Unit 41 Contemporary Issues in Marketing Management Assignment

Programme	Diploma in Business
Unit Number and Title	Unit 41 Contemporary Issues in Marketing Management
QFC Level	Level 5
Credit value	15 credits
Unit Code	K/601/1037

Introduction

Relationship marketing mainly deals with the customer maintenance instead of complains. Their main strategy is to promote faithfulness, communication and long term commitment. It helps the customers to open up through communication and get the information directly. Relationship marketing contrasts transactional marketing. It helps the organization to focus on the increase in sales.   

Task 1

1.1 Explain the concept of knowledge management and its role in relationship marketing

Knowledge management focuses upon knowledge generation and the application within the organization. Here the employees play an important role in the process of knowledge generation and exchange. It has played a significant role for past twenty years in achieving business success by maintaining a long term client relationship, which creates a value for both the client and the organization. For this kind of practices an organization would need experts in different core business fields such as knowledge sharing, communication and developing partner relationship.    
Knowledge can be described as a high value form of information that helps in making decisions and take action (Davenport et al, 1998). A main difference between knowledge and information is that knowledge is produced as the result of human version or analysis rather than dealing out with data.
Knowledge management and relationship marketing are two significant management patterns, but they evolve from specific traditions. Here the communication is the main source in both of the patterns whereas concepts such as online communities, trust, knowledge sharing etc. are found in literatures. The customers data or information are been used as a platform to build relationship with the customers.  Both knowledge management and relationship marketing lead into an exploration of the interface between the two interface. Both help an organization to recognize the value of creation through synergies of technology but they are not the substitutes of each another. Both knowledge and relationships are part of the absolute product which is used by an organization to become successful in the market.

1.2 Explain the ways that ICT can support the customer relationship management process in a particular organization.

ICT (Information and Communication Technology) plays a significant role in enabling an effective customer relationship management. One can apply many systems. To work with it, it is very important to have a clear idea about requirements during the software solution selection process. IT is an essential part for the success and competition among the companies, it is also important that the systems installed are user friendly i.e. easy to use and easily understandable.  The interactive applications will get accepted in the organization in order to be used in greatest possible effect when the company’s requirements with regard to its services and products. One would like to employ innovation along with IT to assist customers.

Focal points of the Information and Communication Technology business unit include:

• Design of information processes employed across departmental and organizational structures with portals, mobile services, IT security, electronic business traffic
• Conceptual assessment and selection of company software with the help of document management, business process and customer relationship management, product information management and enterprise resource planning
• Designing and optimization of IT architectures in the form of web services, service-oriented architectures, software as a service, cloud and grid computing etc.
• Development, evaluation and optimization of interactive and intelligent IT systems by developing interface design, usability, intelligent service-based systems, backend integration and introduction strategies
• Application of standards and interfaces based on electronic business, enterprise application integration, master data management, style guides and design pattern libraries.

1.3 Describe the benefits of customer relationship management in a selected organization

The customer relationship management defines the customer culture and nature; this helps the organization to emphasize the boundary of its customers. To ensure a high service level to the customer a proper knowledge is required.
Benefits of CRM: The main aim of an organization is to develop a great deal of customer relationship. These help an organization to deduce the loss of customers and to understand, manage and improve the customer relation.  With a better Customer Relationship Management one can compute how to measure and improve the quality of relationship for a longer period of time.
With the combination of CRM software in sales, marketing management and customer service functions help to develop a better understanding in the area of buying ability, better identification and increase in the satisfaction of the customers. The CRM software provides a clear image of the customer habits and a detailed database is maintained which improves the marketing of an organization, process of sale, customer services, predicting and reporting. For an instance we take a bank, which provides credit card for both individual and organization. Credit card helps an individual or an organization to make different types of payments through credit. A bank with the help of CRM software gets to know how much the customer will use the credit card and for what. The proper knowledge of dealing with the customer is the main source.    

The diagram represents an approach to implement CRM:

         Source: Adopted from the CRM Excellence Model, best Practices. 2001.'

