National Housing and Construction Corporation
Customer service workshop
March, 17th-19th 2000
Creating a market driven organisation
Prepared and presented by Kalema Golooba Ayub
Abstract
In a highly competitive world, the only true source of a sustainable competitive advantage is the customer. Successful enterprises are those that can identify and satisfy customer needs more efficiently, effectively and profitably than their competitors.
This paper presents a case for marketing. It surveys the prevailing situation in Uganda and explores the marketing concept. It identifies the key players in the marketing function and then presents the basic tenets of marketing today, contrasting it with selling.
Historical background
A seller’s economy
Scarcity
Construction and housing almost came to a halt
No place for marketing
Table 1 Percentage Annual growth rates if the construction Industry at constant 1991 prices.
Source: Ministry of Finance, Planning and Economic Development.
Note: 1997 growth rates also reported as 9.9, 2.7, 8.0 %.In statistical abstract July 1999 of Uganda Bureau of statistics
Today’s challenges
Liberalisation of the Economy and its Globalization
Privatization and sale of public enterprises
Rapid changes in technology
Environmental concerns
Changes in consumer tastes and Incomes & demographic changes
More competition 3 levels
Identify and describe competitors in terms of their size, goals, market share, product quality, marketing strategies, and other characteristics needs to understand their intentions and behavior.
Marketing defined
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through offering and exchanging products of value with others
It involves the key concepts of:
Needs, wants and demands;
Products, value, cost and satisfaction
Markets and marketing
The marketing concept is a philosophy that the key to achieving organizational goals consists in determining the needs and wants of a target market and delivering the desired satisfaction more effectively and efficiently than competitors.
It focuses on the buyers’ needs and not simply on converting a product into cash
Satisfies a need with the product and all the services associated with delivering and consuming the product. For NH&CC, all the activities are important atleast as much as the house.
Marketing takes an inside-out perspective. It begins with a well defined market, focuses on the customer needs, coordinates all the activities that will affect the customers, and produces profits though creating customer satisfaction.
Pillars of marketing
Who are your customers?
What market segment is NH&CC serving?
Can NH&CC provide solutions tom all the every customer need?
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Historical evolution of the marketing concept
Production concept:
Assumes that customers favor products that are widely available and low in cost e.g. cheap houses. It suits a scarcity economy and where product cost is too high and needs to be brought down
The Product concept
Assumes that consumers favor high quality well made products with innovative features e.g. spacious bungalows and that consumers can assess the quality of the product. The firm concentrates on producing and refining a high quality product.
The selling concept:
Assumes that consumers left alone will not buy enough of the firm’s product so the firm undertakes aggressive selling
Whose responsibility is it?
Who are the people involved?
What role should each play?
Rough
Winning companies are those who can meet customer needs economically and conveniently and with effective communication.
4P 4C
Product Customer needs and wants
Price Cost to customer
Place Convenience
Promotion Communication