Marketing Environments

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Marketing and its

significanceBurnescu Adelina


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Table of contents

Short introduction to Marketingp.3

Definition ofMarketing.p.3

Global Marketing.

Definition..p.3 Technology development.p.4 Green Marketing.p.4 Social Media.p.4

Domestic Marketing.

Definition..p.4 Marketing in UKp.5

Tourism.p.5 Tea culture..p.5

Organizational Marketing

Definition..p.6 Marketing: role and results..p.6

Short conclusion ..p.6

Reference list.......p.7


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What is marketing? Most of us tend to respond to this question easily by

saying that it is advertising a product, but speaking in business terms, marketing in

much more than this. It is a philosophy that most of the business persons are now

adopting for guiding their companies. Actually, according to Kotler and

Armstrong(2001), the marketing department cannot build a strong relationship

with the customer all by itself, for them marketing is a company and an

organization, as stated in the 8th

edition of Marketing: an introduction. Lately in

the 21st

century, marketing has become a vital part in a business and it drives now

the companys vision, planning and strategies that have to be applied in order to

have the best results as an organization. Living in a world that is continuously

changing and where technology is dominating worldwide, more new products and

services appear, companies compete each other and the adoption of marketing

strategies is required by a business that is now shifting from product to marketing

orientation, meaning to satisfy their customers. Therefore, we can analyze the

significance of marketing in three main fields: globally, domestically and

organizationally.

Firstly, we can begin with a clear definition of marketing . According to AMA

(American Marketing Association), 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. Also,

speaking in business contexts, marketing is a social and managerial process by

which individuals and organizations obtain what they need and want through

creating and exchanging value with others. It also involves building profitable

value exchange relationships with customers. There are so many definitions that

we can exemplify, but all have the same meaning and central idea, the one that

marketing is science and art at the same time. It involves procedures and people,

which together combined bring the satisfaction of all business networks(

customers, clients, partners, society).

Global marketing involves offering goods or services worldwide. Most companies

begin marketing their goods or services in their country and then expand to the

global market in order to achieve more market share and set up better ways of

increasing their sales. Globally, marketing creates relationships through brand-


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building advertising, sales and promotions of a product or a service. Lets take, for

example, Harley-Davidson. The company sponsors the Harley Owners Group(

H.O.G.), which offers Harley owners an organized way to share their passion and

show their pride. The members benefit of various programs such as roadside

assistance, insurance, theft reward, travel centre and the rental program named

Fly and Ride. This way, an intercultural bond is created between different people

and countries. In addition, more companies join their forces to create new brands,

services or products, through global marketing. As an example, we can take Dell

and Oracle or Microsoft for developing new software and better drivers. Also,

Volkswagen and the agricultural processing firm Archer Daniels Midland for

creating bio diesel fuel. Even competitors such as Procter& Gamble and Philips

joined their forces to create the new IntelliClean system. Richard Love of Hewlett-

Packard observes, The pace of change is so rapid that the ability to change has

now become a competitive advantage. Technology allows now companies

worldwide to share their ideas and come with new ones in short time. Also,

Internet and other programs such as Skype, or Yahoo Messenger are now very

useful for partners in different countries, being able to communicate easier and

become more effective. The new form of marketing on the Internet is very well-

known nowadays, offering marketing new tools like e-commerce, video-

conferencing for marketing researchers, advertising, online shopping, customersurveys. In this way, the department is tracking customers and later identifies

them according to the result of the tools, creates products and services tailored to

individual customer needs. Technology combined with e-marketing is also helping

companies to distribute products more efficientlyand its helping them to

communicate with customers. Companies such as Toyota, Siemens or Sony have

managed to become so well known worldwide as well as Coca- Cola, Pepsi,

McDonald or Harley- Davidson which joined the elite of global brands, each these

promoting their country(China, Japan, U.S.) and increasing their profits. Throughmarketing, companies are not just selling their goods in other countries, they are

also buying more supplies and extend their businesses abroad by creating

franchises, this way increasing profits in other countries too and offering job

opportunities worldwide. Based on data around the globe, Franchise Direct listed

the best international franchises that have blazed a trail of global expansion by


