Marketing Products and Services in a Dynamic Environment - Coursework Example

Marketing Products and Services in a Dynamic Environment Marketing Products and Services in a Dynamic Environment Themain aim of starting a business is to make profits, however in the last decade the business landscape has changed. Currently, any business that does not comply with the changes, face a danger of immediate closure. Customers’ preference is changing each passing day thus calling for creativity in advertisements to attract more clients. According business experts Laplaca (2008, p624), “Marketing Strategy is now moving from the 4Ps-Product, Place, Price, and Promotion of traditional marketing management to the 30 Rs – the Thirty Relationships of new marketing paradigm”). This idea is similar to the paradigmatic traps by Vargo and Lusch which acknowledges that Integration of clients is the key to success in any promotion. Companies have realized that acquiring new customers is very difficult than maintaining the regular customers. A majority of companies are putting more effort in sustaining the regular customers. Some of the promotional activities that some businesses have turned to in order to sustain the regular customers include: Customer Loyalty Assuring loyalty is significant in profit-making thus; companies are spending more time and energy in coming up with customer loyalty promotions to sustain the regular customers. Loyal customers are one of the most efficient marketing mechanisms; they are most likely to recommend goods and services to other people. In order to encourage loyal customers to continue buying goods and services nearly all firms have established loyal plan rewards. According to the article Clients Satisfaction Buying choice is the paramount standard for client contentment. When clients buy a product it reflects that they are satisfied with the quality of the product. If customers don’t prefer buying a certain good it reflects that there is a problem with then quality of the product (Laplaca 2008, p624). “If the goods or items equivalent customer expectations, client is fulfilled; if it is outperform them, client is highly fulfilled; if it’s give bad result, client is unsatisfied.” This notion is similar to the one flouted by many other people “Value creation is always uniquely and phenomenologically determined by the beneficiary.” Firms can only be able to ascertain the value of goods they are selling by looking at the sales quantity. When a big number of customers purchase a certain good or service it can be ascertained that they are appreciating the value, when the goods or services are purchased by very few people then it can be assumed that the value of such products is low. According to Journal of service research “involvement of the customer is an option, but there is no other way to adequately understand value except through customer participation.” Dynamic environment A successful advertising strategy enhances the company’s profits which helps it attain its strategic objectives. However, over a period of time some challenges have arose as the business environment is regularly shifting. Customer inclination and even attitudes keep evolving hence requiring business managers to adapt to the changes. Another challenge that is facing advertisement in the dynamic environment is accessing of diverse target markets. Proactive concentration to the location enables marketers to flourish by competently advertising in locations with the most consumer potential. It is very significant that a lot of emphasis is put on both the macro as well as micro environment so as to enable swift reaction. A lot of concentration on the environment by the marketers is detrimental to business. It causes the marketers to loose touch with the clients, thus giving chance for the other competitors to win them over and enhance their market share. The marketing environment For any promotion to succeed the marketing environment plays a very crucial role, advertising in the role environment will not be productive. There are two main levels of marketing environment, Micro and macro environment. Paying critical attention to the levels of advertising is very significant in enhancing the chances of a firm of getting more clientele base. Micro- environment The micro environment in advertising includes the company, competitors, suppliers, marketing intermediaries and customer markets. The consumers as well as the collaborators also form the micro- environment. These different groups play a very important role in ensuring the success of any promotional campaign. The company characteristic of micro-environment is reflected in each and every internal department, which has a role to play in marketing decision. Such departments include research, product features and the financial department (Barrales‐Molina, etal 2014, p412). The firms’ suppliers also are part and parcel of the micro- environment. They make sure that the business receives the suppliers and services that the clients needs and in time. Marketing intermediaries are the people who help a company in promoting, selling and even distributing products to the clients. An example of such firms, which sells products on behalf of other companies, is Wal-mart and best buy. Such companies ensures that the clients gets both goods and services that they need without having to go to various companies shops (Laplaca 2008, p624). Customer markets This comprises of international markets, business markets, and consumer and reseller markets. All this markets play a very crucial role in the sells of goods and services. A business market is where firms buy goods and services so as to make their own products (Lee 2002, p246). The consumer market is where individuals buy both goods and services for their own use. Collaborators This group comprises some very main marketing partners