Customer Relationship and Sales Management - Assignment Example

CRM and Sales Management Since the introduction of the term marketing mix by Neil Borden for the very first time in 1953, many changes have occurred in the consumer and business environment, promoting the argument that the use of the marketing mix is inadequate in the changing marketing environment. While assessing whether this argument is plausible or not, there are various issues that comes in the forefront. First, marketing mix, often denoted by the 4Ps has formed the basis of informing both academic literature and managerial practices for many decades now, and has remained relevant all that time (Burgers, 2008 p7). Secondly, the changes in the business environment may require adjustments in the approaches to the application of the 4Ps, which would mean that it is not the overhaul of the marketing mix that forms the solution to the ever changing business environment, but the approach in its application. Lastly, the continued application of the marketing mix limits the development of further market controllable factors, which are more plausible to suit the current marketing environment. In the light of this, it becomes essential to distinguish what informs the current business environment, and creates the prospective of fulfilling the marketing need; consumer satisfaction (Belohlavek, 2008 p23). In arguing out this case, this discussion supports the proposition that the marketing mix is inadequate in the changing marketing environment, and thus needs revision to incorporate the presently developed, yet vital controllable factors that are influencing the survival and suitability of a commodity in the market. The marketing mix is composed of four business environmental components, namely price, product, place and promotion. These components can be controlled in order to enhance consumer satisfaction, through a product offering that meets customers’ expectation in terms of its affordability, ability to satisfy the existing consumer needs, accessibility of the product to the consumers and the efficient channels through which the consumer is made aware of the product (Bowman & Gatignon, p12). The traditional proposition is that, if the product fulfills all the four aspects mentioned above, then it was suitably placed in the market, and thus would survive the tides of ever changing business environment. However, it has become apparent that the marketing mix is no longer sufficient to enable a product or any brand overcome the waves of the ever-changing business environment, since the customers’ needs, preferences and priorities are also constantly changing (Prenzel, 2010 p56). According to Professor Koichi Shimizu's 7Cs Compass Model, the concept of place is no longer the most relevant aspect of modern day marketing, but rather convenience (Luudicke, 2006 p72). As opposed to ensuring that the supply chain is most appropriate to connect the producer and the consumer, the emphasis is now making the purchasing experience for the consumers more convenient. For example, Amazon.com is one of the organizations that deal in offering its products over the internet, which has placed more emphasis on convenience than on place (Wenderoth, 2009 p87). This is because, such an organization does not rely on a physical distribution channel, but on the internet, which requires complete customer understanding, before a purchase is made from their site. While it would be most beneficial for the organizations offering physical tangible products to improve the supply and distribution chain, it would be more beneficial for the online organizations offering their product over the internet to improve convenience and the purchasing experience of the customers (Burgers, 2008 p11). Therefore, while the distribution channels formed the basis of place as the component of the traditional marketing mix, convenience informs the basis of the digital and online marketing organizations. Therefore, there is a need to include convenience among the component of the marketing mix, to cater for the current growth in digital and online marketing. The traditional marketing mix operated on the basis of an organization seeking to understand the needs and wants of the customers, and thus produce a product that matches such needs. This would lead to the creation of a market share for such a product. While such fundamental operations of the market have not changed, there has occurred a change in consumer knowledge and need for information (Bowman & Gatignon, p25). Currently, consumers are very interested in the full knowledge of the product they consume, all the way from the conception of the idea, its design, manufacture and provision into the market. However, the traditional 4Ps marketing mix does not provide for such information access to the consumer, thus limiting its applicability in the current marketing environment (Richter, 2012 p42). The traditional 4Ps marketing mix was externally oriented. The producers and manufactures of a product or the providers of a service only looked externally, to see what the needs of the consumers are, and thus make a product or avail a service that matches the consumer needs (Solis, 2011 p69). However, the current marketing environment demand that such practices should change, and new approach adapted, which focuses both internally and externally, by perceiving the consumer needs and also focusing on the corporations ability, commitment and willingness to avail a product or service that will satisfy such consumer needs. This proposition requires that another P should be added to the traditional 4Ps of marketing mix, in terms of passion (Swift, 2001 p31). This additional P directly focuses on the corporation, with a view to evaluate its commitment and passion for meeting the consumer