Week 12 - Chapter 22
Dr. Md. Parves Sultan Course Coordinator & Senior Lecturer Email: [email protected]
MANAGING A HOLISTIC MARKETING ORGANIZATION
LEARNING ISSUES
1. What are important trends in marketing practices?
2. What are the keys to effective internal marketing?
3. How can companies be responsible social marketers?
4. How can a company improve its marketing skills?
5. What tools are available to help companies monitor and improve their marketing activities?
Understanding a holistic marketing organization • Holistic marketers must engage in a carefully planned, interconnected marketing activities and satisfy an increasingly broader set of activities. • Corporate social responsibility and sustainability have become a priority as organizations struggle with the short-term and long-term effects of their marketing. • Successful holistic marketing requires effective relationship marketing, integrated marketing, internal marketing, and performance marketing. • A Holistic Marketing approach looks at the whole business (people, processes and products) and tailors a solution to align systems, services and customer touchpoints, so that consumers' experience of company’s brand is seamless and consistent across all channels.
Trends in Marketing Practices
• Chapters 1 and 3 described some important changes in the marketing macro-environment. These include the following: – globalization, – deregulation, – technological advances, – customer empowerment, – market fragmentation, – Economic and financial environment, – Political and legal environment, and – Social and cultural environments.
• In response to this rapidly changing environment, companies have restructured their business and marketing practices as summarized below:
Challenges Facing Marketers
• Slow-growth economic environment characterized by discriminating consumers, aggressive competition, and a turbulent marketplace, • Consumers are more disciplined in their spending and adopt a “less is more” attitude, • Marketers have to create and communicate the true value of their products and services, • Emerging markets such as India and China offer enormous new sources of demand —but often only for certain types of products and at certain price points, • Marketing plans and programs are more localized and culturally sensitive, • Businesses will continue to use social media more and traditional media less, • The Web allows unprecedented depth and breadth in communications and distribution, and its transparency requires companies to be honest and authentic, • Marketers also face ethical dilemmas and tradeoffs. For example, a match between low consumer cost and environmental protection. • Given increasing consumer sensitivity and government regulation, smart companies are creatively designing products and services with energy efficiency, carbon footprints, toxicity, and disposability in mind.
Internal Marketing
• Internal marketing requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value. • Only when all employees realize that their jobs are to create, serve, and satisfy customers does the company become an effective marketer. So, internal marketing starts with company employees. • Many companies are now focusing on key processes rather than departments to serve the customer. • To achieve customer-related outcomes, companies appoint process leaders who manage cross-disciplinary teams.
Modern marketing departments may be organized in a number of different, sometimes overlapping ways:
– functionally, – geographically, – by product or brand, – by market, – in a matrix, and – by corporate or division.
Socially Responsible Marketing
• Effective internal marketing must be matched by a strong sense of ethics, values, and social responsibility. • A number of forces are driving companies to practice a higher level of corporate social responsibility: i. Rising customer expectations ii. Changing employee expectations iii. Government legislation and pressure iv. Investor interest in social criteria v. Changing business procurement practices
Banyan Tree & Resorts is a leader in sustainability programs. It engages in preserving animal species that are endangered, providing employment to local artisans, as well as reducing solid waste in its resorts.
Sustainability
• Sustainability the ability to meet humanity’s needs without harming future generations, now tops many corporate agendas. • Major corporations outline in great detail how they are trying to improve the long-term impact of their actions on communities and the environment. • Sustainability ratings exist, if not consistent agreement about what metrics are appropriate.
Taipei 101 was honored with a green award. The skyscraper uses rainwater to water plants and recycles over 60 percent of waste.
Socially Responsible Business Models
• The future holds a wealth of opportunities, yet forces in the socioeconomic, cultural, and natural environments will impose new limits on marketing and business practices. • Companies that innovate solutions and values in a socially responsible way are most likely to succeed. • Corporate philanthropy as a whole is on the rise. More firms are coming to the belief that corporate social responsibility in the form of cash donations, in-kind contributions, cause marketing, and employee volunteerism programs is the not just the “right thing” but also the “smart thing to do”.
Tata takes social responsibility seriously. Its social services programs include paying for water supplies and subsidizing hospital bills and school fees.
Cause-related Marketing
• Many firms blend corporate social responsibility initiatives with their marketing activities. • Cause-related marketing is marketing that links the firm’s contributions to a designated cause to customers’ engaging directly or indirectly in revenue-producing transactions with the firm. • Cause related marketing has also been called a part of corporate societal marketing (CSM). • A successful cause-marketing program can improve social welfare; create differentiated brand positioning; build strong consumer bonds; enhance the company’s public image; create a reservoir of goodwill; boost internal morale and galvanize employees; drive sales; and increase the firm’s market value. • Consumers may develop a strong, unique bond with the firm that transcends normal marketplace transactions.
Nike’s alliance with the Lance Armstrong Foundation for cancer research has sold over 80 million yellow LIVESTRONG bracelets for $1, but deliberately, the famed Nike swoosh logo is nowhere to be seen.
Social Marketing
• Cause-related marketing supports a cause. • Social marketing is done by a nonprofit or government organization to further a cause. • Choosing the right goal or objective for a social marketing program is critical. • Social marketing campaigns may have objectives related to changing people’s cognitions, values, actions, or behaviors. i. Cognitive campaigns (e.g. value of foods, importance of conservation) ii. Action campaigns (e.g. donate blood, mass immunization) iii. Behavioral campaigns (e.g. anti-smoking campaign, responsible gambling and drinking) iv. Value campaigns (e.g. anti-abortion campaign, stop killing girl child, end female genital mutilation campaign)
Social Marketing Planning Process
Social marketing organizations should evaluate program success in terms of their objectives: i. High incidence of adoption ii. High speed of adoption iii. High continuance of adoption iv. Low cost per unit of adoption v. No major counterproductive consequences
Marketing Control
Marketing control is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments. i. Annual-plan control
ii. Profitability control
iii. Efficiency control
iv. Strategic control
The Future of Marketing
• To succeed in the future, marketing must be more holistic and less departmental. • Marketers must achieve larger influence in the company, continuously create new ideas, and strive for customer insight by treating customers differently but appropriately. • They must build their brands more through performance than promotion. • They must go electronic and win through building superior information and communication systems. • To accomplish these changes and become truly holistic, marketers need a new set of skills and competencies in: 1. Customer relationship management (CRM) 2. Partner relationship management (PRM) 3. Database marketing and data-mining 4. Contact center management and telemarketing 5. Public relations marketing (including event and sponsorship marketing) 6. Brand-building and brand-asset management 7. Experiential marketing 8. Integrated marketing communications 9. Profitability analysis by segment, customer, and channel
Marketing: 13,877 jobs in Australia as on 29 May 2016
Human Resources Management: 5,549 jobs in Australia as on 29 May 2016
Accounting: 11,134 jobs in Australia as on 29 May 2016
The Future of Marketing
The End