which are adopting
various marketing activities every day in order to create more benefits for themselves. Drucker
(1974) has stated that the purpose of marketing is to make selling surplus. The aim of marketing is
to fully realize and understand customers, in order to enable products or service to fit customers
and sell itself.
Thus, marketing's role as a driver of an organization's value chain will be stressed as value chains
are increasingly shaped by consumer expectations and demands.
This essay will clarify how the marketings role in Sony to be a value creator in various ways. In
order to illustrate how marketing create value to the firm, it is necessary to understand the
definition of marketing. What is marketing on earth? Marketing is a managerial function and a set
of courses for communicating, creating, managing customer relationships and delivering value to
customers in ways that benefit the organization and its stakeholders (American Marketing
Association),date?. Marketing, by means of exchanging, results in obtaining the required products
and service. Exchanging, the proceeding steps of value creation, usually will benefit mutually and
further the exchanging of mutual values. The essence of marketing is aimed at creating customers
value and satisfaction. A precise definition to the studies of marketing as given by Kotler (2004) is
that the profitably contented with the requirement. Moreover, marketing assigns all those activities
which accelerate services or the movement of goods from the producer to the consumer. In other
words, it means those activities connected with distribution, advertising, promotion, merchandising,
product planning, publicity, research and development, transportation, sales and services or
warehousing of goods (Indiainfoline, 2002). Sony is a company with a reputable name and a great
trade of brand recognition worldwide. The company rapidly presented itself to the world as a
technological inventor capable of creating many consumer-friendly first such as the Walkman, the
transistor radio, and the camcorder, although it started a small Japanese telecommunications
company in Tokyo. Based on Southgate (1994), a brand is not a name, graphic device or logo. It is
a part of intangible values in the minds of consumers. A strong brand is therefore alive, complex,
rich and enormously powerful. However, Sony is facing profits and sales are down or are gradual
down, R&D and capital investment cost are arising, competitors are moving in with copycats, the
struggle between VHS and Beta and the research for a smash hit product such as the Walk-in or
the Trinitron. According the survey of Business Week (2005), Sony, No.28, which declines 16% in
brand value in the 2005 ranking? Although the firm is pioneered the Walkman, left Apple to reform
portable MP3 players, as well as digital downloading and organizing of music.
Thus, the R&D group becomes a key element of corporate strength, or weakness, with the
company highly dependent on its ability to deliver significant new technology, when expected
(Webster, 1990). Similarly, Urban and Hauser (1980) indicated that the firm needs a strategy for
development. It must learn and understand how consumers perceive products, what needs exist,
what consumer preferences are relative to the needs, and how consumers choose among
products. This essay focuses on deep product strategy as a value creator to Sony. Marketing acts
a central role in translating marketing information into products and afterward positioning these
products in the target market from new product development process (Song, Montoya-Weiss, &
Schmidt, 1997). Also, the effective development and management of products can be an important
factor in determining whether a company will succeed in gaining business from the major account
market (Turner, 1990).

