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Contemporary Issues in Marketing Management Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.1 Concept of knowledge management and its role in relationship marketing..........................1 1.2 Ways how ICT supports the customer relationship management process in Tesco...............1 1.3 Benefits of customer relationship management in Tesco.....................................................2 1.4 Recommendations for the improvement in customer relationship management for Tesco...2 TASK 2............................................................................................................................................3 2.1 Stakeholders analysis for voluntary and public sector organisation......................................3 2.2 The nature of relationship with customers.............................................................................4 2.3 Comparing the marketing methods used in public, private and voluntary............................4 2.4 Key issues involved in marketing at virtual organization......................................................5 TASK 3............................................................................................................................................5 3.1 Use of extended marketing mix in Tesco...............................................................................5 3.2 Enhancing value through product/service mix......................................................................6 3.3 Difficulties in marketing of services......................................................................................7 3.4 Role of IT in Service marketing management.......................................................................8 TASK 4............................................................................................................................................8 4.1 Impact of ethical issues on the marketing planning...............................................................8 4.2 The concept of CSR...............................................................................................................9 4.3 Role of pressure groups in influencing the ethical social marketing policies of Tesco.........9 4.4 Role played by published or broadcast media in influencing the ethical and social marketing policies......................................................................................................................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12 Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
INTRODUCTION Marketing is the management process that is responsible for identifying, and satisfying the customers’ needs and wants (Pepall, Richards and Norman, 2005). In addition to this contemporary issues are the term that describes various issues based on national and international scale in terms of terrorism, stock market fluctuation and so on. In this Tesco a retail firm has been taken into consideration. Tesco is the British multinational retail company headquarter in Welwyn garden City, Hertfordshire. In this report importance of relationship marketing in context of contemporary business unit is discussed. In addition to this role and marketing in context of non traditional organisation are mentioned. In this report importance of marketing mix in different service sectors is also interpreted. At last in this report role played by different pressure group in influencing ethical and social marketing policies for Tesco is depicted. TASK 1 1.1 Concept of knowledge management and its role in relationship marketing Knowledge management is the term which comprises of a wide ranges of practices that take place within an organization in order to create, identify and represent insights and experiences. Concept of the knowledge management arose two years back with an aim to organize all the organisational information and knowledge in a proper way. But at the same this concept seems to be very overboard (Boone and Kurtz, 2013). Through knowledge management an organisation is able to able to capture, distribute and effectively identify the different methods/ factors through which company can identified the needs and desire of the individual person. Identification of needs and wants of the customers will aid the company to produce the goods and services according to their desire. This in turn will assist the company to move towards the growing rate. Role of knowledge management in relation to marketing Knowledge management in relation to the marketing will aid the company to know about the changing trend, fashion, taste and living standards of the customers (Moyer and et.al., 2011). Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
In addition to this knowledge management an important role in identifying the changing perception of the customer’s about the company and its products offered. 1.2 Ways how ICT supports the customer relationship management process in Tesco There are variety of ways through which ICT supports the customer relationship management process in Tesco. Tesco offers wide range of ICT tools to the customers through which they can easily purchase the products that are provided by them. Use of this tool attracts more and more customers towards the products of the company. In addition to this Tesco also offers loyalty cards to their daily customers so that customers can avail various benefits on the purchase of the products. Tesco also provide online services to its customers in order to purchase the variety of products that are sold by them. Concept of ICT also proves various benefits to the Tesco also. By using this technology company is able to access the customers. This in turn will aid the company to identify and produce the products according to the wants and requirements of the customer (Levi, 2007). Use of ICT also assist the company to monitor and control the working of various projects and marketing plans that are taking place within and outside the organisation. 