that lead to high efficiency. Clients mostly, look for the most efficient services as well as goods. The collaborators include credit card processors, and shipping providers. Any failure, from any of the collaborators may lead to undue delay of some process like delivery of goods and payment. Centers of influence are very paramount to a successful marketing activity. These are people who have both local and international business connections and can lead to very successful market relationship. The Macro-environment The macro environment comprises aspects such as culture, demography, politics, natural forces, and technology. These aspects all play a very vital role in determining the success of any firms’ promotion. Failing to put one into consideration might be very detrimental to firm’s efforts of acquiring more clients. Some of the macro-environment includes: Demography This is the studying of human populations with specific consideration to size, occupation, location, gender, race and age. The data can be very helpful in helping a marketer to separate the population into various market fragments, hence coming up with a plan that can attract each and every section of the demographic. Demography is also important as it helps the markers to make decisions on the most appropriate methods of marketing. Economic environment For any person to buy goods or services one has to have the purchasing power. Hence marketers have to look at the economic environment, before deciding on what goods or services to promote in certain areas. There are two main types of economies: Industrialized economies and subsistence economies. Subsistence economies are found in areas where agriculture is the main activity; in such places the people consume their own products. In such a type of an area where farming is mostly carried out it will be absurd for a firm to go and try to sell eggs. Industrial economies are more diverse and offer more different types of goods and services, thus offering a more expansive clientele base. Technology Technological advancement has taken place in most parts of the world. In that aspect modes of advertising has changed. Most companies are advertising online thus getting to more clients all over the world. The constant technological advancement thus needs a company to be aware of the latest technological advancement in marketing so as to enable it remain competitive. Most of the people in the world use the social media to communicate with friends and relatives in different parts of the world (Laplaca 2008, p624). In an online research conducted by info Harris, it was ascertained that at any given time there are millions of people surfing the internet. In that aspect, marketing has been taken to the social media, most potential customers rely on the internet to find goods and services that they need. This inclination towards the internet has driven companies to advertise online. Political environment The political environment plays a very vital role in advertising, this include things such as government agencies, and all laws (Barrales‐Molina, etal 2014, p412). It is very significant for marketers to have the knowledge of the laws and restrictions in various places. There are some countries that have regulations on product ingredients and packaging. Having basic knowledge of such rules and regulations helps the marketers to avoid pessimistic public perception. In a country such as Malaysia which is largely Muslim, consumption of alcohol is not allowed as it is against the Islamic religion (Laplaca 2008, p624). In such a country running a marketing company to promote the consumption of alcohol may not be a good idea. Such an attempt may lead to a firm receiving sanctions In most countries in the Middle East the population is mostly Muslims, for a marketer to go to such places and run a campaign to popularize pork will definitely not succeed (Lee 2002, p246). Muslims do not take pork and suggesting such an issue may be seen as an insult by many. India has a very high population that can provide market for different types of goods. However there are some promotions that cannot help increase the number of clients (Laplaca 2008, p624). The Hindu religion does not allow consumption of meat from cow, thus starting a retail outlet to sell beef cannot prosper in India. Cultural environment The cultural environment is comprised of organizations and the fundamental values as well as beliefs of a certain group of people. Values are divided into two categories core beliefs and secondary beliefs (Lee 2002, p246). Core beliefs have been passed down from one generation to another, hence making them very difficult to change. Secondary beliefs are easier to change, in that aspect it is very imperative that a marketer is able to differentiate the two. This will help the marketer to come up with a campaign strategy that reflects the ideals of the targeted audience. After a successful campaign in promoting certain goods and getting the desired results, a company has to find ways of retaining the clients they have acquired. Aware of the importance of retaining customers most companies have invested a lot of money in projects to reward loyal customers. Loyalty card Most businesses in the world have come up with different methods that they use to retain their customers. The main aim of the methods is to ensure that the customers find a reason to go back to purchase the goods and services. One such method or strategy is the introduction of loyalty cards. There are some instances where the use of loyalty cards has been beneficial to certain firms however there are some firms that have tried using the reward schemes without success (Lee 2002, p246). Tesco’s supermarket The Loyalty card was first discovered in the U.K in the year 1981 by a man known as Gary Wilson. Since the discovery it has played a very major role in