Unit 41 Contemporary Issues in Marketing Management Assignment – D&D

Unit 41 Contemporary Issues in Marketing Management Assignment – D&D

Unit 41 Contemporary Issues in Marketing Management Assignment – D&D


Diploma in Business

Unit Number and Title

Unit 41 Contemporary Issues in Marketing Management

QFC Level

Level 5


Marketing is an area that undergoes change continuously especially ever since the wide accessibility of internet empowering anyone in to easily get connected and reach the maximum number of customers from anywhere and at anytime. Though internet has widen the scope of extending a business, at the same time it has also brought certain issues in identifying the ideal customers interested in purchasing what an organization sells. 

Marketing Issue

Organizations mainly deal with contemporary issues in marketing while building feasible relations with customers and continue with its profit generation. For understanding the contemporary issues in marketing management, D&D Enterprises has been considered as the case study, which is a general retailer with stores located across London. Through this assignment, utilization of ICT strategy will be discussed apart from what are knowledge management and its relation with CRM strategies through various ICT tools. Stakeholder analysis will be executed and customer nature in a non-profit organisation will be discussed. Marketing methods and areas of concern within D&D Enterprise will be pointed and the role of IT in marketing management services will be highlighted

Task 1


CRM is a business strategy having an aim to acquire, retain and grow customers that are more profitable whereas relationship marketing is the business activities amid supplier and customer in order to grow the market by generating better customer value at less cost. CRM empowers organizations to furnish its customers with exceptional real-time services. (Toriani and Angelon, 2011)

1.1 Knowledge management and its role in relationship marketing 

One can describe knowledge management as a concept comprising of a vast range of practices occurring within an organization or business for creating, identifying thereby, representing insights and experiences. Organizations opt for knowledge management for collecting, conducting, sharing and evaluating its ability in terms of human resources, records employee skills etc. Knowledge Management involves data mining through certain operational measures for conveying information to the users or customers. It includes surveying of organizational goals, observing conventional and technical tools needed for addressing the business needs. (Toriani and Angelon, 2011)


Knowledge management has a significant role to play in CRM in order to maintain long-term customer relations. Relationship marketing whose key purpose is to focus on building a long lasting customer relation by recapturing customer loyalties rather than acquisition is CRM’s key aspect. For securing its business profits D&D Enterprise needs to undertake measures for increasing customers’ loyalty. Furthermore, the general store should aim of regaining the customer base by making an effective customer relationship marketing and knowledge management plan and implementing the same. D&D Enterprise can offer the customers with more product choices and sell personalized products. With the emergence of modern business scenario, the popularity of CRM has grown immensely which also is a KM method. (Toriani and Angelon, 2011)

Both CRM and KM benefits are beneficial in offering the customers with perpetual development. The supply chain can be related to various areas of relations revolving around strategic, tactical, internal, transactional etc. The relationships generated with suppliers and customers in a supply chain are termed as partnership. The general store needs to adopt various communication methods inbuilt with advanced technologies for cultivating trust thereby, giving rise to transparency amid suppliers and customers. The market conditions are changing rapidly hence, D&D needs to change its approach towards customers’ and focus on how to retain them and not acquiring them. Customer retention has become easier by using technology in everyday operations and is rewarding for the retail outlet. D&D Enterprise should assert on customer retention because only then, it can recover its investment and KM has a huge role to play in the same. For enhancing its production, the store needs to analyse the value chain. Objectives and knowledge of values with further help D&D in formulating better marketing strategies. The tool of value chain analysis assists in creating customer value and for growing the values and understanding the manufacturing factors, D&D Enterprise must adopt KM while analyzing its value chain. (Toriani and Angelon, 2011)

