Change in Marketing in the Corporate World - Essay Example

The marketing profession is going through a transformation and there are many shifts and new tendencies in the field. This phenomenon is something that is going around in many professions. Our society has entered into the information age and the birth of this new generation accelerated the pace in which information travels. Marketing is a discipline which depends on transmitting a message to a user. Information is an essential element for the marketing profession. A major change in marketing in the corporate world is the integration of the entire enterprise into the marketing responsibilities. In the past the marketing department was solely responsible for the marketing duties, this is no longer the case. An example of a company that has made marketing a responsibility of every employee is Westernbank Inc. This bank created a policy in which every member of is staff is required to place a huge bumper sticker with the company logo in the vehicle they drive. Greater emphasis is being place in satisfying customers to increase retention rates. Companies are receiving input from different members of the departments in the product design process. Organizational change is a major force that has influenced this new tendency. Companies have realized that teamwork is an important element of a successful business. A tendency in this new corporate environment is the reduction of suppliers. Companies used to have many suppliers in the past. The reasoning was that more suppliers would lead to better prices and more flexibility. Companies realized there is more value in creating a close relationship with a few suppliers. Building a close business relationship leads to better service from the supplier and access to a partner that will help you and accommodate your needs. Having fewer suppliers also is advantageous because it reduces the administrative work of having a lot of accounts. The tendency is aligned with the downsizing movement over the last twenty years. In the past business focused on creating everything they could themselves. In our new age businesses have changed their position tremendously. Outsourcing has become a widespread strategy in many organizations. A lot of components are being purchased in countries such as China that can manufacture at lower prices. A lot of business processes are being outsourced to countries such as India. India is the leading exporter of information technology and business processes in the world. The outsourcing trend has emerged due to economic forces and competition. The businesses of the past had a common characteristic of having a physical presence. That was in the past now there are many businesses that don’t have a physical presence because they operate in a virtual environment. The internet has change the way a lot companies realize business. The publishing industry has been affected greatly by this new tendency. A lot of customers are buying their books online at virtual stores such as Half.com. Traditional business in this industry such as Barnes and Noble adapted to the trend and created online stores to supplement their traditional business. Technological factors are responsible for this movement. Marketing has moved away emphasis in advertising a company’s product and has turned to integrating communications to gained recognition from the general public. Marketing along with the rest of business world has shifted from a regional mindset into a global perspective. Technological factors such as the internet helped unite the world. Globalization was influenced by economical, political, and demographic factors. In 1985 Michael Porter developed the concept of visualizing the different activities of a company as a system. The system he developed is called Porter Value Chain. It is composed of five activities. The activities are illustrated below: 1. Inbound logistics – Relationship with suppliers and receiving and storing of inputs 2. Operations – Transforming inputs into outputs 3. Outbound logistics – Collect, store and distribute outputs 4. Marketing and sales - Activities to persuade people into buying the product 5. Service – Activities to help customer after the product is sold (University of Cambridge, 2007). Porter’s Value Chain has great implications for the planning process of a company and in the development of its marketing plan. The marketing section of a marketing plan defines the financial objectives of company. These financial objectives include a sales forecast for the company. The amount of output is dependent on the inputs of the company. Inbound logistics need to be carefully plan to avoid shortages of materials. A shortage in a specific material can cause a stoppage in production which in turn reduces sales. The way a company provides service to customers has an effect in the future sales of the company. Clients that receive good customer service will come back to the company for additional business. Holistic marketing has the perspective on creating sales by focusing on customer value. Customer value is created through three distinct processes: value exploration, value creation and value delivery (Kotler, 2006). Following the Holistic marketing framework can help companies a lot in the creation of a marketing plan. Value exploration involves finding what the needs of the customers are. A marketing strategy is influenced by the product one has to offer. Companies design product based on what the customer desires. Utilizing value exploration techniques can help companies achieve greater sales by designing products tailored made for the customers. Value creation is about finding other ways of creating revenue. When a company’s core product is not creating the desired sales diversifying into other related or unrelated can help the institution get back on track. In the marketing plan managers need to identify these opportunities to create sales within their established customer base. Studying the buying behavior, creating profiles of the clientele and learning about the mental process of the customer can help companies achieve their desired goals. Value delivery involves creating good relationship with customers and managing the internal processes of the company efficiently to be able to satisfy the needs of the customers. Operating efficiency must be one of the strengths highlighted in a SWOT analysis of a company. Good customer relationships increase the customer retention rate of a business. Reference Kotler, P. (200#). Marketing Management (12th ed.) Prentice Hall. Page# (2-4 image) University of Camridge (2007). Porter’s Value Chain. Retrieved June 5, 2007 from http://www.ifm.eng.ac.uk Read More