Đề tài Marketing management holistic marketing

ionship marketing………………………………………………………………..05 Integrated marketing…………………………………………………………………..06 Internal marketing……………………………………………………………………...08 Social responsibility marketing………………………………………………………..09 Conclusion- Marketing Challenges into the Next Century…………………………..11 References……………………………………………………………………………….12 Introduction In 21st century, the booming of communication technology and the growing so fast of internet all over the world has been bringing a big opportunity as well as challenge for marketer. As we all know, we can not sell product without marketing. In previous centuries marketing simply means bringing product’s information to customer, and then it was growing with advertising and promotion. However, when the attitude and acknowledgement of customer is increasingly higher, marketer has to thinking wider and deeper. The term “Holistic marketing” was born. According to Maria Annette (2009), the holistic marketing concept is based on the development, design, and implementation of marketing programs, process, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that “everything”. Holistic marketing concept consists of four components: Relationship marketing, integrated marketing, internal marketing, social responsibility marketing In this assignment, come along with some cases in reality, I will explain more about holistic marketing concept and how it works in 21st century. Holistic marketing –Everything matters Maria Annette (2009) has declaimed there are many marketing strategies that marketer is trying to apply everyday. Some of these strategies work out and bring profitability but others have expected more aspects. We can see that even some certain strategies seem to be success but it is still missing something from the whole experience. When marketer recognize that they need more different strategies that invigorates their mind and their marketing style, then they come to Holistic marketing. Holistic marketing is a very effective way to use for any company, any product whether you are a marketer, an analyst, or a consultant. One of the first most important things of holistic marketing is looking to your inside to figure out what is going on and what are your strength as well as weakness. Another step that you need to consider the common between you and your potential client, then find out what will make them satisfied and how to create their trust. Holistic marketing is not about to trying to sell product but it is an understanding client’s feeling and make them feel comfortable when they working with you and satisfied after buying your products. When there are more than two people involve in your marketing plan, it is important making sure that everybody takes part in it. Marketing can be embraced everybody can enjoy it. Using the concept of holistic marketing, many business owners find out the way to meet customer’s need without forcing others but to make customer recognize their product’s value. In 21st century, internet plays a very important role in this style of marketing. The marketer can easily bring information of their product to customer with only one click of mouse. The technology boom has created exciting new ways to learn about and track customers, create products and services tailored Co meet customer needs, distribute products more efficiently and effectively, and communicate with customers in large groups or one-to-one. (Kotler 1999, p.26) Then, on the naturally way, customer can decide what to buy and when they ready to buy. Holistic marketing help the marketer can promote their products with out being inauthentic or pushy. Holistic marketing concepts Relationship marketing The focusing on the long-term relationship with all people involved in your business. Who are people here? First, there must be your customer. Create a good relationship with potential customer is a most important purpose of marketer. Philip Kotler and Bruce Wrenn (2003) in “Marketing Essential” from Harvard business school press has declaimed that to create a perfect relationship with customer, a marketer has to understand customer. As Peter Drucker said: “The whole business seen from the customer’s point of view”. The marketer has to know what customer need, what customer want, what is customer’s demand, and then satisfy them. With new ideas of model concept, in relationship of customer, building a long-term relationship with loyal customer is a key of success. Frederick Reichheld (1996 cited on Philip Kotler and Bruce Wrenn, 2003) claimed that with only a little forcing in customer loyal bring even double profit because of three reasons: it costs less to serve long-term customer, loyal customer will pay a price premium, and loyal customer will generate word-of-mount referrals to other prospective customer. If many years ago, old marketing concept just focused on the relationship with customer, then now, the model marketing relationship is wider and deeper. There are relationship marketing that marketer has to pay attention: employee, distributor, supplier, financial community, and other marketing partners. Relationship with employee is hiring, training and motivating. Hiring with carefully selection, training with multi-level of aspects, and motivating in a right time will create an effective system. When everybody knows how to do their job and deliver it on time, there is a human resource that marketer need if they want their product or service is on the first of the list in a very competitive market. Keeping a good relationship with supplier and distributor helps marketer collect more customer. Because marketing is not just try to sell more, but it is about understanding customer and help them meet the value of what you want to sell. Financial community