Internal Marketing Issues and Challenges - Case Study Example

Internal Marketing Issues and Challenges Introduction Marketing is a very unique process and requires a very comprehensive effort on the part of higher management of the firm to design it in a manner which not only supports the overall strategies of the firm but also create synergies among all the departments. The strategic marketing planning as a whole therefore is a process which helps organizations to achieve a best fit between the organizational objectives and its core competencies in an environment which is increasingly become complex and more fluid. The marketing planning process therefore shall take a long term view of the organization and must support the already defined strategy of the firm. It is however, critical to note that a good marketing planning process must take into account the external environment. External environment not only pose significant strategic challenges for the firm but can also endanger the long term survival of the firm if firm becomes too stagnant to respond to the external changes that are taking place. Large as well as small organizations often become complacent and fail to negotiate with the challenges of the external environment. Marketing management process therefore as such must consider external environment analysis as one of the most valuable tools for strategy formulation purposes. Marketing communication mix is another important area where firms need to build a proper mix in order to achieve the objectives set in the marketing plan. As such the communication mix shall not only focus on the external stakeholders but rather also take into account so that an improved service and quality. This report will present an analysis of the above factors with special reference to The Organic Grass Company. Marketing Planning Process Recent literature has been enriched with the detailed discussions of the effectiveness of the marketing planning process and its overall strategic significance for the firm. (Brooksbank, 1996). The overall strategic significance of the marketing planning process is therefore such that it is considered as essential for achieving the overall strategic objectives of the firm. What is also however, critical to understand that the strategic marketing planning process must be designed in such a manner that it offers a synergetic view of the whole organizational processes and must fit into different components of the overall organizational strategy, (Keegan & Schlegelmilch, 2000) A good marketing planning process attempts to first perform a situational analysis by undertaking a comprehensive review of the external environment in a manner that provides a rationale analysis of the external environment and how it can affect the organization. SWOT Analysis, PESTLE Analysis etc are some of the tools that can be used to performed the external scanning of the environment to assess the risks and opportunities in a manner that it help organization to get out of a typical situation. The marketing management process therefore shall be synergetic in nature so as that it readily captures the snapshot of the whole organization. Analysis of the internal environment is another important concerns which, to some extent, can be addressed through SWOT analysis, however, shall also take into consideration the internal strengths and weaknesses of the firm. It is also critical to note that the managers must involve themselves into the process of planning rather than analysis and as such managers tend to lose their creative abilities to bring out creative solutions to the problems faced by the organization through subsequent planning process. (Caemmerer, 2009) Once the analysis of the environment is completed, the next stage requires the formation of marketing plans. Marketing plans and goals however, must be realistic and achievable given the current environment faced by the firm. Unrealistic as well as flashy objectives may not be achieved and firm may even lose track of what is actually being required to be done in order to perform. Once the organizational objectives are set and plans are prepared, the next stage requires the implementation of such plans. From an organizational perspective, this stage is critical because if, at the planning stage, managers fail to take into account the overall resources available, it may be extremely difficult subsequently to implement the plans. In order to effectively implement and carry out the plans, budgeting process shall also be efficient as it provides the necessary access to resources to execute the plans. (Kotler & Keller, 2006) Similarly, the control activities are important too as they allow a manager to continuously evaluate and compare actual performance with the stated objectives of the plan. Tools that can be used at this stage include Gantt chart, variance analysis etc to gain an insight into the actual versus planned objectives. External Marketing Audit External marketing audit is considered as a self regulated mechanism which helps organizations to identify underlying opportunities and threat besides offering an opportunity to the firms to keep an eye on the market. (Brooksbank, 1990). The Organic Grass Company works in an environment which is relatively volatile in current scenario and as such there may be different tools that can be used to perform the external marketing audit for the firm. However, PEST Analysis may be relatively more suitable in this regard: PEST Analysis Political factors UK has a relatively more stable political environment as compared to other countries of the world. The overall political environment is supportive of the businesses in the sense that UK is a strong capitalist economy with strong emphasis on the de-regulation of the markets. Such political support therefore makes in more appropriate for the businesses to thrive and prosper in countries like UK and France because of the less incursion into the market by the government. It is also important to understand that the political environment of UK specially may become relatively more volatile in the wake of UK’s support for the current war on terrorism. Incidences of terrorism such as that of 7/7 can be more detrimental to the firms in terms of capital flows, hiring of immigrants as workers etc. Thus the overall political environment may become relatively more stringent in the future. Further, with the consolidation of EU, firms will have to face more standardized sets of regulations in areas such as corporate governance as well as standardized accounting standards. Economic Factors In recent times, the biggest threat faced by almost every firm is the recession that has engulfed most of the developed world including UK, US and France. The overall growth projections are relatively low for the year 2010 whereas the prospects of recovery are really low as many believe that UK economy will start to pick up moderately in 2010. The recent credit crunch has further resulted into the decline in the overall consumer spending causing a serious decline into the aggregate demand for almost every product and service available in the market. Further, since there was also subprime crises where the overall construction activity and purchase of new homes decreased drastically, the overall demand for the services of the firm have declined and may further decline till the current financial meltdown prevail. Till the housing markets start to pick up there are strong indicators that the overall demand for the kind of services offered by the firm will remain depressive. Social Factors UK has ageing population and with the passage of time the overall requirements for shelter will increase thus creating further room for the services of the firm in future. Religious sentiments are not so strong in UK however, UK is considered as one of the most diversified countries as many immigrants and residents belong to different religious groups and are thriving in UK society. Overall