Contemporary Issues In Marketing - Essay Example

?Contemporary Issues in Marketing Table of Contents Table of Contents 2 Introduction 3 E-Marketing 4 Marketing Ethics 7 Branding and Brand Development 9 Conclusion 11 References 12 Introduction Marketing has over the years emerged as a prime business concept and pertinent organisational function. It has been observed that marketing is a key towards attaining desired level of success for every company. With the emergence of 21st century, technology has started to play a vital role for the organisations to prepare their marketing mix related strategies and also their overall product assortment (Brown, 2001). In the 21st century, the traditional approaches related to marketing have started to depict their limitations owing to the fact that companies have quite less amount of direct contact with their existing as well as prospective customers. The aspect of information which is quite readily obtainable through the advent of internet has made consumers to become more passive as well as homogenous. Therefore, companies are increasingly finding the need to devise strategic initiatives to retain their customer base. Customer need identification has become one of the leading strategies incorporated in marketing to derive competitive advantage. Companies are also attempting to create inimitable marketing strategies to lure the customers towards their offerings which would in turn enable them establish their brand recognition in the market (Kamei, 2000). In order to comprehend the changing scenario in marketing in the 21st century, Tesco Plc has been selected. Tesco was founded back in 1919 as a market stall in London’s East End. From its foundation to till now the company’s business has attained tremendous growth in its global operations. Presently, the company functions in fourteen markets of Asia, North America and Europe. It employs over 500,000 people and serves 10 million customers worldwide in a single week (Tesco Plc, 2012). The company’s headquarter is located in Hertfordshire, United Kingdom. Tesco is committed to offer the best shopping experience to its diverse range of customers. Moreover, the company is determined to serve its varied customers, communities and partners in best possible way (Tesco, 2012). At present, the company is regarded as one of the largest and successful food retailers operating in the United Kingdom along with its operations in more than 2318 stores located across the world. The company sells more than 40,000 food items in its distinctly located superstores. Additionally, the company is also engaged in clothing and non-food product activities (University of Exeter, 2004). The 21st century has witnessed drastic socio-economic changes along with information technology changes. These changes help various organisations to overcome a few of their limitations related to business operation and provided organisations with numerous opportunities to expand their business and earn substantial profit. These changes along with the globalisation and liberalisation process have drastically influenced the business doing processes including marketing. The changes brought new ideas and terms in the marketing sector such as E-Commerce and have reasonably influenced marketing ethics as well as the concept of brand and brand development have got tremendously popular among the organisations and widely distributed customers. E-Marketing Marketing is a broad concept, apart from selling and purchasing of tangible or intangible (services) goods, it comprises all those activities that are related with selling and purchasing of goods and services. The present marketing concept significantly varies from those of the traditional concept. The recent development in the marketing segment has given a birth to E-Marketing, relatively new term which has increased the scope of marketing and has provided business and customers a convenient way for interacting with each other. Electronic marketing or E-marketing essentially refers to utilisation of marketing techniques through electronic media, particularly marketing through internet. In other words, E-marketing involves marketing of brand via electronic media or internet. E-marketing includes several advantages over traditional marketing when implemented vigilantly. For instance, the return on investment incurring from marketing activities have exceptionally exceeded with the use of E-marketing than that of a traditional marketing. E-marketing also facilitates to create consumer awareness related to any product provided by a company. It also enables customers to have a thorough assessment of any product confined within their home. They can also compare various offerings available to them related to a product. Thus, it enables them to select the most valued offerings according to their perception and need. Further, the E-marketing reduces the limitations of the marketing reach and enables the business to reach globally within a short span of time and with minimum cost which would have not been possible with traditional marketing methods. E-marketing has enabled the business of a globally operational company such as Tesco, to reach wide range of customers and satisfy their growing needs within the shortest possible time along with minimum effort from the customers. The change in socio- economic sector has led the changes in the lifestyle of the customers, now every individual is quite busy and has less time for indulging in selling and purchasing of goods and services, thus E- marketing has been a boon for such people and has considerably helped to overcome the time limitation factor. Furthermore, E-marketing has enhanced the communication between the companies and consumers to a great deal (Quirk E-Marketing, 2006). During 1990, internet based marketing was emerging as one of the effective marketing options for business across the world. Among all those other companies, Tesco has also successfully