Marketing Behavior

free essayThe theory of marketing emerged as a reaction to the commodity overpopulation of markets and the aggravation of marketing problem about 100 years ago in the United States – the most powerful country in terms of industrial capacity. Quite powerful at that time, the industry threw ever-increasing masses of goods onto the market. The service industry strengthened greatly. Consequently, demand and proposal appeared to be in misbalance, which slowed the promotion of goods to their consumers. Thus, there was a need for new elements of promotion and new methods of implementation. In other words, the need of practice created the conditions for the emergence and development of scientific instruments such as marketing, management, etc. Marketing began to be linked to the sale of goods, focusing on the organization of sales, trade, and advertising; however, subsequently, the limitations of this interpretation became apparent as well. Moreover, marketing made an incredible impact on the business climate formation. In its further development, marketing underwent certain stages and evolved precious ideas for developing a business. Therefore, there are numerous ideas on how to improve and develop the business climate.

The Things that Work in Contemporary Business

Modern markets everywhere show signs of incompleteness and imperfection. Thus Godin’s Permission Marketing offers certain ideas on the development of business climate and gives a short background of its evolution. Thus, the first thing that does work in the conditions of modern business climate lies in the fact that it is necessary to invest in the development of an infrastructure with high carbon emissions at a rate that eventually can lead to an irreversible, extremely destructive climate change (Godin, 1999). Worldwide, there is an increase in social inequality and unemployment among young people, while women still receive an average of 25% less than men do for performing similar work (Godin, 1999). At the same time, Godin (1999) successfully claims that in developed countries, the average level of real wages has not changed since the 1980s, which causes deep concern about the impact of automation on the number of jobs in the service sector and in the manufacturing sector as well as hinders further globalization. Real interest rates on deposits in a number of countries with the most developed economies are traditionally low and even negative, while the aggregate amount of debt remains alarmingly high. Views on the economy are unpredictably varied between technological optimism and political pessimism.

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Another idea, which is quite applicable to contemporary business, is that trust plays a significant role in business development. The confidence of the population, entrepreneurs, and consumers in the US economy in August 2016 increased by 1.4 points and amounted to 96.8 points (Godin, 1999). According to the statistics, consumer confidence in August 2016 reached 104.3 points (Godin, 1999). Over the past year, consumers have become less afraid of deteriorating economic situation, began to spend more, and stopped being afraid of unemployment and rising prices. Consequently, each number impacts the business climate, while the job of marketers is to understand what consumers want.

Furthermore, contemporary business climate can use the idea that the manufacturer needs to know in advance the demand for products manufactured by them to avoid wasting financial, labor, intellectual, and material resources (Godin, 1999). Marketing allows the company’s management to obtain the necessary information about what products, at what price, and why consumers want to buy. Using marketing, one can determine the industry that is more profitable to invest or where to open a new enterprise. Consequently, one can calculate the cost-effectiveness options for the production and sale of goods and services, determine which goods are sold to which consumer and in which region, or which goods would bring the greatest return on the funds invested in production, transportation, and storage. Marketing involves identifying a huge number of market opportunities and using each of them. Thus, today, markets are seen as an instrument for regulating production and marketing, or market relations in other words.

Godin presents another idea that perfectly works in the contemporary conditions of business climate. Thus, the concept of marketing is characterized by concentrating efforts on determining the needs and desires of customers with the aim of providing them with those products and services that are necessary to them and the probability of buying which is quite high. Further, the concept of marketing includes focusing on the efforts on several most preferable segments. Moreover, this concept includes, as the Godin (1999) fairly states, the coordination of the main production functions and marketing functions in such a way that consumers and their needs become the main business guide.

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The concept of sales also works within the framework of the business climate of modernity. This concept is characterized by the concentration of efforts on the marketing of products instead of satisfying the requests of consumers. This concept, as determined by the author, is applicable in the case where more customer-oriented marketing methods have not been successful (Godin, 1999). To achieve the desired sales volume, the price is used as an incentive. However, this concept is not suitable if long-term relationships with customers are established and repeated sales are realized, or in the case when there is a possibility of applying a buyer-oriented approach.

