Marketing Issues Portfolio - Assignment Example

Marketing Issues Portfolio Contents Contents 2 Issue Marketing Environment 3 Introduction 3 Article Overview 3 Topic Overview 3 Topic Analysis 4 Conclusion 6 Issue 2: Consumer Behavior 7 Introduction 7 Article Overview 7 Topic Overview 7 Topic Analysis 8 Conclusion 10 References 11 Issue 1: Marketing Environment Introduction Article Overview Key Points in the Article Davy Lee’s article ‘Facebook surpasses one billion users as it tempts new markets’ featured in BBC News on October 5, 2012 reflects on the social, technological and consumer environment of Facebook and how the company has strategized such to reach the goal of serving one billion users (Lee, 2012). Credibility of the Source of the Article The article is found to be featured in BBC News authored by its own Technology Reporter. BBC News earns credibility for its unbiased stand on issues and also because of its formidable commitment towards serving the pillars of journalism. Moreover people have considerable amount of trust on the authenticity of the news depicted in BBC (Sterling, 2009, p.183). Topic Overview Specifications The topic relates to the marketing environment of Facebook with special focus on the social, technological and changes in the demand scenario of the consumers. Thus the social and technological environment of Facebook herein would be the main concerns. Definitions Firstly, Social Networking Sites like Facebook are defined as an internet enabled service medium that helps connect a person with a mass number of other individuals. The person is required to create a profile through which he or she is enabled to share contents and also can effectively view the level of connectivity of others (Boyd and Ellison, 2008, p.211). Secondly the marketing environment of a business firm is generally dominated by factors pertaining to political, economic, social and technological paradigms. Thus analysis of the marketing environment of the business focuses on the level of changes along such stated parameters and thereby impacts emanating from such on the concern’s business domain (Wright, Cairns and Goodwin, 2009, p.5-7). Topic Analysis Firstly it is observed that Facebook keenly focuses on emerging markets to fulfill its market expansion drives along the international sphere. The main idea behind gaining such focus is that the emerging markets are turning out to render large number of opportunities for business to expand and diversify. Availability of business opportunity in emerging or developing regions lures the business companies in terms of enhancing their profitability and market share (Meng, 2009, p.53-54). Thus Facebook herein to enhance its social networking base is found to focus on developing economies like Africa. Africa is found to be feasible by Facebook in terms of gaining on monetary revenues for which the company focuses to modify its product and service offering while tending to gain an effective entry (Lee, 2012). Secondly relating to economies like China it is found that Facebook to gain a sustained place in the social networking sphere of the region has taken resort to the business strategy of Glocalization. Glocalization or synergizing the concepts of global and local presence involves understanding the local needs of the different international market places by multinational firms and thereby formulating business policies accordingly (Culpan, 2002, p.60). Herein it is observed that Facebook conducted surprise visits to China to have conversations with local social networking developers and thereby to gain an understanding of the local ethos and culture. Further, Facebook is found to operate in a harmonic fashion with other existing social networking tools operating in China thereby honoring their social identity (Lee, 2012). Thirdly, Mark Zuckerberg to enhance the marketing sphere of Facebook through rendering focus on the Russian region takes resort to Public Relation activities. Through Public Relations Facebook management tended to enhance its relationship with its stakeholder groups, the Russian people owing to their dependency on local social networking sites. Development of an enhanced relationship through Public Relation activities conducted by Zuckerberg with the help of a television chat show helped the company to gain a strong foothold in the region (Smith, 2011, p.4; Lee, 2012). Companies to potentially exist in the competitive marketplace needs to work on technological innovations and also modify the existing business processes. Facebook to gain enhanced growth in Africa has worked on technological innovation to introduce the avid use of mobile internet services for a layman’s use. Similarly the company has developed on its business process to incorporate activities like acquisition and external auditing to thereby develop its consumer face (Dodgson, Gann and Salter, 2008; Lee, 2012). Conclusion Analysis of the marketing environment of Facebook depending on the social and technological paradigm shows that the company has effectively used marketing, expansion and other business strategies like acquisition and public relations to gain hold of the one billion user base. Thus, the marketing activities of Facebook reflect effective control on the changing situation and environment to gain enhanced business. Issue 2: Consumer Behavior Introduction Article Overview Key Points in the Article Julie Weed’s article ‘Bed, Bathrobe and Beyond’ featured in The New York Times reflects on the strategies used by hotel corporations to enhance the dimension of consumer behavior in favor of such firms. The article reflects on the parameter of differentiation that is enhanced by the hotel companies while competing with each other to generate different types of value-addition in the form of products and electronic commerce services to create consumer interests and also enhance on its revenues (Weed, 2012). Credibility of the Source of the Article The article is found in The New York Times that boasts of being a credible source owing to the parameter of enhance trust reflected by its readers depending on the factors of fairness and unbiased operation in the journalism world (Schulz, 2007, p.44). Topic Overview Specifications The topic specifically relates to the strategies used by the hotel corporations round the world through the use of product and service differentiation to rightly enhance the consumer behavior and attitudes in favor of them. Enhancement of consumer attitudes helps the hotel companies gain on market share and revenues. Definitions Concept of a hotel brand relates to such where the hospitality service company gains the potential of creating considerable awareness among the people about the pattern of services offered and the price and