Marketing Functions in Organization
jhcakfjswwwwMARKETING AND ITS FUNCTIONS
Marketing has a connective function in society. It connects supply and demand or production and consumption. At micro-level, marketing builds and maintains the relationship between producer and consumer.
At business unit level, marketing can have an integrative function. It integrates all the functions and parts of a company to serve the markets.
The narrowest definition is to see marketing as a function of a business enterprise between production and markets taking care that products move smoothly from production to customers.
2.2. The societal function of marketing
In modern society production and consumption are apart from each other. Marketing connects them. From the societal point of view, marketing is a philosophy which shows how to create effective production systems and consequently prosperity.
Business is a subsystem of society, which has both a social and an economic role. Thus, a company must operate in a way that will make possible the production of benefits for society and, at the same time, produce profits for the company itself. (Davis, K. et al. 1980) The role of marketing in society means also responsibilities. In addition to economic and social responsibility, ecological responsibility is nowadays emphasized. According to some definitions, environmental responsibility is part of social responsibility. Improvement of marketing is related to the changing emphases of economic, social and environmental responsibility. Goodpaster and Matthews (1982) analyse three patterns of thought which can be distinguished for a company's social responsibility: 1. The invisible hand; 2. The hand of government; and 3. The hand of management.
1. The invisible hand view (promoted by e.g. Milton Friedman) concludes that the only social responsibilities of business organizations are to make profits and to obey laws. Free and competitive market-place will ensure the moral behaviour of companies. The common good is best
Marketing has a connective function in society. It connects supply and demand or production and consumption. At micro-level, marketing builds and maintains the relationship between producer and consumer.
At business unit level, marketing can have an integrative function. It integrates all the functions and parts of a company to serve the markets.
The narrowest definition is to see marketing as a function of a business enterprise between production and markets taking care that products move smoothly from production to customers.
2.2. The societal function of marketing
In modern society production and consumption are apart from each other. Marketing connects them. From the societal point of view, marketing is a philosophy which shows how to create effective production systems and consequently prosperity.
Business is a subsystem of society, which has both a social and an economic role. Thus, a company must operate in a way that will make possible the production of benefits for society and, at the same time, produce profits for the company itself. (Davis, K. et al. 1980) The role of marketing in society means also responsibilities. In addition to economic and social responsibility, ecological responsibility is nowadays emphasized. According to some definitions, environmental responsibility is part of social responsibility. Improvement of marketing is related to the changing emphases of economic, social and environmental responsibility. Goodpaster and Matthews (1982) analyse three patterns of thought which can be distinguished for a company's social responsibility: 1. The invisible hand; 2. The hand of government; and 3. The hand of management.
1. The invisible hand view (promoted by e.g. Milton Friedman) concludes that the only social responsibilities of business organizations are to make profits and to obey laws. Free and competitive market-place will ensure the moral behaviour of companies. The common good is best