Marketing in the 21st Century
Order Instructions:
It Is important for the writer to note that for this paper, he will have to respond to section A and then in section B he will combine the orders with references 111677, 111725,111768 and will also include section A at the end of the paper before the final conclusion and references list in APA 6th edition format. The writer must pay attention to details and properly arrange the paper base on the instructions giving below. The writer will also use the resources giving below to respond to SECTION A, the article mentioned to be read for section A is in the resources below.
SECTION A ( 1 page)
Marketing in the 21st Century
Once again, you will utilize articles listed in the Resources section to explore the different topics for your Research Paper. In this section, you will find a series of questions pertaining to each article. You do not have to answer the questions directly, but they are included to guide you in discovering the type of information that you need to complete the research paper.
For this week, read “Horizontal Innovation Networks: By and for Users” by von Hippel. After reading the article, consider the following questions:
• Is user-generated innovation good or bad for a company?
• If user innovation can happen independently of manufacturers, how can companies incorporate customers into their new product development process?
• How should companies manage their marketing mix variables in the era of personalized marketing in order to generate and sustain competitive advantage?
Using the information you have read, and any other outside resources that you have found, consider how these topics relate to the overall subject you are addressing in your paper. Remember to refer back to the main task of this paper, which is to describe how you believe the usage of the individual marketing mix variables is likely to change in the future and what companies must do to adapt their marketing approaches in order to achieve competitive advantage. In particular, focus on the following aspect:
– What must companies do to manage their 5Ps in order to harness maximum competitive advantage both globally and online?
SECTION B
Combine all of your information from the previous papers with the following references orders 111677(revise Copy), 111725, 111768 including section A. And organize it in a logical manner, with distinct sections and headings. Begin by briefly summarizing the conclusions you reached through your research, while setting your conclusions in the context of leading theory and practice in the marketing field. You should have a minimum of seven references to peer-reviewed scholarly journals in addition to the articles found in each of the papers for the past 3 weeks.
Also take note that you must arrange the paper starting by Begin by briefly summarizing the conclusions you reached through your research, while setting your conclusions in the context of leading theory and practice in the marketing field. Follow by the papers in the references in this order 111677, 111725, 111768 and then you will also include the SECTION A or this order before concluding the paper. All references must be included in APA 6th edition format.
Resources to use for SECTION A
Articles
• Kohn, K. (2005). Idea generation in new product development through business environmental scanning: The case for Xcar. Marketing Intelligence & Planning, 23(6/7), 688–704. doi:10.1108/02634500510630212
The author of this article introduces the concept of using business environmental scanning to generate new product ideas.
• Pecotich, A., & Ward, S. (2007). Global branding, country of origin and expertise: An experimental evaluation. International Marketing Review, 24(3), 271–296. doi:10.1108/02651330710755294
In this article, the authors investigate the issues faced by marketers in an international marketplace when they attempt to establish global branding, while also taking into consideration a rise in nationalism.
• Shang, R., Chen, Y., & Liao, H. (2006). The value of participation in virtual consumer communities on brand loyalty. Internet Research, 16(4), 398–418. doi:10.1108/10662240610690025
In this research, the authors study lurkers and posters in virtual consumer communities to determine if they could be used as a tool to understand brand loyalty.
• Sinisalo, J., Salo, J., Karjaluoto, H., & Leppaniemi, M. (2007). Mobile customer relationship management: Underlying issues and challenges. Business Process Management Journal, 13(6), 771–787. doi:10.1108/14637150710834541
In this article, the authors introduce a framework for companies to use in developing effective mobile customer relationship management.
von Hippel, E. (2007). Horizontal innovation networks: By and for users. Industrial & Corporate Change, 16(2), 293–315. doi:10.1093/icc/dtm005
In the new world of Web 2.0, there is an increase in the number of user innovation networks and the author of this article suggests conditions under which such networks can flourish.
• Anderson, J., & Billou, N. (2007). Serving the world’s poor: Innovation at the base of the economic pyramid. Journal of Business Strategy, 28(2), 14–21. Retrieved from Business Source Premier database.
The authors of this article discuss the challenges of reaching customers in developing nations who often have limited income. They then suggest possible approaches to effectively serve this market.
Nijssen, E., & Douglas, S. (2008). Consumer world-mindedness, social-mindedness, and store image. Journal of International Marketing, 16(3), 84–107. Retrieved from Business Source Premier database.
