What Actual Marketing Is - Essay Example

?Critically discuss the following ment “What is marketing? Easy; it’s what marketers do Introduction The continuous increase of commercial transactions worldwide has led firms to search for practices that will help them to effectively compete their rivals. Despite the facts that these practices have been traditionally used for the promotion of products/ services in various sectors, still their framework has not been clear. This problem is particularly important since efforts are made for the promotion of fairness and equality in trade activities internationally; marketing, the concept in which the above described practices are included, need to be aligned with the rules governing commerce – in the context of both the international and the local markets. A series of theories has been gradually developed aiming to help the transformation of marketing in accordance with the current market rules. Current paper focuses on the examination of the context and the role of marketing within the modern market; the specific field is evaluated using relevant theories – as published in the academic literature. Moreover, efforts are made in order to present and explain the practical implications of marketing – as these implications are understood and handled by marketers. It is concluded that the current forms of marketing are difficult to be fully explored and evaluated – being differentiated within each commercial sector; however, the theoretical explanations on marketing – as identified through the relevant literature – can help to understand the actual role of marketing in the modern market but also its potentials for further transformation in the future. 2. Marketing – Description and functions 2.1 The context of marketing - definitions One of the key characteristics of marketing is its ability to be transformed being aligned with the market trends and demands. Initially, marketing was a discipline rather foreign to academic study; it had been rather considered as a series of practices used by professionals who deal with the promotion of products/ services within a pre-arranged market (also known as target market); the above issue is highlighted in the study of Baker et al. (1998) who noted that marketing gradually entered the academic field of knowledge; however, despite the fact that a wide range of studies has been developed in regard to the content and the role of market, still there are many of its aspects that are not clear (Baker et al 1998). Probably the reason is that the changes of the market are too quick and extensive, marketing’s rules and forms are transformed - in order to be aligned with these changes - but there is no adequate time for the phases of this transformation to be monitored and evaluated. From a similar point of view Viardot (2004) noted that the context and the role of marketing can be differentiated when having to enter a particular sector; reference is made, for example, to the term ‘marketing for high tech firms’ (Viardot 2004, 1); it is suggested by Viardot (2004) that marketing is described as follows: ‘putting on the market’ (Viardot 2004, 2) – a description which presents the practical use of marketing as a range of tasks focusing on the achievement of a particular target. Baker et al. (2007) use a similar approach; they note that marketing is still in a period of transition from ‘a pure professional practice to an activity explained through appropriate theoretical models’ (Baker et al 2007, 3). Kotler et al. (2010) give a different, more analytical, description of marketing; in accordance with the above researchers, marketing is ‘the process of building profitable customer relationships by creating value for customers and capturing value in return’ (Kotler 2010, 53). In the above description marketing is presented as being closely related to customers; in this way, the main priority of marketers is set: marketers should focus on the development of the relationship between the products/ services advertised and the customers within the targeted market. It should be noted that the relationship between the marketing and the customers might have different forms - reference can be made, for example, to the consumer marketing – used to promote products to individuals/ consumers – and the industrial marketing – used to promote products to organizations (referring to products necessary in the context of a particular production line) (Burgers 2008). Cheverton (2004) stated that the basis of marketing could be identified in the following relationship: the needs of the market and the needs of the customer. This relationship is presented in the diagram that follows (Figure 1): Figure 1- The attitude spectrum (as in Cheverton, 2004, 5) Today, the role of marketing has been changed. A new marketing concept has been developed under the pressure of the market changes; in accordance with Webster (1994) the new marketing concept addresses the needs of global customer; therefore, it is necessary that from now on, ‘the value is defined in the marketplace, not in the factory’ (Webster 1994, 24). 2.2 Structure and role of marketing strategy In order for a marketing plan to be developed successfully, it is necessary that a particular methodology is followed; this methodology is known as marketing strategy and includes the following stages: a) identification of the market in which the product/ service will be advertised (Silk 2006, 3) and b) the choice of the plan that would be most appropriate for the effective promotion of the product in the targeted market (Silk 2006, 3). The structure of the strategy involved in each marketing plan is not standardized. A series of standardized models is available – along with the existing marketing theories – for the planners of marketing strategies. One of these models is the joint timing model of Schweidel et al. (2008). In the context of the above model, it is suggested that the acquisition and retention of potential customers could be achieved by emphasizing on the acquisition and the retention of customers and the control of the potential heterogeneity (Schweidel et al. 2008, 829). From a similar point of view, Urban (2005) notes that marketing strategies within the modern market should have different structure compared to the ones used in the past since the power of customers to be informed on the products/ services advertised has been increased – a result of the development of Internet and the media. Moreover, in accordance with Urban (2005), a successful marketing strategy should focus on the improvement of the relationship between the firm and its customers – the use of customer advocacy is mentioned as an effective strategy for achieving the above target (Urban 2005, 156). 