includes shareholder, stakeholder, investor, analyst, etc. Once your financial of your company is healthy, it is not only helping your company express many marketing forces but also creating customer’s trust. In a point of view, all that a company need in relationship marketing is creating a marketing network. In 21st century, with the help of information technology, creating a marketing network becomes easier than ever. With thousands information of customer on internet, marketer can easily create a list of customer which is divided to many different groups. With website, marketer can access and get information of supplier and distributor they need easy than ever. If many years ago, investor has to waiting for so long to get a financial statement of a company, now they can easily get it with one click of mouse or get an email. Kotler (1999, p.27) had given some examples that companies have made an achievement with website: Car makers like Toyota (www.Toyota.com) use the Internet to develop relationships with owners, as well as to sell cars. Its site offers product information, dealer services and locations, leasing information and much more. For example, visitors to the site can view any of seven lifestyle magazines - alteration, A Man's Life, Women's Web Weekly, Sportzine, Living Arts, Living Home and Car Culture - designed to appeal to Toyota's well-educated, above-average-income target audience. Sports fans can cosy up with Kike by logging on to www.nike.com, where they can check out the latest Nike products, explore the company's history, download Michael Jordan's latest stats, or keep up with Tiger Woods' latest movements. Through its Web page, in addition to its mass-media presence, Nike relates with customers in a more personal, one-to-one way. Integrated marketing It is about to integrate all your marketing activities and processes. The purposes are creating value and delivering it to customer. The famous concept of integrated marketing is the marketing mix by McCarthy (1960). McCarthy condensed the number of variables in a marketing mix into four principal categories: Product: select the tangible and intangible benefits of the product; Price: determine an appropriate product pricing structure; Promotion: create awareness of the product among the target audience; Place: make the product available to the customer. It is somewhat simple, first you have to determine what is character of your product that customer want and need. Another way to say, that you have to create a value of your product or service. After that, you have to determine a reasonable price that can acceptable by customer but also create profit. When you have a product and its price, all you have to do is think about how to let customer know your product and forcing them buy it, called promotion. Once customer know your product and want to buy it, finally its time for you to place your product or service, make it available to the customer. Chai Lee Goi (2009) had a full fill research about marketing mix of McCarthy. He found out that many analysts have considered the advantage of this model. Marketing mix has been extremely influential in informing the development of both marketing theory and practice (Möller, 2006 cited in Chai Lee Goi, 2008). The main reasons the marketing mix is a powerful concept are It makes marketing seem easy to handle, allows the separation of marketing from other activities of the firm and the delegation of marketing tasks to specialists; and – The components of the marketing mix can change a firm’s competitive position (Grönroos, 1994 cited in Chai Lee Goi, 2008) Nevertheless, in the same research, Chai Lee Goi (2009) also pointed out this model is out –of- date in a century that a lot of change, chance and challenge like 21st century. However, in the post dot-com boom, marketing managers are learning to cope with a whole host of new marketing elements that have emerged from the online world of the Internet. In some ways these new marketing elements have close analogs in the offline world, and yet from another perspective they are revolutionary and worthy of a new characterization into the E-Marketing mix (or the e-marketing delta to the traditional marketing mix) (Kalyanam and McIntyre, 2002 cited in Chai Lee Goi, 2008). Patrick R. Barton (2003) claimed that the four Ps was particularly useful in the early days. However, with a new concept of holistic marketing, the integrated marketing is wider and deeper with variety of products and markets, some marketers have attempted to extend its effectiveness by giving a fifth P such as packaging, people, process, etc. There are many improvements from this basic model; one of this is the four Cs of Robert F. Lauterborn (1993): Place becomes Convenience Price becomes Cost to the user Promotion becomes Communication Product becomes Customer needs and wants Borden (1984) also developed the marketing mix to a higher concept that It was logical to proceed from a realization of the existence of a variety of "marketing mixes" to the development of a concept that would comprehend not only this variety, but also the market forces that cause managements to produce a variety of mixes. It is the problems raised by these forces that lead marketing managers to exercise their wits in devising mixes or programs which they hope will give a profitable business operation. Gabe Chesman (2009) gave a great example of integrated marketing campaign. It is CNN. It could not have been easy figuring out how to maintain interest in a 24-hour news channel. Even after creating a steady audience, how could people ever feel engaged? It was imperative to lose the "talking head" Walter Cronkite stigma that news broadcasts emanate. In essence, keep everything the same but different. The