As communication technologies are more widely adopted, consumers are able to access information on products, as well as global, social, and ethical issues. The authors of this article develop measures of how this free-flow of information impacts consumers’ views of corporations and whether this type of information influences purchasing decisions
SAMPLE ANSWER
Marketing in the 21st Century
Introduction
In the 20th century, the marketing strategy was based on television, radios, magazines, and newsletters. The technological revolution has changed everything in marketing drastically. People are adopting the revolution where things are done smart but not hard with limited resources at a very short period. The introduction of the computer is perhaps the source of this the change. While the generation 20th century could only receive information when they listen to radios and TVs, the generation of 21st century sees the information whenever they are through the phones. In that manner, the there is a move from traditional ways of advertisements to online ways of marketing. This project champions the move from analogue to digital marketing and what the companies need to do to become relevant in the future competitive market.
Online retailing
Online retailing has emerged as an important retail force as consumers are purchasing online. It is now up to the conventional offline retailers to respond. In order to establish a clear difference from retailers that have offline stores, online retailers should lower their prices below the prices that offline stores ask for the same products (Chinta, 2006). This will allow price conscious consumers to take full advantage of the cost savings which could at times be considerable. Online retailers need to offer a wide variety of selection – seemingly endless selection – that offline retailers may not be able to provide. Online retailers should ensure the convenience of online shopping by enabling buyers to make a purchase of any item in seconds from the comfort of their homes (Francis, 2007).
Online retailers should also allow shoppers to compare the features and prices of their products instantaneously. Online information capture is generally more frequent and detailed. Click stream data gives complete information on how a customer shops, whilst virtual shopping carts serve as loyalty cards that capture the purchase habits of shoppers (Strzelec, 2011). Therefore, online retailers can actually increase their sales simply by targeting repeat purchases basing on individualized content of each consumer. More importantly, online retailers can extract behavior data of consumers to turn abandoned shopping baskets and/or switching decisions into operational indicators of how to stock products and serve shoppers (Chinta, 2006).
For retailers with physical stores that intend to also establish themselves online, their strategies should be to provide new services such as buy-online pick-up-in-store, in order to keep pace with preference of the shoppers. Francis (2007) pointed out that having a physical offline store wherein shoppers can engage with a product before ordering the product actually boosts demand as well as revenue. The online store would encourage consumers to align themselves with the channel that serves them better – be it online or offline – therefore optimizing the experience of the customer and reducing costs for the business (Gregory, Karävdic & Zou, 2007). Offline stores/retailers can take their brand to the web and realize immediate recognition and trust. It is of note that this value is actually true for the existing shoppers as well as aware shoppers who look for the benefits of the personalized, intimate experience and the more informative buy (Wong, 2008).
Retailers with physical stores should seamlessly integrate their channel offerings simply by introducing online shopping perks to the offline, in-store consumers. For instance by (i) allowing the shoppers to pick up online orders from the company’s physical, brick-and-mortar location; (ii) Providing free Wi-Fi. (iii) By offering in-store access to the company’s online catalog; (iv) developing an app that allows the buyers to scan product bar codes and read online reviews, and (v) accepting mobile payments through the in-store point of sale system (POS) of the company (Griffiths & Howard, 2008). In essence, companies that can seamlessly integrate offline and online offerings would be the most successful.
Globalization is essentially a trend that is typified by denationalization. Globalization has influenced marketing trends in that increasingly more companies are engaging in business-to-customer and business-to-business e-commerce that necessitates the use of online marketing strategies to attract buyers and improve sales (Nelson, Cohen & Rasmussen, 2007). Basically, the multinational firms that make use of e-commerce more intensively, engage in a wide range of e-commerce activities compared with companies that are less global.
Personal Marketing
When the term marketing is used the first thing that comes to the minds of many is advertisements or other related promotional activities conducted by the manufacturer and distributers of a product with the aim of reaching as wide an audience as possible. In light of this widely accepted view of marketing, the concept of personalizing the process seems at best alien and completely out of place. Personal Marketing however does just that. Marketing has gradually been moving from a product or price orientation to a more customer- centered process. Personal Marketing is the preparation of a product’s design, packaging and promotional activities in a manner that is targeted at an individual consumer rather than the masses. This can therefore be said to be the highest form of customer-centric marketing. This is because the marketing efforts are geared towards enticing a specific prospective or current consumer to purchase a specific process. This is different from market segmentation or the creation of a niche market. With personal marketing the target is the individual and not a group of individuals with similar characteristics of importance to the marketer (Vesanen, 2007).