Case study of Tesco with customer information: Two- thirds of the transaction information is processes by strategy in Tesco, it helps them to know more about their customer’s buying patterns in different stores or in malls. Sir Terry Leahy collected a large data from the group and found that there were many complicated researches.  He then introduced the club card for the customers, which gave Tesco a new level of information about its customer. Ultimately, Sir Terry saw Tesco becoming the third largest retailer in UK.

1.4 Justified recommendations for the improvement in the customer relationship management

The aim of the companies is to adopt the CRM strategy in business and to follow their ambition and goal continuously. British Airways has been faced with various critical issues when it comes to CRM. The issue arises when the employees receive gifts from the stakeholders who in turn ask for unwarranted favours. The clients want favours like non-schedule seating I return for gifts like jewellery, watches etc. This implies that the client/consumer has to be treated in a manner, which is not fair for others. To deal with such problems the organization will have to make some changes to the company policies. A higher authority officer should do the allocation of seating at the terminal and every such occurrence should be flagged. Apart from that, the organization can make the employees sign contracts where it should be clearly mentioned that the employees cannot accept gifts from such stakeholders and any such acceptance should be brought to the notice of the organization. Changing duties or shifts can also help solve this problem to a certain extent. (Kostojohn and Johnson et al., 2011)

Task 2

2.1 Carry out a stakeholder analysis for a voluntary sector and public sector organization

Stakeholder analysis is a tool that assists policy makers as well the managers whose concern is to be taken in account when making decisions. Decisions may be based on designing or a policy program. It allows the policy makers and the mangers to make a justified decision to identify the winner and the looser; it also helps in developing strategies that can be engaged with stakeholder expectations. The information from the analysis can be fed into the organizations strategy.     
Stakeholder: Stakeholders are the people or organizations who have an interest in the functioning of an organization. The main objective of business is to make profit for their stakeholder.
Stakeholders can be further divided into direct and intermediary stakeholders:

• The stakeholders that are directly connected to the organization are known as direct stakeholders. E.g. funders, Charity Commission etc.
• The stakeholders who have a stake in other’s interest are known as intermediary stakeholders. Though, they might be interested in the organization but cannot function as per direct stakeholders.

The stakeholder analysis tool

• Listofallstakeholders.
• Considering them in terms of their interest and their influence or power.
• Plotting out on the Power or interest matrix.
• Then by completing the stakeholder expectations chart

The following diagram would help one to understand the above power/interest matrix

2.2 The nature of relationship with customers within two non-profitable organizations

The organization can be declared as non-profitable organization when wages and expenses have been debited into account, as it restricts from dispersing any additional income or revenue to management. The non-profit sector constitutes a wide-ranging dissimilar number of organizations, e.g. health care bodies, charities, churches and local authority.

2.3 Compare methods used in marketing within the public, private and voluntary sectors

Marketing techniques used for marketing to the private sector or the commercial sector may involve the introduction of special schemes or offers that can include buy for the price of one offer’s by extending their product range. Marketers can have extended operating hours and can use the medium of advertising to highlight their products. The sole intention here is to increase sales and profits and increase customer base and build better relations with the existing customer base.
The voluntary sector has been studied from various perspectives, including a managerial, administrative one that highlights new forms of managing these voluntary non-profit organizations and bring them closer to their client’s objectives and goals (Lovelock and Weinberg, 1984, Rados, 1996).
In the voluntary sector, the main purpose is to raise money for charitable reasons. However, they can apply similar marketing methods to compete between themselves. They can also increase their efforts by reducing prices and extending their working hours and can advertise in the media or through brochures and mail outs and try an appeal to the audience’s consciences.
In the public sector, money is not the final goal. Marketing techniques can be preventative or supportive, doctors offering surgeries for the down trodden or weaker sections of society or setting up pneumonia camps for distributing free drops to infants. There can be counselling for cancer patients offered or other rehabilitation schemes and so on. It is a lateral form of marketing.
A non-profit organization can also market their services but the intention is not to make profits but to continue to raise money to fund their activities.