1.3 Benefits of customer relationship management in Tesco Customer relationship management provides various benefits to Tesco. Some of them are as follows. Customer relationship will aid the company to maximise its customer’s equity against the products offered by the company. In addition to this Tesco will be able to create lifetime value in mind of the customer in context of the products offered by them. By creating a healthy customer relationship company will be able to recognise its brand image and its reference groups. Along with this all, Tesco will be able create trust and commitment in mind of the stakeholders about the company. A healthy customer relationship with the customer will assist the company to easily cope up with the changing competitive environment (Faiers, Cook and Neame, 2007). At last it can be said that bouncing customer relationship management will help the Tesco to identify and understand the behaviour of the customer in relation to the corporate identity in order to generate best products according to customer demands. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
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1.4 Recommendations for the improvement in customer relationship management for Tesco Tesco is the large multinational firm operating its business in a healthy manner. But there are still many area where company need to improve. Therefore, some of the recommendation for the company which they should undertake in order to improve its customer relationship management are as follows:- Tesco should provide the accordant responses to the queries that are raised by the customers (Grant, 2010). These quires may arise when they are purchasing the products from Tesco Direct catalogue or for Tesco stores by using the latest technology. Tesco should also start using various social networking sites in order to provide better services to the customer. Tesco should try to offer direct contract facility to the customers. This in turn will aid the company to collect feedback from the customer. Company should aim to provide high quality products at an affordable price to the customers by using latest technology. TASK 2 2.1 Stakeholders analysis for voluntary and public sector organisation Stakeholders are the one who directly or indirectly affects and benefits the function of the organisation. Some stakeholders are in the internal environment of the organisation and some are present in external environment. Stakeholder analysis is the process of gathering and analysing various qualitative information to order to conclude whose interest should be taken into consideration at the time of developing and implementing a program or a policy (Scott, 2006). Voluntary sector organisation includes:- Voluntary workers:- Voluntary works are those who work for the betterment of the society. These workers main aim to provide better services to the society, profit maximization is not there main objective. These stakeholder help the voluntary sector to move towards the growth rate. Government grants:- these are another stakeholders who work for the development of the voluntary sectors organisation. Government provides grants to the organisation in Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
terms of money in order to achieve their desired objectives. Grants provided by the government are not repaid back. Public sector organisation includes:- Private investors:- Private investors are the one who invest into the various projects that are started by the government. These stakeholder work with an aim to generate more income and profit. 2.2 The nature of relationship with customers The nature of relationships with customers can be defined in the two selected not for profit organizations, namely, Oxfam and Coast and Country. For the not-for-profit organization, it is crucial to reflect upon the ways in which they treat their customers. This is because these ways define the relations that their customers maintain with the company. These organizations follow the strategy of constituent relationship management (CRM). In order to maintain healthy relationships with the customers, these not for profit organizations focus too narrowly on the constituents that provide income. These include retail customers, donor foundations etc. the relations with customers in Oxfam and Coast and Country are defined by personal interaction, fast response to the requests, easy access etc. these elements are ensured by both the customers as well as the organizations. Further, there are various other policies in Coast and Country (Coast and Country, 2016). These ensure that the employees, volunteers, teachers, program managers etc. treat the customers with respect. Moreover, fr5iendship and social interaction are two other elements which define the nature of relationships at Oxfam and Coast and Country (Oxfam International, 2016). 2.3 Comparing the marketing methods used in public, private and voluntary The marketing methods of organizations vary as per the nature of business. Broadly there m are three types of organization, public, private and voluntary. The difference in marketing methods of these enterprises is explained as follows: Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
