Marketing Management Report: Contemporary Issues in Business

This report delves into contemporary issues in marketing management, covering a range of critical topics. It begins by exploring the concept of knowledge management and its role in relationship marketing, emphasizing how organizations can leverage knowledge to enhance customer relationships. The report then examines how Information and Communication Technology (ICT) supports Customer Relationship Management (CRM) processes and highlights the benefits of CRM, using Tesco as a case study, and provides recommendations for improving CRM strategies. Further, it analyzes stakeholder analysis within voluntary and public sectors, comparing marketing methods across different sectors and addressing key marketing issues in virtual organizations. The report also discusses the extended marketing mix in service sector businesses, evaluating how the product-service mix enhances value and how to overcome challenges specific to service marketing. Finally, it addresses current ethical and social concerns for marketers, explores the concept of Corporate Social Responsibility (CSR), and examines the influence of pressure groups and media on ethical marketing policies.

CONTEMPORARY ISSUES IN MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Concept of knowledge management and its role in relationship marketing....................1
1.2 Ways that ICT can support the customer relationship management process...................2
1.3 Benefits of customer relationship management in Tesco.................................................3
1.4 Recommendations for the improvement in customer relationship management for
Tesco.......................................................................................................................................4
TASK 2......................................................................................................................................4
2.1 Stakeholder analysis for a voluntary sector and a public sector organisation..................4
2.2 Nature of the relationships with customer within two selected not-for-profit
organisations...........................................................................................................................6
2.3 Compare methods used in marketing within the public, private and voluntary sectors...7
2.4 Key issues involved in marketing in a selected virtual organisation................................8
TASK 3......................................................................................................................................8
3.1 Use of the extended marketing mix in a selected service sector businesses....................8
3.2 How the Product-Service mix enhances value for the customer and the organisation. .10
3.3 How difficulties peculiar to the marketing of services can be overcome.......................10
3.4 Role of IT in services marketing management...............................................................11
TASK 4....................................................................................................................................11
4.1 The current issues of ethical and social concern to marketers.......................................11
4.2 Concept of CSR with reference to a particular organisation..........................................12
4.3 Role played by a selected pressure group in influencing ethical and social marketing
policies for a selected organisation.......................................................................................12
4.4 Role played by published or broadcast media in influencing ethical and social
marketing policies for a selected organisation.....................................................................13
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
The concept of marketing has significantly changed from last 20 years. New study
fields have emerged such as service marketing, relationship marketing and network
perception on business to business marketing. Several authors recently have expressed their
considerations for the direction where conceptualizations of marketing are moving. In this
regards, the American Marketing Association in 2004 has been defined that Marketing is a
function of organization and a set of procedure for developing, delivering and communication
value to consumers and manage customer relations in a manner that benefits the stakeholders
and organization as a whole. However, a range of issues have been raised up for this
definition, pertaining to its origin of marketing role in the company, the customers role in the
marketing relation and marketing wider societal role. The main issue with the given
delimitation of AMA (2004) is that it only captures marketing manager role and ignores
marketing wider role in society. In this respect, Schultz (2007) argue that the definition
embraces macro-marketing perspective where marketers involve in society’s big problems. It
would include the development of marketing as well as requires great understanding of
cultural and historical forces together with far-reaching analysis of system.
Due to this, the marketing definition has been evolved by AMA in 2007 as the activity
of marketing, conducted by individuals and companies that operates by a set of processes and
institutions for developing, communicating, exchanging plus delivering offerings of market
that have value for clients, customers, society and marketers. This emerged concept of
marketing is being discussed in below assignment by defining the customer relationship
management significance in business, the process of marketing in non-traditional context,
extended elements of marketing in service industry and increasing emphasis on social and
ethical responsibility in marketing by evaluating examples of real organizations.