The Things that Do not Work in Contemporary Business

Nevertheless, some things outlined in Godin’s book do not work in current business climate. One of them is function of sale. The concept of marketing and its impact on business climate include the sales functions through the production of goods that are highly likely to be purchased on the target market (Godin, 1999). The expediency of applying this concept becomes apparent with a decrease in sales volume, a slowdown in growth in the case of uncontrolled sales methods. In this case, the receipt of profits is not considered as the ultimate goal; instead, attention is focused on the best satisfaction of customers’ requests. As the result of satisfying the needs, the enterprise has the right to expect maximum profits (Godin, 1999). In general, the concept of marketing suggests that the key to achieving the organization’s goals is to identify the needs and desires of target markets and to meet these needs more competently and resourcefully than competitors do.

Furthermore, the idea that does not work in modern business climate is that the clients are of the secondary importance in marketing. The marketing mechanism might sound like this – the consumer dictates their conditions on the market and the manufacturer adapts to them. In modern conditions, the market increasingly falls under the regulatory influence of certain forces, wherein a special role is assigned to the consumer. When stating their requirements for different characteristics of goods, their quantity, or delivery terms, a consumer creates prerequisites for the division of the market between producers (Godin, 1999). Increasingly, the importance of competition for consumers forces the manufacturers to study their requirements carefully. The manufacturer can no longer afford to work for the unknown customer. An organization is forced to focus on a specific market, on a certain consumer. Thus, there is a need to keep developing constantly and have more competitive products, satisfying the growing needs of a particular consumer.

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At the same time, Good’s idea of the harsh struggle against psychological barriers cannot be applied in modern business environment either. Thus, the efforts to activate the movement stop here. Psychological barriers on the way to the market are primarily manifested in the absence of market motivation among the majority of managers, specialists, and the population in general. Thus, Godin (1999) believes that people are traditionally accustomed to receiving from the state things like wages, housing, assistance in solving many of their problems in the sphere of education, recreation, and health. Thus, the state decides what to produce and who will be the target consumer of this product. The underdevelopment of the market mentality is a serious hindrance to the understanding of the necessity of using the concept of marketing. Unfortunately, in the conditions of transition to the market, the mentality of many managers has not changed. Thus, it is not necessary to recognize the importance of solving the production problems, ensuring production efficiency, but one should recognize these problems as secondary to marketing, market problems, and sales.

Next, the mobilization of resources cannot also work properly in contemporary business climate. The author of the book supposes to provide a place on the market and to lead a successful competitive struggle, while the enterprises need to mobilize all their internal reserves and successfully adapt to external conditions (Godin, 1999). In the conditions of a highly competitive market, an increased chance of survival can only be guaranteed by those economic structures whose management is able to assess critically the state of affairs within the enterprise itself. The analysis of internal environment is one of the most complex marketing tasks. Not every manager is given such an exceptional quality as the ability to look from the outside to what and how they and the enterprise they lead are engaged in.

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The balance of production potential is currently believed to be a thing that does not work properly in modern business conditions. Currently, many enterprises have approximately the same production potential and the opportunities for a relatively quick adjustment and adjustment of manufacturing for the production of goods that consumers demand, the so-called intellectual potential of the enterprise becomes important. Thus, the analysis of the company’s internal environment is recommended to start with an assessment of the creative capabilities of the team and the ability of managers at various levels to distinguish among the general staff of people who are inclined to think and act ingenuously, to offer original ideas for new goods, services, new technological solutions, demand and stimulate the sale of the products already produced. From an economic point of view, as the Godin (1999) presupposes, competition is a kind of a struggle between various economic agents for the most efficient use of resources and the most successful organization of economic activity in order to obtain maximum profit.

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Conclusion

To sum up, the Godin’s work discusses various important business ideas. Competition is one of the main features of a market economy since it ensures the creative freedom of individuals and creates conditions for self-realization in the sphere of the economy by developing and creating new competitive goods and services. Competitiveness is a multifaceted economic category that is evaluated at several levels – the competitiveness of a commodity, a commodity producer, an industry, a region, or a country. However, competitive production is still concentrated mainly in the raw and extractive sectors. The author mentions that by changing the structure of the economy, people would be able to solve large-scale tasks in the sphere of security and social development, create modern jobs, and improve the quality and standard of living of millions of people. The book is of interest for managers and businessmen who are eager to succeed in their affairs.