chapter 2 human resource planning & strategy · apparently quite irrational. ... technology...
TRANSCRIPT
Ibrahim Sameer (MBA - Specialized in Finance, B.Com – Specialized in Accounting & Marketing)
INTRODUCTION In respect of marketing, and taking the elements of the
marketing mix in turn, some of the changes we now accept
as being standard are as follows:
Product
There is an ever-increasing choice available for purchase.
Manufacturing is safe and hygienic with high levels of
quality control.
INTRODUCTION Price
Intense competition has led to many prices being
stabilised or reduced.
Price transparency is aided by availability of
information on the internet.
Credit and finance facilities make it easy for
customers to buy.
INTRODUCTION Place
There are numerous outlets for products with fast
deliveries.
Products are available for sale over telephone and
computer links.
Growth in e-commerce and therefore the
disintermediation of organisations, i.e. organisations
selling directly to consumers.
INTRODUCTION Promotion
There is a wider variety of media than in the past.
Communications between companies and customers
are now more open.
One-to-one communication through the internet
and email, and the use of data and databases is
common.
INTRODUCTION People
Companies train their personnel on service aspects.
Customer care is now the norm.
Physical evidence
Retail outlets are more attractive and bright.
INTRODUCTION Processes
Shopping from home is now possible.
Ordering and follow-up systems have been improved.
THE CHANGING MARKETING LANDSCAPE
Information Technology
Advances in technology are allowing companies to
manage huge volumes of information in databases.
The greatest growth has been in the world of e-
commerce, made possible by the development and
almost universal availability of the internet.
THE CHANGING MARKETING LANDSCAPE
Information Technology (cont…)
As everyone knows, the internet is an open system that
enables anyone with a personal computer and internet
access to connect to the worldwide computer network
World Wide Web (WWW).
THE CHANGING MARKETING LANDSCAPE
Information Technology (cont…)
Concerns have been expressed in four areas:
Confidentiality of individual information
consumer protection for those purchasing goods
concern over the difficulty of governments collecting
sales taxes.
THE CHANGING MARKETING LANDSCAPE
Changing Social Roles
The one-time typical family unit of husband, wife and two
or three children is becoming much less common as a
higher divorce rate, later marriage and smaller families
reshape the household unit. Yet this family model still
appears to be the format to strive for and is depicted in
many advertisements for household goods and services.
THE CHANGING MARKETING LANDSCAPE
A New Marketing Landscape?
Consumers' tastes have changed more rapidly than
ever before and it is becoming increasingly difficult to
categorise individuals into neat market segments. An
individual may flit between segments depending upon
a whole range of circumstances –some rational, others
apparently quite irrational.
TECHNOLOGICAL DEVELOPMENT
Business in general and certainly marketing in
particular has become more and more affected by, and
dependent upon, technology. Furthermore,
technological progress itself is altering and
accelerating. Technology seems to be developing at an
exponential rate that is at an ever-increasing rate.
TECHNOLOGICAL DEVELOPMENT
The rate of development increases because scientists
and technologists can learn from what has happened
in the past, in a sense they are ‘standing on the
shoulders of giants’.
TECHNOLOGICAL DEVELOPMENT
For example, the digital computer was developed in a
laboratory in Manchester University, England and
since then other people have developed the basic
technology into what we can see today.
TECHNOLOGICAL DEVELOPMENT
Suffice it to say at this stage, that advances in
technology are now beginning to basically change the
nature of marketing and other business and
commercial activities.
TECHNOLOGICAL DEVELOPMENT
So much so that many consider that in as little as ten
years the process of marketing will be changed beyond
recognition compared to today. Some experts go so far
as to say that the traditional marketing model or
‘paradigm’ is no longer applicable in the world of the
Internet and that a new model is called for.
TECHNOLOGICAL DEVELOPMENT
Certainly, at the very least, the modern-day marketer
needs to be familiar with the key advances in
technology, which are at this time impacting on the
marketing process. A summary of the reasons for this,
which captures the importance of technological
advances, are listed below:
TECHNOLOGICAL DEVELOPMENT Advances in technology enable the marketing process to be
carried out not only more effectively but also more
efficiently, computer aided questionnaire design for
marketing research is a case in point. The computerisation
of measuring instruments for advertising research is
another good example. Advances in technology allow the
marketing professional to do more things and to do tasks
better.