2.4 Key issues involved in marketing in a virtual organization

Virtual organizations address critical resources, personnel and logistic issues. They can be described in different ways, some of which are listed here:

• A flexible network of individual groups linked together with technology to share their knowledge, skills and expertise in non-traditional ways.
• Different organizations or individuals come together to deliver a service or a product on the basis of common business understanding and may form a unified organization in the process.
• It is not required to have people present together or be visible in a virtual organization. The important factor here is that they perform their duties. It is not an office, but is a network.
• The virtual organisation is present in different locations which bring in a wider range of skills and capabilities.

The advantages of a VO has far reaching benefits as the process of innovation is enhanced, core competencies are shared between many groups, it is a globalized affair, where knowledge from across the world are viewed and shared. The cost of running an office is eliminated, besides the time saved by participants in the form of commute times and travelling costs. The employee’s attitude towards hard work is changed as quality of life improves with the flexibility offered by a VO.

Task 3

3.1 Describe the use of extended marketing mix in selected service sector business.

 Marketing mix is a business tool that helps in establishing a brand or product in the service sector. There are 7 P’s involved in this process where each of these is identified as:

• Product: The services offered sometimes are intangible, but the product is tangible. Service marketing concentrates on the salient features of the product that is being addressed and the benefits it brings along. It should have a decent perceived value and must bring some benefit to the customer and produced solely with the consumer in mind.
• Place: his is the location where the service is available and plays a significant role in service marketing as the surrounding and prevailing conditions can make a difference.
• Price: The consumer must always feel that the price paid for the product is value for money. Therefore, the correct pricing of a product plays an important role in its success.
• Promotion: The benefits provided by the service provider must be effectively conveyed to the customer, in other word it must be promoted suitably to influence the reactions from people to increase the prospects of it being used.
• Physical environment: This refers to the geographical and weather conditions prevailing at a particular time of night or day.
• Process: The process must be such that it adds value to the service provided by including additional features that are not offered by the competition.
• People: It is important that people are made aware of the services on offer and must feel the need to engage with the services.

3.2 Explain how the product and service mix can be used to enhance value for the customer and the organization.

There is a distinct advantage to both the customer and the organization in the process of adopting an effective service mix. Primarily the consumer benefits because of better products and services being offered because of competition prevailing in the market. Organizations have to innovate to attract the customer towards them. The products will generally have better features and will be value for money. The products will have better design, newer technologies incorporated, better quality assurance and warranties in place. Correspondingly, the promoting company can increase sales if they succeed in attracting customers. Besides, they get greater insight into the needs and wants of the customer and how the needs can be satisfied. An understanding of  incorporating certain features that consumers are looking for is vital, these maybe in the physical form of colours or shapes or designs or functionality and also how the product or service must be presented and placed with regards to their competitors, and so on.
The pricing of the services is another key factor that benefits both the consumer and the provider. It is the inherent value and the competition that plays an important role here. In addition, the different points of sale established or the easy availability of the product is critical in its success.

3.3 Explain how difficulties peculiar to the marketing services can be overcome with reference to a particular organization.

There are 5 main challenges faced in the marketing of services:

1. Technology adoption and automation: There is a substantial amount of fear associated with the use of technology by professionals today. This is because of a failure on the part of technology firms and the different social media sites of being easily approachable by the common person. It is in their own interest that people are educated about the new advancements and how they can be utilized for higher gains.
2. Integration: Most organizations remain confined to their own practices and ideologies, whereas, the need of the hour is to integrate their resources with others around the world for mutual benefit in every department possible.
3. Evolution of the media: Nowadays, media evolves so rapidly that it becomes difficult to keep pace with this growth. What was relevant the previous year is now obsolete. Marketers need to be sublime and extremely flexible in their approaches to the use of communicating these days.
4. Use of the Internet: This one of the most powerful tools that has evolved in present times. It can be accessed from anywhere in the world. It is required that an easy access method and corresponding usage pattern is established to utilize its full power.
5. Absence of Video and Visual skills: Although the visual revolution is present, many businesses fail to utilize the benefits of them to market their services. They need to be trained to acquire the required skills to take advantage of this revolution.

