Contemporary Issues in Marketing Management - Assignment Example

Contemporary Issues in Marketing Management Contents Contents 2 Answer LO 1 3 Answer LO 2 4 Answer LO 3 4 Answer LO 4 5 Answer LO 3 5 Answer LO 3.2 7 Answer LO 3.3 8 Answer LO 3.4 8 Answer LO 4.1 9 Answer LO 4.2 9 Answer LO 4.3 10 Answer LO 4.4 10 Answer LO 2.1 11 Answer LO 2.2 12 Answer LO 2.3 12 Answer LO 2.4 13 References 14 Answer LO 1.1 Customer Relationship Management is a critical model used for managing the current and potential customers for a business. The relationship marketing of a company involves synchronizing the customer service with sales, marketing and technology with an aim to improve the customer relationship management of the company. HSB-Norr is a service company in Stockholm established in 1923. The company has implemented a robust customer relationship management system in its business. HSB believes that trust is the key factor in building up strong customer relationship. The company has fully implemented Customer Relationship Management (CRM) by effective restructuring of its business processes, actively handing their workforce and implementing innovative Information and Communication technology as well as knowledge management in the business. The company provides several benefits to its customers through maintaining personal contact from the management, enhancing the after sales services, improving the different channels of communication, using robust technology in the service systems and a local presence backed by the entire business. The company also provides a scope for the customers to give their inputs, provides other services like online reporting and invoicing through a 24/7 internet availability, provides market information to the customers all of which contribute to enhanced customer relationship management. Answer LO 1.2 Relationship management is seen as a technology oriented business process in HSB-Norr. The information and communication technologies (ICT) play a major role in supporting the relationship management activities in HSB-Norr. The company implements a combination of people, process and technology for the incorporation of the customer relationship management. HSB-Norr has introduced a fully functional CRM information technology system which will help to support the employees in relationship marketing through updated information related to the existing and potential customers. The company has invested more than 2 million SEK for improving the information and communication technology aspects which help in supporting the customer relationship management processes in the company through effective database management, data mining technologies, real time data sharing and effective communication with the customers. The ICT features support the customer relationship management extensively through the maintenance of an extensive database of the customers and by taking customer inputs and suggestions. This helps the company to retain the customers and attract new customers more effectively. Answer LO 1.3 HSB-Norr has seen immense benefits in the company after the implementation of effective customer relationship management processes. The company has gained a competitive advantage with respect to its competitors like AB Apriori, Fondex AB, Stiftelsen AF Bostader, Svensk Fastighetsformedling AB and Mengus Solna One holding AB which operates in the same industry. HSB-Norr has seen improvement in the customer satisfaction level and the level of retention of customers has increased. The company has also seen an improvement in the volume of sales and has been able to segregate the customers based ion potential and profitability. This helps the company to design products and services suitable to the needs of the customers. The satisfaction of the customers has also increased due to personalized services as well as potential customers have been tapped in the business. The company has also been able to retain the existing customers as well as increase their market share through the major number of customers and profitability. Answer LO 1.4 HSB-Norr can improve the customer relationship management in the business by ensuring that the people and processes are effectively streamlined with the technological perspectives. The company should use the advancements in technology for effective business process reengineering (BPR) in the business for facilitating the success of the customer relationship management techniques. The company should focus on the fact that customer satisfaction and customer loyalty exists in a positive correlation with each other. Therefore, HSB-Norr should focus on delivering customer values through the relationship marketing techniques in order to improve the performance of the system. The company should also try to adopt the latest innovations in the information and communication technology to improve the customer management processes (Horowitz, 2006, p.77). The company should try to improve the emotional as well as the functional values provided by the customer relationship management process so that it results in satisfied and loyal customers. Answer LO 3.1 The extended 7Ps i.e. price, product, people, place, promotion, physical evidence and process play a major role in the service industry. Price: Pricing in these rives industry is more difficult than in normal product marketing industry. The price of the different products and services in a Bank like HSBC depends on the needs of the customers. The bank changes its pricing strategies depending on the changing demands of the market and this is reflected in the website of the bank. Product: The services involved in the banking services industry are heterogeneous and intangible in nature. The designs of the service products have to be done keeping in mind the specific requirements and expectations of the customers form the bank. HSBC follows a same concept. People: People are one of the key elements of the service oriented companies, like the companies in the banking sector. The people give the meaning to the services and are a major variable for measuring the level of service in a company (Kotler, 2011, p.62). In a banking company like HSBC, the employees and the front line managers play a major role in defining the service concept of the bank. The behavior of these employees towards the customers can make or break the business. Therefore, HSBC employs several skilled and trained employees dedicated to serve their customers. The people factor