Roles and Responsibilities of Marketing Function in an Organization
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This article discusses the key roles and responsibilities of the marketing function in an organization, as well as its interrelation with other departments. It also explores the significance of marketing in the wider organizational context.
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1: Key roles as well as responsibilities of marketing function.................................................1 P2: Define role and responsibility of marketing in relation to wider organisation context........3 M1: Roles and responsibility of marketing in context to marketing environment.....................5 M2: Determine the significance of interrelation between marketing and other function unit of organisation.................................................................................................................................6 D1: Critically evaluate the element of marketing function and define its interrelation with other function unit of organisation..............................................................................................6 TASK 2............................................................................................................................................7 P3: Compare the ways in which different organisation apply marketing mix in order to achieve business objectives:........................................................................................................7 M3: Different tactics applied by organisations to demonstrate the objectives of business.........9 D2: Design a strategic plan that make use of 7Ps to achieve overall marketing objectives.......9 TASK 3............................................................................................................................................9 P4: Produce and evaluate marketing plan for an organisation:...................................................9 M4: Produce a detailed evidence -based marketing plan for an organisation...........................13 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Marketing is itself a very broad term that apart from buying and selling includes various type of activities such as promotional technique, packaging, providing pre as well as post deliver services and so on(Allen, 2016). It basically perform these activities to build long term relationship with existing as well as potential customer via phone calls, customer care services, email marketing, text messages and meeting with them personally. Moreover, marketer identifies the need of customer and match the product with requirement of customer to gain the profitability and long term competitive advantage. For better understanding Cadbury company has been selected which is multinational company of UK. It is basically the second largest world's confectionery brand which offer various variants of chocolates, ice creams, desserts, biscuits, beverage and so on. Additionally, Cadbury is known globally because of its high brand recognition valuebecause they keep on bringing new innovation or variant in its existing product. This report will cover following topics such asroles and responsibility of marketing function and the interrelation between marketing with other wider organisation context. Further, comparison between different organisation on the basis of marketing mix to achieve business objective. Lastly, evaluation of business plan for Cadbury are covered in this report. TASK 1 P1: Key roles as well as responsibilities of marketing function The sole aim of marketing is to satisfy the need of customer by exchanging the goods and services with the customer(Babin and Zikmund, 2015). Marketing function is used by the organisation to spread the awareness about potential product in the market by differentiating it with its alternative or similar type of product. It defines the roles and responsibility of various marketingactivitybydrawingupthewholeplanrelatedtoproductsuchasproduct development, distribution channel, promotional tool and technique and so on which is clearly stated below: Financing:It is not always possible especially for large company to make the all the transaction in cash because it confines the operations of business. In relation to selected companyhas extended its credit facility for supplies, ultimate consumer as well as for various intermediaries. This has helped the company to overcome the problem related to lack of finance. 1
Marketing Information System:With changes in time the preference needs or desire of an individual keeps on changing. In order to identify the preferences of customer market require the information to make the sound decision. Thus, the data regarding customer are the strength of company which they can utilise in a significant manner.In context to Cadbury company the role and responsibility of respective function is to check the pattern of customer like the buying behavior of major of population. Therefore, company uses the computer based program that is Management Information System to gain the data by directly dealing with customer or gaining the information from retail outlet. Further, this data is utilized to anticipate the changing need of customer and bind long term relationship with them(Baker and Magnini, 2016). Distribution channel management:The role of distribution channel is to transport and store the goods and services. This distribution