Monday, 13 February 2012
Thursday, 9 February 2012
Internal Marketing Orientation
Internal Marketing is best defined as "training, motivating and communicating with staff to cause them to work effectively in providing customer satisfaction; more recently the term has been expanded to include marketing to all staff with the aim of achieving the acceptance of marketing ideas and plans" Jobber, (2007).
Berry et al. (1976) were the first academics that first introduced the notion. Since its introduction, the term has been used to describe the use of marketing techniques to align the service operations of an organisation with the needs of customers. A prevalent view amongst internal marketing scholars is that satisfying service employees is integral to delivering quality services; consequently, employees are a legitimate focus of internal marketing activities.
However, isn't that the notion of a sound Human Resources Management and Development operationalization?
Do in other words Strategists - Marketers plan to integrate - align HRM in their corporate activities ?
Berry et al. (1976) were the first academics that first introduced the notion. Since its introduction, the term has been used to describe the use of marketing techniques to align the service operations of an organisation with the needs of customers. A prevalent view amongst internal marketing scholars is that satisfying service employees is integral to delivering quality services; consequently, employees are a legitimate focus of internal marketing activities.
However, isn't that the notion of a sound Human Resources Management and Development operationalization?
Do in other words Strategists - Marketers plan to integrate - align HRM in their corporate activities ?
Market entry strategies - the pioneer takes it all?
Undeniably, a strong competitive as well as differential advantage accrues from a "Pioneer Market entry strategy". Some of the potential sources of success for an innovative, pioneering firm with a clear Marketing orientation are briefly summarized as below:
A) The firm's Marketing management has a first choice of market segments,targets and positions. Most pragmatically, we live in a competitive, saturated business world. Saturation could be best defined as few players controlling a large percentage of the market or too many players controlling small bits and pieces of a market. A pioneer firm has the "once and for all" opportunity to develop product-service business offerings with attributes most significant to the largest customer segment of the market. Moreover, a pioneering firm is able to promote the critical attributes that favor its brand. In this sense, such a firm may create a substantial competitive / differential advantage regarding equally active firms for a long period of time.
B) A pioneer firm sets the rules of the game regarding a broad scale of Marketing best practices (for example: development of unique distribution network, pricing schemes). This is indeed a hard business reality for following firms. The pioneer, innovative firm truly sets the benchmarks for everyone else to follow in the long run. No doubt, customers listen first to the experts - pioneers that have invested financial and human resources addressing their needs and wants.
C) There are considerable financial benefits for the pioneering firm. Clearly, the market pioneer firm can gain accumulated sales and hence considerable return on investment (for example: market share in volumes and values) and experience and thereby decrease per unit expenses faster than the following firms.
A) The firm's Marketing management has a first choice of market segments,targets and positions. Most pragmatically, we live in a competitive, saturated business world. Saturation could be best defined as few players controlling a large percentage of the market or too many players controlling small bits and pieces of a market. A pioneer firm has the "once and for all" opportunity to develop product-service business offerings with attributes most significant to the largest customer segment of the market. Moreover, a pioneering firm is able to promote the critical attributes that favor its brand. In this sense, such a firm may create a substantial competitive / differential advantage regarding equally active firms for a long period of time.
B) A pioneer firm sets the rules of the game regarding a broad scale of Marketing best practices (for example: development of unique distribution network, pricing schemes). This is indeed a hard business reality for following firms. The pioneer, innovative firm truly sets the benchmarks for everyone else to follow in the long run. No doubt, customers listen first to the experts - pioneers that have invested financial and human resources addressing their needs and wants.
C) There are considerable financial benefits for the pioneering firm. Clearly, the market pioneer firm can gain accumulated sales and hence considerable return on investment (for example: market share in volumes and values) and experience and thereby decrease per unit expenses faster than the following firms.
Monday, 6 February 2012
The Consumer decision-making process
In understanding customers a behavioural approach views the consumer decision-making process as a problem-solving or need-satisfaction process.
According to Blackwell et. al., (2003) consumers may eventually pass or in some cases by-pass through series of steps in deciding which product/service solution may adequately satisfy their needs. In this respect, a consumer goes fast through the decision-making process steps namely: Need identification / Problem awareness, Information gathering and Evaluation of alternative proposed solutions.
These are exactly the stages, that Marketing management identifies and establishes, maintains and enhances and when necessary terminates relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by a mutual exchange and fulfilment of promises” Grönroos, (1994).
