Marketing Management in a Modern Business Environment
As it follows from the aforesaid, in the modern business environment the conditions for the company's survival and development have become much more complicated than, say, decades ago. And this process in the coming years will change the markets more than it has already changed.
So, many markets still about fifteen years ago it was quite possible to describe the model presented in Fig. 1.5.
This model fully corresponded to the concept of a deterministic (closed) system, since the following were typical for a bear:
• consumers who have little knowledge of the product (which the economic theory described in the concept of asymmetry of market information », the seller knows everything about the market, the buyer - almost nothing);
• well-developed marketing tools (product portfolio management and various types of marketing communications with the consumer);
• Stable industry structure;
• known rules of competition.
Fig. 1.5. The former market device
And all these conditions were rigidly determined by the "corporate lions of the market", i.e. a few of the largest companies of this type of business.
But modern markets are increasingly consistent with the model shown in Fig. 1.6.
Fig. 1.6. The modern device of the markets
In this model, the basis for the market is the so-called new buyers, different from the clients of the past years in that they can easily collect (and really collect) a fairly extensive information about the product (service) and the possible options (including price options) for it purchase on the Internet.
Moreover, using the capabilities of the Internet and social networks, "new consumers" form clans within the framework of which they exchange experience of consumption and evaluate the offers of various brands. Their interests - in cooperation with sellers - actively protect various kinds of public organizations ("advocates"), such as consumer protection societies, environmental and gender organizations, etc.
At the same time - in addition to strengthening the consumer's position - the situation on the world and national markets is changing due to the inclusion of a large number of new companies from developing countries, first of all the countries of the BRI CS group (Brazil, Russia, India, China, South Africa). These companies are hungry for money and are ready to work even with a minimum margin. The consequence of this is the intensification of competition to an extent that allows us to call it a hypercompetition.
Such a tough struggle between companies is now due to the following reasons:
• a growing number of technological solutions that allow you to produce similar products with different levels of quality and costs;
• a global overabundance of capacity in the production of goods, which is the root cause of the global economic crisis that erupted in 2008 and continues to this day;
• the desire of young companies from developing countries to accelerate their growth as much as possible;
• aggravation of competition in the world capital market, where the advantage in obtaining funds is given to companies with the highest growth rates and the greatest potential for such growth.
In this model of markets, companies have fewer opportunities to win only due to the possession of larger and technically advanced production facilities. The main source of competitive victories here can only be the effective use of marketing ideas and technologies, the integration of marketing logic into all functional areas of business, which is the essence of the concept of marketing management.
In other words, for the successful development of the company in today's business environment, the business management model that is presented in Fig. 1.7 and in which marketing acted as one of the functional management zones, and the tasks of marketers were reduced to the support of sales and the prevention of customer discontent.
Today, the time has come for active implementation of marketing management as a cross-cutting framework, as the core of management decision-making. This corresponds to the model of organization of the company's activities, shown in Fig. 1.8.
Fig. 1.7. Marketing as a functional area of management
Fig. 1.8. Marketing as the basis of all company activities
In this model, the consumer acts as the core of all management activities in the company. In practice, this means that all the functional services of the company must somehow be directly connected with consumers in order to solve their tasks based on customer requests and thereby increase the value of the company's products or services.
The company's marketing service in this model works primarily as:
• A service to find profitable customers with whom the company should search for a contact;
• an intermediary in the relationship of customers with employees of the company's functional services;
• an analyst of the results achieved in customer service and an investigator of the reasons for customer dissatisfaction;
• The center of the search for ideas to attract and retain the most profitable customers.
Implementing this understanding of the role of marketing in the provision of the company's operations presupposes significant changes in the organization of all business processes. These changes practically lead to companies adopting a scheme of so-called holistic marketing, proposed by Philip Kotler and Kevin Lane Keller.
Holistic (holistic) marketing is a set of company actions aimed at understanding the value that customers need, creating it and transferring it to customers in a way that helps to shape long-term and mutually beneficial relations of the company with all stakeholders.
Stakeholders are groups, organizations or individuals that are affected by the company and on which it depends.
The central element of marketing management in its holistic version is the understanding of the need not just to promote the successful (growing and profitable) sales of those products or services that a company can offer to the market, realizing the needs of potential customers, but primarily the formation of long-term and mutually beneficial "You won and I won") relations with all the partners involved in creating and marketing products to the market, ie. their stakeholders.
Typically, there are two groups of stakeholders:
• Primary (inner circle) have a legitimate and direct impact on the business:
- business partners in the production chain
• secondary (the far circle) have an indirect effect on the business:
- power (local and state);
- Other companies
local communities (mass media, non-profit organizations - including public and charitable, local activists, forming public opinion).
Accordingly, to such a wide range of stakeholders on which the success of the company's marketing activities depends, holistic marketing postulates the need for a coordinated development of the five elements of this activity:
• Marketing partnerships;
• Integrated marketing;
• Internal marketing;
• Financially-oriented marketing;
• socially responsible marketing.
F. Kotler and K. Keller offer the following understanding of the above elements of the holistic model of macro-management:
• internal marketing - ensuring that all employees of the organization (especially its top management) are guided in their activities by the principles of marketing and well aware of the meaning of the value (brand messages) that they offer customers ;
• integrated marketing - creating a well-coordinated system of using the company's marketing tools that are appropriate to its business, eliminating contradictions and duplicating functions in order to accelerate sales and increase their profitability
• marketing of partnerships - creating a system for searching and retaining profitable customers and partners in distribution channels and promoting products to the market (for details, see Chapter 15);
• financially-oriented marketing - the creation of a system of indicators that allow you to fairly reliably estimate the effectiveness and effectiveness of marketing programs and associated costs;
• socially responsible marketing - is the organization of the marketing operations, taking into account the well-studied ethical, environmental, legal and social constraints that exist for the company's activities in certain markets.Thus, as we see, the complication of the conditions of competition in modern markets required the creation in the marketing sphere of a new set of technologies and approaches that provide not only an operational improvement in sales results but also the creation of conditions for the successful and cost-effective maintenance of such sales over a long time horizon .
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