Principles and Practice of Marketing - Assignment Example

Running head: MARKETING PLANNING 17th March Question 3.2 Importance of strategic marketing planning and strategic planning process Strategic market planning is the process that is used by the firms and businesses to compete. Competition in an open market economy is stiff and this is the reason why strategic market planning is needed. Strategic planning process is the measures that a business takes or defines its objectives. After defining the objectives or the mission, environmental scanning is conducted that later leads to strategy formulation and strategy formulation. Lastly, evaluation and control are conducted. Tactical marketing planning is the actions that are taken so that implementation is done. It implies that a number of tactics can be considered so that the objectives and missions of the business can be attained. Marketing planning is essential in the strategic planning process for an organization, since it provides direction in the firm and outlines the goals of organization that are measurable (Jobber, 2010). The day- to-day decisions of the business depend on the marketing planning and strategic planning process (Young, 2010). This is based on the fact that the firm is prone to changes and it has to progress with its daily routines. The approaches to move forward must be planned and to accommodate change in the firm strategic decisions or planning must be incorporated. Marketing planning helps the managers and directors of the business to efficiently allocate the resources available in an optimum manner so that the goals set can be attained. Risks may occur when the business is operational and other uncertainty and if the market plan was emphasized, then tactical marketing planning may be employed to cater for the risks and other form of uncertainties. In conclusion, marketing planning is essential in the strategic planning process for an organization since it gives the organization the go ahead. For example, a firm can identify the tactics that can be applied to outdo the competitor. It also gives the management of the organization a chance to plan for the present and future strategies. Question 3.3 8 stages of product development The process of developing a new product in the market entails various important stages. The stages for new product development are discussed below. Stage 1: Idea generation The first stage of product development is to come up with the idea of the product that will be established in the market. It is important to consider whether the product is already in the market or a new entrant in the market. Market research must be conducted so that market sources like the consumer wants, dislike and competition among others can be known. Stage 2: Idea screening Since the company may have a lot of ideas concerning the products that they need to develop, it is critical and recommendable to choose an idea that is best and reject the bad idea (Rawls, 2008). If accidentally a company accepts an idea that is bad, it implies that resources are going to be wasted, technology that they borrowed is wasted, time and most of all energy also lost. It is recommended to accept an idea that is beneficial to the firm. Stage 3: Concept development After accepting the best idea then it is important to consider some values, for example if the company is producing maize floor that has high nutrients. The business has to consider whether to introduce maize floor that is tasty or rich in nutrients. The best value is selected Stage 4: Market strategy development The marketer in this stage has to decide the marketing strategy that should be employed. For example, whether to launch products and services in a certain area or consider mass marketing. Stage 5: Business analysis The marketer in this stage has to consider whether the products developed are going to attain the expected profit. If the product will not make profit then they have to search for another product. If the product will make a profit, then the marketer can move to the next stage. Stage 6: Product development In this stage the researchers and the development team comes with a physical product that is subjected to functional test and consumer test. Functional tests are carried in the laboratory to make sure that the product is fit for human consumption (Benson, 2003). On the other hand, consumer tests are conducted by bringing the customers or consumers in the laboratory to witness that the products are fit for consumption. Stage 7: Test marketing Test marketing is conducted so that the marketer and developers can know how the market is, that is its size. In this stage, the product is ready for launching and it can be given the brand name and be packaged. Stage 8: Commercialization Commercialization is the last stage and thus launching of the product is done. The developers and the marketers must have answers to why they are launching the product? When launching will be done? Where it will take place? In conclusion, new product development is an innovative approach that an organization has to come up with. To satisfy the consumer needs, new product must be developed in the market. To develop a new product in the market, the needs of the customer must be considered and thus market research must be conducted in the target market. Question 3.5 Explanation of how factors affecting effective implementation of the marketing plan have to be taken into account. Organizations have been affected by effective implementation of marketing plan. To solve the challenges organization considers