TASK 1
1.1 Concept of knowledge management and its role in relationship marketing
The system of knowledge management is an emerging concept in present competitive
business world. Knowledge is the core of any company and plays a significant role in shaping
every aspects of life as well as act as indispensable and useful tool in working life. The term
knowledge is also defined as utilization of information for making valuable decisions that add
to balanced actions. With an aim to be at forefront the organizations should effectively and
efficiently create, share, capture and apply their available expertise and knowledge to reach
business objectives (Andreasen and Kotler, 2008). Every company produces huge amounts of
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information and data that requires effective management for determining and retrieving the
needed information at correct time, so the knowledge management concept arises as a tactic
of developing organization capacity and knowledge to derive necessary knowledge from
certain information. One leading global organization that incorporate the particular system in
their work actions is Google Inc. Due to advancement in technology, the face of web is
changing completely and Google Inc. continues pushing its limits to give best satisfaction to
customers by providing good user experience, putting clients’ needs at the top (Armstrong,
2015). To cater with customers’ demands, the search results of Google can be differentiated
now on the basis of file types, i.e. ppt, pdf, doc as well as restrict the search as per specific
date. Moreover, firms like Google, Amazon and Facebook collect data about individuals and
their purchasing habits as well as support the marketing firms in allowing them to have
access to needs of some specific customer segments (Bass, Jain and Krishnan, 2000).
Additionally, CCTV camera is another method of recording data about people, which is
greatly used in Britain to capture information about activities of people in retail store,
hospitals, restaurants, etc. It help the respective organization to plan products and services as
well as marketing department to design strategies for attracting customers by fulfilling their
desires. Furthermore, knowledge management is a tool to attain CRM objectives, as it is a
process of developing, capturing, and acquisition, sharing plus utilizing customer knowledge
to increase performance and learning in a company (Clark, 2006). The knowledge
management goal is to make a company act intelligently for securing its overall success and
viability to recognize best worth of its knowledge assets. The relationship marketing has
made me to become loyal with Tesco retail store. The company runs various loyalty schemes
for its regular customer, which inspires me to buy regularly from this store and get valuable
benefits on each purchases (Compton, 2016).
1.2 Ways that ICT can support the customer relationship management process
Customer relationship management is a software application utilized by companies to
remain in touch with its current and future customers. Information technology has supported
CRM by accelerating and enabling better coordination of several procedures of business. The
tool customer relationship management is adopted by companies to segment its clientele
based for concentrating on retaining valuable and profitable consumers. There are three main
roles of CRM, such as to understand decision making process of customers, generate client’s
vast information and process such information in best of organization (DEROSE, 2013). The
business strategies of organization should focus on consumer’s satisfaction that insists on
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quality, availability, money value, presentation, image and expectations fulfilment that are
examined by CRM. Human resource and database are integrated by technology at work that
would be useful for companies, as it decide about customer’s actions trends. Hence, CRM
store customer’s details about what they purchase and from where that reorganize later by
company for several purpose (Diao and et.al., 2003). One of the biggest supermarket chains
of UK, Tesco have a very impressive strategy of CRM, where the organization analyse
database of its customers and reward discount coupons and vouchers based on their habits of
spending with the vouchers program of Tesco. One more ICT technique for relationship
management with customers have been used by Tesco is Club card. The organization
processes data from its two-third transactions to learn about buying patterns of customers in
distinct stores at different times in a day. With the introduction of Club Card, which is a
reward card for clients, the company is able to attain wide information about customers and
by its effective utilization has attained third biggest retailer position in UK (Gillies, Rigby
and Reichheld, 2002).
1.3 Benefits of customer relationship management in Tesco
Tesco held a CRM strategy, Customer Question Time sessions twice in a year, in which
1200 and more customers participate. It enables the company to collect more information
about consumer’s views on price, product, service, and quality as well as community
involvement. In Tesco, CRM introduced for improving overall revenue. For instance, the
company’s Club Card program claims 10 million active families plus captures 85% of sales
in a week. By following the particular scheme, the organization in five year period have
increased sales by 52% and still develop at a rate more than the average rate of industry
(Grönroos, 2007). As a result, Tesco is opening and expanding new stores, which have also
increased its floor space by 150 percent. Moreover, by using data collected from comment
cards and Club Card, the organization have been capable in developing a range of products to
suit with different groups of customers. These includes:
Free from – Specially produced for customers who have dietary requirements and food
allergies.
Healthy living – It includes 400 commodities that are low in sodium and fat.
Organic product lines – In this range, Tesco has over 12000 products.
Special healthy kids snacks – A dedicate kids food stuffs range that are high in fruit,
vegetables and fibre (Grover and Vriens, 2006).
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1.4 Recommendations for the improvement in customer relationship management for Tesco
The following things should be considered by Tesco to improve its customer relationship
management at workplace:
Before addressing more advances capabilities of CRM like data mining and personalization,
the company must take into consideration whether it have addressed retail basics properly –
The management executives of company should examine store and person to person
experience that they provide currently to see where they might be falling short of buyers
expectations as well as determine improvement areas. Moreover, regular evaluation and
training of employees required to be main parts of Tesco’s consumer strategy. Simply, if
physical store of company is not a good place for buyers to shop from interactions with
employees to their capability of navigating the walkways and find out commodities they
require, the initiatives of CRM in other areas might be irrelevant (Hobbs, 2015).
