Principles and Practice of Marketing - Case Study Example

A REPORT ON THE PRINCIPLES AND PRACTICE OF MARKETING By Student’s Name Code + Course Name Professor’s Name University Cite, State Date Tables of Contents A. Building Strong and Long Customer Relationship……………….…….3 B. Business Ethics & Responsibility………………………………..……..4 C. Brand Stretching and Brand Extension.....................................................6 D. Promotion of Brand Personality………………………………………….7 E. Online Distribution Versus Distribution Using Middlemen.……..………9 References…………………………………………………………………..……11 A. Building Strong and Long Customer Relationship Customers are the immediate livelihood of any given business entity and thus, building a stronger and longer relationship with them is imperative for purposes of posting success in relation to such aspects as revenues and profits (Forman, Ghose and Goldfarb, 2009). Some of the most notable ways of ensuring that the customers are fairly maintained within the company include; First, it is important that business ensure that each and every of their immediate interaction with the customers is taken into consideration (Kumar, Lemon & Parasuraman, 2006). Businesses spend lots money and cash resources for purposes of creating a reputable image within their respective industry of operation. Thus, it is argued that the foundation of customer relationship is only as perfect and essential as the last interaction. A negative mode of experience is far much enough to chase them away to the immediate competitors. Following this line of reasoning, it is important for businesses to practice the element of courtesy and also, ensuring that each of the customers enjoys a personal touch in the course of interaction (Kumar, Lemon & Parasuraman, 2006). For example, the small company can send email to each of the complete transaction since it can establish a positive rapport and impression of the company. Second, stronger customer relations are created through immediate creation of formidable connections and networks with the customers. This mainly entails the provision of information in regards to company’s products, events and other deals via such medium as email, websites and also, social media (Kumar, Lemon & Parasuraman, 2006). Given that the small business operates online, it is imperative that its website is user-friendly, easy to navigate through and also, it must contain all of the relevant information needed for effective business operations. Third, it is important for the business to reward loyal customers. Numerous researches indicate that a possible 5 per cent increment in regards to retention has the effect of increasing profits by 25 and 100 per cent (Kumar, Lemon & Parasuraman, 2006). Subsequently, it is noted that repeat customers spend about 67 per cent more than new ones and thus, it is crucial to provide the repeat customers with something of value in order to exchange with their immediate levels of such resources as time and commitment. The company can go ahead and provide them with such items as coupons, mere advices or even organize events for purposes of maintaining them within the company businesses. Fourth, the small business can embark on engaging in employee training for their small workforce. It is important to realize that employees are the immediate ambassadors of a business and thus, their model of communication to the customers determines whether the customer will enjoy a great deal of loyal customers (Kumar, Lemon & Parasuraman, 2006). This is the fundamental reason for ensuring that employees are fairly trained and are experienced enough in matters related to customer services. Even though the whole exercise is expensive, it is considered to be a crucial step in establishing stronger and longer customer ties, which translates to a positive customer reputation for that matter. B. Business Ethics & Responsibility Business ethics are the standards and principles that are established in order to distinguish between acceptable levels of conduct within businesses (Kotler &Keller, 2006). The most fundamental way for which one can ensure that ethics is practiced within a business environment is through comprehension of the manner for which different parties make ethical choices and thereafter, understanding reasons behind them acting unethical. It is important to understand that ethical decisions within any given organization are directly influenced by three fundamental factors that include; personal moral standards, influences exhibited by both managers and coworkers as well as prevailing opportunity needed for engaging in misconduct. Notwithstanding, while an individual might be conversant with their own control mechanism over ethics, both managers and coworkers can also exert control over ethical choices through the elements of authority (Kotler &Keller, 2006). A business should understand that in order to conform to positive ethical standards, the rules and regulations that are established by both a firm coworkers and management team might determine the level of consistency in relation to adherence to ethical compliance. It is imperative that an organization develop an organization culture that