This Contemporary Issues marketing Management Assignment will aim to discuss various contemporary issues faces by organizations in marketing management. It will discuss the role of market in business context which are contemporary, non- traditional. First of all the role of relationship marketing in contemporary business will be understood by talking about various aspects of relationship marketing. It would be illustrated by discussing the customer relationship management in one of the famous organization of UK and the recommendations would also be discussed. Next, the focus will be moved towards describing the role played by marketing in the context of non-traditional businesses. Here the perspective of the marketing would be discussed in voluntary sector and non-profit organization along with the key issues faced in the marketing in such contexts. It is well known that service sectors are entirely different from the product based sector, so the extended marketing mix used by the service sector businesses will discussed in details. The importance and the difficulties faced by service based organization by implementing extended marketing mix would be discussed in greater details. Information technology has become vital in the current business marketing environment. So, corporate social responsibility, ethical issues etc would also be discussed in this report. Overall this report will talk about all the contemporary issues in the marketing.
Task 1.1: Knowledge Management and its role in relationship marketing
Knowledge management is the important paradigm of the organizational management. It is basically the process of acquiring, developing, discussing, sharing the organizational knowledge. It also includes using this knowledge in effective manner. It can be seen as a multidisciplinary approach which helps the organizations in achieving their objectives in more effective and efficient ways. It also includes the creation, acquisition, capture, share and use of knowledge related to the customers of organization in order to increase the learning and performance level within the organization. It aims at making the organization more intelligent that helps them in achieving overall success and realization of the best value that can be acquired from the this asset i.e. knowledge. Organizations use these acquired knowledge in various constructive fields in order to get best results from this acquired knowledge.
Task 1.2: ICT and Customer Relationship Management
Information and communication technology (ICT) has changed the way the organization used to their marketing efforts. So, almost all organizations have a dedicated customer relationship management department in order to have sustainable relations with their customer. The best example to show the support of ICT on the customer relationship management can be any bank operating in UK. Royal Bank of Scotland is the largest bank of the UK which provide all the banking and financial services to its customers. The relationship of the customer is too critical for the success of the organization. Information and communication technology helps bank to create better relations by use of innovative technologies emerging with the time. ICT supports customer relationship management is following ways:
- New emerging technologies related to the communication help the bank to track the transaction habits of the organization and helps bank to provide the convenient services to them accordingly.
- The information technology has enabled various functions related to the transactions done by the customer that help customers to perform them in easy and mobile situations.
- Relationship manager tracks the consumer behaviour using various innovative technologies to make their relations with the customers better.
- ICT has changed the way the customer service is delivered by the bank and helped the banks to increase their performance by improving their relationships with their customers.
- RBS provides the services that enable the customers to conduct all type of transactions facilitated in smooth way with proper customer support that pleases the customer.
Task 1.3: Benefits of Customer Relationship Management in RBS
Customer relationship management is the process of managing the existing and prospective customers. It has become an integral part of the organizations as it helps the organizations in getting success in better way. It includes use of various available technologies in order to organize, synchronize and automate the various functions like sales, customer service, marketing and technical support. There are various benefits that are enjoyed by the organizations by use of various CRM packages that are available from different vendors. RBS uses CRM software package internally for this purpose. They have a dedicated customer relationship department that helps the customer in delivering the business in better ways. The benefits that are enjoyed by the bank from customer relationship management are as follows:
- Satisfied and retained customers who boosts the sales of the organization and increases the revenues of the organization.
- Relationship manager aims at creating productive leadership with the clients that helps the clients in creating strong links between bank and the client’s business.
- Customer relationship management at bank provides the feedbacks of the customers about the services provided by the bank so that they can improve upon those and can maximize the success.
- It helps in better marketing of the services provided by the banks by word of mouth and this type of marketing communication is considered too important for the success of the organizations.
The above mentioned benefits are some of the important points that are attracted by the bank in implementing customer relationship management. It is evident that successful CRM is crucial for the organization, so RBS is also not the exception to it and enjoys the benefits earned from the use of customer relationship department (Kuusela, 2013).
Task 1.4: Recommendations to RBS
As discussed customer relationship management is the crucial factor for the success of the organization. RBS is the largest bank of the UK and has implemented customer relationship management system within the organization in best possible manner. With the latest innovations in the technology, it is necessary for them to upgrade their information technology related to the customer relationship department pro actively in order to provide the best possible services to its customers. Mobile has become a new weapon and the powerful tool in the hand of the customers.Customers look for all the services related to banking by use of mobile only. There is a need by the organization to look for a dedicated customer relationship package to the users who uses mobile for all their services. A better service in this aspect will help the organization in building more sustainable relationship with its customers. There is a requirement of looking forward for a dedicated CRM external package for the service improvement also. This activity will also help the bank in getting more revenues by attracting more customers (Saren, 1999).
