Marketing Philosophy and Strategy - Research Paper Example

? Marketing Philosophy and Strategy The impact of the global economy and globalization on the marketing landscape is observable in the staggering percentage of new product failures and the emergent challenges being faced by marketers in managing the marketing effort. This paper employs the findings of prior literature and scholarly articles to assess the challenges of new product development, the assistance of technology in enhancing the effectiveness of marketing practice and the legal and ethical issues in marketing. The research conclusions assert that while, technological advancements such as the Contemporary Marketing Practice (CMP) framework, Hybrid Distribution Systems and Demand Change Remediation have significantly aided the effectiveness of marketing practices, ethical and legal issues such as concerns regarding consumer online privacy and targeting children via marketing efforts still need to be addressed. The paper also assesses the product launches of Sony BetaMax, Colgate Kitchen Entrees and Pepsi-Kona to determine the challenges in new product development in the marketing landscape of today. Marketing Philosophy and Strategy The dynamism of the marketing landscape requires a comprehensive understanding of the issues and concerns related to the development of new products and the impact of the global economy on the marketing philosophy and strategy of a business. The purpose of this research paper is to employ the findings of prior literature and scholarly articles to examine the challenges that are involved in the development of new products thereby, assessing the impact of technological advancements in assisting the effort of new product development. Furthermore, the paper conducts extensive research into prior literature to fulfill the objective of addressing the legal and ethical implications of marketing efforts. The assessments and examinations in the paper with regards to the aforementioned objectives of research have been conducted in the light of real world examples to enhance the validity, application and relevance of research conclusions. Challenges in New Product Development According to Chaturvedi and Rajan (2000) the impact of the global economy and globalization on the development of new products is highly influential, such that the volatility of the worldwide business environment extends to the individual characteristics of consumers including patterns of consumption which increase the need for organizations to engage in practices that encourage the creation of products that can appeal to the specific tastes and preferences of the target market. In their article, Ogawa and Piller (2006) highlight the problem that is associated with the commercialization of new products that has led to the staggering failure of more than 50% of new product launches. Certainly, the pivotal challenge being faced by businesses in the economy of today is a failure to recognize the needs of customers (Chaturvedi & Rajan, 2000; Ogawa & Piller, 2006). Research into the failure of Pepsi-Kona, the launch of which was essentially inspired by Starbuck’s triumph in reviving the declining demand for coffee suggests that Pepsi did not undertake effective marketing testing and continued with the launch of the beverage even though initial results did not predict a successful product launch (D. Pitta & E.Pitta 2012). Ogawa and Piller (2006) note that developing sales forecasts and expected sales volume for new products is becoming a highly challenging task, this notion essentially asserts that the accuracy and preciseness of determining customer needs and creating sales forecasts during the extended period that is prior to the development of new products is a vital challenge. According to Jhang et al. (2012), extensive product innovation during the process of new product development and decisions regarding brand extension must be finalized once the product is aligned with the consumer product category expectations, products such Colgate Kitchen Entrees and Cosmopolitan Yogurt vacated the shelves after spending only a brief period of time, because the consumer perceptions of the brands were not evaluated by the companies before proceeding with the stages of new product development and commercialization. Rosen et al. (1998) postulate that the identification of the nature of the market is a critical factor that must be considered by companies before embarking upon new product development, for example, the market for high tech products is marked by two important notions one of which is continuous technological innovation. Rosen et al. (1998) state the challenge in the development of its product Sony BetaMax, the company sought to offer a revolutionary advancement to its customers but failed to integrate the process of innovation with customer focus a consequence of which was the ultimate triumph of Sony BetaMax’s competitor that arrived in the market in the format of VHS videocassettes. Integrating customer focus in the innovation process may lead to a reduction in the costs incurred by a company during the product launch stage (Rosen et al., 1998; Ogawa & Piller, 2006). An examination of the challenges in new product development bring to light the significance of amalgamating innovation, technology and marketing efforts that are imperative to new product success. This assertion contributes towards the comprehension of the strategies and philosophies that should act as the foundation of new product development processes. Technology Solutions The widespread integration of technological innovations and advancements in the process of new product development has greatly assisted the efforts undertaken by marketers in meeting the marketing objectives of an organization. Takeuchi and Nonaka (1986) state that the competitive nature of the global business environment requires that companies opt for a holistic method to new product development which requires the establishment of project teams to encourage flexibility in the process of innovation. This approach aims to deviate from the conventional procedures that advocate sequential procedures by inviting the collaborative efforts of an organization’s management and employees in the development of new products, thereby, encompassing aspects such as production technology, R&D and organizational culture for the achievement of marketing objectives (Takeuchi & Nonaka, 1986). Akilandeswari (2012) highlights the significance of digital technology on brand marketing, noting