Communications and marketing must not be single objective of CRM initiatives instead be
completely aligned to strategies that concentrate on customer satisfaction enhancement –
Running promotional offers that customers value, which also increase their profitability can
separate Tesco from its competitors. Offers that generate more stress rather than savings
disaffect consumers. Attaining positive outcomes from promotional strategies greatly
depends on how effectively the organization has integrated communications and marketing
initiatives with customers overall experience. Good promotions must not initiate and end with
price but must take into consideration what would solidify the relationship of customer with
the retail store (Hudson, 2013).
Data analytics and integration must be seen as supporters for well-engineered approach of
CRM, rather than initial objectives for initiatives of CRM – Developing comprehensive and
holistic view of consumer information is becoming more significant to increase both in-store
and online experiences by Tesco (JOHNSON, 2014).
Therefore, the company can improve experience of all customers, the main thing is to
create the rigor to identify weakness to address it as well as strengths to develop on it.
Tesco’s CRM strategies should include ongoing and regular feedback channels along with
structured discipline for taking action on learned insights.
TASK 2
2.1 Stakeholder analysis for a voluntary sector and a public sector organisation
Here, the chosen voluntary and public sector organization are charity and passport office:
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Royal National Lifeboat Institute (Charity) – It is the charity associates saves human lives at
sea. The institution lifeboat crew’s volunteer rescue every day an average of 24 people along
with RNLI lifeguards that provide a seasonal services on some beaches. The particular
charity is independent from interference of government and relies on different people
donations (Johnston, 2016). The following are stakeholders of Royal National Lifeboat
Institute:
 Donors – They provide necessary funds and resources to the organization for carry out
their activities and save people lives at sea. In return they expect benefits of such
membership including quarterly RNLI magazines Offshore and Lifeboat that provide
advice and tips on ways to stay safe on water. Moreover, the charity is required to ensure
that it is capable in effectively using the funded resources and money without any wastage.
Also, accountability supports the resource providers and donors in assessing voluntary
organization performance. It influence their willingness in supporting the association in
future (Lovelock, 2011).
 Recipients of donations – They includes Lifeboat men and their families. It is the
responsibility of lifeboat men to use funds in maintenance of lifeboat and ensure about
safety of people at sea with necessary lifesaving equipment’s. It is their duty to do all they
can to rescue and safeguard those in danger. At the end of any rescue, they should also
ensure that all equipment in lifeboat is in proper order as well as ready for next service.
Moreover, these boatmen come from different families and required to give their comfort
plus service for saving lives at water. Hence, their families should be supportive as
boatmen regularly called away from them (Parsonsand and Maclaran, 2009).
 Third party recipients – They are the drowning person and should not be involved in any
terrorism or crime. Donors before providing fund to charity association, first make search
and identifies the character of third party recipients. It is because of giving financial
contribution to person or firms involves in act of terrorism may put the donors in risk of
prosecution (Rouse, 2014).
 Employees – Similar to other organizations, employees connected with RNLI provide
their best services in exchange of good wages and incentives. Moreover, they expect their
protection and safety while working on rescue operations.
 Society – The society expect adequate services from RNLI with the optimum use of
resources. The company must prepared and well-equipped all the time to safe lives at sea
(Rowell, 2015).
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Passport office (Public sector organization) – It includes the following stakeholders:
 Travellers – Every person visiting to other countries require a valid passport and visa. The
passport company is required to verify documents of a person applying for passport and
issue it in appropriate time period. Moreover, travellers expect advice and help during the
process and passport office should have well-trained employees at place to assist the
clients. These travellers also include persons who require urgent passport or its renewal
and hence the passport office should have good number of staffs and separate departments
to handle different requirements of travellers (SARGEANT, 2013).
 Government – Government interferes in passport and visas issues for travelling to other
nations. They are also interested in total sales generates from issue of passport and visa to
travellers for the purpose of levying taxes. The passport office is required to inform
government officials specially appointed as in charge of passport operations to issue visa
to travellers apply for visiting to destinations outside the border.
 Employees – They expect pleasant environment at workplace and good wages plus
appropriate designation.
