Marketing Management and the Changing Paradigms Article Review By 1
Adua John Daniel Famonure
MBA HRM Limkokwing University of Creative Technology Email: adua.famonure@gmail.com; fjohn_daniel@yahoo.com
Author: Adua John Daniel Famonure 109021072
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Abstract Today’s business environment is a highly competitive one, and companies and organizations that want to have a competitive advantage over rivals, have to have an intricate understanding of the environments they operate in. There has to be strategic planning and a “sense of globalization�. Different regions in the world will need a different approach, in order that the market identifies and accepts the product being sold. Thanks to new and faster ways of communication via the internet, information moves at a faster rate helping companies adapt and take more accurate surveys and data analysis all geared toward strategic planning and globalization drives.
Key words: Globalization, Technology, Deregulated economy, Market planning and communications
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Table of Contents Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 4 Literature review- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --Page 6 -
Globalization - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 6
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Technological effects - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 8
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Communications and Planning - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 9
Theoretical Framework - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 10 Conclusions and Recommendations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 11 Citations and extracts - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Page 12 Table of Figures Fig. 1 Lateral partnership between competitors- - - - - - - - - - - - - - - - - - - - - - - - Page 7
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Introduction Marketing and marketing strategies are a constantly changing event and a marketing system that worked in the past may not necessarily work in today‘s business environment, so also goes for the future. What works today may not work tomorrow, therefore to continue applying a strategy developed for today‘s market is a risky venture. Companies that want to maintain the competitive advantage have to have foresight and pay attention to three factors that remain constant. These factors are: -
Global forces and the continuous effect on business and personal life.
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Technological advancement and their effect on marketing and individual demand
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There will be a continuous push towards a deregulated economical sector These three developments—globalization, technological advances, and
deregulation spell endless opportunities. But what is marketing and what does it have to do with these issues? Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is ―meeting needs profitably.‖ Whether the marketer is Procter & Gamble, which notices that people feel overweight and want tasty but less fatty food and invents Olestra; or CarMax, which notes that people want more certainty when they buy a used automobile and invents a new system for selling used cars; or IKEA, which notices that people want good furniture at a substantially lower price and creates knock-down furniture—all illustrate a drive to turn a private or social need into a profitable business opportunity through marketing. Marketing is an integral part of todays business scenario, and a tactical and people oriented approach is key to successful marketing. In this paper I will review ten literatures in the form of articles and other publications, that deal with the marketing management techniques and issues between 1990 to 2009 period. Topics that will be in focus are:
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Globalization
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Technological factor
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Deregulation and the economy
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Marketing communications
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Marketing planning
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And marketing management practice
Market planning is dependent on target environment and group.―There is but one certainty regarding the times ahead, the times in which managers must work and perform. This certainty is that they will be turbulent times. In turbulent times, the first task of management is to make sure of the firm‘s capacity for survival; to make sure of its structural strength and soundness; and to make sure of its capacity to survive a blow, to adapt itself to sudden change, and to avail itself to sudden change and new opportunities.‖ [Drucker, 1974] Firms in the 20th century have to know their strengths and weaknesses in order to make room for improvement and take advantage of opportunities as they arise
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Literature Review Globalization has led to a restructuring of common business practices around the world. Large international companies such as AMD, Google and Microsoft outsource consultants and specialist from different parts of the globe leading to job shift and company restructuring (Engardio, Bernstein, and Kripalani, 2003). Other examples of globalization and joint marketing effort are companies such as automakers GM – Ford – Daimler Chrystal, Ford – Mazda and GM – Honda, alliances can also be seen in the petroleum sector amongst companies like BP – Mobil, NUPI – Chevron Texaco. These collaborations can be seen across all business spectra from foods to the airline industry. Therefore Globalization can be defined asthe process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations that are driven by advances in communication and transportation technologies, and trade liberalization (Eden and Lenway, 2001; Giddens, 1990; Molle, 2002; Orozco, 2002). Globalization is an interesting phenomenon as everyone on the earths surface is influenced by this phenomena one way or the other. Over the past decades the world has been going thorough a process of change geared towards and increased economic, financial, cultural political, social and importantly market and environmental interdependence among regions. Given these changes, globalization brings about a borderless world (Eden and Lenway, 2001; Ohmae, 1989a). Due to globalization people change the ways they carry out their day to day activities and this has a direct effect on demand, thus companies have to be fluid in the way they address needs and must have a versatile marketing strategy in order that they satisfy and appeal to markets across the globe. Globalization has its pros and cons. For example the Asian financial crisis in 1997 has severely affected businesses around the world (McLean, 2001; Woo, 2000) and the Author: Adua John Daniel Famonure 109021072
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outbreak of SARS (Severe Acute Respiratory Syndrome) in 2003 has shown how globalization permits the rapid spread of the disease (Anthony, 2003; Meredith, 2003), which affects many airlines, the hospitality industry, and other businesses around the globe. On the positive side, globalization enables firms to outsource and find customers around the world, e.g., the auto and electronics industries. The globalization of production and operations benefits firms through the realization of economies of scales and scope (Corswant, 2002; Reyes, Raisinghani, and Singh, 2002). Hence, no one can deny that globalization has changed the way we conduct business. (amonrat thoumrungroje, 2004) in her thesis built on the conceptualization of Morgan and Hunt (1994), strategic alliances represent one form of lateral partnership between competitors. Figure 1.1, taken from Morgan and Hunt (1994), illustrates the relational exchanges in relationship marketing.
