Skip to content Skip to navigation Skip to collection information
(What does "Endorsed by" mean?)
Inside Collection (Textbook): Business Fundamentals
Summary:
Business Fundamentals was developed by the Global Text Project,
which is working to create open-content electronic
textbooks that are freely available on the website
http://globaltext.terry.uga.edu. Distribution is also possible via
paper, CD, DVD, and via this collaboration, through Connexions.
The goal is to make textbooks available to the many
who cannot afford them. For more information on getting
involved with the Global Text Project or Connexions email us at
drexel@uga.edu and dcwill@cnx.org. Editors: Salvador Treviño and Carlos Ruy Martinez (ITESM, Monterrey Campus, Mexico) Contributors: Carlos Alberto Alanis, Gaspar Rivera, Jorge Echeagaray, Jose de Jesus Montes, Juana Monica
Garcia, Ramiro Robles, and Roberto Sanchez
The marketing model is a management orientation which maintains that the fundamental task of the organization is to determine needs and wants of customers in the target market and adapt the organization as a whole to satisfy their customers more effectively and efficiently. Satisfying customers more efficiently and effectively than competitive companies increases the chances of the organization’s success. The marketing model is an approach whereby companies create value for their customers. This concept can be understood by applying it in the so called Value Chain Model introduced by Michael Porter. An application on how this model is applied in marketing is shown Exhibit 1 below.
 |
A simple way to understand the creation of value to customers is by examining the following equation:
Value = Benefits / Price
Value is created by increasing benefits to the customers. For this reason, “benefits” is specified in the numerator of this equation (the higher the benefits, the higher the perceived value by the customer); on the other hand, “price” is placed in the denominator since the higher the price the lower the perceived value.
Now you must understand how value is created for your customers. To do so, managers use a technique called the “Marketing Mix” (commonly called the four P´s)
One of the main advantages of the marketing model approach is that the company tries to be near the customer’s needs by understanding them and therefore developing products that fulfill or exceed them in the best possible way. On the other hand, and especially in developing economies, the main disadvantage of this model is the cost in obtaining the information needed to understand the customer.
More about this module: Metadata | Downloads | Version History
This work is licensed by Global Text Project under a Creative Commons Attribution License (CC-BY 3.0), and is an Open Educational Resource.
Last edited by Jared Adler on Oct 6, 2010 1:05 pm -0500.
Visit the Global Text Project
"Reviewer's Comments: 'I highly recommend this textbook. It is ideal for community college, trade school, and four-year university students as well as for anyone starting their own business. The […]"