Sony implemented restructuring plan recently, pointed at putting the struggling consumer
electronics giant back on its feet, but got a doubtful response when the company presents of its
new Walkman type a portable music player. A news from Taipei Times (2005) described that
Sony's content-to-product strategy and the new plan disappointed those looking for a more radical
departure at a company that is struggling with the likes of Apple, which marries style and high-tech
sophistication in its must-have iPod music player. The companys plan lacks in details and similar
to earlier plans which have not worked, Nomura Securities analyst Eiichi Katayama told. New
products are a necessary response, if the firm is to retain its marketing effectiveness, to changing
customer preferences and dynamic competition in the marketplace. A stagnant product line is good
evidence that an industrial firm has failed to keep up with advancing technology and the state-ofthe-art in its industry (Webster, 1990). In addition, a source of new product stimulus is a customer
request to produce a specific product that the customer has designed (Urban & Hauser, 1980).
Sony needs to approach an effective managerial strategy of new product development that is likely
to achieve success, but at the same time minimize risk. According to Magrath and Higgins (1992),
innovation need satisfy consumer needs. These needs may relate to new product designs with
appeal, new product uses, or the innovative developing of new groups of product users. Moreover,
a more sophisticated strategy to react to competition is the second but better strategy. The firm
waits until the competitors product is revealed and then not only copies it, but improves on it. The
objective here is to be flexible and efficient so as to produce a product that will be superior to the
competition without incurring the heavy market developmental expense for the product. Another
approach to development is through the notion that someone must buy a product. The marketing
strategy is based on finding consumer needs and then building a product to fill them (Urban &
Hauser, 1980). Similarly, a firms new product strategy is increasingly recognized as a critical part
of the total business plan. The key product strategies are developing highly innovative products,
introducing products that meet customer needs more effectively, and introducing products with
unique features for customers (Cooper, 1983).
Sony flaunted its PSX, the enhanced PlayStation 2 video-game machine. It also works as analog
TV, a DVD recorder, music player and digital photo album. The design of a single machine that
has a little bit of everything seems logical and attractive to customers. Some analysts argue that
audiovisual equipment and the game machine don't necessarily go together since the life cycles of
AV machinery are much shorter, requiring constant upgrades. Moreover, the product doesnt
match the market, Kazumasa Kubota says, analyst with Okasan Securities Co. in Tokyo. The PSX
may sell in amounts when it first goes on sale, but it will be hard to keep the sales going
(Kageyama, 2003). Many as 90% of new products may fail in the market because many
companies are scrambling to develop innovative high technology products. Then a definite need
for the product exists in the market which must be determined. In addition, competitive products
must be analyzed to assess by the market and segmented to identify target markets that will obtain
greatest profits from the product and offer competitive advantages (Lucas & Bush, 1984).
Sony made itself into poor positioning and misunderstands of consumer needs. Urban and Hauser
(1980) stated that positioning is the identification of a set of psychological need attributes and the
description of the level of each attribute for a new product. The companies should pay much
attention to the positioning issue as their discuss new product design. One of the major efforts in
successful new product design is to define a good psychological positioning and a set of physical
features to back it up. In order to avoid products failure, Moon (2005) analyzed companies can
change customers mentally classify their products by positioning these products in unexpected
ways. The firms through reverse, breakaway and stealth positioning are to shift consumers
thinking in order to create a profitable place to ply their merchandises. In addition, different
customers are likely to have different needs requiring some adjustment of the product. This means
that the selection of customers, market segmentation strategy, is the key, long-term strategic

choice for the industrial firm (Webster, 1990). Indeed, product position is strategically important
because it can take years to create, it is difficult to change, and it affects business success and
competitive strategy. A product or service position involves the set of associations with the product.
It is created over time, often from a large assortment of sources such as the product design, the
advertising, the store in which it is bought, and who uses it (Aaker, 1988).
A product does not have novelty to benefit from original new positioning, nor does it have to be
past its prime. The old rule of the product life cycle is by simply challenging consumers' notions.
Thus, from time to time, it makes sense for a company to review its product portfolio. Such a
review can usefully be conducted once or twice per year. Grouping products according to
approximate stage in the product life cycle may be a useful first step: new products; growth
products; mature products; and declining products. Effective marketing may be successful in
retarding the inevitable progress of the product life cycle and may bring the market back to an
earlier stage, such as moving from maturity back to growth (Webster, 1990). Because of global
competition and rapid technological advances, high technology products such as digital cameras
and notebook computers have short life cycles. The company may upgrade its characteristics over
time for renewing the competitiveness of a product. While products contain a set of features with
some alternatives for each, design involves complex decisions: which features to upgrade, when to
upgrade, and what alternatives should be chosen. The decisions will help managers in deciding
the content and timing of promotions to maximize life cycle profit. And it merges traditionally made
by various operations in the enterprise (product design, process design engineering, marketing,
production planning and supply chain management) (Damodaran & Wilhelm, 2005).
Today, marketings role in the organization has become more and more important. Proper market
strategy, intelligent product definition and execution of without mistakes will separate winners from
losers in a market economy with very little opportunities for error. Sony is trying to pursue
innovation by diversifying its core technologies. But the firm neglects a customer-need orientation
as an organizing principle for new product development. For example, the new portable walkman
is not satisfying consumer demands. Understanding the needs of the customer is an axiom found
in all product development literature. As the result, companies should evaluate and refine to
produce a product with consumer psychological attributes which indicate a high probability of
success in the market. In addition, the new product marketing program requires careful definition of
market segments. Positioning is a central strategic issue in the marketing of new products,
although positioning is often thought to apply only in a consumer market context. Sonys product
positioning such as PlayStation 2 doesnt match the markets. In order to avoid new products
failure, the firms can change consumers thinking through reverse, breakaway and stealth
positioning. Without developing and marketing new products, a firm must struggle to keep
profitable growth. Also, a strategic view of the product portfolio can help to stimulate the
development of new products.

