In this section, we introduce the marketing concept, and then consider its relationship to more
recent concepts such as Internet marketing, e-commerce and e-business.
The word marketing has two distinct meanings in modern management practice. It
describes

1 The range of specialist marketing functions carried out within many organisations. Such
functions include market research, brand/product management, public relations and
customer service.

2 An approach or concept that can be used as the guiding philosophy for all functions and
activities of an organisation. Such a philosophy encompasses all aspects of a business.
Business strategy is guided by an organisation’s market and competitor focus and everyone
in an organisation should be required to have a customer focus in their job.

The modern marketing concept (Houston, 1986) unites these two meanings and stresses that
marketing encompasses the range of organisational functions and processes that seek to
determine the needs of target markets and deliver products and services to customers and other
key stakeholders such as employees and financial institutions. Increasingly the importance of
marketing is being recognised both as a vital function and as a guiding management
philosophy within organisations. Marketing has to be seen as the essential focus of all activities
within an organisation (Valentin, 1996). The marketing concept should lie at the heart of the
organisation, and the actions of directors, managers and employees should be guided by its
philosophy.

Modern marketing requires organisations to be committed to a market/customer orientation
(Jaworski and Kohli, 1993). All parts of the organisation should co-ordinate activities to ensure
that customer needs are met efficiently, effectively and profitably. Marketing encompasses
activities traditionally seen as the sole domain of accountants, production, human resources
management (HRM) and information technology (IT). Many of these functions had little
regard for customer considerations. Increasingly such functions are being reorientated,
evidenced by the importance of initiatives such as Total Quality Management (TQM),
Business Process Reengineering, Just in Time (JIT) and supply chain management.
Individuals’ functional roles are undergoing change, from being solely functional to having a
greater emphasis on process. Individuals are therefore being encouraged to become part-time
marketers. Processes have a significant impact on an organisation’s ability to service its
customers’ needs.

The Internet can be applied by companies as an integral part of the modern marketing
concept since:

* It can be used to support the full range of organisational functions and processes that deliver
products and services to customers and other key stakeholders.
* It is a powerful communications medium that can act as a ‘corporate glue’ that integrates
the different functional parts of the organisation.
* It facilitates information management, which is now increasingly recognised as a critical
marketing support tool to strategy formulation and implementation.
* The future role of the Internet should form part of the vision of a company since its future
impact will be significant to most businesses.
Useful PDF for Internet Marketing
Without adequate information, organisations are at a disadvantage with respect to
competitors and the external environment. Up-to-date, timely and accessible information about
the industry, markets, new technology, competitors and customers is a critical factor in an
organisation’s ability to plan and compete in an increasingly competitive marketplace.