value factors. Moreover it also relates to competitive preference reflected by the people for the hotel in gaining repetitive visits (Prasad and Dev, 2000, p.26). The second concept relates to the creation of product related to the service factor of hotels wherein the hotel management focuses on provision of tangible product to the visitors along with the intangible service to help create a memorable visiting experience (Kayaman and Arasli, 2007, p.93-94). Topic Analysis From the analytical point of view it is observed that hotel companies to largely attract and sustain the visitor and consumer traffic is required to work on strategies relating to product and service differentiation. Enabling service differentiation helps the hotel corporations to design and generate enhanced value-additions to the existing nature of services offered which are sold to the consumers at a premium price. Hotel companies are tending to compete with one another to attract and sustain spontaneous entry of visitors by continually working on generation of new type of products and services in comparison to their counterparts operating in the same industry. Generation of value-additions by the hotel companies helps in changing the perception of the consumers to the service generated by the hotel corporations thereby helping in larger consumer entry and procurement of the same. The differentiation image created by the hotel companies thereby contributes in the enhancement of revenues and market share on their part in comparison to other hotels devoid of such value-addition activities (Hassanien et al, 2012, p.161-162). Examples from the topic would be rendered to reflect how the different hotel companies are competing against each other through the process of ‘Real Differentiation’ wherein tangible products are rendered to the consumers of the hotel’s services. Examples are rendered where hotel companies like Amway and Langham are enhancing value-additions to the services offered by rendering private produces of salads, salsas and tea-blends respectively. Similarly Westin Hotel is observed to entice its customers by selling branded bath accessories and robes. The company also gains support of internet marketing to effectively sell these products. Again hotels like Fullerton in Singapore along with Merrion Hotel based in Dublin are tending to differentiate from their competitors through the sale of scent diffusers and jam products. Thus it is found that hotel corporations round the world are focusing on rendering of tangible products along with the services offered to create a differentiated image in the visitor’s eyes (Weed, 2012). The analysis of the service or product differentiation aspect of the hotel corporations also reflects that the hotel companies are working on creating tangible products through the mode of enhancing the parameter of Physical Evidence. Physical Evidence relates to the tangible product and service interfaces created by the hotel companies to excite customer behavior relating to such concerns (Rao, 2011, p.272-273). Westin hotel is observed to enhance the customer servicing process through the introduction of branded products that can be bought by the consumers both physically from the hotel premises and through the use of electronic commerce sites. Through the creation of such tangible benefits the hotel company not only creates consumer attention to the same but also works in the development of revenues. Thus hotel companies are strategizing to firstly reduce the prices related to the rooms and services to effectively compete with other hotel companies and secondly through the introduction of such tangible offerings are enticing the consumers to buy them and thereby contribute in revenue enhancements (Weed, 2012). Conclusion Hotel Corporations round the world owing to the development of internet environment are facing the threat of changing consumer behavior where the consumers are reflecting interests of moving towards cheaper hotels. Thus the hotel companies are focusing to differentiate the product and service parameters through generation of value-additions in the form of tangible product offerings for a premium price that are contributing in attracting consumers and also in revenue generations. References Boyd, D. M., and Ellison, M.B., 2008. Social Network Sites: Definition, History,and Scholarship. Journal of Computer-Mediated Communication 13, 210–230 [Pdf]. Available at: http://www.postgradolinguistica.ucv.cl/dev/documentos/90,889,Social_network_boyd_2007.pdf [Accessed on October 27, 2012]. Culpan, R., 2002. Global Business Alliances: Theory and Practice. United States: Greenwood Publishing Group. Dodgson, M., Gann, D., and Salter, A., 2008. The Management of Technological Innovation : Strategy and Practice: Strategy and Practice. New York: Oxford University Press. Hassanien, A et al, 2012. Hospitality Business Development. New York: Routledge. Kayaman, R., and Arasli, H., 2007. Customer based brand equity: evidence from the hotel industry. Managing Service Quality 17(1), 92-109 [Pdf]. Available at: http://images.tentangandry.multiply.multiplycontent.com/attachment/0/STS1JgoKCiQAAG9BJyQ1/Customer%2520based%2520brand%2520equity%2520-%2520evidence%2520from%2520the%2520hotel%2520industry.pdf [Accessed on October 27, 2012]. Lee, D., 2012. Facebook surpasses one billion users as it tempts new markets. BBC News [Online]. Available at: http://www.bbc.co.uk/news/technology-19816709 [Accessed on October 27, 2012]. Meng, C., 2009. Multinational Banking in China: Multinational Banking in China: Theory and Practice. United Kingdom: Edward Elgar Publishing. Prasad, K., and Dev, C., 2000. Managing Hotel Brand Equity: A Customer-centric Framework for Assessing Performance. Cornell Hotel And Restaurant Administration Quarterly [Pdf]. Available at: http://www.hotelqms.com/test/gaps/home/CornellBrandEquity-CQ.pdf [Accessed on October 27, 2012]. Rao, K., 2011. Services Marketing. New Delhi: Pearson Education India. Schulz, C., 2007. Media Credibility Perceptions and Its Effect on Shield Laws. United States: ProQuest. Smith, R. D., 2011. Strategic Planning for Public Relations. New York: Taylor Francis. Sterling, C. H., 2009. Encyclopedia of Journalism, Volume 1. United Kingdom: SAGE. Weed, J., 2012. Bed, Bathrobe and Beyond. The New York Times [Online]. Available at: http://www.nytimes.com/2012/10/16/business/hotel-product-offerings-beyond-the-bathrobe.html?_r=2&ref=consumerbehavior [Accessed on October 27, 2012]. Wright, G. and Cairns, G. and Goodwin, P., 2009. Teaching scenario planning : lessons from practice in academe and business. European journal of operational research, 194 (1), 323-335 [Pdf]. Available at: http://dro.dur.ac.uk/5554/1/5554.pdf [Accessed on October 27, 2012]. Read More