1.2 How ICT can support CRM process in a particular organization

Considering the case study of D&D Enterprise, it is important for the owner to realize the importance of maintaining a customer database for cultivating a healthy and long lasting relationship with its customers. The store needs to rely on ICT for improving the quality of knowledge management system. Using ICT will empower the retail store in tracking and establishing customer interactions, providing real time support and services to the customers across multiple locations within London. By adopting the tools of ICT, the D&D can allow its customers in collecting detailed information about the products from anywhere, at anytime and buying it without physically visiting the store. The owner needs to understand that ICT supports relationship management in various ways and by adopting ICT at its stores, D&D can enhance to its overall performance and productivity. Utilization of ICT in its everyday operations will help the owner in realizing the impact of digital economy and its effect on global market. (Businessballs, 2016)

CRM Process

Numerous tools of ICT such as internet, interactive order processing system etc. will empower the retail store in furnishing various services to its customers within the comfort of their home and simultaneously enabling D&D in making timely deliveries at the customers’ doorstep. Moreover, use of ICT will allow D&D in adopting an adequate supply chain for expediting its services. With the help of bar codes inscribed on products, D&D can easily maintain a database of products supply and demand, price variation, stock etc. Maintaining the stock of products that are in huge demand can be easily done without allowing the customer returning empty handed.  ICT tools will further allow the store in reaching maximum number of customers, understanding the market trends and their preferences. Using SEO, the owner can keep tab on number of customers visiting their e-store for checking or buying the products further contriving the production demanding products. ICT will enable the owner in indentify the key issues of the stores operations through customer feedbacks and adequately planning for resolving the issues. (Businessballs, 2016)

1.3 Benefits of CRM in a selected organization similar to D&D Enterprises 

For answering this question, the example of Londis has been considered. One can observe that CRM of this convenience store is based on methods aiming in building a long lasting relation with customers thereby, earning their loyalties. With the help of CRM, Londis has brought immense improvements in its customer services as the in-store staffs helps them in understanding their needs and offering them with best products thereby lessening customer dissatisfaction. (Markgraf, 2016)

CRM Process 1

Londis encourages the customers in giving their feedbacks for identifying the areas of improving and can simultaneously enhance customer value by renovating communication through various aspects of CRM such as using internet and digital technology. Londis is gaining competitive advantage by remaining in touch with its customers through Twitter, Facebook and YouTube and is staying connected with social communities. Various CRM strategies are implemented for analysing customers ‘feedbacks. Survey forms distributed amid the customers so that they can review the product and Londis services thereby, giving value to their opinions. CRM strategies are concocted for fulfilling customer needs; the inadequacies are decreased by accommodating to e-CRM. Londis evaluates the factors affecting customers’ equity transferable data and customer interactions by using the ICT’s communicational tools thereby, establishing healthy communication and determining the desired value. (Markgraf, 2016)

1.4 Recommendations for improving CRM for the selected organization

The recommendations for improving Londis CRM are:

Customer strategy: while designing CRM for gaining conducive outcomes, Londis needs to formulate strategies for targeting its wide customer base with the help of customer segmentation. This will empower Londis to identify the customers it wishes of targeting for establishing a long lasting relationship and concurrently accumulate the costs involved. By determining the profitable customers, Londis needs to undertake adequate measures for retaining the loyalties for a longer period through getting indulge into non-tech or low cost solutions. Londis must also plan for investing funds to shortlist the hidden cardholders and their purchasing details. (Pedraza, 2012)

User-friendly tools:Londis needs to realise that by taking up convenient tools, it can significantly enhance CRM’ effectiveness eventually driving the current financial situation of the business. Market experts suggest that most customers tend to get inclined towards a handy technology because of its ease. Londis has many customers who are not much digitally sound and aware hence, by launching user-friendly mobile apps, the general store can easily trap such customers and even the ones who are remotely located. Moreover, making its presence felt in the digital platform will eventually empower Londis in cultivating healthy processes of customer interaction. (Pedraza, 2012)

Employee training: with its CRM tools, Londis needs to encourage the employees in gather customer information for bringing rectitude within the process. The data gathered can be further used in employee training so that they can efficiently use various CRM tools.


With the emergence of a convoluted and fast-moving environment, organizations have realized that CRM strategy cannot work effectively in the absence of gaining customer information. ICT has helped businesses to communicate, maintaining customers and stock record, quick dealing with information, enhancing store’s productiveness etc. CRM increases organizational efficiencies thereby, making the systems more unified. Marketing strategy pursued by CRM are beneficial in extending customer satisfaction.

