It highlights three important aspects that marketing accomplishes. First, it recognizes the purpose of business organizations to design products which satisfy customer requirements. Marketing does not just involve offering any goods and services but business organizations should strive to offer those which offer customer value. Second, it stresses the aim of business organizations to generate profit from its operations. Thus, the definition of CIM involves assessing the marketing strategy which will be mutually beneficial for customers and companies. Business organizations as this definition implies are profit maximizing entities. Lastly, this definition highlight that marketing is not just about providing the current needs by "anticipating" the future requirements of the markets. In summary, the CIM's definition of marketing balances the satisfaction of customer and profit maximizing goal of business organizations.
This definition creates an image for marketing as something which merely reflects the needs of customers and marketers are tasked merely to identify and respond to these various needs. It recognizes that marketers have a great part in shaping customer's needs by offering innovative solutions to their problems. Nonetheless, it is still the customers that determine which among the various products they are bombarded with represent their real need through their demand backed by purchasing power.
It is irrefutable that business organizations are now operating on what Kotler (2002) termed as a hypercompetitive environment. This arena is characterized by more intense rivalry between players and higher buyer leverage. Thus, it becomes a great challenge for companies to create and deliver product offerings which will satisfy the need of individuals as well as establish efficient strategies in order to capture their target markets. Market researchers are continuously on the move in determining the current and the emerging need of customers. Product research and development are also becoming the major preoccupation of business organization, entailing the incurrence of huge costs. This is done in order to avoid failures in offering products which do not deliver customer value. Failure to understand and address the needs of customers leads to huge losses for marketers. This illustrated by Robert McMath's New Product and Learning Center which showcases the great failure of marketers. Products offered by companies like Gerber food for adults, Ben-gay aspirin, R.J Reynolds Premier smokeless cigars and others failed to address the needs of the customer and were rejected by the market (Kotler 2002). This shows the huge power of customers in the marketplace. This is also a strong proof that though marketers bombard customers with products which they "should" to need, it is still the customers which has the final say.
The application of the marketing principles in a business organization is not a sole responsibility of the company's marketing department but is an effort which