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The 18 Guiding Principles of the Marketing Company & their relationship to the marketing concepts and principles
Today the business organizations are in a new era of competition. The marketing environment is changing so rapidly with the developments in technology, globalization and de-regulation. To survive in this unpredictable environment, companies have changed their marketing orientations to provide the optimum value to the customers. ... Business organization need to become a new breed of company which is a Marketing Company.
The Marketing Company is not just a market-driven company. The Marketing Company is an organization that adopts the 18 Guiding Principles of the Marketing Company as its credo-as its guiding values, its principles to compete in the new marketplace. ...
As the 18 guiding principles are introduced by one Asian marketer called Hermawan Kartajaya, reported in Professor Warren Keegans Global Marketing text, these principles give out an Asian perspective of marketing. Lets discuss these 18 guiding priciples of the marketing company and how these principles compare to the marketing concepts and principles which we all are familiar with. ... Principle of the company : Marketing is a strategic business concept
Good marketing occurs when all of the different business components work together toward a common objective. ... Keeping this as the foundation, a marketing strategy for all business activities could be established increasing the effectiveness of the marketing effort. With all the dynamic & rapid changes in the technology, globalization, de-regulation and other factors as well as internal factors such as aspirations of shareholders, transformation of industrial worker to knowledge worker etc, marketing is no longer segmentation, targeting and positioning or 4 Ps introduced by Jerome McCarthy. ...
Marketing should become the strategic business concept within corporations. ... Marketing has to synchronize with the organizations vision, mission and where it wants to go. Therefore marketing is no more a functional task. ... Long ago Peter Drucker envisioned that "Business has two basic functions: marketing and innovation. ... This statement clearly shows that they too believe that marketing is a strategic business concept. ... Principle of the Community : Marketing is everyones business
As discussed under principle 1, marketing is a strategic business concept for the whole organization. Its no more restricted to marketing department. The entire organization irrespective of the department has to work as one marketing team delivering value to the customer. All the departments should be marketing departments. All the functions should be marketing functions.
Al Ries in his book Focus, says that, "A good Chief Executive Officer should also be a Chief Marketing Officer. ... The Principle of Competition: Marketing war is value war
Marketing company should not only focus on short term profits. ...
Companies have started to use value networks through forward and backward integration (Supply Chain Management and Customer Relationship Management) to deliver enhanced value equity to the customers. ... The ultimate objective of the marketing company should be customer loyalty. ...
Relationship marketing is enabled through creating customer loyalty. Kottler too has identified the importance of the relationship. ...
· Customer relationship marketing
· Customer databases and database marketing
5. ... Companies must ask all of their customers what they want from the company, what additional products and services they would like the company to provide for them. ... This has been recently termed, "relationship marketing." A marketer with a similar product and an established relationship with the customer has a distinct competitive advantage.
Marketing concepts like adaptation, mass customization, cutomerization etc. ... Therefore the marketing company has to be adaptive to the current environment. ... Management must develop and maintain a marketing information system. This will help the marketing decision makers to improve their marketing planning, implementation and control. ...
Thus, to be competitive, a company has to be ready for change in its environment. ... To be fluid and dynamic operationally, the Marketing Company concentrates on proactivity, not just reactivity. ...
Kottler in hid 11th edition of Marketing Management text has identified the need of the marketer to proactively monitor and identify trends in six major macro level environmental forces. ... The Principle of Brand : Avoid the Commodity-Like Trap
This is the first value-creating principle of the Marketing Company. To the company brand is not just a name, nor is it a logo and symbols. Brand is the value indicator of the Marketing Company. ... With brand, the company is able to liberate itself from the supply-demand curve. ... It is brand that liberates the company to create values for internal customers, external customers, and investor customers. ... It is the brand that will enable the company to avoid the commodity-like trap. ... The Principle of Service : Avoid the Business-Category Trap
This is the second value-creating principle of the Marketing Company. To the company, service is not just after-sales service, before-sales service, or even during-sales service. ... Service is a value enhancer of the Marketing Company. It is the paradigm of the company to create a lasting value to customers through products (small "p") and services (small "s"). ... The Principle of Process : Avoid the Function-Orientation Trap
This is the third value-creating principle of the Marketing Company. ... It reflects the product quality, cost, and delivery of a company to customers. It is the value enabler of a company. ...
Marketing company should manage the supply-chain process, from raw materials to finished products, in a way that would enhance value-creating activities and reduce and eliminate value-eroding activities within the company. ... They should avoid functional arrogance within the company because everyone holds a similar belief: Customer value is the end result, not titles and job positions in the company, Brand, service, and process as three value-creating principles are drivers to win the heart share of customers.
But the marketing company should remember always to underpromise and overdeliver! ...
A company that decides to operate in some broad market - whether consumer or industrial - recognizes that it normally cannot service all the customers in that market. ...
Your marketing budget and your resources have important influences on your goals. Sales of your new product are likely to be greater if your marketing program is strongly funded, but this isnt a sure thing. ... The Principle of Marketing Mix : Integrate Your Offer, Logistics, and Communications
Simply, the process of successful marketing stems from good products at reasonable price, innovative distribution channels and successful communication processes. ... The Principle of Selling: Integrate Your Company, Customers, and Relationships
Maintain strong customer relationships as much as possible. ... The Principle of Totality : Balance Your Strategy, Tactics, and Value
The Strategic Marketing Plan is a grand design of achieving the Objective. ... The Principle of Agility: Integrate Your What, Why, and How
18. ...
Now lets discuss the importance and applicability of the above principles in the Srilankan context. ... Clear example of could be the purchase of an off the shelf Enterprise Resource Planning (ERP) or Accounting Package to computerize the company. ...