promotes appropriate conducts. Significantly, the capacity of individual employees to adopt personal values might go in hand to promote ethics in work places (Kotler &Keller, 2006). Consequently, the business might go ahead and formulate a professional code of ethics for purposes of guiding them on appropriate conduct. Codes of ethics are professionally formalized sets of rules and regulations that expounds on what a given firm expects of its employees’ behavior. These codes of ethics can be enforced to guide all business operations through the adoption of a reward and punishment program. This is likely going to increase the level of acceptance of ethical principles by a company’s immediate personnel (Kotler &Keller, 2006). Also, the company can ensure that distinctive workshops and seminars are created for purposes of enlightening the personnel on the importance of engaging in ethical behavior. Another important way for which the business can ensure that it conforms to ethical behaviors is through the creation of a report and communication platform within an organization in order to ascertain that aspects of whistle-blowing the illegal activities of an employer are reported and remedied internally. A formal model of reporting should be provided in order to ensure that whistleblowers are not victimized and the reputation of the company is also not tainted in any way. For example, the company can go ahead and adopt 24-hour hotlines and also, employ the services of corporate ethics officers to deal with unethical situations (Kotler &Keller, 2006). Recent company failures like Enron have been learnt the hard way and have now been focused on renewing attention needed for purposes of whistle blowing. In regards to social responsibility, a business is expected to value and respect the society that forms the environment upon which it operates by way of engaging in such voluntary programs as education sponsorship and limiting the levels of pollution. This, in turn, has the effect of increasing their profits due to the creation of a more positive public reputation. C. Brand Stretching and Brand Extension Brand extension is a fundamental marketing strategy that is used by any given company in order to use its existing brand name to enter a distinctive unrelated product market using the brand name (Kotler &Keller, 2006). This marketing strategy is conducted merely because it promotes leverage on the underlying existing brand equities. It is important to understand that any given successful brand name assist immensely in allowing a company launch new products into a market more easily free of any hustles (Kotler &Keller, 2006). In most cases, companies spend lots of cash and time resource in order to promote and cement their product lines and therefore, after these product brands are launched and have gained customers’ trust they will not be willing to spend such amounts in introducing new brands into the marketing (Kotler &Keller, 2006). For example, currently, Virgin is a brand name that started-off as an aviation product but nowadays the brand name is far much used in other product categories like game stores and telecommunication related products. Another perfect example of brand extension activity is manifested when Lucozade was initially introduced as a children’s drink but it was later transformed into an overall energy drink before it became a well-known sports drink. On the other hand, brand stretching is a marketing strategy that is used by any given firm and occurs whenever an established brand name for given line of products is used in unrelated markets (Kotler &Keller, 2006). A good example of this marketing strategy is manifested when Yamaha, which is fairly known for the manufacture of Japanese motorcycles, ventured into unrelated markets of hi-fi equipment and piano production. These strategies have the benefits of lessening the levels of risks attributed to venturing into both unrelated markets and product lines given that potential customers will easily relate with the products and therefore, purchase it (Kotler &Keller, 2006). Consequently, potential customers will likely depict lots of trust for the products due to the quality attributed to primary products. It will also attract customer awareness and willingness into trying the products from a similar product brand name (Kotler &Keller, 2006). Another important aspect of these types of strategies rests with the fact that it is able to cut down on costs related to promotion and launching of the products (Kotler &Keller, 2006). D. Promotion of Brand Personality For any given business enterprise, the idea of a positive brand image and personality for that matter goes way ahead to promote its public image and also, attracts more loyal customers. Therefore, it is important that businesses invest on strengthening their respective brand personality in order to identify with both the existing and potential customers. In relation to human beings, an individual personality is defined in respect to their immediate behaviors, physical attributes, beliefs and also, their values (De Chernatony, 2009). Similarly, a brand’s personality can be enhanced by a myriad number of ways. Such