3.4. Explain the role of IT in services marketing management in a selected organization

With the evolvement of newer technologies, it is advantages to deploy it in the different processes involved in establish an effective marketing program. IT involves the gathering, storage and processing of data when required.
In market research: or primary marketing online surveys and questionnaires can be implemented on different social media sites or other similar platforms to collect useful information that will help targeting the relevant audience. There are large databases that can be tapped to gather information on people’s preferences. This is a form of secondary marketing, as the data already exists.
Digital marketing: can be used for promoting products and practices using digital marketing channels to reach customers in a timely and cost effective manner.
Mobile marketing: is huge with the advent of smart phones which are virtual offices in the consumer’s pocket. This can be achieved with the sending of SMS, MMS and web application using Bluetooth and Infrared technologies.
Targeted direct promotion: can be achieved with by sending direct emails from an existing customer base, besides, telemarketing can also be employed as a direct approach.
Online advertising: can be established by having the marketer’s product or service details posted on important online sites often visited by a large community of people. The payment for advertising on these sites depends on the number of clicks on the advertiser’s site.
Websites: can be developed which are eye catching and contain all relevant data pertaining to the services offered by the company. In some cases online payment gateways can be provided for direct sales through credit and debit cards.
It is apparent that the use of technology is invaluable in the fast changing dynamics of most markets. It is important however, to identify the IT platforms that will be most suitable and effective to achieve the desired results.

Task 4

4.1 The current issues of ethical and social concern to marketers.

In 21^st century the importance of ethical standards is that, the information is accessible to anyone. The great example at this moment is false advertising, where most of the businesses or entities are aware of the risk of exaggerated product claims. This is a punishable act if caught. The other kinds of ethical standards are not convenient and their uses may have a very serious consequence.
Stereotyping: Stereotyping is the most common marketing campaigns used.  An example can be expressed such as washing powder advertisement where lady or housewives are worried about their laundry or do-it yourself marketing advertisement often describes that everyone is handy other than man. Commercial marketing creates an impression that creates happiness and joy to one who buys the products, but not the others who do not feel the happiness.
Exploiting Social Paradigms: Sometimes due to cultural and racial sensitivity issues, advertisement of certain organizations get offensive. For example, a commercial advertisement is shown about a luxuries car, where a beautiful woman is impressed or attracted. In context of this advertisement, the social statement gets offended. This particular advertisement reveals that any woman gets attracted to a high-end car and a man needs some luxurious cars to attract women. This particular advertisement makes a man believe that by buying this car he could fulfil his dreams.
Vulnerable Audiences: The use of ethnic groups in mixed society can create an image and identified problem. In a particular marketing advertisement, it mainly attracts the children’s minds. For example, the advertisement of pizza, burgers etc.fills the child’s mind with greed. Here the advertisement may be burdened with full of ethical implications. This advertisement leads the child’s greed towards fast food, which may cause harm to his health and may result in fatness. (Zollo and Zollo, 2004)

4.2 Rise of the concept of CSR

CSR means Corporate Social Responsibility was actually originated in year of 1950’s in USA but became common in year 1970s. This was developed by US due to many social problems faced unlike poverty and unemployment and pollution resulting a fall in dollars. The creation of wealth for all the related parties of the organization is its main goal. Stakeholders are those for whom an organization performs and take part in the activities, which may affect directly or indirectly the performance of the organization. (Lister, 2012)
The Tata Group has redefined the concept of CSR. Under Mr Tata, the group has achieved many major organizational phases such as rationalization, globalization and innovation and roughly is going to achieve $500 billion revenue by year 2021.
Tata Group has always taken care of CSR. The founder of Tata Group is Mr Jamshedji Tata. He used to say that in any enterprise the community is not just a stakeholder in a business but in fact is the very purpose of the business existence. Mr Jamshedji Tata took many social responsibilities such as granting scholarship to students abroad for higher studies, he joined and supported the Gandhi movement for racial equality in South Africa. It's faiths have founded the Tata Institute of Social Sciences in 1936; India's first cancer infirmary, the Tata Memorial in 1941, and in 1945, the Tata Institute of Fundamental Research, and supplementary became the attribution of India's Atomic energy program. (Dutt and Chaudhuri, 2006)       