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adapting to local cultures yet keeping in place the world class systems that

brought initial success. Some of the franchises that are successful in 2010 are

McDonalds, IHG with an innovative tool named Green Engage(a portfolio for

hotels that can now manage energy, water and waste consumption more

effectively and reduce their carbon footprint), etc. Taking as an example IHG, we

can also talk about Green and Societal Marketing. People vary in their attitudes

toward the natural world. Some feel ruled by it, others in harmony with it and

some seek to master it. A long-term trend has been peoples growing mastery

over nature through technology. However, people discovered that nature has its

limits and so the market moved towards a new trend named lifestyles of health

and sustainability (LOHAS). People now consume natural, organic and nutritional

products and use fuel- efficient cars and alternative medicine. Examples of nature

aware products or services are Toyota cars, Whole Foods, Honda or Ford. The

Green movement brought to people new ideas and attitudes that are protecting

the environment. Another clear example of green attitude is The Story of Stuff, a

movement that started in US and extended worldwide, covering environmental

issues such as global warming, the product consumption and the waste of energy,

in this way Annie Leonard and her team created awareness for the society.

Moreover, as written in her post, Kerry Given, the managing director of Green

Marketing TV states that YouTube is another great marketing tool for greenbusinesses. Being the third most visited website in the world, YouTube videos are

easy to embed on social networks(Facebook, Twitter) and blogging platforms,

allowing them to become effective, in this way marketing being applied (products

support and advertising, brand awareness). Most companies are now embracing

social media marketing. Whether they sell eco-friendly handbags or cars, social

media helps them interact with their target audience and, eventually, create new

sales opportunities. Axel Schultze, CEO of Xeesm, a social media marketing

software developer said that once you have an ID you can look up the person. Inthis way you can have access to all the information publicly available in their

profile, like location, interests, list of friends or activities, these becoming a gold

mine for companies that will try to target their products directly to you.


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Secondly, marketing can be also defined as domestic. This means that

companies are selling their products within the country where the companies are

usually starting their business. Typically, this is the first area where companies

seek to market their goods or services. Because the market, customer needs,

tastes, geography, demographics, and distribution methods are likely familiar, it's

often the easiest place for companies to launch a product. The four Ps of

marketing - product, price, place and promotion - are often used by companies to

enter the domestic market. Marketing tools are used for promoting values and

traditions of one particular country. For example, UK is known as a country which

is developed through technology, tourism and education. According to Alex

Mawer, head executive of Visit Englands marketing team, campaigns and

advertising programs are created in order to grow the value of English tourism. It

also encourages consumers to make the most of their free time and choose

England as a holiday destination( Westminster Abbey, Tower of London,

Bukingham Palace, Trafalgar Square, etc.). Through marketing the team inspires

UK consumers to think of England as a quality destination that can deliver world

class experiences. Tourism is essential to Englands economy. It generates

97billion each year, employs in excess of two million people and supports

thousands of businesses, both directly and indirectly. It also has an

interdependent relationship with a range of sectors including farming, transport,retailing, sport, museums and arts. England provides some of the best shopping

experiences in the world, from iconic markets(Harrods, Selfridges, Marks&

Spencer, Debenhams) to the most famous luxury brands(Burberry, Longchamp,

Henri Lloyd, John Galliano, etc.). As we all know, UK is famous for its tea( Lipton,

Ringtons Tea, Twinings, Yorkshire Tea, Lancashire Tea). This is how marketers

target their market and companies which are producing or distributing large

variations of tea use the marketing department inside their company to research

the market in order to find out what are consumers tastes or which customersare more interested in drinking tea. UK even has its own Tea Council and their

website is probably the most visited tea site in the world. Their Online Tea

Directory provides an excellent shop-window for the products, companies or

services and its a first-rate opportunity to market an organization and to add

value to the business. Moreover, tourism statistics are now released by


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VisitEngland and appear on their website research pages, based on both the

United Kingdom Tourism Survey and United Kingdom Occupancy Survey. Through

marketing, most of the touristic spots are being advertised worldwide, becoming

the main UK brands and signatures. As published on Wikipedia, London, along

with New York and Japan, is a major centre for international business and

commerce and is the leader of the three "command centers" for the global

economy. It is the world's largest financial centre, where important banks have

here their head- quarters or branches. The chemical and pharmaceutical industry

is also strong in the UK, with the world's second and sixth largest pharmaceutical

firms (GlaxoSmithKline and AstraZeneca).

