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Marketing is an essential element for every organisation in the present scenario, as the level of competition is very high and it is important for every organisation to sustain in the competition. Currently, there are some new sort of advertising practices that are adopted by organisations like relationship marketing, customer relationship management, ethical and social considerations etc. These practices focus on customer and society’s needs. This unit 41 contemporary issues in marketing assignment will provide information related with the marketing strategies that organisations should adopt and role of various pressure groups in managing the ethical practices in the market. It is important for every organisation to maintain a long-term relationship with their customers. Marketing practices are applied to public sector and voluntary sectors. In changing culture and environment, special approaches should be adopted by the organisations for accepting the change. Ethical values and social norms create a positive impact on the business because society does not need only goods and services but also ethical and social responsibilities to be fulfilled by the corporates for the society. (Ha nskaAhy, 2014)
Knowledge management is a systematic process in which people, technology, process and organisation structure are coordinated for adding values and promote innovation. The coordination is achieved by creating, sharing and applying the knowledge of important lessons and so that the best practices can be implement in the organisation. It is necessary for every organisation to implement knowledge management tools for sustain in competitive environment. It is mainly about providing correct knowledge to the people at correct time. The main aim of knowledge and communication anagement is not only managing the knowledge but to create value to the business and the employees by developing knowledge about using it effectively to attain the ultimate goals. There are many dimensions of knowledge management:
Role of KM in relationship marketing: The concept of marketing is changed if we compare it to the past. Earlier there was a production-focused system and now there is a relationship-based system. Production based marketing system is based on production and distribution and it considers the needs and wants of the customers. Customer relationship has become an important aspect because now onwards companies are focusing on customer satisfaction. They believe in ethical behaviour that is to be used in the production process and marketing process. Analytical CRM is a process in which customer details are used in business functions. The objective is to filter the main facts from the collected customer information and gain knowledge about different customers. This is an important part of relationship Management. (Competitive neutrality, 2012). Customer care support system is used by many organisations to deal with the customers in order to solve their queries regarding the product. This is called after sales service, which is very important to build good relationship with the customers these days. Managing of the knowledge and data about the customers not only help organisation in dealing with customers but also helps in making strategies according to improve the quality of the services. This is because management of data let the company know about the customer’s satisfaction status.
ICT refers to Information and communication technology which includes various devices for communication or application like radio, television, mobile phones, computer hardware and software, satellite communication etc. ICT tools are widely used in customer relationship management.(Ekstro?m and Patrona, 2011) There are various ICT tools which help in customer satfication management like e- mail, Facebook, teleconferencing, video calling, websites etc. An organisation can easily communicate with the employees by ICT and can update them about their products and services. (Robinson and Palmer, 2011). They can research about the customer so that the organisation can know about the needs and demands of the customer. Many organisations have introduced loyalty cards for customer by which a customer can earn some reward points as per the amount of product and services he avail from that organisation. ICT also helps in Monitoring and controlling the projects and can determine its progress. Many companies like Dominos are using many ICT tools to communicate with the customers. Online orders have been taken directly on the phone or on the websites of the organisation. Dominos have also developed mobile apps to provide the customers with the ease of ordering the food. All these tools of issues of ICT like telephone, internet, and applications help the company to build a string relationship with their customers.
CRM is very important for every organisation and it is derived from relationship marketing approach. CRM can help an organisation to know about the customer requirements and reviews about the products and services. It leads in increasing goodwill of the organisation. It has some limitations too like while selecting CRM, an organisation must think about its complexity and steps. Not all CRM solutions are suitable for every company as outsourced CRM are easy to implement but it does not work for larger companies. Traditional CRM software’s are mainly for communication with the customers but now the modern CRM software’s or social CRM is an expanded version of traditional one. It includes many things like keeping checks on customer opinions and social interactions with the customers via social media like Facebook, YouTube etc. CRM helps in maximizing value for customers as well as for the organisations. Today Internet and digital technologies are very helpful in communications and relationship between different channels and between B2B. With the increase in social CRM, organisations has become more aware about the choices and preferences of the customers and customers know about the trending products, new offers etc. The implementation of CRM in operations of a company makes it more professional and minimizes its operational cost too. It also helps in simplify the overall process in the organisation. Audi focuses on making long-term relationship with the customers and as a result, the number of Audi customers has risen over the past years. They have their complaint management system for handling the complaints. Strategic analysis tools were insufficient for satisfy the requirements of the system so they developed. CRM by SAP is used by Audi, which provides high potentials and helps in flexible analysis. Quantitative and Qualitative analysis helps Audi to control the process and proper allocation in customer support. They want to understand that what its customers want.