the United Kingdom. A number of businesses have been able to retain clients through main reward schemes (Lee 2002, p246). One such business that has been using loyalty cards to retain customers is Tesco’s supermarket. There are currently two major businesses in the U.K that are using the loyalty scheme Tesco’s supermarket and Sainsbury’s. Tesco first introduced club in the year 1994. A year later they launched the card national wide. In 1996, another firm known as Sainsbury introduced a reward card which was later replaced in 2002 by Nectar card. Chain department stores, Super markets and multinational companies are spending millions of dollars and pounds to facilitate loyalty schemes each and every year. In the year 2013 Tesco supermarket gave out about £200 million worth of vouchers. In order to qualify to be given vouchers, one has to have a loyalty card (Barrales‐Molina etal 2014, p412). Using the information from the loyalty card a retailer is able to ascertain the lifestyle and purchasing habits. If it is ascertained, that one is a “bargain hunter” then alerts will be sent to such a person notifying about different available offers. If it is established, that a person likes branded goods then alerts will be sent to inform about branded items on sale. The elite will also receive alerts that suit their purchasing habits. The main aim of the loyalty cards is for the firm to make more money, thus the alerts will inspire clients to buy more. Loyalty Card role in Tesco’s Tesco’s is the leading supermarket in the U.K; the supermarket is attracting more clients with each passing day through the use of loyalty schemes. Clients are able to save money as they are given discounts each time they use the card. The customers also earn points with each purchase at the Tesco’s supermarkets or their partners. Once the client attains 150 points, one can change the points into loyalty card coupons. Many other firms and retail stores have tried the use of loyalty cards, but none has been successful as the one ran by Tesco’s supermarket. The main reason for the success of the club card is because Tesco has collaborated with renowned companies in the world (Laplaca 2008, p624). Some of the companies that Tesco has partnered with are National Tyres, Beef eater restaurants, Powergen, avis car Hire Company, and Johnsons dry cleaners. The club holders can attain points each time they shop from the associated companies. Efficient Targeting of Diverse Consumer Segments Promotion of goods and services should be done in the moist efficient manner so as to enable it attain the desired results. An effective marketing will ensure high returns for a firm, while an inefficient promotion will not be productive to the company. A company should carry out campaigns to reach out to all the clients, from the young to the old card (Barrales‐Molina etal 2014, p412). There are some companies that focus their promotion on one age group or gender. Tesco has come up with a loyalty program that caters for all consumers from all ages, from an eight year old child to a 90 year old grandparent (Laplaca 2008, p624). Tesco has loyalty schemes such as Toddler club, Tesco kids Club, World of Wine Club and Tesco Healthy living club. Moreover registration to the various clubs is absolutely free; the customers do not have to visit Tesco in order to fill out the forms to become members, registration can be done online. Target of different customer group Most retailers in the world are facing the same loyalty scheme problems with the biggest challenge being the inability to properly define a customer segment. There are instances where promoters do not their marketing strategy right. Some marketers promote goods and services to the wrong clientele thus making the whole process of marketing a failure. Conclusion Since the business environment is always shifting and customer inclinations keep surfacing, marketers are obligatory to become accustomed fast. Decades ago marketing of goods and services was not as competitive as it is today. The methods of advertisement that were used back then are not the same ones as the ones being used today. The goods and services that were liked by customers back in the 1970’s is not the same as the ones that is preferred by the customers at present (Lee 2002, p246). The number of businesses trading in the same types of goods is also on the rise; hence for a business to be successful, the product that they produce must be of high quality (Lee 2002, p246). If the quality is not good, customers will buy the same goods from a different firm. Attracting of new customers is not easy. Thus a lot of work, time and money have to be used so as to make sure that a company is able to sell its product and make a profit. Customer retention is very vital in order to stay afloat in business. Thus companies have invested a lot of money in order to make sure that they retain their customers (Barrales‐Molina etal 2014, p412). One such strategy that has been favored by many businesses is loyalty cards. Even though some firms such as Tesco have managed to attract a lot of customers through loyalty cards. Some businesses have not made an impact by using the same strategy. The journal of service research by Stephen L. Vargo has brought out clearly how different environments affect marketing in the dynamic environment. Bibliographies Lee, J. (2002). A key to marketing financial services: the right mix of products, services, channels and customers. Journal of Services Marketing,16(3), 238-258. Laplaca, P. J. (2008). Marketing of high-tech products, services and innovations.Industrial Marketing Management, 37(6), 623-625. Barrales‐Molina, Vanesa, Francisco J Martínez‐López, and Juan Carlos Gázquez‐Abad. 2014. Dynamic Marketing Capabilities: Toward an Integrative Framework. International Journal of Management Reviews. 16, no. 4: 397-416. Read More