Srilankan companies need enhance the service they provide to the customers, in a way of differentiating the company from the competition. ... Usually marketing is run by Colombo oriented, English speaking personnel where as production by village type people with less proficiency in English etc. Based on the company cultures, this resistance sometimes causes less flexibility in catering to customers requests. ... Therefore its extremely important to identify the correct segments first, before directing any marketing activities. ...
Targeting : Allocate Your Resources Effectively
Out of the segmented markets the company should select the segments where it meets the correct size, expected growth rate, competitive advantage and the intensity of the competition within the segment. ... To be successful Srilankan companies need to find the perfect fit in terms of the segment, which optimizes company resources and gives the best benefits in this heavily fragmented market. ...
Therefore if the company is unable to create the trust in customers mind and lead them, they will no longer follow the company foot steps.
Differentiation : Integrate Your Content, Context, and Infrastructure
Company has to deliver what it promises. Company has to deliver the perceived value to the customer. Otherwise customers will get frustrated as the company has shattered their expectations specially for the products the customer has many choices. ...
Marketing Mix : Integrate Your Offer, Logistics, and Communications
The marketing mix Price, Product, Place Promotion should well be integrated falling inline with the companies overall objectives and the vision. ... Its important for example Laxapana batteries available in every rural boutique as the company has positioned it as a battery for torches and radios who do not have electricity and will last for a long ("never say die"). ...
Selling: Integrate Your Company, Customers, and Relationships
Companies should create long term relationship with customers trough companys products. ... When the database grows and the programs require more power, IBM can sell high capacity more powerful machines due the strategic relationship they maintain. ...
Totality : Balance Your Strategy, Tactics, and Value
Marketing strategy (winning mind share) and the marketing tactics (winning heart share) should adapt to the technological, economical and social environments changes. ...
Agility: Integrate Your What, Why, and How
Agile company monitors, scan and review business environment continually. ... Its important for the company to enhance the technology and people internally and externally. ...
Conclusion : Key principles of marketing as I see, and their importance to marketing success in SL
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The reason I decided to cover the basics is because most of the businesses I look at are not following these principles. And if most of them arent follwing these principles maybe you also arent following the principles.
By following these marketing principles, and by putting them in to action, your business will be better off, and your profits and turnover will increase.
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Following principles are the key in for effective formulation of marketing strategy in SL context. ... Marketing is every bodys business. ... Current marketing environment in SL is such, with customers having wider choice, if I do not satisfy him there are many waiting for him, risking organizations as well as ever bodys job. ...
Finally as a conclusion we can say, its no more the product, price, place, promotion, people, physical evidence, processes govern the marketing mix. ... Even Hermawans principles should be analyzed in the Srilankan, cultural, economic, behavioral, social and political context. ... Bitner, "Marketing Strategies and Organizational Structures for Service Firms", in Marketing of Services, ed. ... George (Chicargo: American Marketing Association, 1981)
· http://www. ... , Marketing Management, Eleventh Edition, Pretice Hall Press. ... Hermawan was also the President of Asia-Pacific Marketing Federation (APMF, 1998-2000) and the Vice-President of the World Marketing Association (WMA, 1999-2001). His Sustainable Marketing Enterprise (SME) model provides the foundation for building both sustainable economies and companies. ...
Hermawans 18 guiding principles of the marketing company is gaining growing popularity amongst the modern marketers. ... Kottler in his book, Marketing Management has identified Customer Relationship Management, Partner Relationship Management, Technology Revolution and Internet, brand building, and marketing around the globe as the key concepts for marketing success beyond 2000.
This article intends to discuss the 18 marketing principles, compare and contrast with other well known marketing principles like Kottlers and what has been experienced by Srilankan marketing managers. Then lets look at the applicability of these principles in Srilankan context and give deeper insight to the most prominent marketing principles in the Srilankan context. ... Principle of the company : Marketing is a strategic business concept
With the predominant changes in the external (technology, globalization, economy) factors as well as internal factors (aspirations of shareholders, transformation of industrial worker to knowledge worker etc), marketing is no longer segmentation, targeting and positioning or 4 Ps introduced by Jerome McCarthy. ...
Marketing should navigate companys direction, has to be long term oriented, and be responsible for creating loyal business customers (internal, external and investors). Marketing should be the strategic business concept of the organization. ... Marketing has to synchronize with the organizations vision, mission and where it wants to go.
Therefore marketing is no more a functional task. ... As Peter Drucker envisioned "Business has two basic functions: marketing and innovation. ... Principle of the Community : Marketing is everyones business
Marketing is a strategic business concept for the whole organization. Its no more restricted to marketing department. Its no more customer at the centre, then marketing as the integrating function and the interface between the customer and the rest of the organization, who does production and other supportive services. The entire organization irrespective of the department has to be one marketing team delivering value to the customer. All the departments should be marketing departments. All the functions should be marketing functions. ... The Principle of Competition: Marketing war is value war
Marketing company does not pursue short term profits, it creates customer value for long term relationships. ... Both factors governed by the short term profitability of the company.
Marketing company has to look beyond this short term framework for results. Company regards profits as short term and value creation as long term. ... Therefore marketing war is creating profits through value creation in the long run. ... Therefore improve customer value to win the marketing war. ... Its not only the unique selling or core proposition the company creates in the buyers mind.
Companies have started to use value networks through forward and backward integration (Supply Chain Management and Customer Relationship Management) to deliver enhanced value equity to the customers. ... The Principle of Retention: Concentrate on Loyalty, Not just on Satisfaction
As marketing war becomes value war and as industry competition becomes value competition, it is inadequate for the Marketing Company to concentrate merely on customer satisfaction.
Approximate Word count = 10994
Approximate Pages = 44
(250 words per page double spaced)
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