Public Sector Marketing: Importance and Characteristics

Abstract

Although marketing implementation within public services domain is considerable, and obstacles can often occur, the favorable consequences of the marketing reform in this sector are particularly important. The paper presents also the characteristics of marketing mix, and refers to the three levels of public sector, which requires implementation of marketing, giving rise to the three concepts: macro-marketing specific to central public administration (Government, ministries, agencies), micro-marketing specific to individual public service providers (medical institutions, education units, public transport or public utility providers), and middle-marketing, which aims the marketing implemented in local public administration. In public sector, the prices are set independently of the demand volume or the company’s positioning on the market. In addition, public service prices must be acceptable to all categories of customers, since many public enterprises are financed based on taxes paid by citizens to the state and because of the obligation to meet the customers’ needs, in terms of fairness and equality. The public services delivery focuses on two issues: the offer typology (mandatory or optional) and the level of consumer interactivity with front-line staff (high or low). The promotion of public services is largely determined by the activity of central government bodies and political environment. The most effective means of communication of public enterprise is the personnel, because the organization’s image depends on their skills, courtesy and professionalism.