Chapter 9+10 Hot topics in marketing&marketing ethics - Coggle Diagram
Chapter 9+10 Hot topics in marketing&marketing ethics
The role of relationship marketing
is to identify and establish, maintain and enhance and where necessary also to terminate relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by a mutual exchange and fulfilment of promises.
“A network is a living system with pattern, structure and process; it continually produces itself, exhibits intelligence, is open to the flow of energy and matter.”
“A network organisation is a confederation of specialist skills or capabilities provided by the network members. The firm is an element in a network that competes through the way it leverages the resources and capabilities of its individual members.”
“A value network is any web of
relationships that generates tangible and intangible value
through complex dynamic exchanges between two or more individuals, groups or organisations.”
The value chain becomes a value web: “Sustainable advantage lies in managing the complex web of relationships [...] in a cost-effective, value-adding way; the network of alliances and suppliers should be welded together in
partnership to achieve mutually beneficial goals
. Differentiation comes from the quality of relationships that one business enjoys compared to its competitors”
successful value network
every participant contributes and receives value
in ways that sustain both their own success and the success of the value network as a whole. When this is not true, participants either withdraw or are expelled, or the overall system becomes unstable and may collapse or reconfigure. Successful value networks
require trusting relationships and a high level of integrity and transparency on the part of all participants
A Service-Dominant Logic
“Marketing has shifted much of its dominant logic away from the exchange of tangible goods (manufactured things) and toward the exchange of intangibles, specialized skills and knowledge, and processes (doing things for and with), which we believe points marketing toward a more comprehensive and inclusive dominant logic, one that integrates goods with services and provides a richer foundation for the development of marketing thought and practice.”
Goods-focused vs. Service-focused Firms
focus on products and outputs, and on selling products (outputs from the firm’s processes).
focus on customer relationships and processes, and on selling solutions that solve customers’ everyday problems as inputs to the customers’ processes.
A new marketing myopia
businesses are suffering a ‘new marketing myopia’ as they see customers to be only passive consumers of their products/services
Yet, customer is also ‘a citizen, a parent, an employee, a community member, or a member of a global village with a long-term stake in the future of the planet’
Socially Responsible Marketing
Calls upon all marketers to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while also fulfilling the profit objectives of their organizations.
Being good is good business
socially responsible activities improve companies’ image among consumers, stockholders, the financial community, and other relevant publics.
ethical and socially responsible practices are simply good business, resulting not only in a favorable image, but also ultimately in increased sales.
the converse is also true: Perceptions of a company’s lack of social responsibility or unethical marketing strategies negatively affect consumer purchase decisions.
There are many targetable segments that can be easily exploited because they are more vulnerable than most other consumers because of
and no political power
Irresponsible marketing by a supplier can be potentially misleading and cause you loss if you rely on false representations. It is possible that a supplier can misrepresent the quality of their product, the size of the company and the approvals that they have obtained on their products.
Covert Marketing is a new method of marketing, which uses various tactics to secretly market your product or service to your prospective customer. ... A classic example of Covert Marketing is the Saturn car from General Motors.
Deceptive advertising is any statement by an advertiser that is false or misleading , or that does not adequately identify itself as an advertisement.
Corrective advertising refers to the Federal Trade commission's order to rectify the misleading impression that has been created by a false advertisement. The firm is ordered to cease its current deceptive advertisement. The main aim of the corrective advertising is to correct the consumer's mistaken impressions.
The subliminal message is one of the elements that most attract attention in advertising, film, art or television. A subliminal message is a message or signal designed to pass below (sub) the normal limits (liminal) of perception.
Provocative marketing can be defined as a deliberate appeal within the content of a marketing message, expected to shock its audience, since it is signified with values, norms or taboos that are not generally challenged in marketing because of its equivocalness and distinctiveness.
Nonprofit marketing is activities and strategies that spread the message of the organization, as well as to solicit donations and call for volunteers. Nonprofit marketing involves the creation of logos, slogans, and copy, as well as the development of a media campaign to expose the organization to an outside audience.
Social marketing seeks to develop and integrate marketing concepts with other approaches to social change. Social marketing aims to influence behaviors that benefit individuals and communities for the greater social good.
Cause-related marketing (CRM) is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former's sales and the latter's cause. American Express first coined the term in 1983 to describe its campaign to raise money for the Statue of Liberty's restoration.
Business Actions Toward Sustainable Marketing
Sustainable Marketing Principles
Consumer- Oriented Marketing
the company should view and organize its marketing activities from the consumer’s point of view.
should sense, serve, and satisfy the needs of a defined group of customers—both now and in the future.
should have an all-consuming passion for delivering superior value to carefully chosen customers.
Only by seeing the world through its customers’ eyes can the company build sustainable and profitable customer relationships.
Customer- Value Marketing
the company should put most of its resources into customer-value-building marketing investments.
Many things marketers do—one-shot sales promotions, cosmetic product changes, direct-response advertising—may raise sales in the short run but add less value than would actual improvements in the product’s quality, features, or convenience.
Enlightened marketing calls for building long-run consumer loyalty and relationships by continually improving the value consumers receive from the firm’s market offering. By creating value for consumers, the company can capture value from consumers in return.
The principle of innovative marketing requires that the company continuously seek real product and marketing improvements.
The company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way.
Sense-of- mission Marketing
Define mission in broad social terms rather than narrow product terms
According to the concept of sense-of-mission marketing, when a company defines a social mission, employees feel better about their work and have a clearer sense of direction.
Brands linked with broader missions can serve the best long-run interests of both the brand and consumers.