aspects as traits and attributes can be formed in order to influence the level of both direct and indirect contact with the product brand at hand. For instance, direct influences of brand personality can be triggered through the aspect of user images, which is typically attributed to the distinctive consumer of the brand. Other notable direct influences of brand personality rest with the testimonials offered by a firm’s employees’ or management team (Forman, Ghose and Goldfarb, 2009). Following this line of reasoning, it can be vehemently ascertained that brand personality is able to shape through the transfer of traits from the people attributed to the brand to the brand itself (De Chernatony, 2009). Significantly, brand personality can also be enhanced through indirect platforms. Some of the most notable indirect influencers or rather determinants of brand personality are linked to associations with basic product categories, product-related traits, brand name, aspects of both logo and symbols, model of packaging, advertising strategies as well as price and distribution platforms (De Chernatony, 2009). The notion behind the strengthening of a brand name is positioned fairly with identifying with the customers’ immediate attraction to the product. The strengthening of brand personality through demographic traits can be defined through the aspects of gender, age and the social statuses of customers (De Chernatony, 2009). The myriad number of aspects put forth to both manage and control a given brand personality is considered to be manifold in nature. Consequently, the numerous points of contact with which a consumer has with a given brand can be effectively driven only in part by the firm at hand (De Chernatony, 2009). For example, while such aspects as advertising strategies, packaging and pricing let alone distribution of products lie with capacities of an organization, the overall image of the primary product category or in other cases the user image is mostly influenced by the company to a given extent (De Chernatony, 2009). Therefore, it is safe to postulate that brand personality can be effectively enhanced by way of adopting the basic principles of marketing that include; effective pricing, packaging, distribution and placement within the market. E. Online Distribution Versus Distribution Using Middlemen Online distribution is the form of distribution of company products through the digital platform and whereby the middlemen are eliminated and mostly, the transaction is mostly between the company and the customer at hand (Forman, Ghose and Goldfarb, 2009). It promotes customer-company relations since the former is placed fairly to demand their products at a customized taste and preferences (Forman, Ghose and Goldfarb, 2009). On the other hand, the distribution of company products through middlemen is considered to be a traditional approach where the customer receives the products indirectly from the manufacturer (Forman, Ghose and Goldfarb, 2009). A middleman like a distributor is mandated with the task of distributing company products to other notable customers at a cost (Forman, Ghose and Goldfarb, 2009). It is important to indicate that online distribution is far much the best model in comparison to the traditional model since it eliminates costs attributed to commissions paid to these middlemen. Significantly, the online distribution allows for positive customer-company relations since customers’ immediate concerns are directed to the company and feedback provided to customers immediately (Forman, Ghose and Goldfarb, 2009).This means that the customer service program for online distribution is far much placed and effective in executing the mandated of ensuring that the customers are satisfied with the products offered at any given moment in time (Forman, Ghose and Goldfarb, 2009). Notwithstanding, online distribution of products like one practiced by Dell Inc allows for customization of products since customers place their respective specifications directly with the company for purposes of enjoying a great deal of computers and laptop accessories (Forman, Ghose and Goldfarb, 2009). This model has enhanced increment in profit sales and also, it has developed a firm customer trust base with these companies (Forman, Ghose and Goldfarb, 2009). For the part of the company, the costs attributed to warehousing are also eliminated since finished manufactured products are immediately shipped to the customers at a reasonable price. Therefore, online distribution should be practiced by companies for efficient sale of their products (Forman, Ghose and Goldfarb, 2009). References List De Chernatony, L. 2009. Towards the Holy Grail of Defining ‘Brand’, Marketing Theory, vol. 9, no. 1, ; pp. 101-105. Forman, C. Ghose, A. and Goldfarb, A. 2009. Competition between local and electronic markets: How the benefit of buying online depends on where you live, Management Science, vol.55,no.1; 47-57. Kumar, V., Lemon, K & Parasuraman, A.2006.Managing Customers for Value: An Overview and Research Agenda. Journal of Service Research, Vol.9, no.2; pp.87-94 Kotler, P. &Keller, K.2006.Marketing management, (12e).New Delhi: Prentice-Hall Read More