takes place from the manufacturer of finished good to the final consumer. Intermediators makes the use of warehouse to store the excess or surplusgoodsuntil the need emerges for sales of product. Herein, Cadbury company which offer its product in national as well as various international border focuses huge attention in their distribution network. They uses both direct and indirect channel of distribution medium to reach out their potential candidate. For instance, Cadbury uses online platform such as its website from where it engages its customer. Along with online platform respected company sell its product through various retail store. Therefore, due to its wide distribution channel company has made its product available in every geographical corner. Product(service) management:This marketing function include developing as well as improving the product or services to exploit the upcoming opportunity of market. Thus, in the competitive environment the role of marketing within Cadbury company is to proper manage the product that helps the company to appeal the customer because of design, availability, taste and preference of customer. Pricing of product:It is one of the most essential roles and responsibility of marketing manager to fix the desirable price of product to analysing the cost of company, government policy, purchasing power of customer as well as competitors pricing strategy. The customer must find the price should be worth paying, it must be neither too low or too high. In case if Cadbury set its price too high then there is a fear of loosing market share of company. On other side if the price is low then company can maximize its market share but will reduce its profit rate. Therefore, as the company provide varies variant due to which company has opted various 2
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pricing strategy such as skimming price strategy (high price) is used for premium products like Silk chocolate. Moreover, company even penetration pricing to reach out to huge audience and in various segment(Baker and Saren, 2016). Promotion:Promotion refer to spreading the awareness about the company among the customers by using different tools such as advertisement through traditional media or digital platform, sales promotion, publicity and so on(Blakemen, 2014). Herein, Cadbury company have extensively used the promotional tool such as celebrity endorsement, print media and so on. Moreover, especially during the time of festivals the role of company is to make appeal advertisement which has gained huge market awareness. Packaging, labelling and branding of product: Packaging refer to the outside covering of the product which helps to keep the life of product and protect it from external environment. Like, Cadbury provide both primary and secondary packaging for its product to maintain the quality of product. Similarity, labelling means adding valuable information on the package or covering of product so that customer can seek the required information. Further, branding refer to distinguishing the product among the various alternative so that customer can easily recognise and purchase the product.Herein, respected company shared the vital information such as its ingredient and manufacturing detail along with that company prom0otote its product through various platform. Customer Support Service: It is the prime responsibility of marketing to provide desirable help to the ultimate customer even after they purchases the good to remove the chances of dissonance. Thus, selected company remain connected with the customer through online platform and customer grievance handling number. For instance, they pay lot of attention in the feedback or reviews generated from customer along with that company extend their credit facility which has helped the customer to remain satisfied and attached with the company. Therefore, such convenience helps the customer to remain brand loyal. Therefore, marketing function participate in various activity, advertise its product as well as works on the feedback received from customer(Brady, 2014). Thus, start from launching of product till providing after sales services everything is a part of marketing function. P2: Define role and responsibility of marketing in relation to wider organisation context Therearevariousdepartmentofanorganisationlikemarketing,finance,human resources, sales and so on each department is interrelated with other department to accomplish 3
the purpose of organisation. Thus, every department perform its function to satisfy the need of customer and fulfil the objective of firm(Brychkov and Domegan, 2017). In context to Cadbury company which is one of the most successful company provide employment to large number of people due to which it has various divisionand each function has its own purpose which helps the company to meet its objective successfully. Interrelation between marketing and finance department:Finance department is concerned with managing the financial resources of company to control the business process. It helps in maintaining the requirement of finance by eliminating the unnecessary expenditure as well as generating the fund from various source at the time of emergency. Whereas, marketing department is into various activity such as promoting the good to make the customer familiar with the product. Thus, both of the function operate closely so that adequate budgets can be prepared by financial department which is then