Contemporary Issues in Marketing Assignment

Contemporary Issues in Marketing Assignment Words: 2929

Outcome 1: Describe and explain the importance of relationship marketing in contemporary business context. Relationship Marketing: Relationship marketing is not about having a “buddy-buddy” relationship with customers. Customers do not want that. Relationship Marketing uses the event-driven tactics of customer retention marketing, but treats marketing as a process over time rather than single unconnected events. By molding the marketing message and tactics to the LifeCycle of the customer, the Relationship Marketing approach achieves very high customer satisfaction and is highly profitable.

The relationship marketing process is usually defined as a series of stages, and there are many different names given to these stages, depending on the marketing perspective and the type of business. Benefits of Relationship Maketing: Focus on providing value to customers. Emphasis on customer retention. The method is an integrated approach to marketing, service and quality. Therefore it provides a better basis for achieving Competitive Advantage. Studies in several industries show that the costs to keep an existing customer are just a fraction of the costs to acquire a new customer.

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So often it makes economic sense to pay more attention to existing customers. Long-term customers may initiate free word of mouth promotions and referrals. Long-term customers are less likely to switch to competitors. This makes it more difficult for competitors to enter the market. Happier customers may lead to happier employees. Knowledge Management (KM) comprises a range of practices used in an organisation to identify, create, represent, distribute and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organisational processes or practice.

An established discipline since 1995, KM includes courses taught in the fields of business administration, information systems, management, and library and information sciences. More recently, other fields, to include those focused on information and media, computer science, public health, and public policy, also have started contributing to KM research. Many large companies and non-profit organisations have resources dedicated to internal KM efforts, often as a part of their ‘Business Strategy’, ‘Information Technology’, or ‘Human Resource Management’ departments.

Several consulting companies also exist that provide strategy and advice regarding KM to these organisations. KM efforts typically focus on organisational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, and continuous improvement of the organisation. KM efforts overlap with Organisational Learning, and may be distinguished from by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the exchange of knowledge.

KM efforts can help individuals and groups to share valuable organisational insights, to reduce redundant work, to avoid reinventing the wheel per se, to reduce training time for new employees, to retain intellectual capital as employees turnover in an organisation, and to adapt to changing environments and markets. Knowledge management as a business activity with two primary aspects: Treating the knowledge component of business activities as an explicit concern of business reflected in strategy, policy, and practice at all levels of the organization.

Making a direct connection between an organization’s intellectual assets ??? both explicit [recorded] and tacit [personal know-how] ??? and positive business results Relationship management: The process of fostering good relations with customers to build loyalty and increase sales Customer RelationShip Management: Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers.

CRM software is used to support these processes; the software system can be accessed, and information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing. In many organizations CRM sits at the heart of the enterprise, spanning marketing, sales, and service as noted in the diagram below: ? Outcome 2: Examine and evaluate the role of marketing in non – traditional context.

Voluntary sector: This sector is also known as non-profit sector or third sector. It is social activity which is undertaken by the organizations which are non profit and non government. The voluntary sector may be said to comprise organizations with a social purpose, although usually not including those with a primary focus on social enterprise or social entrepreneurship activities. Public sector: The public sector is the part of economic and administrative life that deals with the delivery of goods and services by and for the government, whether national, regional or local/municipal.

The composition of the public sector varies by country, but in most countries the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor. The public sector might provide services that non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service (such as public education), and services that encourage equal opportunity.

Business Activity owned, financed and controlled by the state through government or local authorities Government key departments set policy and monitor implementation Local Authorities County Councils, District Councils, Parish Councils Health Trusts Public Corporations BBC Objective in public sector Provide the goods and services that are too important for the security of the country; Access available to all regardless of location or income. Provide goods and services that cannot be provided by the private sector. Quality high quality services that do not cut corners.

Ensure the essential goods and services are available for everyone equally; Affordability services offered at prices that are cheaper than private sector or free at the point of use Equity Available to anyone whatever their background, status, income, class, race, religion, etc. Business process improvement Shared Services enablement Improved efficiency through fast, accurate and reliable information access Assistance in meeting the commitment to open and accountable government Improved corporate governance and compliance

Enhanced knowledge re-use for future projects Not for profit Marketing Marketing of ideas, values and institutions. Increasing awareness that these organizations must build relationships with constituents and stakeholders. Challenge of using new marketing techniques for not-for-profit initiatives. Many organizations are realizing the importance of strategic marketing: Performing arts Government agencies Colleges Hospitals Churches This content can be found on the following page: http://www. investorwords. com/3947/public_sector. html Outcome 3:

Explain the importance of applying the extended marketing mix in service sector Marketing: Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer. Marketing Mix: The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. Traditionally the marketing mix consisted of just 4 Ps. The marketing mix thus consists of four main elements: Product Price Place Promotion

Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Price: This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e. g. time, energy, or attention. Place: refers to how the product gets to the customer; for example, point-of-sale placement or retailing.

This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold (e. g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company. The four Ps model is most useful when marketing low value consumer products.

Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Extended marketing mix: 5. People 6. Process 7. Physical evidence As well as the standard four P’s (Product, Pricing, Promotion and Placement), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are: People: Any person coming into contact with customers can have an impact on overall satisfaction.

Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer’s eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under ‘people’, as they too can affect the customer’s service experience, (e. g. , at a sporting event). Process: This is the process(es) involved in providing a service and the behaviour of people, which can be crucial to customer satisfaction.

Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. A service is the action of doing something for someone or something. It is largely intangible (i. e. not material). A product is tangible (i. . material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a cafe one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the nature of a service as: Service: A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Examples: banking, hotel, airline, retail, tax preparation, home repairs. Service Mix: The non-material equivalent of a good. Economic activity that does not result in ownership. The product is the act of delivery. A pure tangible good: A bath soap, toothpaste or pack of salt these are the examples of pure tangible goods as no service accompanies them. A tangible good with accompanying service: One buys a Maruti car or a Hero Honda motorbike is an example of tangible goods with accompanying service. The warranty period the free services the routine checks are all such examples.

A hybrid offer: A part of goods and the part of services may be in equal proportions are termed as hybrid offers. In Mc Donald’s it provides you with food and service both. A service with accompanying goods: A major service but accompanying goods. Air India for example. Once you travel the service offers you many tangible goods, such as food and drinks and complimentary gifts for you to please you. Nature and characteristic of service: Inseparable – from the point where it is consumed, and from the provider of the service.

For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service). Intangible – and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i. e. it is intangible. Perishable – in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 metres Olympic final has been run, there will be not other for 4 more years, and even then it will be staged in a different place with many different finalists.

Variability- since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. Product Mix: This is the total sum of all products and variants offered by the organization. The set of all product lines ad items that a particular seller offers for sale to buyers. The composition group of products that a company makes available to market markets.

A products item is an inividual product or brand. Product Mix dimension include: The width of product mix: Product line width is the number of distint product lines offered by an organization. Example, Purina (a subsidary of nestle) produces pet food marketed under the following brands Felix, Go Cat, Gourmet, Winalot, Pro Plan, Beta, Bakers. In regard to eah brand as line, the number of variation of Felix is the depth of the line and the number of separate brands is the width. The Length of the Product mix: length refer to the total no. of items the Co. carries within its products lines.

Procter & Gamble typically carries many bands with in each lines, for example, it sells eleven laundry detergent, eight hand soap, six shampoo and four dishwashing detergent. The Depth of the Product mix: Depth refers to the no. of versions, offered of each product in the line. Thus Procter & gamble’s Crest Tooth Paste comes in three size and two formulation (paste & Gel). The Consistency of product mix: Consistency of product mix refers to how closely relate the various product lines are in end use, production requirements, distribution channels, or some other way.

Outcome 4: Examine the reasons for the increasing emphasis on ethics and social responsibility as part of the marketing management process. Corporate social responsibility: CSR is also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity. It is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment.

This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. Definition: CSR is about how companies manage the business processes to produce an overall positive impact on society. ? “The duty a corporation has to create wealth by using means that avoid harm to, protect, or enhance societal assets” Three Basic Elements of CSR Market Forces Mandated Social Programs Voluntary Social Programs ?

The Evolving Idea of Corporate Social Responsibility: The fundamental idea is that corporations have duties that go beyond carrying out their basic economic function in a lawful manner. Over time the doctrine has evolved to require more expansive action by companies largely because: Stakeholder groups have gained more power to impose their agendas. The ethical and legal philosophies underlying it have matured. Arguments Against CSR Classical Economic Argument: Management’s only responsibility is to maximize the profits of its owners. Role of business in our system Duty to shareholders – private property rights

Cost of social action is passed on to consumers CSR decreases competitiveness (esp. international) Business already has enough power CSR is in business’s long-term self-interest Must use power or lose legitimacy (social contract) Ward off government intervention & regulation Public relations Ethical Imperative Other: Businesses are reservoirs of skill General Principles of CSR Corporations are Primarily Economic Institutions. Must follow the law. Managers must act ethically. Duty to correct the adverse social impacts they cause. Social responsibility varies with company characteristics (e. g. , size, industry, location).

Managers should try to meet the legitimate needs of stakeholders. Comply with the norms of the social contract. Publicly report on market, mandated, and voluntary actions. Societal marketing concept: The societal marketing concept holds that the organisation’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumer’s and the society’s well-being. This puts even more emphasis on identifying the needs of the clients, and on providing a service or product which is of the required quality.

It also brings the well-being of society into the equation, and leaves out the profit motive (in order to include not-for-profit organisations). However, if an organisation has profitability as one of its objectives, then that will be an important factor when marketing objectives are being drawn up. Societal Marketing Concept: Focus on other stakeholders, as well as the business and its customers. Need to balance 3 items Company profits Customer wants Society’s interests The difference between short term consumer wants and long term consumer welfare.

An example of a company adopting the Societal concept: Starkist… Dolphin Safe Tuna Actually more expensive than regular tuna, but is more appealing due to society’s concerns. Bibliography: www. bized. ac. uk provides useful business case studies for educational purposes www. cim. co. uk The Chartered Institute of Marketing’s site contains a useful Knowledge Centre www. ft. com The Financial Times business sections www. marketing. haynet. com Marketing magazine www. studentshout. com a useful academic website www. thetimes100. co. uk business educational resources

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