The Relevance of Marketing Concept to the 21st Century Business of Boots - Essay Example

? Explain the relevance of marketing concept to the 21st century business of Boots Table of Contents Introduction 3 Marketing Concept 3 Business Background 6 Relevance of Marketing Concept 7 Marketing Mix Strategy: 4Ps Framework 7 Ansoff Marketing or Product Mix 9 Conclusion 11 References 12 Introduction Marketing is an important management process that communicates the products’ or services’ value to the end-customers in order to sell the products or services. Marketing is the critical business function that helps to attract the customers. Organizations can choose five different competing concepts in order to operate business. These are product concept, production concept, marketing concept, holistic marketing concept and selling concept. Marketing develops an important link between the material requirements of a society and economic models of response. Marketing generally satisfies the wants and needs through significant long term relationship and exchange process. Leading organizations are implementing several effective marketing tools in order to increase their core competencies and market share (Masterson and Pickton, 2010, p.499). The organization achieves financial success based on their core marketing ability. Effective marketing strategy creates demand for the product. Marketing concept is the key ingredient of marketing. The essay will explain the significance of marketing concept to the boots’ business in this 21st century. Marketing Concept It is important for the organizations to understand the facts and significance of marketing concepts before implementing any marketing strategy. Effective understanding of marketing concept helps the organizations to develop effective marketing strategy based on the current market demand and customer preferences. Marketing concept is an important management philosophy that helps an organization to achieve organizational goals and objectives through the stated customer recognition and satisfaction and intangible needs and wants of customers (Drummond and Ensor, 2005, p.51). Marketing concept can be classified into two different approaches, such as earlier approaches and contemporary approaches. The marketing orientation developed from traditional marketing orientations like product orientation, production orientation, selling orientation. On the other hand, contemporary marketing concept approaches majorly focuses on relationship management or relationship marketing that includes industrial marketing, customer approaches and business marketing (Shanker, 2002, p.268). The leading organizations in this 21st century are trying to implement social marketing strategy in order to focus on the society benefits. Earlier the marketers used to follow traditional marketing concepts namely product marketing, production marketing and selling marketing. In 20th century the organizations implemented traditional marketing strategy due to low competitive market and lack of diverse market demand. After the Second World War several organizations tried to expand their business operations in various global market places due to globalization. On the other hand, the market demand and customer’s preference significantly increased due to diversified business practices of several organizations (Wheelen and Hunger, 2011, p.121). Now-a-days, various organizations are competing with each other for their products of a similar segment to secure effective market share. Therefore, people are consuming products of different brands based on the quality and prices of products and services. In 21st century, the organizations are trying to implement several unique marketing strategies based on the market demand and customer preference to attract the customers towards their products and services. In this modern era, the organizations are trying to implement holistic marketing concept in order to achieve significant competitive advantages (Pride and Ferrell, 2004, p.78). This marketing concept is based on design, development and implementation of several marketing programmes, activities and processes. This concept refers that everything matters in the field of marketing. It is important for the organizations to have a broad integrated perspective. Holistic marketing concept can be categorized into four components, such as internal marketing, integrated marketing, performance marketing and relationship marketing. Relationship marketing strategy has become important marketing criteria for the products and services (Egan, 2001, p.225). It is true that people are seeking for new consumption methods. Moreover, the taste and preference of customers are rapidly changing due to the globalization and advanced technology. In this 21st century, people can fulfil their needs and demands as there are several organizations are offering similar kind of products. It is important for the organizations to maintain strong relationship with the suppliers and customers. The objective is to build effective customer loyalty by providing significant customer service. Now-a-days, the customers are seeking for effective customer service. Therefore, the organizations are focusing on this intangible demand of customers in order to secure and maintain existing client base in global market place. Business Background Boots is UK’s one of the leading pharmacy-led beauty and health retail chain headquartered in Nottingham. The organization is the subsidiary of Alliance Boots. The organization has introduced their retail stores or outlets in popular high streets throughout UK. Moreover, the organization expanded their business practices in the Republic of Ireland. The organization combined two several retail businesses in UK namely Boots and Alliance Pharmacy. The group of organizations operates within the pharmaceuticals, beauty, and healthcare and photography industry. Moreover, the journey of the organization began in the year 1849. After that, the organization continuously tried to diversify their business operation in order to meet current market demand. Throughout this long journey, the organization acquired several leading business chains in UK in order to increase their market share and customer base. They provide products of effective quality. They try to offer the products of several leading brands to their target customers through effective marketing strategies. In the year 2005, the organization merged with Alliance UniChem. The newly formed group is recognized as Alliance Boots. This new group of organizations was subsequently bought by Stefano Pessina and Kohlberg Kravis Roberts. The organization always tries to conduct transparent business practices. Boots offer more than 30,000 products to their target customers. Recently, the organization has implemented online marketing strategy to ease the consumption process of customers (Strauss and Ansary, 2003, p.108). In addition, the organization conducts several CSR activities. Moreover, they always try to bring sustainability in their business process, society and environment. Relevance of Marketing Concept Boots UK ltd. is the leading pharmacy retail chain that provides pharmaceuticals, healthcare and beauty products to the target customers. Boots tries to become the first preference of the customers for healthcare, beauty and several pharmacy-led products. They always commit to provide the products of unique quality. The organization has implemented several key marketing strategies to increase their market share in UK competitive market. Recently, the organization is looking to increase the sales of products through effective sales growth balance, continuing improvement of margins and significant reduction in