◦ Private organization: The private entities tend to focus majorly on its marketing to enhance customer base and brand recognition (Grant, 2010). Therefore, both direct and indirect channels of communications can be used to increase promotion. Thereafter, heavy expenditure is done by private firms on marketing campaign. ◦ Public: The moderate level of expenditure is done by public enterprises on its marketing campaign. They majorly focus on use of print media like newspaper, radio etc. to target customers and boost the sales. ◦ Voluntary organization: The voluntary organization does not spend too much on marketing and promotional activities. Therefore, they mostly rely on social media marketing, e- marketing which involve negligible cost (Kazmi, 2007). Further, many a times the marketing of voluntary is done by other corporation in form of sponsorship etc. 2.4 Key issues involved in marketing at virtual organization Most of the virtual organizations are trying to incorporating several highly as well as technological advanced marketing process into their business operations. Through such process, they can easily market their products as well as services and attract huge base of customers. Virtual organizations are network organizations which do not have any of their physical presence. ICT is the most effective concern which supports the collaboration between these organizations by facilitating the exchange as well as sharing of information and knowledge. At the time of marketing they might face several dilemmas, a loss of control as well as a need for the new managerial skill. In this regard, it can be determined that virtual organizations marketing functioning are supplemented with various problems. They are facing huge difficulty at the time of convincing their employees as they do not have any physical evidence. Consumers are not sure with the service quality of the products as it is only visible to them in terms of images as. In order to resolve such issues it is essential for management to take adequate actions. TASK 3 3.1 Use of extended marketing mix in Tesco The marketing mix can be defined as a combination of various marketing activities which Tesco uses to best meet the needs and demands of its target market. There are mainly 4P’s of Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
extended marketing mix which is equally important for the successful business. These elements are highly useful such as: Physical evidence: It is the most important type of marketing mix which determines the environment in which company operates and sells products. Tesco has always maintained their quality standards and deliver an excellent service to their customers. Quality physical layout is one of the most important parts in a range of service providers such as: Tesco always provides good ambience, facilities and attractive layouts for the shopping (Zastrow and Kirst-Ashman, 2006). Process: At the time of delivering customer services there are number of process involved in making marketing more effective in an organization. For the same, Tesco always use to maintain better relationship with their customers by providing them excellent customer support services. Handling customer complaints and identifying their needs and requirements make their customers loyal and retain them as well. People: Customer service lies at the heart of the management of Tesco. They are highly responsible for delivering high quality services to their customers. Consumers are likely to be loyal if company serves them well (Hollensen, 2015). In this regard, Tesco is regularly organizing training sessions for their workers so that they can become more effective and productive. Promotion:It is the last element of extended marketing mix through which Tesco can easily attract huge base of customers towards their services. For the same, company is promoting their services through internet as well as various other sources (Roberts- Lombard, 2010). 3.2 Enhancing value through product/service mix Product mix is all about the total range of products or services offered by company. It is considered to be the most important part for enhancing the value for the customers as well as organizations. A range of products or services of Tesco are involved in this process which yields larger sales as well as revenue when marketed together. Moreover, an organization’s value can be easily enhanced by continuously improving how they meet out the requirements of customers. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
By setting appropriate product/service Mix Company can easily enhance its customer value. They require setting the width in which they can measure that how many different types of products Tesco offers (Ansari, Mela and Neslin, 2008). Each of their products required to be distinct with each other in terms of providing huge benefits to their customers. Further, Tesco can enhance its overall firm’s value by adding any latest product as well as services in their business operations. There are various services which are intangible in nature and all of them add a value to product mix. As per the depth of product mix company need to add various additional services within their business operations by the means of better satisfying the needs of customers. Product mix is a tool to enhance the value of a customer organization by designing its marketing mix in terms of width, depth, positioning and product characteristics. In addition to this, by setting appropriate positioning as well as product characteristics they are able to attract more number of customers. Sometimes, Tesco can also enhance its customer’s value by repositioning its product mix. Majority of customers are highly centred with the three qualities i.e. quality, functionality and style (Keller, 2009). Further, it is essential for Tesco to maintain the brand’s durability by delivering promised benefits to their customers. It significantly strengthens the competitive strength of brand as well as increasing service sector growth. 3.3 Difficulties in marketing of services Customers are the key elements of every organization and providing them quality services are becoming their major responsibility. Managing the quality of services provisions are becoming major concern. At the time of marketing their services Tesco might has faced several difficulties due to the changing perception of their customers. In this case, it is essential to manage the quality of service provisions in terms of attracting huge base of customers (Ziska, George and Frenz, 2007). Company can easily overcome with the problems on regard to the marketing of their services by entailing appropriate service provisions. Through this, they can enhance the satisfaction level of customers and change their perception towards the quality of services. In this regard, it can be determine that Tesco can overcome with their existing marketing issues with the help of measurement of customer satisfaction level. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