In fully claryfing the RM paradigm two major academics Tzokas and Saren, (1996) have contributed with a sound Relationship Marketing definition. In their view, "RM is the process of planning, developing and nurturing a Relationship climate that will promote a dialogue between a firm and its customers which aims to imbue an understanding, confidence and respect of each others’ capabilities and concerns when enacting their role in the market place and in society".
Clearly, a relational-oriented firm focusing systematically on the initiation of such a dynamic and reflective relationship climate makes the customer decision-making process regarding the selection of the appropriate product/service solution a product of effective concensus between sales consultants and buyers.
According to Blackwell et. al., (2003) consumers may eventually pass or in some cases by-pass through series of steps in deciding which product/service solution may adequately satisfy their needs. In this respect, a consumer goes fast through the decision-making process steps namely: Need identification / Problem awareness, Information gathering and Evaluation of alternative proposed solutions.
These are exactly the stages, that Marketing management identifies and establishes, maintains and enhances and when necessary terminates relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by a mutual exchange and fulfilment of promises” Grönroos, (1994).
In fully claryfing the RM paradigm two major academics Tzokas and Saren, (1996) have contributed with a sound Relationship Marketing definition. In their view, "RM is the process of planning, developing and nurturing a Relationship climate that will promote a dialogue between a firm and its customers which aims to imbue an understanding, confidence and respect of each others’ capabilities and concerns when enacting their role in the market place and in society".
Clearly, a relational-oriented firm focusing systematically on the initiation of such a dynamic and reflective relationship climate makes the customer decision-making process regarding the selection of the appropriate product/service solution a product of effective concensus between sales consultants and buyers.
Sunday, 5 February 2012
How does Consumer Behaviour changes in a recession
A different view by a Marketing Expert - Rory Sutherland, Vice-Chairman, Ogilvy Group UK!!
Understanding Customers
The buyers' behaviour towards brands/product groups is a major issue of concern for Marketers in a largely competitive environment.
This is even more the case during a strong recession period that the Greek Socio-economic structure goes through. We have learned by theory that understanding customers goes through a number of questions and a number of phases. Primarily, in forming a sound Marketing strategy Marketers should give realistic, validated answers to the following generic questions:
What are customers' choice criteria?
How do customers buy?
When do customers buy?
Where do customers buy?
In justifying theory and according to Horton (1984) there are three stages of learning that customers/buyers normally progress sequentially. It is significant to answer if these three stages still exist in an economic environment where strong recession prevails (for example: Greece, Portugal, Spain and Ireland).
A) Routinized Response Behaviour. In implementing buying decisions in a routinized almost automatic way, the buyer must have "fully" (e.g. Knows enough, through application of corporate integrated communication to make acceptable purchases with no major effort) learned both the product group and the alternative, existing brands that would give them an almost instant purchasing decision.
Ultimately, this is the "good scenario" for the striving Marketer or maybe not?
In my understanding such a buyer's behaviour may cause trouble since Marketing management is somehow left in inertia. The creative part of Marketing is not present but Shareholders might be happy with Short Term financial goals accomplishment. This is more the case in recession periods. In my opinion, RRB does not lead anywhere.
B) Limited Problem Solving. In LPS the buyer has a product group concept that is well learned but inadequate brand concepts, so that further information is required before any purchase.
Do we desire to go through LPS?
Yes, we want "educated", Long-Term, loyal and commited customers.
Yes, we want people to select our brands with significant concept attainment.
In this sense, I suggest the adoption of strong co-creation and satisfaction of customer's needs and wants through the initiation of Relationship Marketing applications and practices. The role of Sales-Reps in this scenario becomes imperative for success. The communication practices shift to more of a Service-Dominant approach, instead of the Transactional Goods-Dominant approach (Vargo and Lusch, 2004, 2009).
C) Extensive Problem Solving. In EPS the buyer does not have a clearly defined product group. There is not even an established product group concept that the customer could eventually evaluate and conclude on purchase amongst different brand offers. This is another case that Relationship Marketing practices are needed. The customer should have a tailored-made corporate support where service quality is of outmost significance.
One may say that EPS presents significant obstacles to effective communication between bueyr and seller. True, we should consider though other patterns of communication (for example: social networks are now critical in bringing decision making information to customers in literally no time).
In concluding, according to theory there are three different learning stages that elicit different buyers' purchasing behaviour. It really worth the effort developing the necessary Marketing ammunition in tackling complex purchasing situations. The recession is in fact an era that competitive firms should reconsider Marketing strategies and tactics.
