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Scope of Marketing Theories in Public Sector

Discuss about the Marketing Theories of Public and Private Sector.

Application of marketing theories in the public sector is considerable. The prices in the public sector marketing are set according to the demand of the market. The prices set by the sector must be acceptable to all types of customers in the market. Many of these public sectors are financially depend on the taxes paid by the residents of the state. Meeting the customer’s needs is the most important duties of the public sector enterprises. The promotion of these enterprises is dependent on the political environment and activities of the government bodies. Application of marketing in the public sector enterprises results in the satisfaction of the residents and the employees of the enterprises. For achieving transparency, the government needs to do a market orientation. This results in the improved performance of these enterprises. The customer’s expectation regarding the public sector enterprises are very high. Promotion of the public sector enterprises are determined by the Central Government activities. The techniques used by these enterprises like the hospitals, public utility enterprises and the schools are the outdoor and the Internet Advertising. They are looking at the opportunities that provides them satisfaction and happiness to the society (Butler & Collins, 2016). In this essay, the discussion will be carried on the scope of marketing in public and private sector and the challenges faced by the public and private sector in the application of marketing theories. The scope of marketing in public sector are:

Marketing is important to the public sector enterprises in attracting new customers and in building loyalty among the existing customers. This is beneficial for the organization pricing policy and in maintaining relations with their partners and internal clients.

Local administration and the Government are realizing the importance of implementing the marketing theories in their respective activity. They conduct marketing campaigns to attract customers and the potential investors in the issues related to environment protection, heavy drinking, combating smoking, promoting energy conservation projects and the problems in traffic legislation committee (Scribd, 2018).

These enterprises not only target the profitable segments of the market but targets the whole society. The managers and the junior employees in the enterprise focuses on developing valued methods for serving their clients. This helps them in rendering superior services to their clients. These enterprises focus on improving their communication with their clients.

Scope of Marketing Theories in Private Sector


Proper marketing plan according to the vision and the mission of the public sector enterprise is designed. The manager needs to revise the plans according to the changes in the environment. The enterprises should identify the proper budgets according to the objectives and the strategies of the organization (Economicshelp, 2017).

The government enterprise majorly focuses on the social marketing. It is the type of marketing that helps the government in changing the behavior of the targeted groups. Various campaigns are conducted by these public enterprises like about road safety measured, health safety measure and many more. Promotional methods adopted by these public sector organizations are focusing on the betterment of the society not on earning the revenues for the organizations.

The scope of marketing theories for the public sector are discussed above, now the discussion will be carried on the scope of marketing theories for the private sector.

Private sector enterprises are the companies run by the individuals units for achieving the profits in the long run. They develop those objectives and the strategies that help them in achieving the desired goal of profit maximization. The marketing strategies developed by these enterprises are focuses towards the customer needs, in order to increase the customer base and increasing the demand of the company (IIFL, 2013).

These enterprises develops the product according to the customer requirement, preference, age and the gender and target only that customers who are appropriate for the product line as their motive is to not only satisfy the customer’s needs but also achieving the organizational goals.

These enterprises prepare the reward policies for their customers in order to attract the customers to their outlets and encouraging them to purchase their products by giving them gifts and rewards based on their purchases.

Private sector enterprises focus on the promotional activities. They promote their product in the schools, mall, bus stations, retail outlets, and railway stations targeting their customer to create the awareness about their product. They also promote their product in television, radio, newspapers and through internet marketing. All these promotional tools help them in creating their brand image in the mindset of the customers (HISCOX, 2017).

Private sector enterprises develop the products for increasing their sales not for the welfare of the society.  Their aim is of profit maximization, building their brand image and goodwill among the customers.

The supervisors in these enterprises focuses on the training of the customer care executives, as these people are responsible for satisfying the requirements of the customers, making the customer feel good, assisting and helping them about the problems related with their purchases. This results in building the loyalty of the customers for the organizations (Forbes, 2013)

Challenges Faced by Public and Private Sector in Application of Marketing Theories

The public sector and the private sector have to face the challenges in extending their marketing domain. The challenges faced by the Public Sector are:

The major challenge faced by the private sector enterprises is that they are not able to provide goods, due to the problem of free rider. Therefore, the public sector enterprise needs to focus on the availability of all the public goods, which includes military, street cleaning, judicial system and the police (Onvia, 2017).