used to perform various other activity such as research work, distribution channel and make the use of beneficial promotion strategy to make the customer aware regarding the existence of product.Thus, financial department coordinate with marketing functions so that they can identify whether the business process operate as per it financial capabilities or not. Furthermore, marketing department concerns with increasing the sales volume as well as expanding the market share of company. Whereas, finance department emphasize on covering the cost of company by increasing the cash inflow(Bryson and Daniels, 2015).Therefore, both of the department are interrelated with each other as their purpose is to increase the profitability of respective company. Interrelation betweenmarketing and human resource:Human resource department is responsible to manage all the internal process of organisation whether it is related to selection, provide several benefit related to monetary as well as non monetary benefit, training and development etc. Moreover, as marketing department directly deals with the customer so it is very necessary for them to work closely with HR department to enhance the various skill and knowledge of personnel such interpersonal or communication skill. This skill helps to increase the sales of company. In addition to it., HR department make sure they select the most desirable and competitive aspirants that remain ambitious to meet the sales target of company. Therefore, both the department function together to achieve the purpose of organisation successfully (Gillespie and Riddle, 2015). 4
Interrelation betweenmarketing and research and development:The research and development department of Cadbury is responsible to investigate the innovative product as well as enhance the existing product by performing experimental and observational research. Thus, based on the analysis research and development department pass the information to the marketing department by identifying the gap that arises in market because new product. Hence, both of the department operate closely to attain the desirable result based on the findings (Groucutt and Hopkins, 2015). Interrelation between marketing and production department:The role of operation department is to produce highest efficiency level by converting raw mater into finished or desirable outcome.Thus, it include planning, coordinating as well as controlling resources to created valuable product(Hiam, 2014). On contrary, marketing department is responsible to determine the emerging need as well as want of customer. Herein, Cadbury company marketing department function closely with production department. Like, the data collect from research and development by marketing department is converted into reality by production department to satisfy the need of customer. Additionally, the volume of demand of customer which is generated by marketing campaign can be fulfilled by product within stipulated time period. Moreover, the innovations which planned by company is designed by product department which is then further utilise by marketing department to generate overall marketing demand of the product. Thus, both of the function works parallel to attain the long term objective of an organisational. Interrelationbetweenmarketingandsalesdepartment:Salesdepartmentis responsible to achieve the sales target in order to increase the profitability of firm. They directly deal with the customer and enhance the sales volume of product by engaging the customer towards product. In addition ton it marketing department run ad campaigns due to spread the awareness about the product which makes it easier for sales department to reach out to the customer and expand the sales of company.Hence, both of them function simultaneously to achieve long term objective of business. M1: Roles and responsibility of marketing in context to marketing environment The role of marketing is to stimulate the demand as well as need of customer by analysing both micro as well as macro environment in which the company sustain. The marketing manager of Cadbury company is responsible to build the strategic plans by delievring 5
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the valuable product to the customer based on the changing desire of customer. Further, management information system is used to generate the information and analyse the demand of product. Additionally, respective company operate in global market due to which manager analyse the macro factor such as political, legal, technological, economic and so on to identify the latest opportunity that company seek in various international market. Therefore, company focuses to form long term relationship with their customer by connecting with them through digital technology. This helps the company to increase the customer base as well as loyalty for the product which act as a competitive advantage for company(Jacoby, 2014). M2: Determine the significance of interrelation between marketing and other function unit of organisation Marketing function is an essential function which can not exist or operate in isolation due to which marketing department interact with various other departments of organisation such as HR, finance, operations and so on. Thus, the interrelation of various function act as a ecosystem which works in favour of organisation(Kayabasi and Mtetwa, 2016). Like, the manager of HR are responsible to fill up the vacancy for marketing assistance