product of constant research is the almighty CNN we know today. He gave ten aspects that CNN has changed to adapt a new challenge of new century. Some points that I can highlight such as: A cutting-edge website (CNN.com) filled with today's social media technology, a twitter feed - CNN constantly updating with breaking news "tweets", CNN Mobile for news on cell phones or Multi-lingual options for non-English speakers. Internal marketing Internal marketing is a process that the management board has to make sure that everybody involved has to be take part in a job. It is all about leadership. The process involves hiring, training and motivating. Lloyd M. Field (2007) has given a full-fill internal marketing process. Its beginning with recruitment state, then orientation and training, next is communication, and finally is recognition. In recognition, he pointed out that “The cost of the award is less important than the prestige associated with winning it.” Explain for this point he discussed: A plaque or gift is a symbolic representation that serves as an ongoing reminder of things done right. Team clothing, watches, or mugs can be displayed with pride to improve feelings of belonging. Lunches or dinners can make the employees feel special and important. Giving cash is nice, but the effect usually lasts only as long as the money does. Marketing process required all people involve have to embrace and develop it. It is not only how you lead your team but also how you inspire people to do their job- satisfying customer. Satisfied employees beget satisfied customers. Internal marketing comes at the problem from a different organizational perspective. Rather than focusing on end customers and their needs, internal marketing assumes that employees and their requirements and activities are what really drive successful, ongoing businesses. (Don E. Schultz, 2004). Company culture, employee behavior and work environment is some of components that a marketer leader has to be concerned. Taylor and Cosenza (1997 cited on Cheng-Ping Chang and Wei-Chen Chang, 2008) thought that internal marketing practices could efficiently decrease employee turnover and high relevant expenditures. First, a company should implant the thought of internal marketing into the company’s culture, and transfer the organizational atmosphere and culture through employees’ behaviors. Then the company should offer employees a training plan, durative support, encouragement, empowerment to make decisions, good interaction, encouragement to bring forward innovative thoughts, and measurement to improve any problems. Internal marketing has a very close relationship with marketing orientation. Ioanna and Doikakis (2002) give the relationship between internal marketing and marketing orientation: At the heart of marketing orientation is customer focus, which is demonstrated when the organization recognizes that the central driving force behind its activities is the customer. In order to achieve successful internal exchanges between the organization and its employee groups it is vital to treat the needs of employees and customers with equal importance. Achieving both employee and customer satisfaction will enable the organization to move closer to the achievement of its objectives. Richard and Barbara (2000) claimed that there are two levels of interaction. The lowest level is action level. Internal action involves all kind of exchange elements, and not only social contacts. Internal action can be a telephone call or an email message to another employee or management. In the higher level, its can be a report to distribute to another department or higher project. The next level I episode level. An internal episode example can be all telephone calls and meetings related to specific problem. All the telephone calls and meetings that are connected to solving a problem serve to build up the episode. Social responsibility marketing The social responsibility marketing is the recognition of marketer about social welfare problem. It includes ethical, legal and and environment. Maria Annette (2009) claimed that many company has practiced in higher social responsibility such as: Rising customers' expectations, Changing employees' expectations, Govt. Legislation & pressure. Investor interest in social criteria. Changing business procurement criteria When running a business, as always, profit is a final purpose. The responsibility of a marketer is not all about profit but also a caring about social, people and environment. It is ethical. Richard, John and George (2004) had discussed about how business versus personal ethics: From this viewpoint, business ethics have as their basis a competitive, possibly hostile, grounding. Personal ethics are, conversely, based upon the need for supportive, peaceful co-existence between individuals. A system that is based on individual behavior and focused on the similarity of needs and wants among its people would have little need for business ethics. Under such a system, the term "business ethics" would be meaningless. Kotler (1999, p43-60) had discussed about social criticism of marketing. He also involves marketing’s impact on individual customer, society as a whole and other business. One of the most important part involves in ethical responsibility is Human rights. Georges and Patrick (2008) gave a truth about human right in a century of globalization: Traditionally, it was up to specific countries to make sure that the human rights codified in international declarations and conventions were incorporated into national laws and enforced by national governments. However, in the process of globalization the relationships between government, business, and civil society have changed considerably. The power of multinational corporations