 Society – The main duty of passport office for society is provide timely services without
delays and issue passport after verification of documents and character of travellers for the
safety of community and the country as a whole (Somers and Enders, 2012).
2.2 Nature of the relationships with customer within two selected not-for-profit organisations
Royal National Lifeboat Institute – Customers or sponsors choose to work with RNLI due to
several reasons including aligning their corporate identities with well-loved and well-known
RNLI brand, ethos and imagery. With an exceptionally and significant well established base
of supporter in Republic of Ireland and UK, the institute is well places to work with
customers for their mutual benefits through varied methods. RNLI adopts pro-active
approach for the development of its relations with customers on the basis of business long
term needs (Sullivan, 2013). A fair deal and partnership with clients provides the institute
with an opportunity to meet its commercial objectives along with reporting requirements,
while playing the main role of safeguarding lives at sea. RNLI take no funding from
government, however run a highly professional rescue and search service, which cannot be
possible without an active support of partners and donors. Such resource providers and
donors takes interest to contribute in RNLI to join the chain of lifesaving, which is extended
100 nautical miles including Thames and several inland waterways (Vogel, 2006).
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Passport office – Their follow a re-active approach of relationship between customers and
passport office. It is because they provide their services when approached by travellers. The
passport office fulfil their all obligations with proper consideration and feel fear in ignoring
any responsibilities towards constitution and society due to the government control on their
operations. They also fulfil the informing and commanding role because provide all types of
information related to filling application of visas, places for which a person can apply for
visas, provide assistance to renew passport, etc. Moreover, they require to issue passport and
visa to respective parties in definite timer period (Zeithaml, Bitner and Gremler, 2010).
2.3 Compare methods used in marketing within the public, private and voluntary sectors
Marketing is a multi-directional tactic that is being executed by private, voluntary and
public organizations in executing and publicizing processes of their business. But the exact
methods of marketing applied in all case, varies to rational extent from others. The public
sector includes non-profit-making company and its marketing tactics are generally concerned
with customer’s satisfaction, even when there is no type of competition. It is expected as the
need of marketing doesn’t kill by monopoly (Borgerson and et.al., 2006). Same thing the
public sector companies utilized in its quest to bring satisfaction in local people and
disseminate complete information of its services and products. The information that are
communicated normally include values, benefits and ideas. Hence, communication is the
main strategy that is used generally by public sector firms in its activities of marketing. Also,
this type of company may use a customized balance of four Ps – product or service, place,
promotion and price (Campbell, 2003).
On the other side, every voluntary organization basic objective is to give important
human requirements without attaining any reward in personal. Hence, such organizations
plays an important role in sustaining nation’s economic growth. With an aim to sustain their
operations, such companies requires to get resources from different donors as they should
earn these donors trust to obtain their commitment in rendering services to needed
individuals. Due to this at present the voluntary associations are facing immense competition,
which has made it very important for them to use proper techniques of marketing. The most
appropriate techniques are such strategic techniques of marketing that need less budget in
comparison to techniques of traditional marketing (Carrigan and Attalla, 2001).
On the contrary, companies in private sector are specially run for profit. Hence, they
make complete utilization of four Ps, i.e. service or product, promotion, price and place, in
order to reach the targeted customers. It also comprise comprehensive processes of
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advertising and sales/selling promo. Some other techniques of marketing are employed for
encouraging customers to buy a particular product (Chapman, Soosay and Kandampully,
2003).
2.4 Key issues involved in marketing in a selected virtual organisation
Mainly, virtual association is a very unique kind of institution, whose members are
situated in distinct geographic places. The members of these organizations work together
through electronic tools like groupware and e-mail that make it to look as a unified, single
company with an actual physical location (Constantinides, 2006). Also, the term can be
utilized for representing a firms network that collaborate together often temporary to develop
a product or service. Pfizer is a good example of virtual company, which relies on
outsourcing of services and clinical equipment’s from healthcare units and sales products and
experts services to NHS for the proper treatment and care of people. The operational process
of Pfizer is unavoidably problematic and very complex. Some of the problems mitigating
against the organization success include: loss of control, strategic planning dilemmas, new
managerial skills needs and boundary blurring (Ernst and et.al., 2011).
Generally, virtual organizations faced with strategic planning issue, as they strive to
define correct combinations that would be very effective in attaining core competencies.
