Contemporary Issues in Marketing

This report investigates the changing dynamics of marketing and public relations (PR), questioning whether traditional marketing, as understood over the past 40 years, is obsolete and replaced by PR. It examines the evolution of marketing tactics, highlighting shifts in customer dominance, increased reliance on marketing research and technology, globalization, and the expansion of the marketing mix. The report then delves into the differences between marketing and PR, comparing their activities, target audiences, goals, ROI measurement, longevity, message legitimacy, and functions. It explores the benefits of PR, including cost-effectiveness, credibility enhancement, lead generation, reputation building, and awareness creation. The conclusion emphasizes that while distinct, marketing and PR are interdependent and crucial for long-term business success. The report uses various academic sources to support its analysis.

Contemporary Issues
"Marketing as we have described it over
the past 40 years is now dead; is it simply
PR!"

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Changing phase of marketing......................................................................................................1
Developments and trends in marketing and public relations.......................................................5
Different between marketing and public relations.......................................................................7
Benefits of public relations..........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The concept of marketing have been used since many years. It has witnessed many
changes while this course. Many advancements and trends have been noticed during the phase. It
is evident that without marketing it is not possible to survive for the business. Parallel with
marketing, another effective business weapon has emerged named Public Relation. Currently it is
making an effective contribution towards the industry. It is being employed by the firms for
several valuable reasons (Akaka, Vargo and Lusch, 2013). There is a need to show the
effectiveness which is influencing the companies to adopt the tool. The purpose of this report is
to examine whether this phenomenon which had been described over the past 40 years is now
dead or its place has been taken by public relations. This research helps in identifying the
difference between the two terms. This study makes an attempt to identify the effectiveness of
both the terms to the business world. It will be identified how Public relation term has been taken
over the marketing term. It will state how both of them boost the company’s reputation and
awareness. For this study the above issue has been selected because of often the marketers of the
industry fails to differentiate between the marketing and public relations.
Changing phase of marketing
Figure 1: Changing phase of marketing
(Source: Boudreax and Emerick, 2014)
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Till date, the characteristics of marketing tactics have changed a lot. In order to gain the
competitive edges, to establish effective presence in the market, it is essential to market the
products and services among the people in best manner possible (Aras and Crowther, 2012).
Change is the prevailing fact in the existing business environment. The ability to exploit change
has become one of the most sought after management skills today. It is specifically applicable in
the world of marketing where the rate of change is constantly speeding. The change is also
getting costlier by the end of every day. While adopting a particular change, an organization’s
marketing efforts are to be directed in right manner (Boudreax and Emerick, 2014). The above
figure reflects the different phases of marketing which have been witnessed by the industry.
It has been felt that dominance of customers has increased a lot. Their needs and
preferences are considered very critical in the development of goods and services. It is because
the consumer behavior is unpredictable and it is difficult for the companies to influence their
decision making process (Bradshaw and Urquhart, 2015). The need to understand their behavior
has become even more essential than in the past. According to the sociologists, people are
becoming more interested in use rather than the ownership. An individual is capable of
purchasing anything on rent or lease i.e. from a garden tools to machine tools and from garments
to cars (Chernev, 2014). This trend is affecting the channels of selling, sales appeals, pricing
arrangements etc. The wants of the customers have become more flexible, varied and
demanding. Another example of this dominancy is that the category of product segmentation has
increased. Currently a typical market consist of bunch of submarkets also. Each of them has its
own characteristics and each demands a different sales approach. Due to such high variety of
segmentation, it has become difficult for the companies to frame strategies (Foxall, 2014).
Another thing which is noticed is the increased use of marketing research. The use has
increased in terms of both quantity as well as scope. Performing marketing research has become
very essential because it is important for the firms to gather information about their potential
customers (Hitt, Ireland and Hoskisson, 2012). Earlier there was no focus on the research
because the size of the market was low and there were very few companies operating their
businesses. There was not such need to create awareness about the products and services.
Gradually the things have changed and now a separate department for marketing research is
maintained by the companies. The activities of such department are devoted to development of
market potentials, analysis of consumer behavior, measurement of advertising effectiveness etc.
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This function is considered very worthy from the business point of view as it can assist a lot in
things like designing products, consumer mapping, product launching etc. (Zhou, Yim and Tse,
2005). Marketing research has appeared as a creative tool in solving the future management
issues.
Figure 2: Individuals using the internet, total and percentage 2005-2014
(Source: Boudreax and Emerick, 2014)
Use of technology and internet has also changed the face of marketing completely.