 4.3 The role played by a selected pressure group influencing ethical and social marketing

Major challenges and ethical issues have come in the way of PepsiCo’s success. Entry into a geographical market has been on the top of the list for the organization. Even after taking a lot of care in researching the organization has encountered several problems that have sparked tensions between various countries. Its recent advertisement relating to AMP has drawn an array of criticism.

4.4 The role played by the published and broadcast media in influencing ethical and social marketing.

In both developed and developing countries, the role played by Media can be a very decisive one. In a developing country, it plays an important role in advancing a pro-poor development schedule as well as supporting economic growth by motivating consumer markets.  It enables the citizens to hold their account, restricting corruption and creating a public forum for debate. It can also magnify the voice of marginalized and exclude the groups of recent research has shown that the media which is serving a population of young, rural, and non-literate groups in Africa. (BBC, 2006)
Social media can be termed as an umbrella because it assists in social interaction with the help of technology based tools i.e. through internet. Social media attracts customers by creating a social network.
In business ethics, external social pressure have become major players. This is true for all kinds of small businesses in smaller communities in a society or in a country. A company needs a strong consideration to social prospect in the areas of community involvement and environmental responsibility. The information through social media has contributed to increase the importance of social pressure as it spreads quickly when companies fail to stick to social standards.
Now as discussed in Tata Group, That Mr Tata has provided students with scholarships and joined Gandhi’s movement against the racial equality in South Africa. From where did we get this information, it is the work of these social media. Once the news gets stored it remains stored for generations.
Ethical Transformation: Business ethics has grown significantly with the increase in time. It now referred to operating business as it does not break the law or violate it. Business ethics have become broadened in this 21^st century. This is based on the communal expectations.
Going Beyond the Law: In early days, the leaders of the companies use to consider the ethics to the extent of legal parameters of the company. In those days the word did not reached quickly as now a days, as because in those days the modes of communication were much less efficient than in 21^st century. In those days, letter and telegram were used and in 21^st century, we have internet and mobile devices.
The Internet Revolution: Internet is a form of communication that was developed in early 90s to highlight community involvement and social responsibility towards business practices. If one say or do things wrong against the society norms. The internet or other kinds of communication will allow these communities to rise against the entity that goes against the norms. This community also expects a contribution financially. This involves the companies to promote education and other important social activities. Depending upon the size of the business the activities may or not be highly visible. (Hillstrom, 2005)
Boycotts: Communities can use social pressure to create pressure on company ethics by them where it hurts. Leveraging is the ability to organize quickly. Community has been able to arrange boycotts in certain situations to force businesses entities to reconsider social or environmental decisions. For example, some companies have changed certain processes to protect the environment base on pressure from environmental watch groups and the public.

References

Davenport, T. J. 1998. Florida evidence code with objections. Notre Dame, Ind.: National Institute for Trial Advocacy.
Dutt, D. and Chaudhuri, C. 2006. To strive and to soar. Mumbai: Corporate Affairs Dept., Tata Sons Ltd.
Hillstrom, K. 2005. The Internet revolution. Detroit, MI: Omnigraphics.
Kostojohn, S., Johnson, M.,Paulen, B. and Mckinnie, T. 2011. CRM fundamentals. [New York, N.Y.]: Apress.
Lister, J. 2012. Corporate social reponsibility and the state. Vancouver: Univ Of Brit Columbia Pr.
Lovelock, C. H., Weinberg, C. B., Lovelock, C. H. and Lovelock, C. H. 1984. Public and nonprofit marketing--cases and readings. Palo Alto, Calif.: Scientific Press.
Zollo, P. and Zollo, P. 2004. Getting wiser to teens. Ithaca, N.Y.: New Strategist Publications.