This is even more the case during a strong recession period that the Greek Socio-economic structure goes through. We have learned by theory that understanding customers goes through a number of questions and a number of phases. Primarily, in forming a sound Marketing strategy Marketers should give realistic, validated answers to the following generic questions:
What are customers' choice criteria?
How do customers buy?
When do customers buy?
Where do customers buy?
In justifying theory and according to Horton (1984) there are three stages of learning that customers/buyers normally progress sequentially. It is significant to answer if these three stages still exist in an economic environment where strong recession prevails (for example: Greece, Portugal, Spain and Ireland).
A) Routinized Response Behaviour. In implementing buying decisions in a routinized almost automatic way, the buyer must have "fully" (e.g. Knows enough, through application of corporate integrated communication to make acceptable purchases with no major effort) learned both the product group and the alternative, existing brands that would give them an almost instant purchasing decision.
Ultimately, this is the "good scenario" for the striving Marketer or maybe not?
In my understanding such a buyer's behaviour may cause trouble since Marketing management is somehow left in inertia. The creative part of Marketing is not present but Shareholders might be happy with Short Term financial goals accomplishment. This is more the case in recession periods. In my opinion, RRB does not lead anywhere.
B) Limited Problem Solving. In LPS the buyer has a product group concept that is well learned but inadequate brand concepts, so that further information is required before any purchase.
Do we desire to go through LPS?
Yes, we want "educated", Long-Term, loyal and commited customers.
Yes, we want people to select our brands with significant concept attainment.
In this sense, I suggest the adoption of strong co-creation and satisfaction of customer's needs and wants through the initiation of Relationship Marketing applications and practices. The role of Sales-Reps in this scenario becomes imperative for success. The communication practices shift to more of a Service-Dominant approach, instead of the Transactional Goods-Dominant approach (Vargo and Lusch, 2004, 2009).
C) Extensive Problem Solving. In EPS the buyer does not have a clearly defined product group. There is not even an established product group concept that the customer could eventually evaluate and conclude on purchase amongst different brand offers. This is another case that Relationship Marketing practices are needed. The customer should have a tailored-made corporate support where service quality is of outmost significance.
One may say that EPS presents significant obstacles to effective communication between bueyr and seller. True, we should consider though other patterns of communication (for example: social networks are now critical in bringing decision making information to customers in literally no time).
In concluding, according to theory there are three different learning stages that elicit different buyers' purchasing behaviour. It really worth the effort developing the necessary Marketing ammunition in tackling complex purchasing situations. The recession is in fact an era that competitive firms should reconsider Marketing strategies and tactics.
Friday, 3 February 2012
Developing an "environmental set"
What is a corporate "environmental set"?
The organisations that make-up a firm’s micro-environment are referred to as the “environmental set”. Most fundamentally, the environmental set of a customer-oriented firm is truly dynamic since membership and relationships between them change over time, hence the need for continuous environmental scanning and effective use of marketing intelligence.
In this sense, marketing intelligence practices (e.g. adoption and implementation of Customer Relationship Management ) becomes essential for sound marketing practices for all existing and potential "customers".
We should not forget, that all existing and potential organizations within our environmental set are prospective customers. For example, the adoption and implementation of sound CRM systems assists Marketing management in optimizing profitability, revenue and customer satisfaction by organizing the enterprise around customer segments, fostering customer-centric behaviors and implementing customer-centric processes (Gartner, 2004).
In view of the evolving and dynamic business relationships, Marketing management of a customer-centric firm serves more than the direct consumer market - as a selected market of choice. A firm equally serves business markets, reseller markets (e.g. distribution channels management) and even Government influence markets.
The organisations that make-up a firm’s micro-environment are referred to as the “environmental set”. Most fundamentally, the environmental set of a customer-oriented firm is truly dynamic since membership and relationships between them change over time, hence the need for continuous environmental scanning and effective use of marketing intelligence.
In this sense, marketing intelligence practices (e.g. adoption and implementation of Customer Relationship Management ) becomes essential for sound marketing practices for all existing and potential "customers".
We should not forget, that all existing and potential organizations within our environmental set are prospective customers. For example, the adoption and implementation of sound CRM systems assists Marketing management in optimizing profitability, revenue and customer satisfaction by organizing the enterprise around customer segments, fostering customer-centric behaviors and implementing customer-centric processes (Gartner, 2004).
In view of the evolving and dynamic business relationships, Marketing management of a customer-centric firm serves more than the direct consumer market - as a selected market of choice. A firm equally serves business markets, reseller markets (e.g. distribution channels management) and even Government influence markets.
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