Goods with the characteristics of positive externalities should be under-consumed in the free market.  The public enterprises need to ensure that the training and the education is rendered in a free market. The government should focus their attention on the public services of health and education, and ensure that the private firms do not intervene in those services. These steps help the Government in improving the quality of training and increasing their labor productivity (Value Prime Solutions, 2017).


There is a need of creativity and innovation in the public sector enterprises in order to compete with the private companies. They are required to produce more innovative products at reduced prices to fulfill the requirements of the society.

Launching of a new public service will be a huge failure for the government if it not fulfills the requirement of its potential customers. The factors that are obstacle for the application of marketing in the public Enterprises are the less availability of the financial resources, Absence of the appropriate ways for implementing the solutions adopted.

Public Enterprises are strongly affected by the strong political influence. The ministers at the central take the decisions in these organizations, which affects the economy of the state, as the decision taken by them are according to their political benefits (Purcarea, 2014).


Inefficiency and the Mismanagement of the financial resources in the public sector organizations results in the obstacle for the enterprises in the application of the marketing strategies for extending their domain of marketing.

The lack of coordination between the supervisors and the personnel of the enterprise is also the obstacle in application of the marketing theories. The employees in these enterprises have no vision of extending their marketing domain. These are the challenges that are faced by the public sector enterprises (Trinityp3, 2017).

(Source: Ministry of the environment and water resources, 2018)

Previously, the discussion is on the challenges faced by the public sector in extending their marketing domain. The private sector enterprises are also facing challenges in extending their marketing domain and the challenges are:

Private enterprises focus on improving their relations with the public enterprises, as they assist them in retaining and attracting potential customers. Enhanced relations with the public institutions improve their brand identity.

Maintaining relations with customer has become the essential requirement of every private sector companies, as the enhanced and the developed relations help them in increasing customer base and achieving the objective of profit maximization (Emarsys, 2018).

Private enterprises have to face competition with both the public enterprises and the big private companies. In order to compete with their competitors they have to develop innovative and the creative products for their customers. This will help them in attracting     the clients of their competitors.

Limited availability of the resources is one of the major constraints for the private sector enterprises. These companies have to pay huge prices to get the resources for the production of their products. This will result in the shortage of the finances for organizations to apply the marketing strategies for achieving the objectives of the organizations (Square2Marketing, 2017).


Huge finance is required for conducted the promotional campaigns and activities for spreading awareness among the people about the launching of new product line, which in turns help them in increasing their sales. Generating leads is one of the marketing challenges that the marketers have to face. Employees are struggling for achieving the levels of demand for their company.

Private sector enterprises have to measure the return on investment of all the marketing activities conducted by them and it is very difficult to measure it for each marketing activities. Technology up gradation is one of the major challenges that the private enterprises are facing today. These enterprises need to update their website at regular intervals, as most of the customers get information about the company through their websites (ThriveHive, 2017).

The private sector enterprises are facing the challenge of hiring of the qualified employees. Talented employees in the organization help the company in achieving their desired goals. These enterprises need to develop and enhance proper products and services. They have to set proper incentives for motivating the employees in the organization to work toward the attainment of the organizational goal and the disincentives for the employees, who do not abide by the business ethics of the company (Anderrson, 2018). 

Developing an attractive Brand logo is necessary for enhancing the brand identity of the organization. Today the customer’s review the product based on productivity, delivery, performance and its effective marketing strategies. The organization needs to focus on their performance and productivity to maintain their existing customers and to attract new customers, which helps them in building their customer base (American Marketing Association, 2017).