They need to take feedbacks from their customers and provide them appropriate solution as per their problems. With the help of satisfaction survey company can easily identify the problem faced by customers and try to resolve their queries. It is the only source through which company can identify the requirements of their customers (Newell, 2001). With the help of managing the quality of service provisions Tesco can retain their customers and manage their satisfaction level. For the same, they can provide them various solutions regarding their queries and improve their quality of services. In this way, it can be determine that marketing service of Tesco helps in retaining all their workers by changing the perception of customers as well. With reference to Tesco, customers most of the time feels their service quality is low and they are not satisfied with the services. In this concern, company is incorporating various means of service provisions through which they can satisfy the needs of their consumers (Goi, 2009). With the help of this, Tesco can meet out the range of expectations as well as needs of their consumers. Definition of quality in terms of business and service provisions Service quality is all about the assessment of how well delivered services meet out the clients expectations. In reference to the service provisions it is highly related with to the customers of company in order to improve their services as well as quickly identifying the problems and better assessments of client’s satisfaction (Kozlinskis and Guseva, 2006). However, service quality can be easily measured with the help of service provisions and also helps to reach out the satisfaction level of customers. 3.4 Role of IT in Service marketing management Information and communication technology is becoming one of the most important parts of every organization these days for better communication. Information technology plays a most important role in service marketing management. ICT canUninersity Assignment Help be used by majority of organizations these days in order to manage the process of marketing in the service industry. With the help of using Information technology Tesco can easily market their products and services through internet. They can easily communicate with their customers worldwide and provide them appropriate solution for any type of problems as well. Information and communication technology plays a major role through which company can easily maintain Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
the overall information of their customers. Maintaining customer database is one of the most crucial element by which Tesco can keep all their customers information as well as data updated (Cravens and Piercy, 2008). They can easily contact with any of their consumer at the time of requirement and avail them various discount offers. Service marketing is all about the delivering high values to customers as well as managing better customer relationships. It is the main responsibility of marketing team to ensure the better execution of marketing. By the adoption of information and communication technology company can go through the internal marketing research and easily analyse the appropriate information regarding their sales as well as revenues. By properly maintaining their customer database they can make better relationship with them and enhance their loyalty towards their company. Another main role of IT in service industry is its capacity analysis (Ansari, Mela and Neslin, 2008). Firm can easily go through the proper evaluation of their production capabilities as well as service quality. It is all about their cost as well as production analysis. In this regard, it can be generalize that Information technology helps ICT in measuring better relations. TASK 4 4.1 Impact of ethical issues on the marketing planning To survive in long run, it is important for enterprises to ensure they work in accordance with business ethics and morals. The ethical issues can impact the ability of company to serve in domestic as well as international market. It can also lead to the failure of marketing planning. The ethical issues can place the leading retailer position of Tesco to losing one. It can further lead to failure of marketing strategy a result into loss of time and effort. Therefore, the ethical issues have direct impact on the competitive position of organization in global market. Thereafter, various ethical issues can have negative impact on the market image of company. The violation of business ethics can further result into range of legal actions from the domestic and foreign government (Hopkins, 2012). The major impact of ethical issues is on the customer satisfaction and can result into failure of products and service. For instance, the quality of electronics provided in the stores of company was not appropriate and lead to electric shock etc. This further lead to dissatisfaction among customers and legal actions against company. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