Moreover, the Pfizer virtuality means the manager at headquarter have less control over many
operations of company. The implication of such communication loss is that new managerial
skills set, communication, great deal of trust and coordination is needed among organization
and its members. Like other virtual firm, employees of Pfizer faced with many uncertainty
mainly related to organization membership, job roles, career paths, superior-subordinate
relations, formula of profit-sharing, etc. As a result, it has become more required for
managers to analyse critically benefits, rewards, employee development, staffing and several
other issues related to employees (Hamilton and Fischer, 2003).
TASK 3
3.1 Use of the extended marketing mix in a selected service sector businesses
The marketing mix is the marketing activities combination engages by company to
meet the target market needs. Traditionally, just four P’s are consisted in the marketing mix,
which is defined below in the context of Tesco:
Product – Tesco offer wide products range, as customers can have different products choice
when they go to stores of company and can get right information easily to choose appropriate
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one for them. For example, the food range of Tesco includes 150 “free from products”, 400
“healthy living products, 40 “special healthy kids’ snacks”.
Price – The Company strives to lessen its price, even many other elements of consumers live,
like electric bills, gas, motoring, etc. have become more costly. Due to this buyers come to
plus stay long with Tesco (Jayachandran and et.al., 2005).
Place – There is a wide store network of Tesco, which is differentiated by products range sold
and size as well as divided into six format, i.e. Tesco Superstores, Tesco Extra, Tesco
Express, Tesco Metro, Tesco Homeplus and One Stop. Also, the company has identified that
customer not always feel satisfy with big stores, so that it have divided in small stores to
make it easy for customers to find Tesco’ store in all places (Manfreda and et.al., 2008).
Promotion – Many television advertising is used by company over the year, which focus on
price and develop brand image on the basis of cheap price. Moreover, in store promotions are
also used by Tesco, like half price, Buy one get one free and great offer, etc.
In addition to above, the extended marketing mix have added, as marketing at present is
far more consumer oriented than before as well as service sector has now dominate the
nation’s economic activity. Also, due to increase need of customer interaction in business the
era of digital marketing has been emerged, which force the companies to pay attention on
following Ps:
People – The technology bring individuals together like never before. Social and digital
platforms have supported to promote information and communication flow in between
employees and customers for the successful operations of organisation (McWilliams and
Siegel, 2001).
Participate – The Company have to engage more personally, if they wish to generate active
participation of its people. The firm should perform its functions authentically in order to
appreciate by target market.
Personalize – The service sector companies can now also make more personalized customer
experience through digital platforms, as it provides users with the ability to hone website for
their specific requirements (Melewar and Saunders, 2000).
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Product – To really make audience excited, it is a smart idea to create marketable products or
services. In a digital era, the particular product can tap into internet by the single purpose of
making life easy for users.
Process – The organizations are using digital platforms for changing the manner in which
users make interaction with their brand (Mithas, Krishnan and Fornell, 2005).
Pay – The new technology emergence like digital wallets have made easier for customers to
make purchases without touching their wallet.
Partner – In present age where all things a person utilized is intended with usability in mind,
the companies will require more collaboration with each other.
I am having a loyalty card of Tesco, which is an example of company’s digital
marketing. This card allows me to take discount on purchases or points that can be used in
further shopping. Also, this card permits me to use frequent-flyer card and access to club
lounge in airports (Morsing and Schultz, 2006).
3.2 How the Product-Service mix enhances value for the customer and the organisation
Once the client’s needs have been evaluated and comprehended, both organization and
customer’s values can be increased through effective product or service delivery. To attain
this, the companies should create customer centric structure that can attract more purchases
from customers. The best method to do this is online ordering system and free delivery. For
example, John Lewis has partnership with Waitrose online grocery store to facilitate online
order and delivery at home to customers (Payne and Frow, 2005). The following are some
advantages of online shopping to customers and organization:
To organization – One benefit is to reach more clients and online shop removes barriers of
parking and travel that can drive clients away. Moreover, it reduce overheads, as operation
through e-commerce doesn’t require a seller to woo the consumer, ring up the sale and brick-
and-mortar outlets for buyers to visit.
To customer – For customers, online shopping is convenient option, as they don’t have to get
dressed and drive to any physical outlet. They can visit their company’s website easily and
buy their needed items. Moreover, purchase via online sites is speedier than traditional
buying because the customers don’t have to wait for an outlet to open and can do shopping
24/7 in a day (Rust and Chung, 2006).
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