Audi can improve its customer relationship management by many ways-
Stakeholder’s analysis is very important for the organisation to know about the needs and requirements of the stakeholders. Stakeholders can be anyone who is associated with the organisation in one or the other way. Stakeholder’s analysis helps the companies to study the interests and involvement of different stakeholders in the organisation. A particular orderly process has been followed in order to carry out the analysis of the stakeholders. The system analysis starts with listing down all the stakeholders of the business. Next step of the analysis involves identifying the stakeholder’s needs and interest. This step follows with the classification of the stakeholder according to the group of interests. Further, areas of conflicts have been identified in order to come up with the strategies to deal with those conflicts. A stakeholder expectation matrix has been used to classify them according to their power and interests.
Stakeholders in public sector: Marketing is a necessary element for public sector as earlier it was assumed that municipal governments or public sector do not have any customers and competitors. Hence, marketing is not necessary. However, most of the professional public managers know that public sector is a service provider and have customers too like individual residents, visitors, taxpayers, owners of business houses etc. Government have monopolies for their services so they assume that there is not any other service provider in the city and as a result, there are no competitors. Now, they understand the importance of marketing because they know that their future growth is depends upon meeting the challenges associated with demands for better services and programs within the budgets. New and different models need to be understood by municipal governments to provide better quality, efficiency, and speed to the citizens. (Ekstro?m and Patrona, 2011). Stakeholders in public organisation involve:
Stakeholders in voluntary organisation: The main objective of voluntary organisation is creating and maintaining audience and encouraging participation so that voluntary organisation can fulfil its goal related to awareness and education. They need funds for their operations. (Godson, 2009) Membership fees are not sufficient for them as they try to get sponsorship for fulfilment of the needs. Sponsorship also takes them to a target market, where they get many opportunities. Their marketing activities are related to attracting new participants taking part with the organisation. (Kotler and Armstrong, 2012)They try to give some extra benefits to attracts more participants like-
The best way for advertising and marketing is social media. It is a promotional device, which is trusted and exists in multiple places. Social media creates interest, attention in the audience mind. A voluntary organisation can contact people for attending an event by mail, which can easily seek attention of the people. Another way of marketing is direct marketing, virtual marketing, intervention marketing etc. Stakeholders in voluntary organisations:
It is necessary to build a relationship with customers and maintain it because they are the donors who fund the programs. Additional funding has been done by agencies, government etc. who works to fulfil the objectives of the organisation. They are the stakeholder who plays an important role in the organisation’s process. The relationship of Not for profit organisation depends upon the reason behind its formation. (Egan and Harker, 2005)
Marketing in public sector- Marketing in public sector depends upon the economic conditions like recessions. It is the set of activities or processes, which are a meant to identify, create or deliver values to satisfy the client, respond better to public requirements and provide goods and services to the clients. It includes
Marketing in Private Sector- Private Sector organisations works for profit motive. They provide goods and services to the society for the fulfilment of their needs as well as to earn profit. The strategies used by private sector are-
Marketing in Voluntary Sector- Marketing in voluntary sector has been done by the use of seven P’s of marketing. They are just translated in voluntary terms. The two major strategies or methods used by these organisations are:
Comparison: It has been observed that change in the nature of the industry affects the marketing methods used by them. This is because all the above three industries have different objectives and hence different methods of marketing. Public sector uses such marketing strategies because they have to compete with private sector also. Private sector uses such strategies to acquire more and more customers under the target. Voluntary sector use different strategies because they have to promote and make relations with the people to fulfil their ultimate goal.
