Marketing is about selling something. Marketing within organizational structures is therefore about selling the goods and services that that organization has on offer. Without marketing the company will not be able to sell any goods and services and consequently will not be able to make profits. Without profits the organization wouldn’t be able to carry on for long.
Therefore business marketing has a central role in organization structure. This article aims to re-enforce some of the reasons why business marketing cannot be ignored by prudent executives.
Business marketing is distinguished from the normal marketing between customer and seller. In this context business marketing is meant to mean the organization of the buying and selling mechanism between different organizations. The former is called organizational marketing.
Of course there will be some businesses for which they have no other customers other than fellow organizations which resell the items that have been sold to them. The distinction between the two concepts is recognized by various writers but the principles underlying both concepts are almost identical. A good business marketing model can easily be re-configured to become a good organizational marketing model.
Some organization will have operations that cross over between business marketing and organizational marketing which would mean that they would have to create different marketing models to ensure that each section of the sales mix is adequately catered for. This does not mean that they cannot share information or that that one section can be totally independent of the other. There is a possibility that the two concepts will be managed by totally separate teams who rarely have much interaction between them. On the other hand it is entirely possible to have a system where the two work hand in hand. In some cases the staff could even be the same.
Having examined the definition of business marketing, it is quite clear that in order to successfully undertake the activities required of that part of the company’s operations, the sales people or the people who manage its strategic input have to have proper communication with other businesses. This creates an industry market where they are norms and systems that everyone buys into to ensure that business runs smoothly.
The differences in emphasis will arise between a company that earns its keep purely on the basis of business marketing and the one that earns its profits on the basis of both models. Where the organization is entirely reliant on business marketing, the staff within that section will have special privileged status and their concerns will be dealt with in the quickest manner possible. All strategic decisions will have a starting point to the effect that the marketing section takes precedence.
The position in companies that rely on a combination of both marketing system is slightly nuanced. There will develop a covert competition for resources which can mean that managers could use this as a tool to motivate each team to outdo the other. The ability to have another revenue source will also provide some relief for managers from that section who may have had to carry full responsibility for keeping the company afloat.