Fig. 1 Lateral partnership between competitors
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The supplier and buyer partnerships indicate vertical relationships between a focal firm and its suppliers and/or buyers. While internal partnerships deal with horizontal relationships within an organization, lateral partnerships are more concerned with the focal firm‘s relationships with external parties such as competitors, non- profit organizations, and government. It is the cooperative relationships between the focal firm and its competitors. Technology, which can be defined as ―know how‖, is a big factor to consider when designing products for the market. Firms or organizations with the ‗know how‘ are a force to recon with in their market sector. Technology goes beyond product design it also plays a key role in communications. Technologies like the Internet and satellite TV have made the acquisition of data almost instantaneous.Marketing through Print technologies have been on the decline since the advent of the Internet.According to the Newspaper Association of America show that the decline of newspapers is more rapid than previously thought, with total print advertising revenue in 2007 plunging 9.4% to $42 billion compared to 2006, the biggest drop in revenue since 1950, the year they started tracking annual revenue. Online provides some solace for the dead-tree business, with internet ad revenue growing 18.8% to $3.2 billion compared to 2006, but a rate significantly lower than the 31.4% growth the year before, and not even close to replacing the losses from print. Online revenue now represents 7.5% of total newspaper ad revenues. Though technology can be typically described as an exogenous variable in classical economic theory, the definition offered I this review reflect the emerging tradition within economics of viewing technology in general as that, which changes the firm‘s production function (Mansfield 1966). Derrick Daye in his article ―The impact of Technology on Brand Marketing‖ says that technology teaches us how to engage, and it is not a means of engaging. Technology changes the way people perceive things and conceptualize options available to them.
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From an economic point of view, the easier and cheaper an activity is to execute (liquidity) the more it will be executed. Therefore with technology marketing can cover a wider area of reach at a faster rate. The down side is that when an activity becomes readily available and the rate of liquidity increases, that operation turns trite and people take it for granted. The main impact of technology on brand marketing is not the advert spaces it‘s the demand and expectations consumers develop and apply to market interaction. Technology in essence increases the power of the consumer and the way they think setting a high bar for marketers and their products. Various literatures try to explain the divergent performance of the European and United States of American Labor markets during the early 90‘s. they have focused on the impact on the labor market by economic variables [cf. Ljungqvist and Sargent (1998,2004), den Haan, Haefke, and Ramey (2001)] and upon hiring and ďŹ ring restrictions.
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Theoretical Framework The primary objective of this literature review is to determine the changing paradigms of marketing, between the early 90,s to the end of the first decade of the 21st century. Many authors have written about the effect of globalization on growth and market conditions (e.g., Ari単o and Torre, 1998; Hitt, Keats, and DeMarie, 1998; Hwang and Burgers, 1997; Ohmae, 1989b), there is no empirical study that establishes any links between the two. ittle research attention has been paid to co-marketing alliances. Thetwo reviews of literature on strategic alliances conducted by Spekman et al. (1998) and Ireland, Hitt and Vaidyanath (2002) indicate that most empirical studies focus on strategic supplier-buyer alliances (supply chain alliances) and technological alliances between firms in high-tech industries. Very few studies pay attention to alliances among firms at the same level of the value chain (e.g., Bucklin and Sengupta, 1993; Robson and Dunk, 1999; Venkatesh, Mahajan, and Eitan, 2000; Young, Gilbert, and McIntyre, 1996). To further develop this under-researched area of alliance research, we chose to focus on co-marketing alliances.
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Conclusion and Recommendation Change is one constant we can expect in life and in order to keep of with the times firms have to continuously analyze their existing strategies in order to make an impact in today‘s market. The world of today is now a global village and large companies have to deal with different regions independently because they individually offer a unique scenario of customer demand and marketing techniques needed in their region. Marketing is influenced not only by globalization and global trends, factors like political, cultural, technological and economic factors have to be considered and there impact on marketing practices. In this article I gave examples of some ways multinational companies overcome this hurdle. A Very good example is the collaboration between automotive manufacturers GM – Honda. Technology is shared and market analysis can easily be conducted in their respective regions so that customers are satisfied with the end product.
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Citations and extracts
http://www.gb.axcesscapon.com/sites/default/files/page_uploads/33.pdf
http://www.nctr.usf.edu/pdf/77810.pdf
http://www.brandingstrategyinsider.com/2011/11/the-impact-of-technology-onbrand-marketing.html#.UUZOyFtZ55U
Monique Ebell Humboldt University of Berlin and Study Center Gerzensee Christian Haefke Universitat Pompeu Fabra, CREA and IZA Bonn Discussion Paper No. 957 December 2003
Amonrat Thoumrungroje, 2004 Phd - The Effects Of Globalization On Marketing Strategy And Performance
Market-Driven Management: A Critical Literature Review - Niccolò Gordini
Marketing and technology, a strategic co – alignment - Noel Capon and Rashi Glazer
http://www.gurukpo.com
Concept based notes Marketing Management – Nandita Sarsar Lecturer Dept. of Commerce & Management Biyani Girls College, Jaipur
Airline marketing and management – Stephen Shaw
Marketing and management – McGraw hill (2009)
Marketing management millennium edition – Philip kotler (2002)
Marketing management in changing times – Frederick E. Webster
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