and provide training to various sales department that are considered the face of company as they directly interlink with the customer. Along with that finance and marketing department function together to make the prop[erbudgetandallocatefundinvariousactivitiesaccordingly.Similarly,operation department directly depends upon the marketing department to get the information about the design as well as number of quality to be produced. Therefore, the personnel of HR, marketing, research and development are engaged in their work as they have specialization over their department only. But interrelation among them helps to maintain better coordination and smooth functioning of business process. D1: Critically evaluate the element of marketing function and define its interrelation with other function unit of organisation There are various type of marketing functions such as promotion, distribution channel, customer service as so on which are very closely related to each other that helps in simplifying any hindrance that arises in the organization(Meyerson, 2015). Such as product is an offering of organization thus respected company must set its suitable price if the company succeed to do so then it will gain preference of customer for product. On contrary, if company fails the match the price with the product then it will looses its existing as well as loyal customer.Similarly, 6
Cadbury must provide significant promotional strategy to build the brand awareness of product like the advertisement must be appeal to customer. Whereas, the packaging of company is not environmentfriendlyduetowhichcompanycanfacethenegativeimplicationsfornot safeguarding the interest of environment(Nirschl and Steinberg, 2018). TASK 2 P3: Compare the ways in which different organisation apply marketing mix in order to achieve business objectives: Marketing mix refers to the tactics which are used by company in order to promote and expand its product. Every organisation use marketing mix in order to achieve success in market place. Apart from new product development, marketing mix helps in increasing the portfolio of product. Marketing mix also help in differentiating the company from its competitors. This can be proved to have a competitive advantage in the market. There are 7P's of marketing namely product, price, place, promotion, physical evidence, people and process(Okumus and Cetin, 2018). Cadbury has different marketing mix as compared to other company. Below is the comparison of Nestle and Cadbury in terms of marketing mix: CADBURYNESTLE Product: Cadbury is well known confectionery brand whichisdealinginchocolatebars,cakes, biscuits, ice creams and desserts. Some of the famous product of Cadbury are dairy milk, five star, boost, bourville , eclaires etc Product: Nestle is one of the competitor of Cadbury. It deals in variety of products like choclates, milk additiveandsaucesetc.Itisfamousfor Nescafe and Maggie. 7
Price: It decide the price according to the size and weight of the product. It also decides the price according to the quality. For example the price ofBournvilleiscomparativelyhighas comparedtoother.Thecompanyisusing economypricinginordertoattractprice conscious consumers. Price: Price of Nestle product is relatively high as compared to other company as they are selling the product of high quality. The company is using premium pricing which means Nestle setsthecosthigherthanothercompetitors available in he market. Place: Cadburyoffersitsproductinover200 countries because of its presence in the market. The product of cadbury is also available to rural area because of its distributive channels. Place: Nestleproductsaretransferredusingtwo channels. One is directly from manufacturer to the bulk buyers and then to the consumers. Secondlyfrommanufacturesto distributors, thenretailerandconsumer.Maggieand nescafe is one of the well known product of Nestle through which it is able to drive other products in the market. Promotion: Cadbury make use of promotional tool like advertisement, online ads, posters etc. At the time of festive season, company promote by givingdiscountofferoncertainproducts. Cadbury also started promoting the product by using certain tag lines which are attracting the customers. Cadbury has a tag line 'Tastes like this feel' Promotion: Nestle'smainfocusforpromotionison advertising over TV, prints, online adsb and marketing the product. Nestle has came up with unique tune of Nescafe which is most famousamongall.ApartfromthisNestle companyisalsousingtaglineswhichis attached to the value of products. “good food good life” is the tag line for Nestle. Process: Aftertheproductisdevelopedinbulkby manufacturer, they are transferred to the whole seller, then retailer and lastly to the desired Process Nestle'smajoremphasisisoncustomer service. As it is the key decisive of trust. So the major aim is on educating the consumers so 8
