Processes, capabilities and creation of solutions

The purpose of marketing has always been to attract and retain customers, however widely they are defined. This core objective requires that the firm is constantly developing and delivering solutions that meet customer needs and wants. To accomplish this goal, firms emphasize three important elements that reflect marketing practice namely, organizational processes, capabilities and culture.

Organizational processes play a key role in the creation of customer solutions, since they enable firms to integrate tasks, resources and activities with the purpose of delivering a superior value offering with respect to changing customer needs. Organizational capabilities are deeply embedded into processes and relate to the capacity of the firm to deploy resources (e.g. knowledge, skills and people) in order to deliver superior value offerings through tailored customer solutions. Capabilities encompass the value chain of the firm and demonstrate the commitment of the firm to customers.

Organizational culture shapes the focus of organizational processes and capabilities. In other words, the creation of enhanced customer solutions requires an organizational culture which acknowledges the customer as the focal point of strategic planning and execution. Figure 25 illustrates the three elements that influence the practice of marketing and the creation of solutions meeting changing customer requirements. It also illustrates the overarching effect of organizational culture on the deployment of processes and capabilities that engage the firm in the delivery of enhanced customer value.

Figure 25: Organizational processes, capabilities and customer solutions

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