what should be taken into account to effectively implement marketing plan. Factors affecting the effective implementation of the marketing plan have been taken into account by setting a favorable organizational climate. Favorable organizational climate implies that the internal and external environment of the organization must co-operate as one entity so that goals can be attained. Commitment and dedication of the stakeholders in the organization must be considered so that effective implementation of the marketing plan can be achieved. When favorable organizational climate is put into account, it implies that the purpose of the organization will result to achieving of the goals. The top management should play a critical role by ensuring that favorable climate in the organization is attained so that the stakeholders can implement the marketing plan without challenges. The second factor affecting the effective implementation of the marketing plan that should be taken into account is developing appropriate operating plans. Action plans that are placed in the organization are important and should be considered so that strategic results can be attained. Appropriate operating plans imply that the management and the stakeholders must focus on factors that are important to the organization. For example, when allocating resources or budgeting, factors which are likely to result into the success of the organization must be allocated larger share than the others (Sharpe, Philip, 2000). The third factor that can be taken into account for effective implementation of marketing plan is to develop the right organization structure. It is important to consider how various parts are related or connected in the organization. If various departments in the organization can work together as a team without considering the delegation of duties, then it is possible to come up with one organizational structure. It facilities smooth work flow in the organization resulting to a good marketing plan that leads to attainment of mission and vision of the organization. In conclusion team work plays a major role in ensuring that goals of the organization can be attained. Managers must corporate with the other stakeholders to ensure that delegation of duties is done in team work to effectively implement marketing plan. Question 4.1 In their operations, organizations must emulate proper marketing ethics. Marketing ethics refer to the basic principles that govern business practices during the promotion and advertising of its products to the consumers. Explanation of how ethical issues affect marketing planning In marketing, ethical issues can be found in areas of advertising, personal selling, suppliers, contracts and pricing. Marketing ethics refers to the basic principles as well as values that govern the business practices of organizations or individuals involved in promoting products and services to the consumers. Notably, marketing ethics deals with moral principles during the marketing process. Companies cannot claim to uphold ethics if it ignores some unethical practices by its suppliers for example using child labour, production in sweatshops, violation of the basic rights of workers, and ignoring environmental standards. Substantive domain Substantive domain is the relationship that exists between the consumer and the organization that is based on the mutual respect and trust. Good relationship between the customer and organization should exist where fair dealing and good faith are supposed to be exercised. Substantive domain is not only an ethical requirement but also in some countries it has been legally set as a law. Substantive domain implies that consumer and organization should carry transactions in good faith and mutual trust should exist. For example, in case where the organization is charging the product and services at high prices that are not reasonable and standard, it means that good faith and trust are not exercised. Legal approach can be used to enforce marketing ethics so that the prices are set to be standard. Historical development of marketing ethics The history dates back early in 20th century when antitrust and consumer protection were not considered in the market. The prices of the commodities kept on changing and the products being altered. In 1960s, individuals such as Aristotle condemned business activities that were characterized by greed and unethical behaviors as unjust and not fair to the consumers (Giesler, 2014). Campaign to ensure that market was fair and just to individuals were started and individuals were sensitized about the marketing ethics. The key philosophers that were under business ethics were John Locke, Adam Smith John Stuart and G.H.F. Hegel. They were concerned with fairness and justice in the market (Smith, 1999). Ethical issues affect organization both positively and negatively. On the positive side, it results into higher revenue, improved brand image, employees’ motivation and new sources of finance from ethical investors. The demerit of ethical issues on the other hand includes higher costs and overheads as well as the danger of building up false expectations. In conclusion, substantive domain should be set as a law to ensure that mutual respect between an organization and customers exists. Ethics in business should be the key point to consider since fairness and trust is needed. Question 4.2 Explanation of how organizations respond to ethical issues Organizations respond to ethical issues differently. For example, some may opt to terminate the services of employees or suppliers