Technology is not only used for planning and control by the companies but they are directing
their marketing efforts through it. The above graph reflects the statistics related to use of internet
across the globe (Importance of strategic marketing planning. 2015). It has been estimated that
almost 3 billion people i.e. 40% of the world’s population are using this weapon. The users have
been doubled in the five year period. This clearly shows that why the marketers are influenced
from the technology.
Methods such as online communication, electronic data processing, digitalization etc,
have been used to make the advertising more efficient. The modes of selling the products have
been changed (Aras and Crowther, 2012). Earlier the strategy was very straightforward as there
was use of cards, flyers, brochures etc, for approaching the customers. It was not that difficult to
convince them for the products. However the internet has changed the game completely. The
social media has transformed the ability of the users to communication and connect online. Now
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it is comparatively easy to reach the masses as internet offers the advantage of faster access and
availability (Hitt, Ireland and Hoskisson, 2012).
Earlier marketing was restricted to domestic markets only as the companies were having
their business in one or two locations. The range of products and services was also very low
along with the less number of customers. However with the passing of time, globalization has
become a centric part of the businesses (Jansson, 2008). With the increase in the size of market
and customers, firms are taking their operations beyond the boundaries of the nations. They are
entering into different global markets in search of new customers and for achieving expansion. It
is also contributing in widening the sales and profits. Due to globalization, firms are forced to
increase the size of their business. Although on the critical note it can be said that it is not easy to
function at the global level (Navarro and et.al., 2011). The business is likely to be affected by the
social, economic, cultural, political and legal environment. Hence it will also influence the
marketing activities of the firms.
Further expanded use of test marketing can also be seen. More controlled
experimentation can be seen from the side of the companies. Two major factors emphasize the
need for performing experimentation (Olson, Slater and Hult, 2005). First is the rising cost of
marketing changes. Costs are incurred in introduction of new products and packaging, designing
new advertising and promotional programs and in retention of employees. The second factor is
the growing investment in the research and development of products and services. Most of the
activities within business are diverted in this direction (Varadarajan, 2010). Before being placed
in the national distribution, the consumer goods are test marketed in effective manner. At present
due to facility of computer simulation, it is very easy, speedy and inexpensive to test the business
projects. Test marketing is considered essential because companies cannot take the risk of failure
of products within the market. It facilitates them to make corrections before sending the goods
for distribution (Wilson and Gilligan, 2012). It act as a risk assessment for the company.
Changes can also be noticed in terms of Ps of marketing mix. Earlier there were only four
Ps in the marketing. These includes price, place, promotion and product. With the increasing size
of marketing and products & services, three more Ps have been added to the list (Gillespie and
Hennessey, 2010). The added Ps are people, physical evidence and process. Now the marketing
mix has become more dynamic and vibrant. The all seven Ps are considered very important from
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the success point of view. Good use of all the seven Ps can assists the firm to effectively sale the
goods and services to the customers (Griffith and Hoppner, 2013).
The most important factor which has influenced the marketing world is the use of
manpower. Earlier there was no high focus on recruiting quality individuals for the purpose of
marketing. Due to lack of efficiency the promotion of products was not done in the manner as it
was supposed to be (Importance of strategic marketing planning. 2015). It used to affect the
whole business. Now the recruitment of employees have become more standardized. Companies
prefer to appoint expert marketers who can make some great strategic promotional approaches
for the business. More skilled workers are employed who can make their valuable contribution
towards the business. There is a need of experts who can estimate what the ongoing marketing
trends are and which changes are likely to affect the company’s practices (Olson, Slater and
Hult, 2005).
Developments and trends in marketing and public relations
Marketing concept
The doctrine of marketing centrally crystallized since 1950s. The key objective of this
principle was to achieve the organizational goals effectively through delivering, attracting and
communicating companies’ products and services to targeted customers (Akaka, Vargo and
Lusch, 2013). It laid focus on building attitude and perception of the clients towards the product
or service. Earlier, the firms used to focus on production orientation which believed that
consumers preferred products that were inexpensive and available widely. Then arrived the
product concept emphasizing on making superior products and improving their features. With
rising demand of quality based products and services the corporations laid emphasis on
aggressive selling and promotion efforts (Bradshaw and Urquhart, 2015). This selling concept
assumed that the companies and business entities had whole battery of effective advertising and
promotional tools to stimulate more buying. Later, the need for identifying and satisfying the
demands and wants of consumers arrived that led foundation of marketing concept (Hitt, Ireland
and Hoskisson, 2012). It also uses promotional tools to ensure and make people aware of the
goods in market and building high profits for the firm.