2.3 Theoretical framework of marketing A series of theoretical frameworks has been developed in order to set the criteria on which a marketing plan should be based but also the reasons that led marketers to develop a specific marketing concept. An indicative example is ‘the social systems theory of marketing’ (Ludicke 2006, 5) which is based on the view that marketing is primarily a ‘social systems sui generis’ (Ludicke 2006, 5). The above view emphasizes on the long existence of the marketing in markets worldwide, but particular attention is paid on the development of the marketing from the 1920s onwards. It is also explained that the theoretical framework on marketing has its roots in the ‘winter conference of the AMA (American Marketing Association) in Pittsburgh in 1946’ (Ludicke 2006, 4). It was during the above event that the first initiatives for the establishment of a marketing theory were developed. The increase of the complexity of markets worldwide has been the main reason for these efforts. The initial theory on marketing – established during the conference in Pittsburgh – has been characterized as a general theory of marketing (Ludicke, 2006). Through the years, additional theories were developed aiming to make the context and the role of marketing clearer; the most known theorists who worked in the specific field were Alderson (1957), Bagozzi (1979), Howard (1965) and Bartels (1968). However, all of the theories that followed the general theory of marketing (in 1946, as explained above) had a common problem: the lack of explanations regarding the content of marketing; only the role of marketing was described. In other words, answers were given to the question ‘What marketing does’ (Ludicke 2006, 5) but not to the question ‘What marketing is’ (Ludicke 2006, 5). The first attempt to resolve the above problem has been the theory of ‘one to one marketing trend’ (Peppers and Rogers 1995, in Ludicke 2006, 5). The changes of marketing under the influence of the changes in the market are reflected in the description of marketing of Gummesson (1991) who characterized marketing as a function – instead of the existed characterization of marketing as an occupation (Gummesson 1991, in Woodall, 2007, 1285). Particular reference should be also made to the strategic marketing planning concept which is highly based on the customer loyalty as it can be achieved by developing a product’s competitive advantage (Kotler 1984 in Dick et al 1994, 99). The concept of the customer loyalty, which is particularly important for understanding the role and the missions of marketing, is described in the graph included in Figure 2 below. Figure 2 – Customer loyalty in modern market (as in Dick et al 1994, 100) Customer loyalty – as described above – can be quite crucial for the success of a marketing plan; in fact, it is noted by Reichheld (1993) that ‘the economic benefits of the customer loyalty often explain why one competitor is more profitable than another’ (Reichheld 1993, 64). The increase of customer loyalty – as part of a successful marketing strategy – can be achieved only within the context of an effective customer relationship management framework. The efforts made for the increase of customer loyalty reflect the trend of firm to focus rather on the needs of the markets and not the status of their products (Sheth 2000, 55). In accordance with Dumitrescu et al. (2009) the Customer Relationship Management (CRM) is a key element of any marketing strategy. In the context of CRM, a series of specific activities (like data warehousing and data distribution) has to be successfully developed (Dumitrescu et al. 2009, 256). It is explained that the above activities are the practical aspects of CRM, which should be considered not just as a sum of practices but, mostly, as ‘a philosophy’ (Dumitrescu et al 2009, 256). The use of additional concepts like the service loyalty (or else, brand loyalty) concept could be also beneficial. In accordance with Cunningham (1956) the brand loyalty can be described as ‘the proportion of the purchases of a household devoted to the brand it purchased more often’ (Cunningham 1956, in Caruana, 2002, 812). It should be noted that through the years, additional theoretical frameworks have been developed regarding the structure/ role of marketing; these theories, initially, served the needs of specific activities/ firms but gradually they were expanded across the markets – being recognized for their effectiveness. An indicative example is the Six Sigma theory of marketing – initiated by Motorola in 1980s; the above theory emphasized on the improvement of production processes as a prerequisite for the development of products which will respond to the market needs (Woodall, 2001). As the theoretical framework of marketing has been quite extensive, efforts has been made for this framework to be simplified; this trend is reflected in the Marketing Mix Theory, or else the 4 P’s theory, which notes that all marketing strategies should focus on the following elements: ‘Price, Place, Promotion and Product’ (Gummesson, 2002 in Woodall, 2004, 563) (see Figure 3 below) Figure 3 – Marketing Mix (source: NetMBA, A similar theoretical framework with the 4P’s theory mentioned above, is the 3 P’s theory of marketing; the above theory emphasizes on the following elements: Processes, People and Physical evidence. There are also concepts applicable on specific type of marketing plans; for instance of front-line employee concept which sets the following challenge: ‘the subjectivity of front line employees’ (Skalen 2009, 796) cannot be easily guaranteed, a fact that increases the risk involved in a marketing plan. A scheme that could help to minimize the risks related to the ‘front line employees’ (FLEs) is the customer advocacy; the above scheme refers to the provision by the firm on analytical information on a range of products/ services – no matter if reference is made to the products/ services of the firm or its competitors (Urban 2005, 157). At the next level, marketers use the ‘word – of – mouth’ scheme in order to make the qualities of a product/ service known to the public. The ‘word –of – mouth’ scheme is based on the following process/ practices: the firm estimates (using data related to their customers’ purchases in the past) the value of their customers, i.e. the level of the profit, which these customers could bring to the firm – by purchasing the firm’s products but, mostly, by speaking for the these products’/ services’ quality to other people, an activity which constitute the basis of the ‘word – of – mouth’ marketing scheme (Kumar et al 2007, 139-140). 