has increased dramatically. Nongovernmental organizations have multiplied, become more vocal and applied more pressure. Companies operate within the law of the country, and they must involve the employees with the acknowledgement of law and how to embrace them. In Europe, for instance, law regulates some aspects of social responsibility. Within a legal context there is an increasing awareness that the pursuit of profit alone as the purpose of a company’s activity might harm other groups in society and create more harm than good to society overall. Nevertheless, the views of the Germans, where a company’s level of social responsibility is evaluated on the basis of its legal record, differ markedly from those of the British or of the Mediterranean countries (Broberg, 1996 cited in Peggy and Albana, 2007). Marketing links the organization and its markets in a societal context. The role of satisfying customer’s need and create profit is the core of marketing concept as well as a core of the market economy. Marketers concern the phrase “Green marketing”. Environmental or” green marketing” has been seen as a tool towards sustainable development and satisfaction of different stakeholders (Jari, Eric and Heikki, 2006). Peattie (1995, cited in Jari, Eric and Heikki, 2006) defines green marketing as” the holistic management process responsible for identifying, anticipating and satisfying the requirements of customers and society, in a profitable and sustainable way”. Lacica (2010) gave some examples of social responsibility has done right, one of them is the case: Molson Coors & responsible drinking Over the years, Molson Coors Canada has used CSR to advance its brand — and is one of the few major corporations to take advantage of social media in doing so. (Shel Israel wrote about Molson in his book Twitterville.) As Beth mentioned yesterday, Molson Coors invests more in responsible drinking education than on alcohol-centered events. Molson reaches out to the community to find ways to spread the message of responsible drinking, putting money behind the TaxiGuy program (for those who’ve had one too many) and covering the cost of free public transit on New Year’s Eve. Shel recounts the story of the holiday season of 2008 when the Toronto Transit Authority canceled its New Year’s Eve free-ride transportation because of budget cuts. Molson stepped in and launched a campaign to replace public funding with private sector donations, starting with its own $20,000 donation. Molson has a small social media team led by Ferg Devins, who is not only responsible for selling beer but for outreach to communities in need. The team uses Twitter and blogging to initiate community generosity projects. As the population and living standard are growing so fast, environment issue becomes emerged than ever. A marketer have to concern not only how to create profit but also caring about the environment. A famous case about the environment responsibility in Vietnam is Vedan case. Tran Dinh Thanh Lam (2008) has report The rising level of pollution in Vietnam’s waterways has been common knowledge for years. But in October it became a public scandal after Vedan, a Taiwanese maker of monosodium glutamate (MSG), confessed to discharging toxic waste through hidden pipes into a river for years. "The river used to be clean and full of fish," said Tran Bach, 67, who has lived for his entire life in Long Tho, a village on the bank of the Thi Vai river, the waterway at the centre of the scandal. Fifteen years ago, he says, he could catch about 50 kg of fish per day, enough to support his family of five. "With too many factories built along the bank, the river is now so dirty and polluted that we can no longer drink its water or catch any fish from it," he complained. "Now, the riverbed is full of waste and it has become narrower and shallower." In the report of Vietnam ministry of natural resource and environment claimed that Vedan has to give a big amount of compensation for farmer: Last week, Vedan Viet Nam sent letters to local authorities, recommending an increase in the total compensation rate for all farmers in the three localities from VND25 billion (US$1.3 million) to VND130 billion ($6.84 million). Of that total amount, VND30 billion ($1.6 million) would be given to farmers in HCM City, VND40 billion ($2 million) to Ba Ria-Vung Tau Province, and VND60 billion ($3 million) to Dong Nai Province.HCM City Farmers Association on Monday told the cities Party Committee that the rate should be VND45.7 billion, quoting an estimate by the Institute of Environment and Natural Resources. (V.N.S, 2010) Conclusion- Marketing Challenges into the Next Century Kotler (1999, pp 24-30) discussed that marketing in new century has faced to many new challenges. They are: Growth of Non-Prof it Marketing The Information Technology Boom Rapid Globalization The Changing World Economy The Call for More Ethics and Social In my opinion, I believe that the information technology boom with the growing of internet, the globalization and the call for more ethic and social is the three main problems that marketer has to pay attention the most. Marketing is not only science but also an art. When a marketer knows how to embrace their job to people and inspire them with the true value of product or service, the result is not only the profit but also the admiration and the trust of customers and partners. References Borden (1984) The concept of marketing mix. Volume 2, pp 3-10. Available from [Accessed on 25 August 2011] Chai Lee Goi. (2009) A Review of Marketing Mix: 4Ps or More?. Volume 1, pp 1-10. Available from [Accessed on 24 August 2011] Don E. Schultz, (2004). Building an internal marketing management calculus.[Online]. 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