TECHNOLOGICAL DEVELOPMENT
New technology increasingly facilitates the ease with
which information, so vital to effective marketing
planning and decision-making, can be collected,
analysed and used. Marketing Information Systems
and the ability to ‘tap’ into internal and external
databases has revolutionised the planning process in
marketing in terms of detail and speed.
TECHNOLOGICAL DEVELOPMENT
Data mining and data fusion are techniques, which
allow marketing research professionals to ‘engineer’
information from a wide variety of sources and even
create ‘virtual’ consumer models from such
information.
TECHNOLOGICAL DEVELOPMENT
Competitive success is increasingly based on the
application of advances in technology. If you take
mobile telephones for example, it is no longer enough
to produce a product that is capable of making a
telephone call. Today people want telephones that can
send text messages; answer e-mails play computer
games and a host of other functions.
TECHNOLOGICAL DEVELOPMENT
Developments in business related technology often
contributes to the growth of the international
company and a move towards the global market and
consumer. Smaller firm’s in particular benefit from
Internet based business technologies as it reduces
their size disadvantage.
TECHNOLOGICAL DEVELOPMENT
Electronic commerce has no geographic boundaries; it
is just as easy to interact with consumers in New
Zealand from the UK as it is to interact with
consumers in the next town. Many firms, in order to
both differentiate their products and reduce their costs
are increasingly using computer-based technology.
TECHNOLOGICAL DEVELOPMENT
Just-in-time ordering and stock holding systems saves
firms millions in inventory and logistics costs
compared with the more traditional way of doing
things in the past. Computers have facilitated the use
of these new systems and processes.
TECHNOLOGICAL DEVELOPMENT Some of the developments in business related computer
technology allow the marketer to be much more customer
focused and marketing oriented with, for example, much
faster and flexible responses to customer needs. The use of
database marketing and data mining have improved the
accuracy and efficiency of many marketing operations
particularly marketing communications such as direct
mail.
TECHNOLOGICAL DEVELOPMENT
The examples given above demonstrate that marketing
management must not only be aware of, but
understand, the advances in technology which are
taking place; otherwise they will not be able to do their
job.
TECHNOLOGICAL DEVELOPMENT
Some marketing firms may even contribute to these
changes, for example, Napster.com has pioneered the
marketing of music on the Internet and many other e-
marketing firms are likely to follow its lead in one way
or another.
TECHNOLOGICAL DEVELOPMENT
Amazon.com leads the way in the marketing of books
and compact discs (CD’s) on the Internet and is one of
the most high profile names in the whole of e-
marketing.
TECHNOLOGICAL DEVELOPMENT
Napster.com and Amazon.com are two examples of
how the marketing firms making use of the new
technology are themselves contributing to the
development of the Internet as a main stream
commercial medium.
TECHNOLOGICAL DEVELOPMENT
These companies are rather like Proctor and Gamble
Limited as they were back in the 1950’s and 60’s when
they pioneered many of the fast moving consumer
goods marketing techniques used today, especially in
the field of branding and sales promotions.
TECHNOLOGICAL DEVELOPMENT
Moreover, the marketer must also be aware of, and be
prepared for, future advances in technology. Marketing
is all about staying ahead of the competition. This in
turn means that the marketer must also have the
required skills to use the new technologies of today
and tomorrow to help assist the marketing process.
TECHNOLOGICAL DEVELOPMENT
Similarly, those organisations whose management and
marketers are unaware of, or unable to, use advances in
technology will become increasingly uncompetitive.
The marketing manager of the future will need an
understanding of the use of technology within the
discipline.