who engage in unethical practices. A good example was the UK clothing firm, Primark which fired 3 Indian suppliers due to the use of child labour to finish goods. Other businesses can seek the intervention of the government when they realize that their competitors are using misleading information to lure their customers. For example, as the result of exaggerating price cuts in 2013, Britain’s six biggest carpet, bed and furniture chains were investigated by Office of Fair Trading. Similarly firms deal with ethical issues by developing codes that should be followed by all the stakeholders. For example the UK Marketing Association code is focused at ensuring that businesses undertake their marketing practices in an ethical manner. The reason why an interview is conducted in many companies is to respond to ethics standard. If ethics is not considered in the company, it implies that discrimination and other unlawful practices will exist in the company. Interviews play a critical role since one is employed based on the merit and competence. Tender applications should be advertised publicly to ensure that all the interested parties can apply. It is an ethical practice when individuals are given the opportunity to apply while hindering others (Sullivan, 2003). Companies should promote ethical practices and genuinely allow the entire participants to exercise their right. When companies pay taxes to the government, it is an ethical practice which companies should respond to. Failure to pay tax means that the economy of the country will shrink resulting to underdevelopment. Payment of tax is legalized by the government and failure to do so is violation of law which is unethical. When the managers are investigating on issues that affect the interest of the stakeholders, which is an ethical practice that should be encouraged. When managers fail to investigate something knowingly, it implies there is a gross negligence which is a violation of ethics and legal duty. In conclusion, ethical issues like child labor are not encouraged in companies. Over working of the employees is not ethical. Tax should be paid and evasion should not be done and discrimination in work place should be practiced. Question 4.3 Examples of consumer ethics and their effect on marketing planning Consumer ethics aims at raising awareness to the consumers of abuses that may be done by corporate in their marketing and production process. Consumers may take action against businesses if they consider them to be undertaking their operation in unethical manner or if they act irresponsibly. On the other hand, consumer action can be positive and support the businesses that portray strong ethical stance and record. Consumers are also concerned with animal rights since the product may be harmful or be tested on certain animal. This is one of consumer ethics that should be considered since consumers purchases depend on the behavior that is portrayed when purchasing (Kimmel, 2007). Purchasing behavior of the consumer has an influence to the marketing planning since the goals of the organization may not be achieved. For example, when consumers boycott the product due to high prices set, it will lead to low sales and profit to the company. During their marketing planning, firms should consider their consumers’ ethical issues. This is based on the fact that the products and services for example being used in the advertisements should ethically fit on the eyes of the consumers. Morality in the market should be considered since it is another factor that can influence on marketing planning. If the products that are offered by the company are of low quality or do not meet the consumer’s requirements, it means that the consumer in conjunction with other groups may boycott the products. It also implies that the morality of the consumers must be considered so that they can enjoy strong positive relationship with the brand. For example in California, consumers who were used to grapes boycotted the grapes since the grapes did not meet their requirements (feelings) and additionally, the workers were being mistreated resulting to the boycott. It results to the marketing planning changing the goals. The goal could be expanding to other geographical areas or producing nutritious grapes rather than tasty one. It means that the company products are rated to be low and thus it is not accepted in the open market economy. In conclusion, consumer ethics is concerned in raising the awareness of consumer abuse. For example, when product and services prices keep on fluctuating, it implies that this is abuse of customer ethics which should be considered. References Benson, D. 2003. Lateral marketing: New techniques for finding breakthrough ideas. Hoboken, NJ: Wiley. Giesler, M. 2014. Creating the Responsible Consumer: Moralistic Governance Regimes and Consumer Subjectivity. Journal of Consumer Research 41: 849–867. Jobber, D. 2010. Principles and Practice of Marketing. New York: McGraw-Hill. Kimmel, A. 2007. Ethical issues in behavioral research basic and applied perspectives. Oxford, UK: Blackwell Pub. Rawls, J. 2008. A Theory of Justice. Harvard: Harvard University Press. Sharpe, F. & Philip G. 2000. Business Ethics. New York: Appleton-Century Company. Smith, A. 1999. An Inquiry into the Nature and Causes of the Wealth of Nations: The Theory of Moral Sentiments. London: Sage. Sullivan, R. 2003. Business and human rights: Dilemmas and solutions. Sheffield: Greenleaf Pub. Young, L. 2010. Marketing technology as a service: Proven techniques that create value. N.J: Wiley. Read More