Modern trends of marketing comprises three major concepts which are described briefly
below:
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 Relationship marketing: The primary objective of this trend is to perform marketing
campaigns to emphasis customer retention and satisfaction rather than dominating higher
sales transactions (McLoughlin and Aaker, 2010). The overall motive is to attract new
clients and nurture and retain the existing ones through long term communication and
positive customer relationship. Industrial marketing: Under this trend, the products and services are sold to other
entities that either resell it or use as raw material in production of their own business
activities. It is also termed as business-to-business marketing (Czinkota and Ronkainen,
2012). Societal marketing: According to this trend, the needs and desires of the customers
should be delivered efficiently along with enhancing social, ethical and ecological
wellbeing of the society. The approach is connected with corporate social responsibility
and sustainable development prospective of a company towards society (Adjorlolo,
Terrero and Ganung, 2010).
Public relation concept
The strategic communication process that builds mutual relationship between companies
and their clients is the core principle of public relation concept. The development of PR approach
helped in researching and evaluating public opinions, issues and attitudes on a continuous basis
for an organization (Leonidou and Leonidou, 2011). Recently, several trends are developing to
gain widespread attention of public and taking a next step towards strong company-customer
relationship, which are as follows: Corporate blogs: This type of blogs are built to publish organizational goals of a
corporation. It provides a window through which public can peep into company's culture
and environment (Breton and Martín 2011). It issues views and career objectives of
employees, teams or spokespersons publicly so that a direct connection is built between
the company employees and blog viewers. Social media: This is the most popular mode of transmitting and connecting with the
existing and new customers for an organization. Mass population visits social
networking sites like Facebook, twitter or instagram constantly and which helps the
enterprises not only to build strong public relations but respond to their problems or
issues immediately (Importance of strategic marketing planning. 2015).
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 Pod casting: It helps clients in downloading automatic series of audio, video, PDF, e Pub
files and digital radio of company's events and programs. Through this form of digital
media a business entity can attract and advertise its upcoming products and services to
the targeted group (Adjorlolo, Terrero and Ganung, 2010). Search engine optimization: Through this methodology and modern technique
organization increase their website visitors list by obtaining high-ranking placement in
search result page of the search engine. This current trend has made an innovative move
to improve client experience and usability of company's website. Through these trends
enterprises are able to build strong public relations prominently and easily rather than just
dominating the marketing factor (Leonidou and Leonidou, 2011).
Different between marketing and public relations
The marketers often get confused in deriving the difference between public relations and
marketing. It is quite easy to describe from tactical point of view although the difficulty arises in
identifying how each of them contributes towards the business success (Hollensen, 2012).
However in the last few years, a new phenomenon named Public Relation has emerged into the
limelight. The two terms have always been difficult to understand. The two terms are sometimes
used in interchangeable manner. However they are different functions serving different purposes.
This study tries to investigate the impact of public relations on marketing (Powers and Loyka,
2007). It has been said that influence of marketing of past 40 years is now been dead. Instead its
place has been taken by Public Relations.
Public relations is more related with enhancing the name of the company. The focus is on
strengthening the relations with the public. According to (Talib and Razak, 2013), it is defined as
a strategic communication process which develops mutually beneficial relationships between
companies and the public According to Kotabe and Helsen, (2010), marketing can be defined as
a set of activities which are directed towards delivering offerings that have value for the
customers, clients, partners and society at large.
Through finding the difference between the two terms it will be identified whether
marketing as we have described it over past 40 years, have become dead or not. The comparison
can be seen on the basis of following factors:
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Activities or tactics - Marketing generally consists of promotional, direct marketing and
advertising. All these techniques seeks to return direct sales. The public relation tool lays
emphasis on reputation management by displaying the media coverage and stakeholder
communication in positive manner (Breton and Martín 2011).
Target audiences – Public relation is concerned with maintaining positive relationships with the
different stakeholders associated with the organization. It consists of high number of audiences
such as customers, media, employees, shareholders etc. In case of marketing, the aim is to reach
towards the existing and potential customers (Burnaz and Bilgin, 2011).
Two separate goals – The two terms holds different objectives. In case of marketing the main
purpose is to reach the consumers and make them think, believe and purchase the goods and
services. Majorly, it is related with selling the goods and services and efforts are made to achieve
direct revenue (Chen and Lai, 2010). On the other side in case of public relation, the brand is
sold by making the communication positive between organization and its stakeholders. Through
this tool, efforts are made to gain positive reputation by applying an effective PR strategy.
