Marketing: Research, Theory and Practice - Article Example

Marketing: Research, Theory and Practice Marketing is a function that helps define the scope and reach of a particular product or service through a thorough understanding of the various dimensions that surround it. These dimensions include the buyer, the organization and the researcher. Marketing research is an important field that helps the organization define its buyer base and reach out to them in the appropriate fashion. So far, the function of finance in marketing has been seen as a sphere of activities that is concerned basically with the garnering of funds to carry out promotional and other marketing based activities. In a revolutionary article titled Market-based assets and shareholder value: A framework for analysis, writers Rajendra K Srivastava, Tasadduq A Shervani, and Liam Fahey have demonstrated the role of finance in a different perspective. According to their article, there is a market - finance interface that exists in the operational sphere of every organization. This helps the organization interact with its external environment so as to create ample scope for the creation of market assets as well as cash flows. In this article, the writers have taken the focus away from mere sales growth and profit figures in order to show how the various aspects of marketing can contribute to the overall brand image and thus create a better environment for garnering of financial inputs as well as outputs. (Srivastava et al, 1998) In this regard the various aspects that have been dealt with are discussed in this paper as follows. According to the article by Srivastava et al, (1998), the basic theme of market research revolves around providing the means for an organization to broaden its horizons in terms of its goal achievement plan and its strategic positioning in the market. The implication of this theory revolves around the fact that the modern day organization needs to follow various steps in the research and examination of its various levels of operations and scope in the dynamic business environment that surrounds it. These steps include the following: Development of a goal or a mission in keeping with the basic capabilities of an organization. This includes knowing what the organization's basic output is in terms of its human resource base. A study of the market forces. This will help the organization realize the potential of the product in lieu of similar products that are being sold in the market through an emphasis on the demand and supply of the same. Grouping and organization of resources. This is a crucial element that can make or break an organization. Through the grouping of resources, an organization manages it finances in a better way so as to garner funds that will be circulated in the marketing activities. Through this process there is also a focus on creating a better market standing for the organization. The basic implications for these broad and age old principles in lieu of the article by Srivastava et al, demonstrates that the writers have shown an affinity for the broad spectrum of marketing research in the development of their market - finance interface. Market research is a primary function that gives rise to findings regarding the organization as well as its standing in the external environment. According to Srivastava et al, this has major implication for the market based assets. (Srivastava et al, 1998) The tools of market research help an organization create an identity in the following arenas: Change and knowledge management: The ability of an organization to cater for change and go along with the flow helps it earn more market based assets. The modern day economy is one that is changing with each passing day. The state of commerce is not what it used to be, say, a few decades ago. This is basically due to the fact that the new rule of thumb is that the only constant is change. The face of politics has greatly shaped the way the economy of a country and therefore, that of an organization, operates. In this way, there is a sense of constant interaction with the dynamic environment within which organizations today thrive. The role of communication and technology in this regard, is also an important one. With the advent of the communication and information era, there is a slow redefinition of borders and geographical demarcations. It is now possible to sell products and manage businesses anywhere in the world, from anywhere in the world. This has had a large bearing on the state of the balance of payments of entire countries and the organizations that thrive within it. This balance of payments is dependant on the exchange that flows to and from it. In this way, there is an impetus to change with the changing world, depending on how that change might affect the balance of payments or any other socio economic aspect of the country and the organization. Therefore, change has become a vital part of the organization's life, owing to the fact that there is a constant need for reinvention in order to keep with the changing times and the changing levels of exposure. In this regard, change management has thus become a vital part of every organization's agenda. (Srivastava et al, 1998) The next area is innovation and monitoring. The monitoring system in the modern day organization thrives on a system of knowledge management. To monitor anything, there is a need for garnering knowledge about the same through communication and information. This needs to follow the flow of the organizational activities so as to give the right person, the right information at the right time. In this regard, many scholars have felt that there is a need to lay well defined lines of informal communication as these are important to bridge any gaps that may have taken place in the formal lines of communication. Knowledge and information have become almost interchangeable in their ability to transform workplaces and make the rest of the aware of the various activities that take place within it. Recognizing this premise, the company is providing result-oriented solutions to various industries. It is working with its alliance partners with an unmatched level of domain knowledge. It empowers organizations with inventive and scalable technology solutions thereby increasing the industry's competitive advantage and return on investment. (Srivastava et al, 1998) Knowledge management encompasses strategy, method, practice and approach in an organizational context. Data represents facts or values of results and has the capacity to represent information. Patterns of relations of data, and information have the capacity to represent knowledge. This is important in monitoring the activities within the organization so as to curb any negative trends before they become a force. This shows a strong connection with the premise that the HR today operates on in terms of the use of various tools of information technology to integrate the knowledge within the organization. This also promotes a stronger and wider base for communication. In this regard, modern marketing practices show that communication management is a vital phenomenon in organization and is extremely important in an organization as it is outside it. In general, efficient communication from an organization contributes directly or indirectly to improved organizational performance in terms of its financial standing. Effective information, communication and knowledge management should focus on recognizing and managing complexity, should deliver tangible and obvious benefits and aims to deliver faultless user experience. This helps in monitoring the quality of the work culture as well the deliverables that are sent into the world outside the organization. Further, this helps the marketing strategy gain strength through the creation of a valuable platform for interface with the end users in terms of the depiction of the value system of the organization. (Srivastava et al, 1998) In this way, the marketing functions now play an important role in shaping the overall strategy of the organization so as to achieve goals in a more economical manner. The diversification principles as charted by the Srivastava et al, have major implications for the emerging role of marketing as a source for garnering better market based assets through the use of innovation and knowledge management. (Srivastava et al, 1998) Through the practice of knowledge management and innovation in its market research and marketing activities, an organization inevitably courts customer satisfaction. This increases the organization's asset base by leaps and bounds. The implication for good marketing when it comes to finance cannot be ignored in terms of the new age assumptions as underlined by Srivastava et al. Through their focus on areas outside the marketplace and product sales, they have managed to divert focus into the organization so as to find out how an organization may market itself with tools like change and knowledge management in order to garner a better financial standing. Reference: 1. Srivastava, Rajendra K Tasadduq; Shervani, A; Fahey, Liam. (1998) Market-based assets and shareholder value: A framework for analysis. Chicago: Journal Of Marketing. (Vol.'62,'Iss.'1;''pg.'2 to'17) Read More