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consumers.thatthey cancommunicatewith employees when required. People: Cadbury train their employees both on the job and of the job. Employees are made aware abouttheingredientofitsproductsothat wheneverconsumerisfacinganyproblem regarding to quality issue, they can explain their customers. They also make aware about the new product emerging in the market(Perry and Pyatt, 2015). People: Nestle make there employees aware about the goals and objectives of the concern so in order to increase the performance of the team. They are trained properly in the way so that they can attain to each query of customers. Physical evidence: Cadburyproductsareavailableatdifferent retail stores at different prices according to the quantity and weight. For example Cadbury is using blue colour and same logo in all its product which make unique identity for it. Physical evidence: Nestle products are also available at different stores. Some of its product are also available at cafes and restaurant. For example Nescafe and Maggie. M3: Different tactics applied by organisations to demonstrate the objectives of business. For demonstrating the objective of business marketing mix is done. It is done in order to promote and expand the company. In this context two companies are taken one is Cadbury and other is Nestle. The pricing strategy used by Cadbury is Economy pricing strategy and by Nestle is premium pricing strategy. Both company are using the same promotional activities in order to promote their product. Various promotional campaign are also organised in order to make consumers aware about the product. They are making the use of tag line which adds to the value of product and make it more attractive. D2: Design a strategic plan that make use of 7Ps to achieve overall marketing objectives. Marketing mix is an important element of marketing plan. In order to expand operation of business by developing new product marketing planning is done. Marketing mix cover 7Ps 9
namely product, place, price, promotion, physical evidence, people and process. In above context have discussed about the 7Ps of both Nestle and Cadbury in order to improve operation of business. The marketing mix helps the company to attain a dynamic position and also it provide guidance to improve the business operations(Pike, 2015). TASK 3 P4: Produce and evaluate marketing plan for an organisation: Marketingplan referstoa documentwhich outlinesthemarketingeffortswhich company is going to perform in a coming year. It also covers a system of current marketing position of a concern. Following are the steps which are included in marketing plan ofof Cadbury: Executive Summary: Cadbury is a multinational confectionery company which deals in food products made up of chocolate. It stands as second largest brand in confectionery by its well known crème eggs , rose section box and dairy milk. John Cadbury was co founder of Cadbury in 1824 having its headquarter in Uxbridge, West London. Cadbury is having its operation in over 60 countries and is employing about 50,000 people from all over the world. It deals with variety of products like choclolates, bars, candies, milk additive etc. Now company is planning to expand its business by launching of new product i.e. Cadbury cold and hot coffee. The main purpose of company to enter into this segment where it can increase the sell and maximise profitability by targeting the age group of all people. Vision and Mission: Its Vision is to work together with the people to create the brand which all love and achieve highest degree of sustainability(Podnar, 2014). The mission of Cadbury is to provide such a tempting taste which is unbeatable by its competitors. Its reputation is build upon the quality. Objective: The main objective of the company is to extend the product category by launching of new product i.e. Cadbury coffee. Cadbury is required to adopt SMART objective in order to attain success in market place which is specific, measurable, attainable, realistic and time bound. Objective of Cadbury is to capture 10% of market share by 2020. 10
Another objective of the company is to capture 20% of sales by 2020. STP Approach: It is the most common marketing tool which is used by business in order to form a proper marketing strategies which clearly describes about the brand and product of the company. In STP approach, S stands for Segmentation, T for targeting and P for Positioning. Below is the STP approach of Cadbury. Segmentation:It refers to the process of dividing group of people with one or more characteristics into different categories. Segmentation of Cadbury is done into two categories i.e. demographic and behavioural. Demographic segmentation covers age, lifestyle, income, religion , social class and so on. Where as behavioural segmentation covers occasion, benefits, loyalty status etc. Targeting:It refers to the process of breaking the market into segments and then concentrating whole marketing efforts over the group. Cadbury is most loved brand among children of all age group and was bit common is age group of 3 to 18 years. By the development of new product it will now attract the group from child to infinite age group. Positioning:It refers to the process of positioning image of product in the mind of customers. As Cadbury itself is a well known brand but apart from this by the help of advertisement and other promotional ideas company can promote its brand. Company by advertising the healthy benefits of product can easily promote the product in the market. SWOT Analysis: It is analytical tool that is used by the company in order to identify the strength and weakness that help in achieving success of the company. Strength and weaknesses are the internal part of an organisation on which one has a control. On the other hand it also help the company to identify threat and opportunities that company require to know in order to improve the performance. Opportunities and threat are external part of an organisation on which we cannot control but can be minimised(Pooler,2018).Following table shows the SWOT analysis of Cadbury. STRENGTH Preferenceoflargenumberof consumersbecauseofitshighest WEAKNESSES As now people are so health conscious theyareavoidingtheconsumptionof 11