that the emergence of technological advancements has positively impacted areas of marketing such as customer service, advertising and promotion initiatives. According to the author, technological solutions fulfill three aspects with regards to marketing that have been categorized under portability, speed and video (Akilandeswari, 2012). The initiation of technologies such as Hybrid Distribution Systems leads to the engagement of the entire marketing effort through the establishment comprehensive systems that operate simultaneously in aiding cost reductions, expanding the coverage and focus of marketing and enhancing the sales volume that is achieved by the company (Akilandeswari, 2012). Furthermore, Demand Chain Remediation permits the redesign of the demand-chain relationships thereby, augmenting the customer focus of marketing and generating maximum value while, the establishment of Customer Interaction Centers comprehensively integrates the use of technologies such as email, fax and the internet for optimizing the performance of the business and improving business interactions with its customers (Akhilandeswari, 2012). Brady et al. (2011) understand the functioning of the Contemporary Marketing Practice (CMP) framework in assisting the role of technology in marketing, the authors state that the integration and assimilation of the CMP framework in marketing practice did not perform up to standard expectations until the amalgamation of the concept of e-Marketing which enhanced the effectiveness of the overall system, additionally, this framework permits the extension of technologies to the function of marketing and the organization as a whole. This helps the establishment of a two-way link between external actors in the marketing effort such as suppliers, marketing intermediaries and consumers amongst others (Brady et al. 2011). Legal and Ethical Implications With the emergence of e-marketing practices and online marketing which are now practiced on an extensive scale, the range of legal and ethical implications that are associated with the discipline of marketing has expanded. The staggering popularity of the internet as the key channel of communication has invited the attention of individuals from all age groups which potentially increases the scope of ethical implications of marketing practice. According to Kaplan (2005), examinations into the background of the infamous Tylenol crisis that led to the death of consumers by poisoning imposed several ethical implications on the company producing Tylenol – Johnson & Johnson. For many marketing experts of the time, the actions of the business indicated that it was approaching its end, however, the choices made by the company in displaying its credo, accepting its mistake and launching what is termed as the most successful display of PR management in history led to a rebirth of the product which is an indication of how the ethical decisions in marketing can essentially define the future success of the entire business (Kaplan, 2005). Austin and Reed (1999) identify the ethical implications that are associated with the marketing efforts that are directed towards children, stating that marketers must establish whether it is appropriate for businesses to target kid’s clubs and websites aimed towards a younger audience, this view postulates that the regulation of marketing practices is imperative to the establishment and maintenance of ethics in business. Caudill and Murphy (2000) assert that the issue of consumer online privacy is comprehensive such that it covers both ethical and legal implications for businesses, an example of consumer privacy issues that is highlighted by the authors in their research surfaced with the launch of Windows 98 by Microsoft that faced the allegations of unlawfully collecting user data, even though, technology-drive companies may intend to use the data for enhancing the customer experience, recognizing customer needs and wants and improving customer focus, the violation of consumer online privacy is a grave legal and ethical issue that is a threat to principled marketing practices. Conclusion Observations and examples of real world marketing situations indicate that marketers of today are faced with several issues and problems in meeting the objectives of the business by initiating, directing and monitoring a successful marketing effort. However, it must also be noted that technological developments and process innovations have been integral to the enhancement of the marketing landscape with significant hopes for future development. While, the legal and ethical implications associated with marketing cannot be ignored cases such as the Tylenol crisis that was handled by Johnson & Johnson reflect that responsible marketing efforts can revive the image of a product and also help regain consumer confidence. References Akilandeswari, S. (2012). Technology and Business Management (Marketing). In International Conference on Technology and Business Management March(Vol. 26, p. 28). Austin, M. J., & Reed, M. L. (1999). Targeting children online: Internet advertising ethics issues. Journal of consumer marketing, 16(6), 590-602. Brady, M., Fellenz, M. R., & Brookes, R. (2008). Researching the role of information and communications technology (ICT) in contemporary marketing practices. Journal of Business & Industrial Marketing, 23(2), 108-114. Caudill, E. M., & Murphy, P. E. (2000). Consumer online privacy: legal and ethical issues. Journal of Public Policy & Marketing, 7-19. Chaturvedi, K. J., & Rajan, Y. S. (2000). New product development: challenges of globalisation. International Journal of Technology Management, 19(7), 788-805. Jhang, J. H., Grant, S. J., & Campbell, M. C. (2012). Get It? Got It. Good! Enhancing New Product Acceptance by Facilitating Resolution of Extreme Incongruity. Journal of Marketing Research, 49(2), 247-259. Kaplan, T. (2005). The Tylenol crisis: How effective public relations saved Johnson & Johnson. Ogawa, S., & Piller, F. T. (2006). Reducing the risks of new product development. MIT Sloan management review, 47(2), 65. Pitta, D., & Pitta, E. (2012). Transforming the nature and scope of new product development. Journal of Product & Brand Management, 21(1), 35-46. Rosen, D. E., Schroeder, J. E., & Purinton, E. F. (1998). Marketing high tech products: lessons in customer focus from the marketplace. Academy of Marketing Science Review, 6, 1-17. Takeuchi, H., & Nonaka, I. (1986). The new new product development game.Harvard business review, 64(1), 137-146. Read More