Task 2


Stakeholders have a significant role in to set objectives and preferences of organizations for ensuring applicability and suitability. Hence, stakeholders should be involved in products, services or projects development instead of being a mere recipient. Customer service is somewhat intricate for non-profit organizations because although they exist for meeting the constituents’ needs, they too are need of evolving strong relationships with the donors for raising funds. Many non-profit organizations are struggling in maintaining a long lasting customer relation, culminating into donor erosion. A brief discussion on marketing issues of virtual organizations will also be discussed.

2.1 Stakeholder analysis for a voluntary sector and a public sector organization

The chosen voluntary sector for analysis American Red Cross that caters assistance, disaster relief, education in US.    

Internal Stakeholders of ARC: 

  • Employees:are the faces of the humanitarian organization having a direct involvement providing everyday administrations globally. Their role within ARC is significant in ensuring that its exercises focus on goal and vision with no misusing of finances. (KnowHow, 2014)
  • Media: they ensure that public is aware of ARC’s actions further conveying its message to the masses. During any disaster, media has a key role in urging the masses for their contributions.
  • Volunteers: are involved in arranging funds used during emergencies from independent contributions and charity fundraisers. Without their efforts, people remain unaware of how and what to contribute. Volunteers provide the people with an intuition of what is happening at the field for developing a better understanding of the situation.
  • Donors:are individual and organizations providing bulk funds for supporting ARC’s activities

External Stakeholder of ARC:

  • Victims/Needy People: they are the ones who are in need of help because they are either injured, have healing issues or are displaced amid an environmental disaster and are inn urgent need of long or short-term medical assistance. (KnowHow, 2014)
  • Community:they help ARC in proving help and rescuing the victims by arranging for food and water resources, sanitation, medical care etc.
  • Governments: by incorporating emergency management agencies like FEMA, fire departments and emergency medical providers, government closely supports the activities of ARC.\

The chosen Public Sector for stakeholder analysis is NHS, which is a publicly funded hospital in UK. NHS’s stakeholder board, commonly known as national quality board is a multi partner providing quality and guarantee arrangements to the needy. NHS’s internal stakeholders are people committed to serve as board members, staff, volunteers/helpers, donors whereas the external stakeholders its clients/constituents, community partners who are influenced by its work.


It is essential to understand what an individual or group carry out unexpectedly in various circumstances. Once an outline of possible partners is made, it is necessary to access their influence. The most preferable way of stakeholder analysis is conducting an importance/ influence grid. (KnowHow, 2014)


It is important to first plot out the stakeholders in relation to their importance and influence on organization. NHS needs to manage the stakeholders by contrasting searching for discrepancies for retaining them in their current position

2.2 Nature of the relationships with customer with two selected not-for-profit organizations 

BHA Homes nature of relationship with customers:BHA is a charitable organization that builds homes for renting people belonging to different socio-economic background, suiting the needs of varied lifestyles and family sizes. Being a charity, BHA utilizes the rents in maintaining the homes ensuring the tenants are offered with modern and comfortable housing experience in communities throughout Berwickshire. BHA is a customer- centric organization with firmly believing in keeping the customers first for cultivating healthy and long lasting relations with them. BHA aims in leading new ideas and home solutions to the people by creating flourishing rural communities making the lives of customers better easier and more beautiful. BHA further encourages its customers accepting their responsibility towards home and neighbourhood. BHA works for society’s progress by engaging more youths in its social cause of maintaining their communal relationship. BHA also provides affordable homes for the weaker section of the society at much less rent. (BHA, 2016)

HM Passport Office’s nature of relationship with customers: The operational function of a passport office is receptive hence, the relations with customers are generated when they physically reach them. Passport office works in adherence to the government imposed regulations for smoother operations at domestic and international level. Being in direct link with the Department of Affairs Ministry and travel partners, passport offices are committed in measuring and ensuring travellers’ safety and security. The functions of a passport office are command based because they are obligated in keeping the bodies informed about its activities. Moreover, maintaining customer services timeline is their key aim through it governmental approaches.