standard of living is really good in the society and as a result of this; the overall consumption is greater as compared to other societies of the world. However, it is critical to note that the social factors, in current scenario, must be viewed from the perspective of the economic factors also. Due to recent economic meltdown various social norms and practices have relatively changed and as such the overall impact of social factors on the businesses and their environment may be relatively more diversified and challenging. Technological factors Technological factors for firm may not be entirely critical due to the overall nature of the services offered. Though the firm has a satellite link with the Lille but that too is used for the personal purposes of the CEO. What is however, significant to note that the firm needs to upgrade its website and further streamline its marketing activities by utilizing online marketing techniques such as viral marketing, marketing through social networks etc. The Organic Grass Company further need to have a strong support for its online presence through the creation of multiple language websites as well as offering better and more customized online shopping experience to its customers. Marketing Communication Mix It is often argued that an effective marketing communication mix is essential for the overall survival of the business because it basically projects the combined image of the firm in its target market. In order to design an effective marketing communication mix, it is however, important that the relative strengths and weaknesses of each and every component of the communication mix shall be assessed before re-designing them in a manner to achieve the organization objectives. What is also important to understand that the marketing communication mix changes with product life cycle of any given product? As a product moves from one stage to next stage, the overall requirements for the marketing communication mix changes and as such firm must alter composition of different components in a bid to balance its communication mix with the relevant stage of the product life cycle. When a product is at a declining stage, as in the case of Organic Grass Company, normally the advertising to the public decreases with limited sales promotion as well as personnel for distribution and sales decrease too. In order to overcome such situation, a firm has to take a very mature and diversified view of its environment and must incorporate certain important factors which can contribute for reviving the overall image of the firm in consumers’ eyes. In order to carve out a new identity, firm therefore should start re-branding its corporate image and change its overall advertising and public relation strategy. A change in corporate image can be achieved through radical changes in the official logos, slogans as well as values and culture of the organization. Re-designing the corporate logos shall be done in manner that matches the latest market trends and capture the overall essence of the firm and its values and culture. Public relations are another important domain which can be utilized to resurrect the image of the firm in the public and improve its overall public image. What is however, critical to note here is the fact that public relations are voluntary in nature and firm has to invest significant amount into activities which can help build a positive image of the firm. This therefore can achieve through the use of different activities in which the participation of the general public and consumers from the target market can be ensured. (Gorman, 2009) Firm also has an option of improving its direct marketing efforts i.e. the revamping of the personal selling is another important option that can be effectively designed in a manner which can further provide the firm a new lease of life provided it is implemented in a manner that can further enhance the public image of the firm. For this purpose, an strong advertisement effort will further bolster the aims and objectives of the firm however, selection of media vehicles for the development of an effective advertising and media program will remain an essential factor to consider. To implement an effective public relations however, will largely depend upon the research which a firm has to undertake in order to achieve its objectives. For Organic Grass Company, such research will include researching the latest trends in the market as well as tracking and assessing the key beliefs and values of the public in general as well as the target market. Internal Marketing Internal marketing is a continuous process and requires commitment and dedication from the top management of the firm to continuously develop strategies and procedures to effectively ensure that different ideas and initiatives are well understood and ownership is created for such initiatives. It is often argued that the message passed through internal marketing shall be designed in such a manner that it not only right message pass through the intended audience but it must be communicated in a manner that can reinforce change and boost the employee behavior and motivation. (Piercy & Morgan, 1990) In order to effectively utilize the internal marketing to deliver improved results, it is critical that the overall purpose of the organization must be aligned with the employee behavior and attitudes. This will allow firm to achieve a synergy between the organizational objectives and the employee behavior besides serving as a strong motivational tool to improve the behavior of the employees. Further, when a firm attempts to revamp its overall corporate identity and values, it is essential that this message shall be trickled down the line in a manner which is not only acceptable to all the stakeholders of the firm but also create further synergies. An empowered employee therefore can be molded into a strong prospect for delivered high quality customer service to the firm’s clients. Further, there are indications that the firm is experiencing high turnover, absenteeism is high as well as the business is mostly product oriented. In such scenario, the overall gap between the employees and the management seems to be larger thus firm has to empower its employees and delegate to the lower level in order to muster the required support for changes to be made. (Ahmed & Rafiq, 2003) Firm may also embark on different programs to raise the overall brand awareness in its employees besides training them in a manner that they become representatives of the firm in front of the customers. Such a uniform attitude and behavior of the employees therefore will result into improved performance as well as better customer services. Since internal markets are considered as microstructures that transcend the ordinary structures of the firm thus a firm has to develop its internal markets in a manner that can achieve larger support from the employees in the face of challenges faced by the firm. Internal marketing therefore will not make employees more accountable and responsible for their actions besides allowing them to improve customer retention and individual development of the employees. Internal marketing also needs to foster the leadership from within the firm in order to achieve Conclusion The Organic Grass Company need to change its overall image in its target market by improving its public relations efforts as well as improving its personal selling initiatives. Internal marketing can also be one of the most effective tools to achieve the employee motivation in a bid to improve the current customer services. However, in order to use internal marketing in an effective manner, commitment from top management of the firm is essential otherwise the firm may not be able to muster the desired support for potential changes that can take place. Bibliography 1. Ahmed, P. K., & Rafiq, M. (2003). Internal marketing issues and challenges. 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