3. The role of marketers – theories, practical aspects and implications In order to understand the content and the role of marketing it is necessary to refer to the role of marketers within the modern market. The most common mission of marketers within the context of marketing is to design, execute and monitor the marketing plans. In practice, these tasks can be quite complex mostly because of the following reasons: a) the personal views of marketers on marketing (including its principles and its role) can be differentiated being influenced by the personal experiences, the educational background and the family/ professional environment. At this point it should be noted that there are certain theories on which marketing plans need to be based – especially when the targeted market is quite complex or demanding; however, even under these terms, the marketing plans produced using these theories can be differentiated because marketers may understood differently the same theoretical frameworks; b) markets are not static; they tend to change on a continuous base; this is a result of the expansion of globalization – including the development of technology. Marketers need to be able to identify and evaluate properly the markets’ changes in order to develop marketing plans that can respond to the needs of consumers, c) the views of customers on each product and service cannot be considered as standardized; even when referring to a specific geographical area, the views of consumers on the same products and services may change – even within short period of time. Personal attitudes cannot be considered as having a guaranteed or standard form; rather, marketers should be able to capture the changes in the views of marketers in regard to a specific product/ service taking into consideration the economic, social and political environment. For instance, in a town, which has suffered severe natural disasters, a marketing plan referring to the effects of the climate changes should be inappropriate. Moreover, in case of a country that had suffered losses because of a war there can be no advertising campaign showing military conflicts. The role of marketers in marketing has been explored using various theoretical models; in accordance with the theory of ‘absolute threshold’ (Hoyer et al 2009, 86) each advertising campaign should achieve at least to attract the attention of the public; an indicative example is given by Hoyer et al. (2009); it is explained that if ‘the letters of an advertising campaign are too small then people will not be able to read the advertisement which, as a result, will have no value’ (Hoyer et al. 2009, 86). Another similar approach is the ‘differential threshold theory’ (Hoyer et al. 2009, 86) which refers to the cases that marketers need for the public to understand the difference highlighted through a particular marketing campaign; for instance, marketers in McDonald’s wish that ‘the customers will notice the fact that even if the size of hamburger has been increased the price was not changed’ (Hoyer et al. 2009, 86). In any case, in order for the targets of marketers to be achieved it is necessary that the theoretical and the practical aspects of each marketing strategy are carefully reviewed; the measurement of the Customer Value (Kumar et al. 2007) could help marketers to understand the needs of the market – by identifying the characteristics of the customers; in this way, the chances for failure of the promoted marketing strategy can be minimized. In accordance with the above, when marketers have to develop a marketing plan they need to take into consideration certain facts: a) people are likely to be influenced by their environment – which, in many cases, can lead them to decisions which come in opposition with their personal perceptions, b) the choice of a particular service/ product is a result of a process which is related to ‘certain physical functions and characteristics, like memory, conscious and understanding of the environment’ (Martin 2008, 22); when comes to advertising campaigns, humans avoid using complex conscious functions, i.e. advertising campaigns have more chances to success when their messages are easy captured (Martin, 2008), c) in accordance with Sacharin (2001) one of the most important criterion for the development of a successful marketing plan is that this plan is based not only on the needs of the firm involved but also on the needs of the targeted customers; it is explained that, quite often, marketers ‘avoid referring to the needs of the consumers and take into consideration just the needs of their company’ (Sacharin 2001, 33), d) from a similar point of view, it is noted by Gitman et al. (2007) that ‘central to any society is the common set of values shared by its citizens that determine what is socially acceptable’ (Gitman et al. 2007, 126); in accordance with Gitman et al. (2007) this set of values highly affects the perceptions of people of the particular society and for this reason it should be taken into consideration by marketers when having to develop an advertising campaign addressing the specific market, e) through the years, the legislation on marketing is expecting to become stricter, as a result of the increase of complexity of commercial transactions but also the increase in commercial fraud (Kurtz et al. 2009). Under these terms, it is expected that the perceptions of marketers in the future will be changed; in the future, marketing graduates should be based on their own perceptions on marketing rather than on the existing views on the particular concept (Elias et al. 1999, in Evans et al. 2002, 579). 4. Conclusion The examination of the content and the role of modern marketing led to the conclusion that, in its current form, marketing serves a series of different needs and interests. Moreover, it has been made clear that the changes in the scope and the priorities of marketing have been followed by changes in the practices used by marketers. The latter have lost part of their power on deciding the structure and the aims of marketing strategies – especially because the relevant power of customers has been increased (Gronroos, 1990). One of the new priorities of marketers worldwide has been the promotion of changes in the quality of products/ services provided to the public; this fact is indicated in the study of Rust et al. (1995) who noted that in the context of the modern market, efforts are made so that ‘the services available to the public to be financially accountable’ (Rust et al. 1995, 58). 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