is most critical in giving a tangible form to the services which are otherwise intangible aspects. Place: Place is another critical factor in the service industries. The place of delivery plays a key role in deciding how the quality of the services is perceived by the customers. The interiors, location and the interiors of the place of service delivery are significant in creating an impression in the minds of the consumers. The multinational banks like HSBC aim at providing superior tangibles to the customers in the form of place and physical evidence by establishing its offices in good localities. Promotion: Promotions are significant aspects of marketing in the companies belonging to the service industry. HSBC is known to employ effective and unique promotional advertising campaigns to stress on factors like diversity and customization stressing on the customer orientation of the bank in its service providing facilities. The use of factors which provide promotional appeal like current trends and issues and attractive colors are widely used in the advertising processes of the bank. The documentation process in the promotional strategies is aimed at supporting the dependability and responsiveness of the service provider. Physical evidence: The physical representation of the environment in which the service is provided has been a critical factor in the decision making process of a customer. The ambience of the service provider location includes factors like cleanliness, odor, trendiness or traditionalist, color, music etc. Process: The process factor in services companies is related to the ways in which the customers use the services, how the services are delivered to the customers and the processes of acquiring the different services by the customers. Answer LO 3.2 The use of various services has been efficiently and optimally done in HSBC. The use of proper processes and promotional strategies has been of immense help in increasing the visibility of the company across the world. The extended marketing mix is balanced by mixing the right proportions of each of the seven elements thus creating value for the bank as well as its customers. The bank has positioned itself as a service provider which adheres to high standards of services and aims to achieve greater satisfaction of the consumers in terms of service delivery. The bank customizes many of its services to cater to the needs of individual groups of customers thereby enhancing its reputation as a customer centric service provider as well as creating more value within the business by attracting new customers and retaining existing loyal customers. Answer LO 3.3 The bank faces extensive difficulties in catering to the different customer needs in different geographical locations. Also, the bank has several segments of customers that it caters to. It is critical for the bank to keep notice of the varying demands of the different segments of the customers. Also, the demands of the market are continuously evolving, especially when it comes to service requirements. The customers expect more and more personalized services. Therefore, the bank has to adapt to the changing conditions to provide better services to the customers. Also, each service innovation is easily and quickly replicate by the companies in the same industry. This creates a number of choices for the customers. So, the bank has to pay critical attention to the service requirements of the customers and provide augmented services to the customers to create additional value and overcome competition in the market. Answer LO 3.4 HSBC is known to have an extensive and robust customer relationship management system. The bank maintains a large database containing the information and details of their existing customers as well as the potential new customers for the bank. The bank uses information technology services in its relationship management and has powerful customer relationship management software dedicated to keep a track of the requirements and details of the different customers that the bank has or aims to acquire. The bank has a dedicated customer relationship management team who uses the software and other information and communication technologies in all the levels of service providing from the first interaction with the customer to the after sales services. Answer LO 4.1 The oil and gas industry across the world is facing many ethical and social issues with the advent of globalization and increasing concerns related to the social and environmental hazards created by the activities of the companies operating in this industry. The ethical trade practices are gaining more importance and the companies have to follow these practices in order to keep the society and environment safe (Boatright, 2002, p.111). The changes in the climatic and ecological conditions in the planet have stirred major disruption among the various authorities and people regarding the marketing of the oil and gas companies. The companies are expected to display a socially and ethical responsible behavior through the corporate social responsibility activities to give back to the society in return of taking from the society and the environment (Gundlach and Murphy, 2003, pp.35-46). The use of natural resources has been a cause of concern due to the depletion of these resources and thus, the marketers have to face the issues of the sentiments of the people regarding the hazards imparted to the society and the environment. ed to display a expecanies. s and people regarding the a,mrketing isruptiona nd environment safe. teh vice providing fronm the Answer LO 4.2 Shell is a giant oil and gas manufacturing company which has been participating actively in social responsibility activities through different projects and initiatives. The company has made huge investments in different projects for road safety, health issues like eradication of diseases like HIV and AIDS, for education and awareness, supporting new enterprises, disaster relief and promotion of green movements to support the ecosystem (Forbes Magazine, 2012). The company tries to address different social, economic as well as environmental concerns through its CSR activities. Shell also encourages improving the living standards of people in poor economies and follows stringent and fair labor policies within the business. Shell is renowned for its corporate social responsibility activities in the Niger delta region in Nigeria where the company has invested in huge