Task 2.1 Stakeholder Analysis for NCVO and Barnado’s
NCVO is the voluntary organization of UK which has brought all the people working for the voluntary sectors together. It aims at strengthening and developing such voluntary and civil societies operating in UK. It brings all the people together in order to solve their problems by finding the root causes and so that they inspire others as well. It was started in 1919 as a National council of Social service. There are various stakeholders of NCVO which get impacted by its activities. The stakeholder analysis of NCVO can be done in following manner:
Community: Community at large residing in UK is the main stakeholder of the organization. NCVO is delivering its best to all the people within the community.
Members: NCVO has more than 10000 members working for it. They are the medium of serving the society and large. They are working as per the defined standards and have been provided all required environment by the organization.
Staff: Another main stakeholder of NCVO is staff members of organization which has been provided with all the required facilities.
Government: Government is the important stakeholder of organization which provide all the necessary requirements of the organization to serve the citizens at large.
Barnado’sorganization aims at transforming the lives of vulnerable children of UK. They also target young people who are vulnerable to make their lives better. They are working in other countries as well. There stakeholder analysis can be done in following manner:
Children and young people: There main stakeholders are vulnerable children and young people who have hope that the organization will help them in transforming their lives. Organization is doing its best for their support.
Community: The community provides various supports to the organization so that they can make a change in the community and they are doing for that purpose.
Government: Government is another stakeholder which hopes for the better place for live to all kind of people of the country with the help of such non-profit organization. Barnados are fulfilling the hopes of government as well.
Task 2.2: Nature of relationship with customers
In order to understand the nature of relationship observed by the non-profit organizations with their customers, “ACE foundation” and “peace one day” have been selected. ACE foundation is being established to provide education and based in Cambridge. It also supports international cultural understanding. They provide various seminars, course, lectures, summer schools and study tours. Peace one day is a non-profit organization which have institutionalized the peace day which is observed worldwide on 21st September. They perform various activities on this day in order to celebrate this annual day by giving a message to humanity.
Task 2.3 Methods of marketing in public, private and voluntary sectors
Marketing methods used by the organization differ from one sector to another and from one organization to another within a sector also. Public sector organization and private sector organization have usually similar marketing methods to attract more customers, however there is difference between voluntary and public sector organizations. The difference in the marketing strategy can be summarized in below manner:
- Public sector organizations do not use many promotions techniques for their products or services while marketing in private sector is highly dependent on their promotions. On the other hand voluntary sector organizations use little or no promotion schemes.
- The marketing techniques used by public sector can’t be quantified while all the marketing efforts in private sector are properly quantified by the marketing department. Voluntary organizations do not have any department like marketing department.
- Private sector organizations have main dependence on the marketing efforts for their sales while most of the public sector organizations fulfill basic needs of people so they are not heavily dependent on marketing efforts.
- Public sector spending on the marketing efforts is limited by various acts governed by governmental bodies while spending on marketing efforts in private sector does not have a particular limit and it is highly dependent on the marketing scenario.
Task 2.4: Key issues in the marketing in a virtual organization
Virtual organizations are the organizations which have no physical existence. It can be created by a temporary network of different companies, customers; suppliers that are linked through information technology and can share cost, skills, information or have access to each other’s market. They have aim of providing services or products of high quality at a cost which is lowest possible. The virtual organization face various issues in their marketing efforts as they don’t have any physical presence and the customers trust become a tough task for them to acquire. The customers prefer to select the products from an organization which can be trusted and they ensure their trust after searching about their headquarters or the offices. But a virtual organization doesn’t have any office, so it becomes difficult for them to get the trust of the customers for long. Let’s take an example of Wikipedia which is basically a virtual organization and which have run out of money lots of time due to unavailability of fund and was unable to convince its customer i.e. donors to donate amount for their benefits. They faced the issues of trust, physical absence and improper positioning. It becomes difficult for them to target and segment the customers in correct manner so that they can position themselves in a lucrative way. Another issue faced by virtual organization in their marketing is that they can’t allot much money for it as their financial health does not allow them to do so. So, it can be concluded that marketing in virtual organization is a biggest challenge for marketing department.