Virtual organisation is a different kind of organisation, whose members are located in different locations. They require work together for the fulfilment of the objective. E-commerce has become an important part of the organisation’s marketing tools now days. It has proved to be very beneficial as it makes marketing an easy process to conduct. It helps an organisation to sell its products manually as well as online. As we see that customer these days are very much comfortable to use internet as the medium for shopping. It saves their time as well as provides them with so much of varieties in just one click. E-commerce helps a virtual organisation in promoting products and services. Ensemble is a virtual organisation, which is a division of Hallmark. It involves in outsourcing of manufacturing and distribution of products. Its process related to operations is very complex in nature. There are some issues that Ensemble facessuch as loss of control, dilemma related to strategic planning, need of new skills etc. It is a very common problem for virtual organisation to make strategic decisions and do strategic planning. They have to know the combination that can be helpful in achieving core competencies. There is a common vision of the firm and its employees and they promote interdependencies that lead to confusion. Coordination is very important under virtual organisations. (Anderson, 2010). Online purchasing is a trend of buying goods and services and people feel more comfortable in buying things online rather than buying manually by visiting a store and virtual organisations can adopt it by applicability of e- marketing mix. (Dholakia, 2015)
E- Marketing mix
Marketing mix consists of tools, which are available for business to acquire response from the target market in consideration to its marketing objectives. It includes-
How do people consume services?
What process they need to acquire the services. ?
7. Physical evidence- It is the physical presentation of the environment and the ambience of the organisation like cleanliness, dirty, loud, smell etc. Banks uses financial software’s and new technology which reduces paperwork.(Egan and Harker, 2005)
Product-service mix is defined as the business that deals with services as well as tangible products. Now days, most of the organisation focuses on quality of services rather than on the product. This is because quality of the service attracts the customers and helps in building healthy relationship with them. Post sales services come under a category in which organisations focus on providing services to the customers after selling the products. Product/ service mix helps in enhance value for the customer and organisation because marketing mix focuses on overall development of product and service in relation to its overall growth and development. The nature of services is intangible so a person cannot touch and check it before acquiring the same. (Dholakia, 2015) Because of this, it is important to concentrate on the services to make them successful. Services benefit to product mix as product mix is suitable in terms of a product only but if product mix is applied to services then it add on many things to the service mix because products and services have different characteristics. Service marketing has a different approach because services are intangible in nature and an organisation cannot show the services in the advertisement or cannot provide free locusassignments. (Lahlali, 2011). Importance of services is increasing in developed economies, as they are necessary to satisfy needs of the customers. People in developed countries are more busy and they depends on online providers in their lives for example they want to do all bank transactions without visiting to bank and they are doing so, as banks has launched e- banking facilities.
Marketing of services is peculiar as services are intangible in nature and marketer should adopt the ways for visualized the services and its benefits to the target customers. It is very difficult to convince consumers about the characteristics of the product or the ability of the services due to its intangible nature. Marketer should use tangible representations for showing the services like colours, logo, mascots etc. It can build the customer’s trust on the services. (Henderson, A. 2011) . Services cannot be stored and have to be transacted at a given point of time. If the transaction does not take place then the amount or revenue can never be recovered. It cannot include delayed sales as services are for simultaneous production and consumption. They are heterogeneous in nature as there is non-standardization and production of services is done every time whenever a transaction takes place. Services are inseparable because both the service receiver and service provider is under one roof. Manufactured goods can be available in many places and can be consumed at different locations so it has separable nature.
Methods to overcome the difficulty: Inseparability in services can be removed by satellite conferencing i.e. an expert can give instructions through a video to the client. Now it became so easy to have a video of surgery for reference purpose and broadcast it to many medical colleges. Bristol Medical School in UK has used this method to overcome the difficulty of inseparability. The medical college also uses different tools to associate the service of education to the product. They provide the service of education to the students by providing them with the practical knowledge of the topics by using the original equipments in the class.
IT plays an important role in service marketing. Today every organisation owns a website in which all the basic information regarding incorporation, products and services are available. It is important for websites to maintain update as it creates an impact on customer’s mind. An organisation can gain more sales potential by websites and can maintain good relationship with customers. It can be done by collecting the basic information about customers and storing this on central database thus starting to create one to one relationship. (Henderson, 2011). As more and more people started using internet, many changes are taking place in their buying habits. They choose a brand or any service after checking the reviews about the product or service. At present, the facilities are available for booking service online. A person must have access to the internet and can book service online. FedEx is an organisation that focuses on customer satisfaction and to provide best services to the customer. It has all the three sides of the triangle. Due to the impact of technology on all dimensions of services, it has been advised that service triangle should expand so that technology can participate in this. The pyramid says that it is beneficial if customers, service providers and technology interact with each other through interactive marketing. (Grainge, 2010) It also gives advice that management has the responsibility to provide facilities regarding delivery through technology.