2.3 Compare methods used in marketing in public, private and voluntary sectors 

Public sector

Private sector

Voluntary sector

The key purposes of public sector is serving towards the public and society’s well-being, functioning reactively that further aids in adopting differing approaches in varied situations. (Singh, 2016)

In public sector, marketing process is immune from competition since it serves the public without affirming for benefits and its profits are linked with giving value to public. 

A public sector like NHS, which works towards public healthcare has brought progressive changes within its approaches. NHS for reaching the patients far and wide have adopted ICT techniques and CRM strategies for delivering excellent public services.

The marketing objectives of a private sector is profit based hence, it functions by using the 4Ps and proactive approaches to reach the customers. The marketing strategies are target based to evolve its market position for protecting the competitive advantages thereby, gaining customers’ interests through its services/products. (Singh, 2016)

Profit making of private sectors is done by adding value to the products/services for withholding the customer base. Traditionally, marketing was restricted to customer services and limited resources were used for advertising.



The key purposes of voluntary sector are serving the essential society needs without craving for monetary rewards. Competition is also prevalent in voluntary sector because they need to win the trust of donors and stakeholders to collect funds hence, is always is need of adopting appropriate marketing techniques which are less budgeted. They also establish communication for enhancing the donors’ interests.

UK based Voluntary Organizations Disability Group adopts its marketing strategies by comparing its traditional and futuristic fund raising approaches.   (Singh, 2016)


2.4 Explain the key issues involved in marketing in a selected virtual organization 

Virtual organisations differ relatively from other types of organizations in their functioning having employees spread across the globe and remain in touch with each other through internet and groupware. Their networks vary since they function in partnership. The organization selected for answering this question is Nike, the operational process of whose is complicated. Nike considers strategic planning to attain its core competencies while marketing the products. Nike’s performance endeavours common goals and objectives. Nike’s dependency on interdependencies often makes the operations convoluted. The effectiveness of marketing plans is discreet and is managed by coordination amid employees which is very demanding. (Shankar, Inman, Mantrala, Kelley and Rizley, 2011)

Virtual organization

The marketing strategies of Nike are based on outsourced resources, bringing numerous marketing issues since they do not guarantee in providing credible market information further evading the key concerns of existing market conditions thereby, rising problems in Nike’s growth and success. A major portion of Nike’s existence relies on internet and electronic mechanism providing customer convenience. Nike’s presence in electronic mechanism is giving rise to obstacles in making markets and laying hurdles in reaching customers. However, the marketing benefits are less when compared with other business forms, Nike often has to deal with production hurdles because of technology failures. For successful and global marketing of its products, Nike has adopted e-marketing mix. Online purchase has shot exceedingly with use of advanced technology allowing virtual organisations to flourish. (Shankar, Inman, Mantrala, Kelley and Rizley, 2011)


At the end, one can conclude that conducting of stakeholder analysis can help organizations in understanding their impact on the business. Hence, they need to understand stakeholders’ interests and then contrive how to get them involved. For a long lasting business growth, it is equally important to understand the customers’ needs. A brief comparison has been made about the marketing methods of public, private and voluntary organizations apart from discussing the key marketing issues involved in a virtual organization like Nike.

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Task 3

3.1 Use of extended marketing mix in a selected service sector businesses 

One can describe marketing mix as a merger of elements a business uses further enabling it in meeting the customers’ needs and expectations. The biggest challenge of marketing is ensuring that every elements of the mix work together in attaining the marketing objectives. Marketing mix in general comprises of four elements i.e. product, price, promotion and place, however, with change in business scenario three new elements have been added to the 4Ps hence, known as extended marketing mix. (Johnson, 2014)

Marketing Mix

Extended marketing mix namely Physical, Process and People relates the marketing functions with HRM and operations.