implemented E-marketing as one of its vital tools for marketing of its products. The company introduced the first online service in the UK through its ancillary, Tesco.com in mid 1990s. Tesco offers complete online services to its diverse customers including tesco.net and tescodirect.com. Tesco.com is considered to be the biggest online supermarket operating across the world. In the UK alone, Tesco online functions in more than 270 stores which covers about 96% of the UK online markets (University of Exeter, 2004). In the year 2011, Tesco has been able to record sales growth of 15% from its online business operations in Ireland and South Korea. Furthermore, the company’s online operations were greatly successful and resulted in double digit growth in the UK online grocery business. Tesco Direct provides customers to reach company’s general merchandise, electrical and clothing through internet and catalogues. During 2011, Tesco Direct successfully accounted 30% growth in its online business (Tesco Plc, 2011). The study has revealed that customers’ desire for purchasing groceries and other products online is reasonably increasing (Chadwick & et. al., 2007). Recently, the company has launched official Facebook page which aims to further improving online relationship of the company with its customers. The company’s Facebook page provides relevant information about its products such as Tesco diets, clothing and mobile (Tesco Plc, 2011). Thus, 21st century changes have brought certain significant changes in the marketing methods and techniques. Furthermore, the changes have drastically helped businesses to overcome a few of the major limitations of the traditional marketing techniques. Marketing Ethics Marketing ethics in its simple definition can be defined as a practice of transparent and responsible marketing policy for conducting diverse marketing activities that exhibit integrity and fairness between the customers and the stakeholders (Business Week, Kenya, 2012). Every marketing business is greatly influenced by marketing principles and ethics which establish rules and code of conduct for conducting marketing business. The traditional marketing activities were burdened with many ethical problems. The common ethical problems posed by the traditional marketing were false and misleading advertisement in order to attract more and more customers and boost the sales of the products. However, 21st century has brought considerable changes in the marketing ethics and in the overall practice of the marketing activities. Today, customers are increasingly literate and quality conscious and these customers want to get clear information for the products before they make their purchasing decision. Hence, present marketing activities are directed to earn maximum profit through utmost satisfaction of the customers by offering quality products and services. The 21st century marketing ethics largely focuses on creating goodwill of the company rather than exploiting customers through unfair practice of marketing activities. Today, the companies have realised the importance of marketing ethics and are continuously striving to improve their marketing ethics in the business environment (Hunt & et. al., 1984). Present marketing ethics also have given rise to a few of the critical issues, for instance, when customers make online deal, various relevant information about the customers’ names, addresses and interest can be electronically obtained. Furthermore, other companies may be interested in buying that information for their benefits. Conceptually, the former company has the choice to either sale those information and earn substantial revenue or not to sale without the customers consent. The decision of the company will be depending on the ethical conscience of the company. Tesco has been able to maintain high standard of ethics and integrity in their business operations across the world. The company assumes bribery, corruptions, unfair pricing and dishonest marketing as illegal and unacceptable. Furthermore, the company considers such activities as an act that damages markets and competition as well as reduces customers’ trust towards the company’s brands. It is worth mentioning that such activities were common with the tradition marketing concept but with the changes brought in 21st century, there have been reasonable changes in the marketing concept from the company’s as well as customers’ point of view. Tesco is committed towards maintaining reliable image of the company to its wide range of customers. Moreover, the company ensures that every operation of the company shall abide by the local law and any act of fraud or corruption will be taken with utmost seriousness. The company has established certain code of business conduct which ensures rules and regulations for its employees in discharging their obligations while performing their responsibilities for the company. These codes act as guidelines on vital issues while working for Tesco. Moreover, the company is dogged with providing greatest satisfaction to its online and offline customers through transparency in its quality services (Tesco Plc, 2012). In precise, traditional marketing activities were associated with increasing profitability of the company which focussed less on the customers’ satisfaction and such activities were also lacking tranprancy in their operations. However, the changes brought over the years have drastically influenced the marketing and business conducting ways. The companies are now determined to satisfy their customers through most ethical manners and maintain high transparency in the operations as along with avoiding any kind of act that hampers the company images and reputations. Branding and Brand Development Every company has a trading name whether small or big, local or multinational company. Branding is originally related with the company’s name, symbol design and logo. Branding enables a company to distinguish