Federal Organization, Triple I, and Marketing Essentials
The Federal Organization
A federal organization is a structure comprised of various individual organizations or groups united by a common approach and mutual interest. It offers a way for relatively small companies, built around core workers, to gain the advantages of larger corporations. It enables individuals to work in organizational ‘villages’ while benefiting from ‘big city’ facilities.
The Triple I Organization
A Triple I organization represents a blend of federal and shamrock organizational models. Intelligence, Information, and Ideas form the foundation of this structure, representing the capital embodied by the core workers. These are learning organizations that prioritize serving their customers by ensuring their employees remain at the forefront of knowledge and skills.
Urgency: Customer-Centric Approach
The primary goal of creating self-managed teams, focusing on core workers, and developing federations of relatively small companies is to maintain a close connection with customers. The emphasis is on differentiating the company from its competitors and better fulfilling customer needs. The organization is structured into a series of horizontal processes, each responsible for taking orders and delivering a product or service: Production, Marketing, Finance, and Sales.
Marketing Orientation: A Core Business Function
The evolution of customer-oriented organizations has elevated marketing to a central role in most companies. Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. Consumption is the ultimate goal of all production; the producer’s interests should only be considered insofar as they promote the consumer’s interests. The entire business must be viewed from the final result, that is, from the consumer’s perspective. Managers must understand that their priority is producing what can be sold, rather than selling what can be made.
The Marketing Process
The marketing process includes:
- Identifying customer needs.
- Developing products/services to meet those needs.
- Establishing a price consistent with supplier requirements and customer perceptions.
- Distributing products/services to the customer.
- Facilitating the exchange through sales.
Understanding the Customer
Key questions to consider:
- What business are we in? (For example, local shops cannot compete with large supermarkets on price or variety).
- Who is our customer? (Understanding not only their identity but also the factors influencing their purchasing decisions, lifestyle, and income).
Marketing relies on detailed knowledge of customers and their needs. This ensures the company meets these needs effectively, at the right place, time, and price, while also anticipating fluctuations and changes in those needs.
Market Research: A Systematic Approach
Market research involves the planned, systematic collection, collation, and analysis of data. This process is designed to assist organizational management in making informed decisions about operations and monitoring the outcomes of those decisions. It provides information on people’s preferences, attitudes, likes, and needs, enabling companies to understand consumer desires. Managers are particularly interested in:
- Market size
- Demand patterns
- Market structure
- Consumer buying habits
- Company market share
- Past and future trends
- Potential overseas market opportunities