Business ROI (Return on investment) – Marketing is more concerned with business
investment (Czinkota and Ronkainen, 2012). The return on investment is measured on the basis
of results of branding and promotional activities with the new customers. Measurement of ROI is
comparatively easy because it is easier to demonstrate a change in the direct sales. On the other
side, in order to enhance the image of the company, PR is taken as the free exposure. It is usually
difficult to measure ROI, under this tool because it is hard to demonstrate a change in the
perception or beliefs (Leadley and Forsyth, 2004).
Longevity – In case of marketing, efforts are made to achieve instant and tangible sales success.
It is regarded as relatively a short term activity. On the other side, Public relation facilitates
business advantages for a long period of time. The values gained from PR programs are
considered as a long term investment from the side of the company. These are to be recognized
for future achievements (Leonidou and Leonidou, 2011).
Legitimacy of messages – In case of public relation, the business messages are delivered
through channels such as articles, bloggers and conference speakers. These channels are
unintentionally considered as more authentic by the consumers. While in case of marketing,
consumers can understand that advertising of the firm is driven by the desire to increase the sales
(Richter, 2012).
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Function – PR is a function which provides support to goals and objectives in indirect manner. It
does not contribute to the bottom line on the immediate basis. However it affects the
organization’s success through developing and maintaining good relationship and by developing
a positive business environment (Adjorlolo, Terrero and Ganung, 2010). On the other side,
marketing is regarded as the line function which contributes to the company’s bottom line in
direct manner.
Paid Vs earned media – Approach of paid media is adopted in case of marketing. It is
considered as a key element in all the strategies. The paid advertising is of definite nature and the
ad appears when it is scheduled (Swani, Milne and Brown, 2013). In case of public relation,
approach of earned media is adopted. It includes press releases which appears in the news
outlets. This type of media is not under the control of the company. It is difficult to predict when
it will be published or how the publication will use it. PR activities are more centred on the
public and it looks to add value to the customers, clients and partners whereas marketing is more
specific.
Similar to the traditional channels, marketing in the digital space can be considered as the
activities which demands instant response from the consumers. The concept of digital PR still
identified as the relationship management function with having strong focus on the channels of
social media (Tao Li and Xu, 2011). According to the experts the marketing approaches through
social media can have a negative impact on the brand. This has led to categorization of social
media under the Public Relation function. While it is essential for the firms to obtain the
differences between the two terms. However the reality cannot be changed that both of them are
reliant on each other. Their joint collaboration is essential to achieve long term business success.
Due to emergence of advancements and increased importance of PR among the marketers, the
two functions have become little complex (Czinkota and Ronkainen, 2012). At present, they are
heading towards playing distinctively separate roles within the business world.
Benefits of public relations
PR weapon is filled with many advantages which are very crucial for a business to
survive. It is a very important practice to be employed for the purpose of building strong value,
brand credibility and legitimacy (Kotler, 2009). The following benefits can be described as
follows:
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 Target Market – With this tool it is easy to identify the target market which a company is
hoping to reach. The source of media can render the information which is required by the
consumers (McLoughlin and Aaker, 2010). Identification is done in speedy manner and
more detailed information is received about the target market. Hence company can gain
details about its customers in more effective manner and same can help in attaining the
success
 Credibility – Consumers have become more cautious today while spending. That is the
reason credibility is considered very important in the success of the business. As PR and
marketing are two different things hence consumers are likely to give credibility to the
business. Several experts have concluded that PR has 7 times more credibility among
people as compared to other promotional tools (Oudan, 2007).
 Inexpensive – It has been identified that this tool is comparatively very cheaper as
compared to other tools. All the related aspects are cost friendly. However it is to be
checked that companies must not hire the wrong PR firm for promotion. It is a very
economical approach to create awareness among the masses and to build the brand
loyalty (Prasad, 2010). Company pays for the time required and minimal out of pocket
expenses for the purpose of developing long term healthy relations.
 Lead generation – The tool also helps in generating effective leads of clients for the
business. The media placement received from the PR is of very long lasting nature. The
lead generation is easy because there is more focus on verbal communication. The
customers feel more indulged when they see that company is making good efforts to
retain them (Pride and et. al., 2012). On being used correctly, it can prove to be a
valuable promotional tool for the business.
 Enhancing reputation – The tool is mainly used for enhancing the goodwill of the firm
within the market. It makes sure that business tries to maintain healthy business relations
with all its stakeholders. It leaves the firm with a positive image which is very helpful in
the future (Akaka, Vargo and Lusch, 2013). Good reputation brings business for the
company constantly.
 Creates awareness – Another advantage derived from the public relation tool is creation
of awareness. It is mostly used in making the consumers aware about the products and
services. The market is full of competitors and there is presence of wide range of
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