Marketing Planning Barriers and Ethics - Coursework Example

MARKETING PLANNING BARRIERS AND ETHICS MARKETING PLANNING BARRIERS AND ETHICS Introduction Marketing Planning has been defined as processes relative to the development and implementation of profitable plans to identify and satisfy consumer demands. The primary elements of the market planning process are market research and the planning process respectively. Market research entails collecting and recording customer information with reference to the market, competition, and product characteristics. Through an analysis of the collected information, marketing decisions are made to create and implement effective marketing plans (McDonalds, 1999). On the contrary, ethics is defined as the morally accepted code of conduct. Concerning marketing, ethics can be defined as a branch of ethics that regulates marketing practices for ensured moral uprightness in the pursuit of marketing practices. The aim of this research paper is to identify the various barriers to marketing planning and how they affect different companies. Furthermore, this paper will also study the various measures that can be used to avoid the marketing barriers to success during the implementation period (Brennan ET. Al, 2008). The aim of this research paper is to discuss the various ethical issues in marketing planning, marketing practices, and how these ethical issues influence market planning. In this research paper, I will also focus on my reflections on the daily marketing practices with the reference company being McDonalds. McDonalds is a company that has specialized in the production of fast food on a global basis (Brewster and Harris, 2004). Barriers to Market Planning From the cognitive level, market planning looks very simple. As a result of over-emphasis on academic work, the majority of the marketing officials lack applicable practical skills or the relevant knowledge to be in marketing planning. It is thus hazardous to engage a marketing executive in marketing planning without the appropriate skills and knowledge in using the marketing planning tools. The different marketing planning tools include information, positioning, product lifecycle analysis among others. On the contrary, due to information overload, most companies usually fail to carry out comprehensive and detailed analysis. When entering foreign markets, McDonalds have been forced to carry out extensive research and in-depth market analysis as a way of ensuring smooth entrance and transition into the market. When McDonalds entered the Middle East market, McDonalds had to adapt their food preparation methods to the cultural setting of the Middle East. Pork products had to be done away with while the meat had to be stamped halal for as a means of credibility and authenticity. Organizational barriers have also been identified as barriers to marketing planning. The most common organizational structure is on specific corporate functions such as human resource, accounting and finance, sales and marketing, sales and logistics among others. A majority of these organizations are administered using mechanistic management systems. In the mechanical management system, decision-making is a managerial responsibility and does not involve employees who are low in the administrative hierarchy (Sethna, 2013). Lack of systematic In the marketing planning process, different firms utilize different types of planning systems that range from highly informal to formal ones while the degree of autonomy depends on the organizations size and developmental stage. The senior management’s role is to concentrate on lower level management in order to enhance effective marketing planning (Paul and Houston, 2003). Research has also identified environmental factors as barriers to marketing planning. The different environmental factors that are likely to affect any business include demographic, economic, technological, socio-cultural, and legal-political. Demographic factors involve the market’s composition, tastes, preference, and existing trends among others. Economic factors affect the purchasing power of the present and potential customers thus it directly affects respective sales and profits. Technological factors are an important asset in the attainment of competitive advantages. This is because technical factors reduce barriers, production costs, and product effectiveness. Technology affects the manner in which businesses operate. Legal-political factors are of set down government regulations and legal issues that emerge from both formal and informal issues. Socio-cultural factors affect the organization since it has to adapt its production and standardization practices towards the market’s lifestyle and values. Any form of inaccuracy concerning market values makes a product obsolete (Baker and Hart, 2008). A majority of firms confuse between marketing tactics and strategies have also been identified as a barrier to market planning. For instance, most production companies will focus on producing goods that they quickly sell with minimum requirements in terms of costs, as well as the least line of resistance. Through the development, the only short-term tactical marketing plans then extrapolating them. This makes the managers only to elongate their shortcomings since the short term plans are likely to fall eventually. Failure in prioritizing objectives has also been identified as a very significant marketing planning barrier. As a result of failures in prioritizing, managers are sucked up and stuck into the day to the day tray syndrome. Through the prioritization of objectives, the managers can optimize the existing conditions such as market conditions and minimize the costs. As a result of lack of prioritizing, the company is on less important objectives that are less profitable at the expense of valuable ones. This leads to losses through high costs and unfavourable conditions hence becomes a market planning barriers (Brewster and Harris, 2004). McDonalds has been able to achieve proper marketing planning through prioritizing of objectives. It is evident from McDonalds’ activities and mission that their primary goal is the satisfaction of customers through the provision of value which they have succeeded in providing. Other goals such as profit making and cooperate social responsibility have played second fiddle (Brewster and Harris, 2004). Different solutions have been as methods of minimizing marketing planning barriers. An effective way of reducing the lack of knowledge and skills as a barrier towards marketing plan is through proper and effective recruitment processes. McDonalds has ensured adequate knowledge and skills by offering its staff additional training to cater for deficiencies in knowledge and skills (Peter and Donnelly, 2002). Lack of in-depth analysis as a marketing planning barrier has been minimized through different ways as follows. Managers should be encouraged to incorporate marketing tools in their audits and extensive research. Furthermore, the marketing audit should be a required activity and managers should not be allowed to hide their failure behind general terms such as poor economic conditions (P.J and Charnov, 2000). McDonalds have been able to overcome the various organizational barriers through the setting up of effective corporate and work culture. McDonald’s culture is based on