MKT 420 Contemporary Issues in Marketing

1
MKT 420 Contemporary Issues in Marketing

• Chapter 1
• Marketing in the Contemporary Organization

2
Objective

• Review current debates about the nature of the
  marketing role in contemporary organizations
• Provide a background context for the specific
  topics that will be discussed in future chapters.
• List topics that currently impact the way
  marketing is researched and practiced

3
Definitions of Marketing Critique/Analysis

• Marketing as a phenomenon has changed
  significantly over the last several years.
• New fields of study have emerged such as
  relationship marketing, services marketing and
  the network perspective on business-to-business
  marketing.
• Attempts have been made to redefine both the
  terminology and the environment of marketing.
• Scholars are concerned about the direction in
  which marketing conceptualizations are moving
  (Wilkie, 2005 Gronroos, 2006).

4
Definitions of Marketing Critique/AnalysisContin
ued.

• Several issues raised for the definition of
  Marketing by AMA (2004)
• Marketing is an organizational function and a
  set of business processes for creating,
  communicating, and delivering value to customers
  and for managing customer relationships in ways
  that benefit the organization and its
  stakeholders.

5
Definitions of Marketing Critique/AnalysisContin
ued.

• Major concerns were related to its conception of
  the role of marketing within the organization,
  the role of consumers within the marketing
  relation and the wider societal role of
  marketing.
• Definition was considered to view marketing as
  one function amongst others, and that such a
  conception of marketing is ill equipped to deal
  with new forms of relationships with customers.
  (Gronroos, 2006)
• Consumers are defined to have value delivered to
  them although this is becomes a social problem
  as all marketers simply propose too much
  consumption for each consumer. (Wilkie, 2005, p.
  8).

6
Definitions of Marketing Critique/AnalysisContin
ued.

• Marketing system is structured as if finance is
  not important for the consumer.
• Delivery of value to customers also ignores their
  role in actively producing value (Vargo and
  Lusch, 2004). Value is considered to emerge both
  in interactions between the consumer and
  supplier, and also through a series of subsequent
  consumption practices by consumers.
• AMA (2004) definition only captures the role of
  the marketing manager, and ignores the wider role
  of marketing within society.
• The definition of marketing that embraces a
  macro-marketing perspective where marketers
  engage with the big issues in society.

7
Definitions of Marketing Critique/AnalysisContin
ued.

• Due to debate generated by earlier 2004
  definition of marketing, the AMA produced a
  second updated version in 2007, as below
• Marketing is the activity, set of institutions,
  and processes for creating, communicating,
  delivering, and exchanging offerings that have
  value for customers, clients, partners, and
  society at large."

8
Future of Marketings role in the Organization

• In a survey of 30 large US companies more than 30
  per cent indicated that they spend less than 10
  per cent of their time discussing marketing or
  customer related issues at board level. (McGovern
  et al., 2004)
• Following the closure of corporate marketing
  departments, companies have plugged the gap by
  creating the position of Chief Marketing Officer
  (CMO).

9
Future of Marketings role in the
OrganizationContinued.

• Concerns about the high turnover of these
  positions because Position is often ill-defined,
  little formal authority, corporate expectations
  are frequently unrealistic
• Tension between CMOs and other board members due
  to the creative approach taken by successful
  marketers, which is at odds with the more
  structured and disciplined approach required in
  other parts of the organization.
• The difficulties in measuring marketing outcomes
  mean that marketers struggle to demonstrate
  returns on organizational investments in
  marketing programs.

10
Future of Marketings role in the
OrganizationContinued.

• Key marketing functions are dispersed throughout
  the organization. Today, marketing in many large
  companies is less of a department and more a
  diaspora of skills and capabilities spread across
  and even outside the organization.

11
What do Consumers think of Marketing?

• Main purpose of marketing is to serve customers,
  so their views about marketing need attention.
• Survey by Yankelovich (cited in Sheth and
  Sisodia, 2006) says that 60 respondents had
  negative views about advertising and marketing
  activities.
• Gaski and Etzel (2005) observed that out of four
  marketing activities, product quality carries
  more importance in influencing customers,
  followed by price, retail service and
  advertising.

12
What do Consumers think of Marketing?Continued.

• Customers are positive about creativity, fun,
  humorous advertising and attractive people
• On the negative side consumers feel marketers are
  lying, deception, deceitful, annoying,
  manipulating, gimmicking, exaggerating, invading,
  intruding and brainwashing.
• In terms of marketing practices telemarketing,
  online pop-up advertisements and junk mail were
  viewed most negatively.

13
Doing Marketing in a Different Way

1. Fill the Scholarship-Practitioner gap in
   marketing Scholars should broaden their
   conception of practitioner audience, to embrace
   not only marketing but Strategic Management,
   Operations, Supply Chain, HR, Finance etc. The
   concept of customer focus and competing
   through service should be adapted by all
   business functions.
2. Fruitful partnership between academics and
   business leaders Business leaders should reflect
   on the role of marketing in their organizations.
   They can give insights of challenges they face,
   and ways in which marketing is affecting their
   businesses.

14
Doing Marketing in a different way?Continued.

• Create systems to bring the customer closer
  Systems to create mutual value, rather than
  directing the creation of value by consumer
  alone. Internet has resulted in do it yourself
  form of marketing where middlemen are eliminated.
  E.g. eBay, online marketing, e-payment etc.