TECHNOLOGICAL DEVELOPMENT
He or she may not need to be a technical expert, after
all these are available as staff, but he or she must be
able to appreciate how they can factor in the use of
new technology into all aspects of their marketing
plans and operations.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
The increasing growth of the Internet as a commercial
medium is good news for business because it provides
such enormous commercial opportunities. The
Internet offers unique opportunities for companies
and customers to communicate with each other via a
mass medium on a new mediated environment.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Business firms and customers are now in positions to
build relationships with one another effectively and
cost efficiently. They can learn on an individual basis
how to satisfy the needs and wants of their customers
by using Internet technologies.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
At the same time, the new medium also challenges
business, because the Web and its relationship
marketing ‘business model’ may conflict with more
established marketing methods.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Using a hypermedia computer mediated environment
(HCME), which is what the Internet and the World
Wide Web actually is, is very different from
conventional marketing media and ways of carrying
out the marketing task.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Firms will need to redefine their businesses in terms of
organisational structure, production, marketing,
communications, sales, after sales services, and overall
strategic planning processes.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Successful web strategies can only be achieved by
embracing the medium proactively and from a
complete organisational point of view. It should be
part of overall and comprehensive corporate strategies
formulated by the top management.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Internet marketing strategies should be integrated
within the entire organisation and it should not be
viewed as simply an additional marketing and
advertising channel. It has opened the immense
opportunities for business people to reach the global
sourcing.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
The Internet will be the most cost effective business
place. It is estimated that the amount of shopping
transactions completed on the Internet worldwide in
the year 2001 will be US $1000 billion. It is projected
that there will be over 250 million Internet users by
2005 and one billion users by 2010.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
There are also new Internet connection products now
available, and one that connects every home television
to the Internet. It is not very difficult to sell products
and services over the Internet. But what is important
for e-marketing success is:
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
What is your site and what is in it? Are the contents
correct for the type of business you are running? Is the
amount and type of information on your site correct
and suitable for the type of potential customer you
hope to attract?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
How big is your Internet budget and how is your
organisation fit for web traffic? Is your firm taking the
Internet venture seriously and does it have all the necessary
facilities in place to handle both the volume and type of
Internet traffic expected? Do you have support lines and
product return strategies worked out? Are there people
who can answer enquires online or off-line?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
What purpose does the Web site have and how do you
justify the Web site? Is the firm clear as to what the
objectives for the Web site are? Is it to provide
information and educate? Is it merely a backup for
other more ‘mainline’ marketing communications
tools such as conventional media advertising?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
What value does your Web site add to your customers?
Is it informative, interesting or valuable from an
operational point of view? For example, can your
industrial customers re order their industrial
consumables from your Web site?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
What do your Web site customers know about the
Internet? How often do they use the Internet? What
do they want to know from your site, and what
Internet connection do they have?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
What goal and objective do you get for your Web site
and who/how are you going to measure, control, and
act on these metrics? How are you going to track
truncations and enquiries etc.? What kind of analysis
are you going to employ in the evaluation process?
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
How to persuade visitors to return to the site
It is important not only to attract visitors to the site
once, but to make them come back often. That is why
it is necessary to keep Web content up to date and
changed regularly. It should be updated or ‘refreshed’
with information and articles.
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Visitors should be given reasons to comeback like
regular articles, newsletters or even a story. It should
be remembered that Web content and Web promotion
is not a onetime affair but an ongoing process to
market and build relationship. Your Web site should
be a place of ‘community atmosphere.’
PRINCIPALS OF SUCCESSFUL INTERNET MARKETING
Internet Web content should have definite project
goals. Internet sites should not be launched due to
internal excitement but as a result of Web site
intention and a corporate marketing plan.
PAST PAPER REVIEW June 2009 / Q 3
(a) Explain why it is necessary for marketing managers to
keep up to date with relevant technological developments.
Illustrate your answer with examples. (13 marks)
(b) Outline the key principles behind successful Internet
marketing. Use specific examples
to illustrate the application of these key principles. (12
marks) (Total 25 marks)
PAST PAPER REVIEW Answer
(a) Refer slides 13 – 34
(b) Refer slides 14 – 52
PAST PAPER REVIEW June 2012
(a) Explain how advances in technology are changing
marketing processes. (8 marks)
(b) Describe how three specific (named) companies
of your choice are using new technology effectively to
market their products. (6 marks) (Total 14 marks)
PAST PAPER REVIEW Answer
(a) Refer slides 13 – 34
(b) Refer slides 14 – 52
Q & A