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Therefore, it is crucial for company to ensure that it operates in conformation with ethical practices. Further, company can ensure proper follow up of ethical practices and use the same as a tool for promoting and marketing its services. 4.2 The concept of CSR Corporate social responsibility refers to duties of an organization towards the society in which it is operating and rendering services. It can be also refereed as voluntary actions adopted by company to assure it perform its functions in sustainable manner. The CSR activities is a manner by which Tesco fulfill its commitment towards society. Further, company commits to grow it business, attain economic growth while giving proper consideration on enhancing the living standards of employees, their families (Gottschalk, 2011). Further, the CSR practices help in improving the quality of life of society to a great extent. By considering the CSR practices, Tesco can offer ethical product and services. Further, it can make change in its production process so that less harm can be caused to environment. For instance, Tesco is planning to reduce carbon footprints by 50% therefore, it is doing intense research and development to find new production technology. Thereafter, company also uses eco friendly process that enables conservation of environment. The CSR activities may lead to the innovation in services and also cost saving operations. For example, to minimize the consumption of electricity, company is started using solar panels, CNG etc in various processes. This has further reduced the operating cost of company. Therefore, by conducting CSR activities, company can enhance the satisfaction and trust level of various environmental, social groups, government etc. 4.3 Role of pressure groups in influencing the ethical social marketing policies of Tesco There are various stakeholders that influence and impact the ethical and social marketing policies of company. The pressure groups refers to government bodies, customers, suppliers and rivals that directly impact the functioning of company in various markets. The dissatisfaction among pressure groups can lead to negative impact on the market image of company. The violation of ethical policies can result into legal actions and decline in market sales and proficiency. For instance, Tesco was found indulged in dominating its diary product suppliers, fixing the price and violating the competition policy. This resulted into fine of £6.5m that further had a negative impact on the image of company and reduction in profitability (Actions against Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
Tesco, 2013). Thereafter, the company is also accused for dominating the farmers to supply groceries etc. below the market price. Thereafter, the claim from the customer is increasing as company is accused for offering low quality and unethical products. In addition to this, organization is also blamed for unfairly dismissing the workforce and staff. All these factors have led to increase in legal consequences, litigation and penalty. All these factors are having overall negative impact on the market image of company. Thereafter, the buyers of company are shifting towards competitors’ products and services. 4.4 Role played by published or broadcast media in influencing the ethical and social marketing policies Tesco can use published or broadcast media for attracting wide range of customers by using ethical business practices as a tool. The organization can use newspapers, magazines etc to show the CSR activities conducted by company (Cant, Strydom and Jooste, 2009). This will help company in generating information among public regarding the ethical practices done by the organization. Further, through radio, social media enterprise can seek the support of various members in attaining the social purpose. Thereafter, the published and broadcast media help Tesco in facilitating ethical transformation smoothly. CONCLUSION From the above research it has been articulated that there is a huge importance of relationship marketing in contemporary organizations. ICT plays a major role in managing better relationship with customers. Further, it has been founded that customer relationship management is the most important concern by which companies can easily enhance their target market. In addition to this, pressure groups influence the marketing activities of organizations in negative concern. However, company is incorporating CSR activities in their business operations through which they can attract more number of customers and retain them as well. Moreover, it has been concluded that product/service marketing mix helps in enhancing the values for the customer’s as well as organizations. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia
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Moyer, R.C. And et.al., 2011. Contemporary financial management. Cengage Learning. Newell, F., 2001. Loyalty. com: Customer relationship management in the new era of Internet marketing. McGraw-Hill, Inc.. Pepall, L., Richards, D.J. and Norman, G., 2005. Industrial organization: contemporary theory and practice (p. 198). Thomson/South-Western. Roberts-Lombard, M. ,2010. Employees as customers-An internal marketing study of the Avis car rental group in South Africa. African journal of business management. 4(4). pp.62. Scott, A.J., 2006. Creative cities: conceptual issues and policy questions. Journal of urban affairs. 28(1). pp.1-17. Zastrow, C. and Kirst-Ashman, K., 2006. Understanding human behavior and the social environment. Cengage Learning. Ziska, L. H., George, K. and Frenz, D. A., 2007. Establishment and persistence of common ragweed (Ambrosia artemisiifolia L.) in disturbed soil as a function of an urban–rural macro‐environment. Global Change Biology. 13(1). 266-274. Online Actions against Tesco. 2013. [Online]. Available through: <http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9895895/Tesco-to- pay-6.5m-fine-in-dairy-price-fixing-settlement.html>. [Accessed on 27th January 2016] Coast and Country. 2016. [Online]. Available Through: <https://www.coastandcountryhousing.org.uk/>. [Accessed on 27 January 2016]. Oxfam International. 2016. [Online]. Available Through: <https://www.oxfam.org/>. [Accessed on 27 January 2016]. Toll-Free No:+61 879057034 WhatsApp No:+61 424715655 Email:help@assignmentprime.com Website: http://www.assignmentprime.com/ Assignment Help & Writing Services Australia