wants. The essence of the addition of passion to the traditional 4Ps is that; when an organization is driven by self-drive, own initiative and the desire to do the right thing; it will surpass the customer expectation, as opposed to when an organization is merely working towards fulfilling the customer’s needs (Prenzel, 2010 p62). This observation underlines the need to revisit and revise the traditional marketing mix, to include such other components that are essential for the current marketing environment. It is in the light of this, that the passion of the corporations to satisfy the needs of the consumers becomes inevitable component of the current marketing environment. The Lauterborn's four-Cs model theory is yet another theory that advocates for the revision of the traditional marketing mix. According to this theory, promotion is one of the vital components that enhance business success (Burgers, 2008 p10). However, the promotion of a product in the market is not sufficient to meet the consumer information needs. This is because, promotion is always selective, thus only giving information that is favorable to entice the consumer to purchase their products, while ignoring the information that could produce adversarial effect to the purchase of the product by the consumer (Wenderoth, 2009 p82). However, the concept of communication entails the provision of full information to the consumer, such that the consumer is better placed to make a completely informed decision (Bowman & Gatignon, p43). Thus, while promotion was appropriate for the traditional marketing mix, it is no longer adequate for the changing marketing environment, since the changes have introduced the need for consumer information, which cannot be met through promotion, but through communication. Communication with the customer does not only help to understand their needs, but also to understand how the existing product has fall short of the consumer requirement, but also the adjustments and the improvements that the consumer desires on the existing product (Prenzel, 2010 p53). Considering that promotion is not a two way aspect, organizations are always forced to undertake field research to come up with the needs of the customers. However, with communication, the providers of goods and services are engaged in a two-way communication with the consumer, allowing them to understand the improvements that are desirable on the existing products. For example, Toyota is one of the organizations that have adapted communication-based interaction with their customers, making the organization better placed to continue producing products and brands that resonate well with their customers’ worldwide (Swift, 2001 p15). The marketing mix theory for the digital context provides that a change requires to be done on the concept of price, to broaden its perspective from the monetary value payable on a product, to include the time and effort given to obtain the product (Luudicke, 2006 p78). This is because, the digital marketing organizations and the online retailing companies have realized that the time spent by customers in the search of information regarding their products and service offerings translate to a price in form of the internet charges (Belohlavek, 2008 p21). Additionally, the effort made by the customer to seek for the products is done at the expense of other activities that could be productive for the customer. In the light of this, the definition of price as the monetary value payable in exchange of goods and services falls short of this realization, calling for a revision on this major component of the traditional marketing mix (Tehrani, 2009 p32). The broadening of this definition will enable the organizations to improve their product offering, through ensuring that the customers access sufficient information regarding the products offering easily, thus improving the customer experience and the tendency for repeat purchase. For example, Apple Inc. is an online retailing company that has improved the online accessibility of information regarding its product, making it rank among the world’s largest retailing companies. In conclusion therefore, the traditional marketing mix comprising of the 4ps is inadequate in the face of the changing marketing environment. This is mostly applicable for the digital marketing and online retailing market, whose marketing environment is completely different from the physical marketing environment, as provided for by the marketing mix theory for the digital context. Thus, the revision of the traditional marketing mix to suit the circumstances of digital and online retailing marketing environment is inevitable. References Belohlavek, P. (2008). Unicist Marketing Mix. Blue Eagle Group. Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: trends and research opportunities. Boston, now. Burgers, W. (2008). Marketing revealed challenging the myths. New York, Palgrave Macmillan. Luudicke, M. K. (2006). A Theory of Marketing Outline of a Social Systems Perspective. Wiesbaden, Deutscher Universita?ts-Verlag. Prenzel, I. (2010). Applicability of Mobile Marketing in the Marketing Mix of Trade Fair Organizers. Mu?nchen, GRIN. Richter, T. (2012). International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets. Berlin, Logos. Solis, B. (2011). Engage! The complete guide for brands and businesses to build, cultivate, and measure success in the new Web, revised And updated. Hoboken, N.J., John Wiley & Sons. Swift, R. S. (2001). Accelerating customer relationships: using CRM and relationship technologies. Upper Saddle River, N.J: Prentice Hall PTR Tehrani, N., 2009. Contemporary Marketing Mix for the Digital Era. Bloomington: AuthorHouse. Wenderoth, M. (2009). Particularities in the Marketing Mix for Service Operations. Mu?nchen: GRIN. Read More