Marketing Mix 1

Extended marketing mix in Distinctive Holiday Homes:

People: in DHH, employees are considered as the key support system and first representatives to the business. Hence, the management ensures that right people are hired and trained. Employees’ behaviour builds a positive or negative image in customers mind. Acquiring right skills and customer- friendly approach allows DHH in delivering notable services thereby, gaining competitive advantage over competitors. (Johnson, 2014)

Process: deals with customer services and DHH’s ability in offering services, handling complaints and discerning problems before they occur in actual. DHH uses multiple processes like technology, employees’ skills and knowledge for easy delivery of its services to customers. By using ICT, DHH has enhanced its services eventually achieving customer satisfaction.  

Physical evidences: DHH ensures that all the clubs are located in areas that are well connected through transport. DHH assures that the homes meet customer convenience and comfort urging them in making repeated visits. (Johnson, 2014)

3.2 How product/service mix enhance value for the customer and organization

The supermarket considered here is Waitrose which has augmented its product/service mix through a tie- up with John Lewis. Entering into this alliance has further helped Waitrose in aggravating value given to customers. By implementing product/service mix Waitrose has been successful in enlarging its services thereby, strengthening value in supermarket’s services. Opting for digitalized customer services has assisted Waitrose in furnishing customer satisfaction through its additional features like one-click shopping in its e-stores. (Path, 2016)

Click And collect

Click And collect 1

Click And collect 2

Shopping online has saved customers from physically visiting the stores and purchasing anywhere, at anytime and getting hassle free delivery, all at the comfort of their homes. Use of technology has empowered Waitrose in eliminating hurdles in the purchase and delivery cycle thereby, furnishing outstanding customer services and gaining competitive advantage (Path, 2016)

3.3 How marketing of services difficulties can be overcome with reference to D&D Enterprise

There are numerous challenges involved in marketing of services in the context of D&D Enterprise. The owner need to adopt varied marketing principles to give direction to its services and conquering the problems. D&D needs to understand that customers’ interests rely on quick outcomes in the form of services which are intangible in nature. D&D needs to offer customers with wide product range for retaining them. For overcoming the marketing services strife, D&D needs to consider the 7Ps of marketing mix for expanding its revenue generation. The owner should also aim of taking customers feedbacks and resolve their complaints by focusing on better customer services and take measures to offer them with online shopping experience further increasing a positive aspect towards its services thereby retaining them. To minimize customers’ dissatisfaction, D&D must identify the loopholes in its services and take adequate measures in bringing improvements. For evolving online shopping, D&D adopt an advanced technical mechanism and train the staffs for upgrading their skills and establish customer interaction for cultivating a healthy relationship. (Kolowich, 2016)

3.4 Role of IT in services marketing management in a selected organisation 

IT’s significance in service marketing management can be judged by its role in providing BT an edge over its market competitors further allowing the customers in save their time with quick and hassle free transactions. IT has empowered BT in taking advantage of CRM tools and database management for evolving its services. IT has enabled BT in updating its market intelligence for bringing improvement in its marketing efficiency and effectiveness. BT’s marketing management depends on its marketing approaches undertake for managing the outcomes. By using IT in its business operations has helped BT in growing its marketing activities eventually allowing it in operating more competently thereby, enabling it to make global business expansions and attracting customers’ of mixed cultures. Use of IT enabled tools has assisted BT in dealing with customers’ demands and services and gaining their loyalties. Introduction of Consumer Loyalty card has helped BT in procuring its market position globally. Use of IT has helped BT in managing the customer database in a much more easy and convenient way. (MoneyMatters, 2016)

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At the end, it can be concluded that with the emergence of ICT has a significant marketing tool; the absence of it brings major hurdles in the area of effective marketing. Most organizations have to confront marketing related problems with the application of KM, in the absence of ICT and CRM tools. Building long-term customer relationships is an imperative method in establishing D&D Enterprise’s foothold in the market and generating revenues. Through this report, one can develop an understanding how CRM and managing of information and knowledge influence organizations growth and success. Stakeholder analysis has been conducted for determining the measure organizations undergo for meeting their needs. Discussions have been made the role of ethical issues in business and marketing process.


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