Doyle's Definition About Marketing
Assignment
“ The centrality of marketing in creating growth and shareholder value suggests a new role for marketing both as a discipline and function… the concept of marketing that will make it more effective in tomorrow’s boardroom is one of contributing to the creation of shareholder value. It can be defined as follows: Marketing is the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage.
Doyle, P., (2000), Valued-Based Marketing, Chichester: Wiley, p29.
By reference to academic literature, critically evaluate Doyle’s definition of marketing. Indicate how a company could apply this definition to create and manage its marketing strategy.
Answer
In recent years, marketing is suggested a new role both as a discipline and function because of the significance of marketing in order to create growth and shareholder value as well. The concept of marketing will become one of contributing to the creation of shareholder value. In this paper, Peter Doyle’s definition of marketing will be evaluated and the example of some companies, which succeed in applying this definition to create and manage its marketing strategy, will be given.
According to Doyle (2008), the principal goal in commercial companies is to maximize shareholder value. The essence of the shareholder value approach is the long-term sustainability of the organization through the creation of lasting value. In commercial company, shareholder value can be created when the shareholder return exceeds the share cost- is the return that shareholders expect to obtain in order to feel sufficiently remunerated (Fernandez, 2001). However, shareholder value is often confused with maximizing profits (Doyle, 2012). Maximizing profitability is short-term and may result in eroding long-term competitiveness through action such as cost cutting and shedding assets to produce quick improvements in earnings. Maximizing
“ The centrality of marketing in creating growth and shareholder value suggests a new role for marketing both as a discipline and function… the concept of marketing that will make it more effective in tomorrow’s boardroom is one of contributing to the creation of shareholder value. It can be defined as follows: Marketing is the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage.
Doyle, P., (2000), Valued-Based Marketing, Chichester: Wiley, p29.
By reference to academic literature, critically evaluate Doyle’s definition of marketing. Indicate how a company could apply this definition to create and manage its marketing strategy.
Answer
In recent years, marketing is suggested a new role both as a discipline and function because of the significance of marketing in order to create growth and shareholder value as well. The concept of marketing will become one of contributing to the creation of shareholder value. In this paper, Peter Doyle’s definition of marketing will be evaluated and the example of some companies, which succeed in applying this definition to create and manage its marketing strategy, will be given.
According to Doyle (2008), the principal goal in commercial companies is to maximize shareholder value. The essence of the shareholder value approach is the long-term sustainability of the organization through the creation of lasting value. In commercial company, shareholder value can be created when the shareholder return exceeds the share cost- is the return that shareholders expect to obtain in order to feel sufficiently remunerated (Fernandez, 2001). However, shareholder value is often confused with maximizing profits (Doyle, 2012). Maximizing profitability is short-term and may result in eroding long-term competitiveness through action such as cost cutting and shedding assets to produce quick improvements in earnings. Maximizing
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