Personal view of Personalization
According to me, personal marketing is a company’s way of reaching out to an individual client whose purchase or purchases will bring about considerable benefits to the organization. For such companies the power of customers is very high in the Porter’s Five Forces analysis. The transactional behavior of individual customers has a direct impact on the turnover of the business entity. It is a marketing strategy that needs to be prudently carried out by individuals who have the perfect mix of product knowledge, creativity and persuasiveness so as to ensure the objective of this promotional activity is realized. If this mix is achieved proactively, personal marketing is sure to succeed where conventional marketing has failed to yield fruit. It is important to note that the individual in this context is not necessarily an individual. It may also be a corporate client whose purchases are carried out between the entity of the company and the customer as two parties.
Impact of Personal Marketing to Companies
Personal Marketing is bound to benefit companies since it helps to bolster the relationship that they have with their customers. On the part of the customers satisfaction will increase and this improves their perceived value of the product thus leading to more purchases. This then translates to higher turnovers and increased profits for the companies engaging in personal selling. The fact that communication between sales persons and the customers is two sided means that there is a provision for immediate feedback which is quite important to the product developers and sales department.
The development of personal marketing
The first step that firms need to do in developing personal marketing strategies is to understand the needs and value systems exhibited by specific customers. Since the marketing is being formulated to suit a specific customer, it is important to ensure that the product in question meets all of these needs. These include issues like the quantity, quality standard, timing, pricing, payment schedule, usability of the product, frequency of deliveries and any other special aspects of the products that will be relevant to the customer being targeted (Balabanis and Diamantopoulos, 2008).
Pricing in Personal Marketing
When it comes to the pricing of products in personal marketing, it is necessary to employ dynamic pricing over fixed pricing. This is because the customer is treated as an individual and the price plays a large part in this process (Garbarino and Lee, 2003). A customer may be willing to make bulk purchases so long as the price is within their budget. Other customers will also determine value by basing it on the price of the product whereby higher prices suggest greater value. This is particularly important when goods or services of ostentation are involved. At times the goods being marketed are not necessarily luxurious but highly specific such as military hardware for a specific government’s army. In such a scenario the price set will depend on the economies of scale that will be realized by the customer’s orders as well as the budget (Calantone and Di Benedetto, 2007).
Degree of price discrimination applicable
The most appropriate approach to price discrimination is the third degree of price discrimination (Avlonitis and Indounas, 2007). This price discrimination method is favorable for personal marketing since the basis for the setting of the price is based on the customer’s preferences, geographical location and other subjective factors that can only chance from entity to entity. As stated above, personal marketing is meant to tailor the promotional effort in such a manner that elicits a positive reaction on the part of an individual customer rather than an entire group of potential customers. Third degree price discrimination will be the result of the back and forth communication between the sales department and the specific customer. The price will be set in such a manner that it strikes a compromise between the profitability goals of the business and the ability and capacity of the customer in question.
Mass Marketing Versus Personalized Marketing
The articles “The Continuing Power Of Mass Advertising” by Paul Nunes and Jeffrey Merrihue(2007) and “Word Of Mouth” by Cater Reigner (2007) provides a comparative analysis of personal and mass marketing through online and traditional channel. Although the researches of the authors were independent, their researches focus gives a sufficient outlook of the current literature which evaluates the effectiveness of traditional and new marketing strategies that currently dominate the markets.
One of the common questions asked in the consumer environment is the trend of the mass advertising. Is mass advertising dead in the era of personalized marketing? The reports of both authors tend to move to one line of thought when assessing the prevalence of mass marketing and the personalized one. Both authors acknowledge the movement and the prevalence of personalized marketing. The use of technology has facilitated the use of personalized market to a high degree in very short period. Havlena, Cardarelli and Montigny (2007) note that the use of social media, emails, and phone have allowed individuals to interact with consumers one-on-one. A study carried by Nunes and Merrihue (2007) reveals that the Y generations are the most buyers in the market and are the ones that are “digital” minded. It means that the focus of marketing shifts to them. Keller (2007) posits that the Y generation argues that use of web-based marketing is easy and fast as you can talk to the sellers unlike mass advertisement on TVs and newspapers.
On the other hand, Nunes and Merrihuel argue that it still early for the mass marketing to die. The authors say that it will take considerable years for the mass marketing to disappear. In their research, they revealed that the new venues have not interrupted the traditional venues for getting the advertisements. The study revealed that common venues of advertisement are still 97%; this includes television, radio, print, and billboards. Hence, the fact those traditional venues still dominate the market assures the continuity of mass marketing. Additionally, Nunes and Merrihuel argue that a small percentage of markers are ready to purchase the tools for web based marketing which seem to be expensive and are among the strategies the companies can use to shift from traditional to personalized marketing. They have to create web page for the products, programmed machines that responds to individual requirements, and addition of staff to respond to each individual. Moore and Pareek (2009) add that most of the consumers are not acquainted with some of the technologies hence they have to be taught through campaigns.
