Principles of Strategic Marketing in the Context of Leo Burnett's Quote - Essay Example

Strategic Marketing Table of Contents Introduction 3 "What helps people, helps business" 4 Disadvantages 7 Conclusion 7 References 9 Bibliography 10 Introduction Marketing is often considered as a philosophy that enables the organization to identify the needs and wants of its customers and meet them profitably. Marketing is broad concept that includes not only the identification of the target customers of the organization but also their needs, the products and services that are required to meet these needs. It also helps in the analysis of specific strategies so as to meet customers’ demand (Wiley, n.d.). A strategy, on the other hand is referred to the plan that integrates the major objectives, decisions, policies and actions of an organization. Strategies can be applied to any functional areas such as finance, marketing, production, human resource (Proctor, 2000). Organizations always try to gain competitive advantages by adopting various strategies for their functional areas. Marketing, when done with the objective of gaining strategic competitive advantages, is called strategic marketing. Generally marketing strategies are adopted for product, price, promotion, distribution, merchandise, market research in order to gain competitive advantages in the long run. All these concepts of strategic marketing are developed keeping in mind the aim of the business. Moreover each and every concept thus developed is directly or indirectly involved with the people because people and business inextricably linked. Leo Burnett, well known for his memorable quotations is one of the most renowned personalities in the world of advertising. He took advertising to a different height by creating icons such as Tony the Tiger and Jolly Green Giant. One of those quotes made by Leo Burnett is “What helps people, helps business’’. This report attempts to analyze the significance of this famous statement in the context of strategic marketing. "What helps people, helps business" Earlier business organizations were known only as profit making units. People then were not treated as the principle contributing factor in the process of making profit. They were treated as a means for achieving business objectives. This concept of business has changed significantly over the years. Today’s business leaders have realized that in order to achieve the desired objective, organizations must give enough importance to the people who are associated with the business. It is the people who make business and it is the people who run business. Nowadays while making any strategic decision, the primary focus is kept on the people who are associated with that decision. Organizations, before taking any decision try to have a clear understanding regarding the needs and wants of the people. They spend huge amount of money in order to find out the actual demands of the people. They try to modify their offerings, their stands on certain things based on the changing tastes of people. In simple words, today’s organizations are focusing those factors that actually help people, because they have realized that things that help people would certainly help the business. From this it can be inferred that the quote of Leo Burnett, "What helps people, helps business", is very much relevant in the context of present business environment. This quote can be furthered explained by focusing on any topics related to strategic marketing. There are five key questions in strategic marketing. Answers of these questions are crucial for making any strategic marketing decision. These five questions are as follows- 1. Where are we at present? 2. Where do we wish to be? 3. How can we reach there? 4. Which way should be chosen to reach there? 5. How can we make sure our arrival? Answers to all these five questions form the basis of planning, implementing, controlling and monitoring various marketing activities (Wilson, Gilligan, 2005). Each of these questions is discussed in the light of Leo Burnett’s quote. As far as the first question is concerned, the answer to it would reflect the present condition of the organization. Present state of an organization can be explained either by analyzing its financial health as well as market coverage or by analyzing the perception of the customers and employees regarding the organization. Present state of the organization can also be analyzed by scrutinizing the ways in which the organization in question is helping its people to meet their needs and wants. It is true that businesses operate with the objective of making profit, not with the objective of helping out people at free of cost. However, if organizations help people to meet their needs and wants by providing value added products and services, then at the end of the year profit is bound to show up in the balance sheet of the organization. The answer to the second question is likely to reflect the objectives and the goals of the company. Organizational goals are developed keeping in mind not only the current state of the organization but are also based on the vision of the organization. In the contemporary business environment if an organization wants to achieve its objective within the desired time period, it has to focus on the people who are associated with its business. People are referred to as the customers, the employees, the suppliers and finally the competitors. Therefore while developing the objectives of an organization, various relationships inside and outside the organization must be kept in mind. Answer of the third question also involves people. Organization can reach its desired place by helping the people who are around it. If the organization decides to enhance its product or service quality in order to attain its goals and objectives, then it actually helps all the people who are associated with it. Customers benefit as they get better product and service with more value added with it. Employees of the organization are likely to be satisfied as they have created a better quality product. Suppliers are likely to be happy because they would know that their inputs are undergoing optimum utilization. So, it can be said that if the organization can help people in a more effective way then, it will also benefit in return. There can be various ways through which an organization can achieve its ultimate objective. This objective can be in the form of increased revenue, increased market coverage, enhanced brand image etc. However whatever might be the objective and whatever might be the way of reaching that objective, involvement of people will definitely be there. If organizations decide to involve and help people to achieve their objectives, then it would definitely help it to gain long term competitive advantages. Performance of the any organization must be evaluated. This evaluation can be done in various ways. For example, in order to find out the increase in revenue, the present figure is compared with that of the previous years. However whether the company has really achieved its desired objectives or not, can be found out by measuring the level of satisfaction of customers and employees. One of the most popular ways of satisfying customers and employees is by either providing them with better products and services or by offering better financial returns in terms of compensation or price. It is quite clear from the above discussion that helping people would actually benefit the organization in various ways. In other words these are the advantages that an organization can have by helping people. It is needless to say that all these advantages are in the context of strategic marketing. There is rule that says that helping people would always benefit an organization. Disadvantages Organizations might have to face several critical situations because of helping people. Organizations can help people by giving them better products and services at a lesser price than ever before, or by providing them all the internal information regarding the products and the organizations or by donating money to solve most of the social problems. However all these ways of helping people out would actually affect the profitability of the organization and as a result of which organization might lag behind in the competition. Basically a business organization must remember its ultimate objective, which is to make profit and maximize shareholders’ wealth. In the process of attaining these objectives the organization can help its customers or employees or suppliers or any other people who are associated with it. If it is possible to do so within the profitability framework it is appreciable, but if it cannot, it should not do it blindly. A business organization must always remember that there are competitors at its back as a result if it spends too much of its resources in helping people then it is bound to lag behind its competitors. Conclusion Leo Burnett is not only a master in advertising; rather he can be treated as a master in management. The famous quote of Burnett, “what helps people, helps business” is a very relevant in the context of strategic marketing and contemporary business scenario. It is true that organizations can achieve their business goals by focusing on the people, but this process has several disadvantages also. References Proctor, T. 2000, Strategic marketing: an introduction, Routledge Wilson, R.M. S. Gilligan, C. 2005, Strategic marketing management: planning, implementation and control, Butterworth-Heinemann Wiley, No Date, Scope of strategic marketing, [Online] Available at: http://media.wiley.com/product_data/excerpt/51/04708498/0470849851.pdf [Accessed on March 2, 2010]. Bibliography Burnett, L. 1961, communications of an advertising man: selections from the speeches, articles, memoranda, and miscellaneous writings of Leo Burnett, Indiana University Brassington, F. 2005, Principles of marketing, Prentice Hall Bowersox, 2004, Strategic Marketing Channel Management, Tata McGraw-Hill Kufrin, J. 1995, Leo Burnett: star reacher, Leo Burnett Co. Leo Burnett Company, 1994, The Leo Burnett worldwide advertising and media fact book, Leo Burnett Co. Nijssen, E. J. 2000, Creating customer value through strategic marketing planning: a management approach, Springer Read More