teamwork, leadership and team building. Furthermore, McDonalds work culture is dependent on particular line managers at different points who have made operational flow an overall team responsibility rather than a personal one (McDonald, 1996). Organizational barriers can be through the adoption of organic management practices. This is because the organic management system is flexible in decision-making and decision-making is based on unanimous decision-making. In the recent years, McDonalds has adopted an organic management system to enable smoothness of marketing planning and decision-making. Furthermore, McDonald has taken a systematic and organized market planning as a way of overcoming this marketing planning barrier (Slotegraaf and Dickson, 2004). While entering the Asian market, McDonalds was forced to observe the Muslim Sharia laws while preparing food. Furthermore, during the holy month of Ramadhan meal preparation times had to vary. The different environmental factors have different effects on the marketing planning process. The environment should be from environmental barriers that act as barriers to marketing planning. In addition, relevant information should be submitted. The mention activities may help to ensure that the information presented is in synchronization with the environmental needs (Bush and Venable, 2000). An appropriate way of minimizing marketing confusion between marketing tactics and strategy as a marketing planning barrier is through the development and strict observance of a strategic marketing plan. This involves a broad scan of the external environment and identification of forces coming out of then developing appropriate strategic responses. The strategic plan should cover a longer period and most probably between 3 to 5 years (Baker and Hart, 2008). The other appropriate technique of minimizing failure to prioritize as a marketing planning barrier is through establishing and strictly adhering to a strategic plan. This ensures that objectives are achieved in the respective order of their prioritization, organizational impact, urgency, and allocated resources (Baker and Hart, 2008). Ethics Ethics has been previously defined as the moral principles that govern a company’s actions and decisions. In the marketing process, a company has ethical obligations towards different groups. These groups include customers, employees, shareholders and other shareholders. There are very many ethical issues that affect the marketing planning process of McDonalds’ food chain. Concerning the marketing principles, ethics is towards fairness and moral uprightness (Brewster and Harris, 2004). In the modern day marketing planning, ethics plays a very significant role as a result of customer enlightenment and the rise of several endangered groups among others. In the event of preparing marketing plans, several ethical considerations have to be made from different perspectives. Through the designing of advertising as a promotional tool, McDonalds’ has to ensure that it does not portray any sensitive or injurious information (Dibb, Simkin and Wilson, 2008). This information may be through explicit sexual potency or offensive messages. Since McDonalds is a multinational corporation, advertisements should observe sensitivity with reference to the native countries cultures (Brewster and Harris, 2004). On the other hand, McDonald’s food chains respond to the different ethical obligations through its corporate social responsibility programs (Baker and Hart, 2008). Since the consumer is the cornerstone of the marketing processes as well as marketing plans, consumer ethics make direct and indirect impacts of the marketing plan. The marketing principles vary depending on the different countries as their cultures and attitudes are different too. This makes McDonalds flexible to the changing consumer ethics. In any organization, employees are an invaluable asset in the pursuit of its goals since they are the force that converts its strategic plans into the desired outcomes. The company is thus expected to be ethical in the treatment of its employees. With respect to the above. Ethical considerations have to be in the marketing planning process. This implies that all the human resource management practices have to be ethical in nature. The relative ethical practices in the marketing planning include the proper allocation to avoid exploiting employees, the use of diligent and integrity exercises in the hiring process among many others. McDonalds should conduct prior background checks to avoid employee exploitation. Cases of employee exploitation have been reported in the past from McDonalds’ excessive use of immigrants in their food chains. Although they saw it as a means of minimizing costs, it was unethical through denying employment to the locals. Furthermore, the conduct of managers, supervisors, and other employees is also considered a key indicator of the effectiveness of the business ethics program. This is through proper compensation and motivating practices. This affects marketing planning since it should be in the marketing plan (Baker and Hart, 2008). Effects of Shareholders and other Stakeholder’s Ethics on Marketing Planning Shareholders are the considered the owners of an organization since they have a direct claim on the organization’s resources. The shareholders significance to the organization is through investing by buying stock. The shareholders motivation is profit making through the purchased shares and returns are in the form of dividends. The ethical provisions require that the shareholders be correct financial statements as well as profits obtained. Shareholders’ ethics requires that dividends payments should be in the marketing plan (Karma, Hansen and Juslin, 2003). The other relevant stakeholders include the Government, the general community, creditors, debtors, and suppliers. McDonalds should comply with the ethical laws by observing the relevant legal regulations in the different countries (Jobber and Ellis-Chadwick, 2012). Creditors and suppliers ethics mandates that they should be of their accumulated dues that would be included in the marketing plan. In case of deficiencies in the production, marketing planning would ensure that provisions are, and payment delivered. McDonalds also has other ethical responsibilities towards special interest groups such as women and colored people by including them in their employee staff. It should be incorporated in the planning as it acts as a credible customer attraction (Karma, Hansen and Juslin, 2003). Conclusion From the research data, it is clear that marketing planning is not a simple step by step approach as described in several other texts but a complex organizational and attitudinal process. The different marketing planning barriers in this paper provide an excellent marketing planning process that highlights all the significant advantages such as the creation of competitive advantage. On the other hand, ethics has been found to play an imperative role towards marketing planning and an ethical obligation to the different groups. Reference List Baker, M., & Hart, S. (2008). The marketing book. Routledge. Baker, M., Walker, O., Mullins, J., Boyd, H., Larreche, J., Cravens, D., and Simmonds, K. (1996). 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Journal of the Academy of Marketing Science, 32(4), 371-385. Read More