Both authors agreed that the web based marketing has got high prevalence as a marketing strategy. The major reason for the high prevalence is the interpersonal communication between the consumers and the marketers. One-on-one communication assures the customers on the need and benefit of the products (Keller, 2007). It gives the marketer an opportunity to use his/ her skills to convince the buyers on the importance and the advantages of the products. Ryan and Jones (2009) describe interpersonal communication as a tool that assures the customers of the products. According to Keller (2007) products will not sell unless the customers have the information about them. Therefore, the customers only decide after getting the information through promotion that intensifies when there is interpersonal communication. As such, it is the customers that have the powers to lift the company after getting the knowledge about the products.
Managing market mix
As the world goes digital, the companies need to employ the same pace as the technological revolution. As said by Kohn (2005), to compete in this competitive world, all the 5Ps (product, price, promotion, place, and people) are very important for the company to remain relevant in a particular industry. As such, they have to be tactical to overcome their rivals or competitors. Hippel (2007) says that one of the most important factors in 5P is the promotion. He defines it as another form of advertisement that allows consumers to know more about the product.
As discussed before, the online way of advertisement remains very vital in passing information that all companies should adopt especially in future where the world will have Y and Z generation alone. These generations are digitally minded hence they should be focused on since they are the future buyers. Through online advertisement, marketers will have the opportunity to communicate to the consumers. Through communication, price and place where an item is needed will be identified. Additionally, through communication, marketers will get the feedback from the customers about their products; as such, the 5Ps shall be managed. Pecotich and Ward (2007) posit that the future companies will only maintain the market mix through marketing and advertisement where the customers can have enough information of the company and its products (Sinisalo et.al., 2007). Therefore, right approach for every organization will depend on the marketing strategy of the product, strength of their brand, and the extraneous market that the marketing is aiming. According to Hippel (2007), the product will only sell after the information is on the market. In that manner, to manage the market mix, product value whose information is in the market becomes a necessity.
References
Avlonitis, G., & Indounas, K. (2007). An empirical examination of the pricing policies and their antecedents in the services sector. European Journal of Marketing, 41(7/8), 740–764
Balabanis, G., & Diamantopoulos, A. (2008). Brand origin identification by consumers: A classification perspective. Journal of International Marketing, 16(1), 39–71.
Calantone, R., & Di Benedetto, C. (2007). Clustering product launches by price and launch strategy. Journal of Business & Industrial Marketing, 22(1), 4–19.
Garbarino, E., & Lee, O. (2003). Dynamic pricing in Internet retail: Effects on consumer trust. Psychology & Marketing, 20(6), 495–513
Chinta, R. (2006). Retail marketing trends in USA and their effects on consumers and the global workforce. Business Renaissance Quarterly, 1(2), 65–80. Retrieved from ProQuest Central database
Francis, J. (2007). Internet retailing quality: One size does not fit all. Managing Service Quality, 17(3), 341–355.
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Griffiths, G., & Howard, A. (2008). Balancing clicks and bricks – strategies for multichannel retailers. Journal of Global Business Issues, 2(1), 69–76. Retrieved from ProQuest Central database
Havlena, W., Cardarelli, R., & Montigny, M. (2007). Quantifying the isolated and synergistic effects of exposure frequency for TV, print and Internet advertising. Journal of Advertising Research, 47(3), 215–221.
Hippel, E. (2007). Horizontal innovation networks: By and for users. Industrial & Corporate Change, 16(2), 293–315.
Keller, E. (2007). Unleashing the power of word of mouth: Creating brand advocacy to drive growth. Journal of Advertising Research, 47(4), 448–452.
Kohn, K. (2005). Idea generation in new product development through business environmental scanning: The case for Xcar. Marketing Intelligence & Planning, 23(6/7), 688–704.
Moore, K., & Pareek, N. (2009). Marketing : The Basics. London: Routledge
Nelson, R., Cohen, R., & Rasmussen, F. (2007). An analysis of pricing strategy and price dispersion on the Internet. Eastern Economic Journal, 33(1), 95–110.
Nunes, P., & Merrihue, J. (2007). The continuing power of mass advertising. MIT Sloan Management Review, 48(2), 63–71
Pecotich, A., & Ward, S. (2007). Global branding, country of origin and expertise: An experimental evaluation. International Marketing Review, 24(3), 271–296..
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Strzelec, P. C. (2011). Online vs. Offline Shopping: Retailers Must Respond. Dallas, TX: CRC Press.
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