its products and services from its competitors’ products and services. As with the beginning of 21st century, it has been apparent that business activities will be greatly transformed and will incur certain changes in the business and marketing conducting methods and techniques. The companies in 21st century have become more refined and cautious regarding how they represent themselves before the widely scattered customers. Conceptually, branding in 21st century has created an emotional relationship between the companies offering varied products and services and customers (Keller & Richey, 2006). Often, the customers perceive brand as the company’s promise to meet their needs and wants through quality of products and services. Brand development provides a company several advantages over its competitors and enables long-lasting influence of its products on the customers’ mind. Properly framed brands facilitate to extract premium prices for the products and services offered by company to its customers. It also enables customers to have quality products as the companies that are conscious regarding the quality of their brands always desire to offer and maintain topmost quality related to their products and services. Additionally, the 21st century’s customers are more prepared to pay for the branded products than the generic products. Today, customers are quality conscious and are highly knowledgeable as compared to ever before. Hence, it has become critical for companies in retaining customers’ loyalty towards their brands. Customer loyalty facilitates the companies to generate greater revenue through augmentation in sales activities. Traditionally, a company’s image was determined on what the company has done or involved in but in the present era, a company’s image is based on how it represents itself before its customers and is generally defined by its brand personality (The New York Times, 2009). With the growing brand power in the marketing segment, the creation of retailers brand has become all the time more vital issue for retailers in order to compete with its direct or indirect competitors. According to the valuation consultancy report, Tesco is considered to be the most valuable retail brand in the UK. It will be unwise to say that Tesco’s brand position is weaker than any of its competitors. Over the years, Tesco has developed a number of own brands with respect to food, non food and clothing products (Foxwell, 2008). The brand value of the Tesco has enabled the company to exploit customers in best possible way. Furthermore, its brand has been able to retain customers’ loyalty better than its competitors, thus providing a competitive advantage against its competitors. However, customers’ expectations have increased with regard to Tesco’s products and services according to its brand strength (Cho, 2009). Thus, the 21st century emphasises on the importance of branding and brand development activities in the marketplace in order to be a successful organisation. Today, a company’s brand is often related with the company’s products and services’ quality. Brand development enables a company to provide utmost concern towards product quality development. Hence, as opposed to the traditional marketing strategies, the present marketing strategies focus on importance of strong brand development for sustaining and attaining growth on long-term basis. The companies with strong brand position have been able to earn premium on their services and products offered by them to their assortment of customers then those companies striving for brand development. Conclusion With the evolution of 21st century, various changes related to socio-economic and technological factors have been witnessed. The changes have drastically influenced all aspects of human life as well as business and marketing conducting methods and techniques. Present customers are highly conscious about the product as well as service quality and are informed more than ever before. Today’s customers have developed brand preference for particular brands and they do not further want to compromise with their brands. The changes in the marketing segment have led to providing several advantages over the practice of traditional marketing strategies. Traditional marketing strategies were burdened with ethical problems while the 21st century marketing changes have significantly overcome those ethical problems and have established norms and guidelines such as anti-corruption ethics and code of business conduct for fair business practice such as incorporated by Tesco. Furthermore, the traditional market was un-segmented and was perceived that all the customers have same needs. However, the present marketing concept has able to distinguish market into different segments based on certain criteria like age, income, gender and fashion. Today, companies are recognised with brands and how they represent themselves in the market. Thus, retail giants such as Tesco have significantly leveraged the benefits derived by modern day changing marketing opportunities. References Brown, M. D., 2001. Marketing In the 21st Century. The ChemQuest Group, Inc. [Online] Available at: http://www.chemquest.com/PDF-files/MARKETING%20IN%20THE%2021ST%20CENTURY.pdf [Accessed August 31, 2012]. Business Week, Kenya, 2012. Historical Development of Marketing Ethics. Marketing Ethics. [Online] Available at: http://businessreviewkenya.com/marketing-ethics/ [Accessed August 31, 2012]. Cho, Y. S., 2009. Influencing Factors on Retailer Brand Development Process. Retailer Brand Development and Handling Processes: A Comparative Study of Tesco Korea and Local Korean Retailers. [Online] Available at: https://dspace.stir.ac.uk/bitstream/1893/1963/1/register%20file.pdf [Accessed August 31, 2012]. Chadwick, F. E. & et. al., 2007. What Is E-Marketing. E- Strategy In The UK Retail Grocery-Sector: A Resource: A Resource--Based Analysis. 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