Thirdly, the influence and impact that marketing has in a business

organization is enormous if we take into consideration a long- range planning.According to Etzel, Stanton and Walker( 2001, p.21), the success of any business

comes from satisfying the wants of its customers, which in the social and

economic basis for the existence of all organizations. Marketing is critical to the

success of every organization. Large for- profit firms( Procter& Gamble, IBM,

Toyota, Wal-Mart) use marketing, but so do non-profit organizations, such as

churches, hospitals, schools, museums, symphony orchestras. Marketing is all

around us and we see the results every single day. We see it in panels with ads, on

the magazines, in our mail-box or on the Internet. But all these result that our

eyes see is the work of an entire network of people and their activities of

attracting our attention. All these activities require hard- work, organization,

discipline and not least, innovation. As Sam Walton( cited in Armstrong and Kotler,

2001) said, There is only one boss, the customer. And he can fire everybody in

the company from the chairman on down, simply by spending his money

somewhere else., meaning that marketers and all employees in the marketing

department have to focus their attention on customers and find ways of

attracting, satisfying and keeping them. Successful marketers are partnering

effectively with other company departments to build company value chains.

Marketing companies go to great length to learn about and understand their

customers needs, wants and demands and to fulfill them through a market

offering- a mix of products, services, information or experiences offered to a


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market to satisfy a need or a want. They conduct consumer research and analyze

mountains of consumer data. Information from an organization's marketing

department would be used to guide the actions of other departments within the

firm. As an example, a marketing department could assign via marketing research

the creation of new types of products, or new usage for existing products. Then

the R&D department would be informed and it will create a prototype of a

product/service based on consumers' new desires. This operations can be

characterized by Southwest Airlines CEO, Herb Kelleher: We dont have a

marketing department, we have a customer department. or by one of Fords

executives statement: If were not customer driven, our cars wont be either. It

is vital for a company to be customer- oriented and to gain equity from them. In

this manner, companies will always be successful. Kotler also states that

companies encourage their managers to look beyond the actual system and do

the right thing. Marketing creates social responsibility, professional ethics and

gives the company a positive image. This marketing concept had been widely used

by many organizations, such as Ford, Sony Corporation, Nike or Johnson &

Johnson.

In conclusion, the importance of marketing is major, either we talk about

worldwide developing and mass- customization ,promoting the values, resources,

traditions and potential of a particular country or even the organization itself. It is

the marketing that holds together a company, along with other departments too

and it is marketing which creates social responsibility, equity, devotement and

finally peace among countries and companies that exist in them.


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Reference List

ALEX MAWER. Available from:http://www.visitengland.org [Accessed 15 December 2010].

AMERICAN MARKETING ASSOCIATION. Available from:

http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx [Accessed

13 December 2010].

ANNIE LEONARD (2010). Available from: http://www.storyofstuff.com/ [Accessed 16 December

2010].

ARMSTRONG, G. and KOTLER, P. (2007). Marketing: an introduction, 8th Edition. New Jersey:

Pearson Prentice Hall.

CEOs and executives statements about marketing Available from:http://www.CNNMoney.com

[Accessed 14 December 2010].

DAVID GOLDMAN (December 13, 2010). End of Privacy on Facebook. Available from:

http://finance.yahoo.com/news/End-of-Privacy-Your-Facebook-cnnm-3227174422.html?x=0


Definition of Global and domestic marketing Available from:

http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing . [Accessed 16 December

2010].

ETZEL, M.J., STANTON W.J. and WALKER B.J. (2001). Marketing, 12th edition. New York: McGraw Hill

Irwin.

FRANCHISE DIRECT. Top 100 Global Franchises 2010. Available from:

http://www.franchisedirect.com/top100globalfranchises/thetop100globalfranchises2010/158/873/


GREEN MARKETING TV. GIVEN, K.(2010). Available from: http://www.greenmarketing.tv [Accessed 16

December 2010].

UK TEA COUNCIL. Available from: http://www.tea.co.uk/ [Accessed 15 December 2010].

UK TOURIST INFORMATION. Available from:http://www.tourist-information-uk.com/attractions/central-

london.htm[Accessed 16 December 2010].

VISIT BRITAIN. Available from:http://www.visitbritain.org [Accessed 16 December 2010].

WORLD NEWShttp://www.wn.com[Accessed 14 December 2010].
http://www.visitengland.org/http://www.visitengland.org/http://www.visitengland.org/http://www.cnnmoney.com/http://www.cnnmoney.com/http://www.cnnmoney.com/http://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.visitbritain.org/http://www.visitbritain.org/http://www.visitbritain.org/http://www.wn.com/http://www.wn.com/http://www.wn.com/http://www.wn.com/http://www.visitbritain.org/http://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.tourist-information-uk.com/attractions/central-london.htmhttp://www.cnnmoney.com/http://www.visitengland.org/

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