2. Ethics in Marketing
A revision of the traditional marketing concept that suggests that marketers adhere to principles
of social responsibility in the marketing of their goods and services; that is, they must endeavor to
satisfy the needs and wants of their target markets in ways that preserve and enhance the wellbeing of consumers and society as a whole. The Societal Marketing Concept *All companies
prosper when society prospers.*Companies, as well as individuals, would be better off if social
responsibility was an integral component of every marketing decision.*Requires all marketers
adhere to principles of social responsibility.
Ethics in Marketing -In addition to problems cited above, some critics also argue that the moneymaking motive of some marketers has encouraged many to cross the line in terms of ethical
business behavior. Ethics is concerned with what is right and what is wrong. Many people
assume that only actions that violate laws are considered unethical. While it is true that illegal
activity is also unethical, a business activity can be unethical even though no laws are violated.
For instance, some consider it unethical for marketing companies to aggressively promote
unhealthy foods to children though such promotional practices are generally not viewed as illegal.
Sometimes the line between what is considered ethical and unethical is difficult to distinguish since
what is right and wrong differs depending on such factors as nationality, culture, and even
industry. For example, many websites offer users access at no monetary charge to their content
(e.g., articles, videos, audio clips, etc.) but do so only if users register and provide contact
information including email addresses. Some of these sites then automatically add registrants to
promotional email mailing lists. Some view the practice of automatic opt-in to a mailing list as
being unethical since customers do not request it and are forced to take additional action to be
removed from the list (opt-out). However, many marketers see no ethical issue with this practice
and simply view adding registered users to an email list as part of the cost to customers for
accessing material. Marketing Code of Ethics-The call for marketers to become more responsible
for their actions has led to the development of a code of ethics by many companies and
professional organizations. A company code of ethics includes extensive coverage of how
business is conducted by members of an organization. For instance, Yahoo! lays out an extensive
list of what is expected of their employees in their document The Guide to Business Conduct &
Ethics @Yahoo!. Among the issues covered are:*Business Relationships (must never take unfair
advantage of others through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts or any other unfair dealing practice)*Offering Gifts to Clients
(may not furnish or offer to furnish any gift that is of more than token value or that goes beyond
the common courtesies)*Receiving Gifts From Clients (must never request or ask for gifts,
entertainment or any other business courtesies)*Business Communication (should take care to
avoid exaggeration, colorful language, guesswork, legal conclusions and derogatory remarks or
characterizations of people and other companies)
Marketers often join professional organizations for the purpose of associating with others who share similar
interests. These organizations include industry associations, whose membership is mostly limited to those
who work within a particular industry, and professional services associations, whose membership consists
of those who share similar job responsibilities. Marketers joining these organizations often find that a code
of ethics has been developed that is intended to be followed by all organization members. For example, the
Canadian Marketing Association lays out rules for its membership, which includes marketers from many forprofits and not-for-profit organizations, in its Code of Ethics and Standards and Practices. The Code
discusses such issues as: *Accuracy of Representation of Products (must accurately and fairly

describe the product or service offered)*Support of Claims Made About Products (must be able to
substantiate the basis for any performance claim or comparison)*Acceptability for Using the Word
Free (Products or services offered without cost or obligation)*Guidelines for Advertising Which
Compares One Product to Another ("must be factual, verifiable and not misleading)

3. Marketing vs. Advertising: What's the Difference?

You will often find that many people confuse marketing with advertising or vice versa. While both
components are important they are very different. Knowing the difference and doing your market
research can put your company on the path to substantial growth.
Let's start off by reviewing the formal definitions of each and then I'll go into the explanation of how
marketing and advertising differ from one another:
Advertising: The paid, public, non-personal announcement of a persuasive message by an
identified sponsor; the non-personal presentation or promotion by a firm of its products to its
existing and potential customers.
Marketing: The systematic planning, implementation and control of a mix of business activities
intended to bring together buyers and sellers for the mutually advantageous exchange or transfer
of products.
After reading both of the definitions it is easy to understand how the difference can be confusing to
the point that people think of them as one-in-the same, so lets break it down a bit.
Advertising is a single component of the marketing process.
It's the part that involves getting the word out concerning your business, product, or the services
you are offering. It involves the process of developing strategies such as ad placement, frequency,
etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail,
billboards, television, radio, and of course the Internet. Advertising is the largest expense of most
marketing plans, with public relations following in a close second and market research not falling
far behind.
The best way to distinguish between advertising and marketing is to think of marketing as a pie,
inside that pie you have slices of advertising, market research, media planning, public relations,
product pricing, distribution, customer support, sales strategy, and community involvement.
Advertising only equals one piece of the pie in the strategy. All of these elements must not only
work independently but they also must work together towards the bigger goal. Marketing is a
process that takes time and can involve hours of research for a marketing plan to be effective.
Think of marketing as everything that an organization does to facilitate an exchange between
company and consumer.