projects aimed to boost the electricity and energy supply and other economic conditions in the poor area. Answer LO 4.3 Greenpeace has been able to influence the ethical policies regarding whaling, especially in Japan. The organization has denounced the popularity of whaling in Japan, where the whaling fleets of the country hunt thousands of whales every year near the Southern Ocean Whale sanctuary (Greenpeace, 2013). The organization has pointed out the damages done to the ecosystem because of the whaling processes which may cause the extinction of whales. This may lead to severe misbalances in the ecosystem. Therefore, the organization has campaigned extensively against the whaling activities and Japan has been forced to abandon the practice to save the image of the country. The credibility of the whaling program in Japan has been questioned and denounced as being unethical and socially hazardous and strict steps have been advocated to ban the process. Answer LO 4.4 Green peace strives for environmental advocacy and focuses on convincing people and organizations to care for the ecosystem and the planet. The organization has recognized the deteriorating condition of the planet and work with the objective of identifying the causes of identifying the environmental problem and providing solutions to these issues. Greenpeace works with an extensive media coverage which helps the organization to voice their concerns and corrective measures publicly. The activities and the operations carried out by the organization are covered by the media. This not only benefits the business of the media but also ensures that the voice of Greenpeace can reach more and more audiences across the globe. Al Jazeera is one big media broadcaster in Qatar which operates with the Greenpeace for the media coverage of its various operational activities. Answer LO 2.1 An example of a cause marketing campaign may be aiming to protect the endangered species in wildlife. The different charities and organizations involved in dealing with the environmental and ecological issues may act in partnership to fight the problem. The campaigns and activities done in order to protect the endangered species from getting extinct would be beneficial for both the organizations. The charitable organization would gain from the increased visibility and media coverage. Also, the image of the organization would be enhanced as a socially responsible charity based organization in the minds of the people. The company would benefit because of the positive effects of behaving in a socially responsible manner and reach more people through the extensive media coverage done for these activities (Drumwright, Cummingham and Berger, 2000, pp.18-19). Due to the threats to the environmental and ecological conditions on earth, the causes of saving the ecosystem have become topics of great interest for the people, social activists and the media. The company can increase the value of its CSR portfolio through these activities. Answer LO 2.2 The campaigns aim to build up awareness and remove stigmas related to cancer among men and women. The men’s health issue related to cancer talks about the different wrong ideas associated with men’s health and cancer (Movember.com, 2013). The articles also provide different facts and figure related to cancer among men with a vision to support cancer treatment and mental health. The efforts of the write ups are focused on making people fight with cancer and mental illness, stay mentally fit and on educating and creating awareness related to the disease among both men and women. The articles act as motivating and supporting write-ups which help to build the knowledge as well as the mental strength of the cancer patients as well as the people around them. Answer LO 2.3 The Red campaign and other similar campaigns are aimed at promoting global health and wellness through fighting and eradicating diseases like AIDS, HIV, tuberculosis etc. Different voluntary organizations have supported and promoted these campaigns. These include the charitable organizations and social activist groups. Also different private companies like Coca Cola Inc., SAP, morph, Converse have been proud partners in these campaigns. Also, the government of different countries support and encourage these programs to promote health and wellness. The Red campaign and similar campaigns have been enormously successful increasing awareness against these diseases, promoting general health and wellness as well as supporting patients and their families to live through the turmoil of these diseases with strengthened mental condition. Answer LO 2.4 Movember is a global charity organization focused to improve health and wellness of men. It is an official charity that provides support for awareness and education related to the disease of cancer and mental problems, particularly among men. The charity has become a global movement with hundreds and thousands of campaigns launched every year. The charity has raised funds from over 22 countries across the globe for funding more than 570 projects launched by the organization. References Boatright, J. R. 2002. Ethics and the conduct of Business. Journal of Business Ethics. Vol. 36(1), pp. 111-118. Drumwright, M. E., Cummingham, P, & Berger, I. E. 2000. Social Alliances: Company/Nonprofit Collaboration. Ethics in Marketing. Vol. 15(1), pp. 18-19. Forbes Magazine. 2012. Shell-Corporate Social Responsibility and respect for the law. [Online]. Available at: http://www.forbes.com/sites/csr/2012/10/03/shell-corporate-social-responsibility-and-respect-for-the-law/. [Accessed on 25 January 2014]. Greenpeace. 2013. Al Jazeera – Greenpeace: From Hippies to Lobbyists. Available at http://www.mediaroots.org/al-jazeera-greenpeace-from-hippies-to-lobbyists/. [Accessed on 25 January 2014]. Gundlach, G. D. & Murphy, P.E. 2003. Ethical and Legal Foundations of Relational Marketing Exchanges. Journal of Marketing. Vol.57, pp. 35-46. Horowitz, S. 2006. Service Marketing. The Journal of Management Research, Vol.5 (8), p. 77. Kotler, P. 2011. Marketing Management, 14th Edition. New Jersey: Prentice Hall. Movember.com. 2013. Program Index. Available at http://ca.movember.com/report-cards. Accessed on 25 January 2014]. Sarner, M & Anderson, J. 1996. Social Marketing for Business. Toronto: Manifest Communications. Weeden, C. 1998. Corporate Social Investing: New Strategies for Giving and Getting Corporate Contributions. San Francisco: Beret-Koehler Publishers. Read More