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brand loyalty. Thecompanyisusingbest advertisementdrivealloverthe world which boost the business of Cadbury. chocolate which hampers the growth of company. Some of the complaints were received regarding the quality of product which affect the image of company. OPPORTUNITIES Diversification of product by adding new products in the market. Companycanalsoincreaseits expansionbydistributingthe productsintoruralareas(Wilson, 2014). THREAT Increasing competitors in the market who aresellingsameproductatrelatively lower rate. Company has to buy raw material from other company whose cost is relatively very high. Apart from this it also incurs heavy transportation cost. 4P's of Marketing: Marketing mix refers to putting a right product at right place and at a right time(Tyson, 2014). This are the actions that help the company to promote brand and product in the company. Marketing mix of Cadbury is as follows: Product:A product is an item which is built in order to satisfy the needs of customers. The new product which is offered by Cadbury is coffee. It is available as both cold and hot. This product will include addition of choco chips and other additive that would bring a new taste and is also harmless on one's health. Price:It is an important concept of marketing mix which refers to the amount which customers pays and enjoy. Coffee being new concept for cadbury. So for this company will use the strategy of penetration pricing. In this type of strategy product at its early strategy are sold at lower prices. This will help to attract more customers and also make them aware about new product(Rowley, 2016). Place:It refers to distributing of product in such a manner so that it is accessible to the potential buyers. They can directly sell their product through distributive channels by the means of transportation. Cadbury can contact to its retailer to whom they were selling all the products. Its new product can also be made available at various restaurant and hotels. 12
Promotion:It is one of the important component of marketing because it help in increasing brand value as well sales(Stern and Porr, 2017). Company can promote its product by using the help of advertisements, website, posters, tag lines and online ads etc. It can also promote its product by providing it at discount on festive season. Budget: It refers to the statement that shows the estimate of revenue as well as expenditure which are incurred during a specific time. It is of two type Short term budget and long term budget. Short term budget covers a span of of one year or less and long term budget covers a span of one year or more. Budget is very important for the company as it defines the spending plan of money. Following is the budget plan of Cadbury. Marketing budget Particulars1st year2nd year3rd year4th year5th year Initial money50006000650070009000 Investment1000012000135001400014000 Total1500018000195002100024000 Marketing outlay Promotion25003000320032503400 Sales publicity40004800420050004900 Direct selling24003100285024003000 Total89001090010501065011400 From above budget plan it can be estimated that in order to promote new product cadbury must have investment of around 15000. Monitoring and Controlling: 13
Budget must be checked at a regular interval whether it is according to the plan or not. If any factor adding to the cost of company then they must be controlled in order to achievethe efficiency. As from the above budget plan it can be clearly seen that company has incurred additional expenses on promotion and publicity. This expenses need to be control in order to work effectively(Scarborough, 2016). M4: Produce a detailed evidence -based marketing plan for an organisation Marketing plan is a document which describe the complete fact which company is going to perform in the up coming year(Schader, 2014). A good marketing plan help to reach large number of people and also help in rising awareness about customers. In marketing plan of Cadbury, the vision and mission is properly explained. Apart from this objective of company is decided which company is going to attain in upcoming years. Further STP, SWOT analysis and marketing mix is done in order to achieve the overall goal of an organisation efficiently. CONCLUSION From the above mentioned report it has been concluded that marketing plays a great role in any organisation. It is a tool that help in promotion of product effectively and efficiently in context of the business. Moreover promotion of a tool also create awareness in the minds of customers. Manager has specific role and responsibility in context of marketing department. Marketing is the way by which company can increase its sells and profitability. For effective working of an organisation all the department should coordinate with each other in order to attain the success. Further in this context have discussed about the marketing plan of Cadbury. It plays a important role in providing detail action about company's objective, its mission and vision in order to attain desired marketing objectives. Apart from this have its comparison with Nestle is done in order to find the areas where company need more improvement. 14
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