(Source: If only Singaporeans, 2015)

Conclusion

On the basis of above discussion, this can be concluded that the application of the Marketing theories and practices is crucial for both the Public Sector Enterprises and the Private Sector Enterprises. In public sector enterprises, these theories help the company in identifying the needs of the whole society and develop the product line catering to the requirement of their customers. The government can spread the awareness among the society about the dangerous effects of smoking, aware them about the scarcity of water and about the road safety measures through the promotion campaigns run by the government. The private sector enterprises use these marketing theories and practice in increasing their sales to achieve their goal of profit maximization. Promotional methods help these companies in spreading the awareness of their product among the customers and increasing the demand of their product. These enterprises provide proper training to their employees in understanding the customer’s requirement and earning the loyalty of their customers towards the organizations. The challenge that both types of enterprises are facing is the availability of the proper finance, as funds are required for the implementing of these marketing strategies. These marketing theories and practices are necessary for building the brand identity and image in the minds of customers (Saavedra, 2016).

References

American Marketing Association (2017). 7 Big Problems in the Marketing Industry. Retrieved from: https://www.ama.org/publications/MarketingNews/Pages/7-big-problems-marketing.aspx.

Andersson, P., Axelsson, B., & Rosenqvist, C. (2018). Organizing Marketing and Sales: Mastering contemporary B2B Challenges (1st ed.). UK: Emerald Group Publishing.

Butler, P., & Collins, N. (2010). Marketing public sector services: Concepts and Characteristics. Journal of Marketing Management, 11, 83-96.

Economicshelp (2017). Private Sector v/s Public Sector. Retrieved from: https://www.economicshelp.org/blog/2634/economics/private-sector-vs-public-sector/.

Emarsys (2018). 4 Biggest Challenges Marketers Must face. Retrieved from: https://www.emarsys.com/en-au/resources/blog/4-big-challenges-in-marketing/.

Forbes (2013). The ‘8 Great’ Challenges every business faces(and how to master them all). Retrieved from: https://www.forbes.com/sites/cherylsnappconner/2013/03/04/the-8-great-challenges-every-business-faces-and-how-to-master-them-all/#21c44f3e3891.

Onvia (2017). 5 Challenges face by public sector sales promotions. Retrieved from: https://www.onvia.com/company/blog/5-challenges-faced-public-sector-sales-professionals.

HISCOX (2017). The 10 biggest challenge businesses face today(and need consultants for). Retrieved from: https://www.hiscox.co.uk/business-blog/the-10-biggest-challenges-businesses-face-today-and-need-consultants-for/.

IfonlySaingaporeans (2015). 99% SME: Push to support Singapore’s SMEs. Retrieved from: https://ifonlysingaporeans.blogspot.com/2015/08/99-sme-push-to-support-singapores-smes.html.

Ministry of Environment and Water Resources (2018). Climate Action 2018. Retrieved from: https://www.mewr.gov.sg/climateaction.

Purcarea, VL., & Coculescu, BI., & Coculescu, EC. (2014). The concept of marketing in the public-private partnership in the medical system of Romania. Journal of Medicine and Life, 7, 20-22.

Research Services (2018). 5 effective Marketing Strategies to achieve Business Goals. Retrieved from: https://www.iresearchservices.com/5-effective-marketing-strategies-to-achieve-business-goals/.

Saavedra, CA. (2016). Management of Professionals. Switzerland: Springer.

SCRIBD (2018). Public Sector Marketing importance and Characteristics. Retrieved from: https://www.scribd.com/doc/76610507/Public-Sector-Marketing-Importance-and-Characteristics.

Square2marketing (2017). The 6 Biggest Marketing Challenges today and how to solve them. Retrieved from: https://www.square2marketing.com/blog/the-6-biggest-marketing-challenges-today-and-how-to-solve-them.

ThriveHive (2017). 8 Common Small Business Marketing Challenges (and how to overcome them). Retrieved from: https://thrivehive.com/common-small-business-marketing-challenges/.

Trinityp3 (2017). What are the biggest challenges facing marketing today?. Retrieved from: https://www.trinityp3.com/2017/07/biggest-challenges-facing-marketing-today/.

Value Prime Solutions (2017). The Challenges of Marketing and Selling to the public sector. Retrieved from: https://www.valueprimesolutions.com/challenges-marketing-selling-public-sector-juliana-slye/

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