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How private and public sectors differ in marketing approaches

By Johanna Diago
-    Mar 21, 2024
Credit : GMI Post

Recognized as the Father of Digital Marketing, Prof. Philip Kotler said, “To be successful, the company must do a better job than its competitors in satisfying target consumers. It is more expensive to obtain new customers than to retain them.”

Prof. Philip Kotler

With numerous cost-effective platforms available, one can assume that it is virtually impossible to fail in the digital marketing game. Another misconception is that providing high-quality service and communicating value are sufficient conditions for brands to achieve success. Apparently, these aren’t enough.

Because customers have more access to information, it is natural to expect them to compare brands’ products and services more often. With this in mind, Kotler argues that marketing strategies must be tailored to build an advantage over the competition. The only way to do this is by assessing the internal and external environments of the firm, in addition to performing a marketing audit.

There is a slight difference though when dealing with the public sector where social marketing principles are more fitting to use. For the private sector, the marketing mix for a product would mean either a physical item or service that a business will provide its target customers. But, from the standpoint of social marketing, “behavior change” is the desired outcome.

When social issues like unemployment, housing shortages, high crime, and underdevelopment are involved, state and local officials face the challenge of changing the mindset of its citizens, partners and civic groups.

Regardless of an organization’s nature, the most effective way to spur civic engagement and customer loyalty is to identify target audiences, understand behavior, develop effective strategies, and communicate through the correct channels.

Article Tags: US, Marketing

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