cost base. Following strategies will help the organization to achieve their organizational objectives. Marketing Mix Strategy: 4Ps Framework Marketing mix is an important marketing tool that helps the organizations to increase their business performance through effective product, pricing, place and promotional strategy. Product Boots is one of the leading organizations within the industry. The organization always tries to maintain effective quality of products. Moreover, effective product differentiation strategy has increased the customer preference. The organization needs to maintain the quality of the products as they are operating under such sensitive industry. Therefore, effective quality control and value addition strategy will help the organization to acquire new business clients and new customers. Price The organization implemented cost based pricing strategy for their products. It is true that the economy of UK is still suffering from global recession and recent financial crisis. Low per capita income of middle class people and reduced purchasing power are the major consequences of this economic slowdown (Kotler, 2011, p.80). Therefore, it is important for the organization to implement competitive pricing strategy in order to maintain their market share. The organization can reduce their business operation cost in order to implement competitive pricing strategy. Implementation of online marketing strategy will help the organization to reduce operational cost. Place The business performance of Boots depends upon their effective product distribution process. The organization has implemented centralized manufacturing and distribution process. However, this process increases the operation cost. They need to implement decentralized manufacturing and distribution process in their business operation. This strategy will reduce the logistics and supply chain cost. Boots is trying to introduce their retail chains in several high streets throughout the country. Slowly and gradually, they need to focus on the sub-urban areas as the market demand of these areas is significantly growing. Promotion Effective promotion is an important marketing tool that helps an organization to drive towards success. The organization followed the traditional promotional strategy. The UK market has become highly saturated. Therefore, it is important for the organization to develop effective and unique promotional strategy to attract the target customers. Online promotional strategy can help the organization to create significant brand awareness in the mind of target customers (Blythe, 2009, p.86). Moreover, strong online presence will help the organization to develop a potential customer base across UK. Ansoff Marketing or Product Mix Ansoff product or marketing mix is another important marketing tool that offers strategic preferences in order to achieve the business objectives. Marketers used this tool to achieve business growth. There are four different categories of this tool. Market Penetration Market penetration means replacement of old products by the new products through several value addition processes. The organization needs to promote their old and traditional products with several new features. Moreover, they need to maintain the effective quality of the products. Boots should focus on market demand and customer’s needs. Boots have to review the competitors’ strategy and make investment in new market research activities (Kent and Brown, 2009, p.182). Effective reduction of sales and distribution channel operating cost will help the organization to achieve competitive advantages. Product Development Boots is popular for effective product differentiations and effective quality of the products. Product development strategy is considered as the significant growth strategy. The organization tries to introduce new products into various existing markets to increase their client base and market share. This product development strategy of Boots requires establishment and development of new effective competencies. Moreover, they should develop modified products for new business markets to create awareness in the business market. Market Development Market development stands for expansion of several products and services in various global markets. The organization implemented various pricing policies for particular products in order to attract different customers. Moreover, it can generate new market segment through covering several potential untapped markets (Piercy, 2012, p.23). Boots need to develop new effective distribution channels for new market development. In addition, the organization needs to expand their business practices with the increase in several important services, such as insurance, holidays, banking and credit cards to their potential customers. Diversification Diversification means launching new products in new market apart from the core traditional products. Effective diversification strategy will help the organization to meet diversified demand of customers in potential marketplace (Schmitt, 2011, p.34). It is important for the organization to reduce the risk of diversification before implementing the strategies. Conclusion Boots is one of the leading organizations within the UK healthcare, pharmaceuticals and beauty products industry. The organization is popular for its several differentiated product lines and quality of the products. The organization committed to provide the products of effective quality. The organization has established their retail stores in popular high streets throughout UK. Recently the organization has introduced online marketing strategy in order to meet the current market demand. Moreover, effective sustainable business practices and several CSR activities increased the brand reputation of Boots. The marketers have conducted effective marketing strategies. Effective understanding of marketing concept helped the marketers to develop the strategies based on the customer preferences and current market demand. The organization needs to maintain the quality of the products in case of further product differentiation. It is true that demand for the products of Boots is significantly increasing in various global marketplaces. Therefore, it is important for the organization to expand their business practices in several emerging global economies. The business expansion strategy should consider the increase in several important services, such as insurance, holidays, banking and credit cards to their potential customers. Boots should promote their old products with new features. They need to maintain the unique quality of the products. Global business environment is becoming highly competitive. Therefore, it is important for Boots to develop effective marketing strategies based on market demand and available organizational resources. References Blythe, J., 2009. Key Concepts in Marketing. London: sage. Drummond, G., and Ensor, J., 2005. Introduction to Marketing Concepts. London: Routledge. Egan, J., 2001. Relationship Marketing. London: Prentice Hall. Kent, T., and Brown, R., 2009. Flagship Marketing. New York: Taylor & Francis. Kotler, P., 2011. Marketing Insights from A to Z. New York: McGraw-Hill. Masterson, R., and Pickton, D., 2010. Marketing: An Introduction. London: Sage. Piercy, N., 2012. Market-Led Strategic Change. New York: Springer. Pride, W., and Ferrell, O., 2004. Marketing. Stamford: Cengage Learning. Schmitt, B., 2011. Experience Marketing. New York: New Publishers. Shanker, R., 2002. Services Marketing. London: Routledge. Strauss, J., and Ansary, A., 2003. E-Marketing. London: Prentice Hall. Wheelen, T., and Hunger, D., 2011. Concepts in Strategic Management and Business Policy. New Jersey: Pearson. Read More