Ethics is an important part in organisation’s operations. It is important for them to behave in an ethical way in production and marketing of their services. Business ethics means to conduct business activities without harming the nature and the society. It means a business should not earn profit in an immoral way. The term business ethics should be understood from all the angles. A company cannot incur profit by wrongly affecting the environment like wasting scarce resources, which results in creating unemployment. (Debowski, 2006). Marketing of the products must be sustainable as organisations are responsible for providing correct and fair information about their products and services. Customers must have a clear view about the products or service so that it does not results in misappropriation. (Maier, 2007). Food industry is the area that needs to be majorly concerned about the ethical and the social issues in marketing. This is because misinterpretation of the food products may affect the health of the customers and this is not acceptable ethically and morally. Marketers should concentrate on some of the issues that need to be concerned while marketing the food products:
Corporate social responsibility means the business practices involving the benefits of the society by giving away a part of company’s profit for social reasons. There are different types of social responsibilities. They are-
Audi started to produce carbon- neutral mobility so as to fulfil its product responsibility and for the protection of the environment. Audi cares about its employees by providing them essential trainings and guidance. It focuses on people. It encourages education, commitment and culture. Ethical and social issues create an impact on the brand reputation of an organisation because it can directly connect with the customer, if it is socially and ethically responsible for them.
A pressure group is an organised group of people who try to persuade any authority to do something. A group may promote any specific issue for any particular cause. Pressure group creates a pressure on the organisation when they come to know that wrong was done and that wrong can damage the reputation of the organisation which leads to decrease in sale. (Yunus and Weber, 2010)It is essential for a business to earn profits in order to survive. It depends on the consumer, whether an organisation is making profits or incus losses and hence, consumer have a right to be safe, to choose, to be informed and listened. Pressure groups that influence marketing of Cadbury-
Many pressure groups have forced the consumers not to buy Cadbury at the time of the insect case. These pressure groups or interest groups work for the benefit of the society by making them aware of the wrong and right doings of the organisations. They not only criticize the companies but also help the organisations in their marketing processes. Pressure groups target the customer’s ethical and social behaviour of purchasing.
Published and broadcast media creates a high impact on the customer’s mind, as they are so much in trend. It has been indicated in past that; marketing ethics includes the application of moral principles in the operational activities and marketing process. These includes marketing tools like advertisement, promotion etc. (Debowski, 2006) it is important to consider that some aspects of marketing ethics are disappeared because of media ethics. In food industries, the ethical and marketing policies are affected by broadcast media as well as print media. The media fulfilled its duties and responsibilities by enlightening members of the public, related to social and marketing principles, which are expected from food industries. It also exposes the industries, whose marketers are not fair and truthful about the products. It can also alert members, whenever any of the organisations uses some bad practices for production. (Henderson, 2011). Media has the power to build the image of the company and has the power to ruin it. An example of Cadbury illustrates it better. At the time of Cadbury worm crisis, media has just exaggerated the case in such way that it almost ruined the image of the organisation. Media was right on their part as they are trying to aware people regarding the wrong doings of the company, whether it is rumour or truth.
Knowledge management is very important, as it is responsible in coordination of technology, people and process. Technology plays an important role in the success of an organisation because with the increased use of internet, it is essential for the organisation to promote its product online. It also helps in relationship management because an organisation can connect with their customers with the help of technology and get their reviews about the products and services. Customer relationship management is important as it enables an organisation to know about the needs of customers and provide them with the products of their choice. It is important for both the voluntary organisation and public organisation to maintain relationship with the customers. It is important for an organisation to behave ethically and fulfil it social responsibility towards the society. All the resources belong to the society, so every organisation should use the resources in effective and efficient way. They should provide the society with best quality of goods and services.
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