Understanding the critical role of marketing in organisations and society

Marketing is a way of doing business rather than a function of the business. We all probably know organisations that have marketing departments but their core driving force is something else; it could be financial, sales or manufacturing.
Philip Kotler gives us a very simple model of a marketing system, it connects a group of sellers/an industry to a group of buyers/a market via an exchange of goods/services in return for money. This exchange is two way and involves communication about the goods/services and also a build up of information that provides a better understanding of each other.
If this system is applied effectively within the organisation, it will deliver the overall aims/goals of that organisation. If done badly, it can lead to closure.
Marketing can be explained by this simple model but it must be implemented well for it to be effective.
We are all aware that doing business in 2013 in Europe and North America, is extremely challenging and I would say that for businesses to survive in tough economic times, they need to embrace the principles of marketing like they have never embraced them before.
Many organisations I know are working in markets that are shrinking - just to stand still in terms of sales income and gross profit, often means having to put on double digit market share gains. Gaining market share in a static market means having to take business away from a competitor, not always easy but in a shrinking market, you can assume that all competitors will have their strategies and plans in place to do all they can not to lose valuable business.
Using the Kotler model of a marketing system, clearly shows us that to increase share in a shrinking market, organisations need to connect with more of the market, i.e. gain more customers. I always believe that it's important to make sure you look after what you have to ensure any leakage is kept to a minimum. Do this first to make sure any gains are not offset by losses. Then work out how you will take share away from your competitors.
Understanding your competitors as well as possible should highlight some areas where you could attack. It may be in the area of the brand proposition, service or some form of promotional offer to get them to switch brands.
At the end of the chapter, Kotler says "companies cannot survive today by simply doing a good job". In 1988 this was probably true but in 2013, it almost certainly is.
Marketing as a way of doing business is I believe the only way for orgainsations to develop their business cultures, set business objectives and go about developing long term profitable customers.