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Sample on Contemporary Issues In Marketing Management
1. Contemporary Issues in Marketing
Management
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2. TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concept of knowledge management and its role in relationship marketing..........................1
1.2 Ways how ICT supports the customer relationship management process in Tesco...............1
1.3 Benefits of customer relationship management in Tesco.....................................................2
1.4 Recommendations for the improvement in customer relationship management for Tesco...2
TASK 2............................................................................................................................................3
2.1 Stakeholders analysis for voluntary and public sector organisation......................................3
2.2 The nature of relationship with customers.............................................................................4
2.3 Comparing the marketing methods used in public, private and voluntary............................4
2.4 Key issues involved in marketing at virtual organization......................................................5
TASK 3............................................................................................................................................5
3.1 Use of extended marketing mix in Tesco...............................................................................5
3.2 Enhancing value through product/service mix......................................................................6
3.3 Difficulties in marketing of services......................................................................................7
3.4 Role of IT in Service marketing management.......................................................................8
TASK 4............................................................................................................................................8
4.1 Impact of ethical issues on the marketing planning...............................................................8
4.2 The concept of CSR...............................................................................................................9
4.3 Role of pressure groups in influencing the ethical social marketing policies of Tesco.........9
4.4 Role played by published or broadcast media in influencing the ethical and social
marketing policies......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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3. INTRODUCTION
Marketing is the management process that is responsible for identifying, and satisfying
the customers’ needs and wants (Pepall, Richards and Norman, 2005). In addition to this
contemporary issues are the term that describes various issues based on national and
international scale in terms of terrorism, stock market fluctuation and so on. In this Tesco a retail
firm has been taken into consideration. Tesco is the British multinational retail company
headquarter in Welwyn garden City, Hertfordshire. In this report importance of relationship
marketing in context of contemporary business unit is discussed. In addition to this role and
marketing in context of non traditional organisation are mentioned. In this report importance of
marketing mix in different service sectors is also interpreted. At last in this report role played by
different pressure group in influencing ethical and social marketing policies for Tesco is
depicted.
TASK 1
1.1 Concept of knowledge management and its role in relationship marketing
Knowledge management is the term which comprises of a wide ranges of practices that
take place within an organization in order to create, identify and represent insights and
experiences. Concept of the knowledge management arose two years back with an aim to
organize all the organisational information and knowledge in a proper way. But at the same this
concept seems to be very overboard (Boone and Kurtz, 2013). Through knowledge management
an organisation is able to able to capture, distribute and effectively identify the different
methods/ factors through which company can identified the needs and desire of the individual
person. Identification of needs and wants of the customers will aid the company to produce the
goods and services according to their desire. This in turn will assist the company to move
towards the growing rate.
Role of knowledge management in relation to marketing
Knowledge management in relation to the marketing will aid the company to know about
the changing trend, fashion, taste and living standards of the customers (Moyer and et.al., 2011).
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4. In addition to this knowledge management an important role in identifying the changing
perception of the customer’s about the company and its products offered.
1.2 Ways how ICT supports the customer relationship management process in Tesco
There are variety of ways through which ICT supports the customer relationship
management process in Tesco. Tesco offers wide range of ICT tools to the customers through
which they can easily purchase the products that are provided by them. Use of this tool attracts
more and more customers towards the products of the company. In addition to this Tesco also
offers loyalty cards to their daily customers so that customers can avail various benefits on the
purchase of the products. Tesco also provide online services to its customers in order to purchase
the variety of products that are sold by them.
Concept of ICT also proves various benefits to the Tesco also. By using this technology
company is able to access the customers. This in turn will aid the company to identify and
produce the products according to the wants and requirements of the customer (Levi, 2007). Use
of ICT also assist the company to monitor and control the working of various projects and
marketing plans that are taking place within and outside the organisation.
1.3 Benefits of customer relationship management in Tesco
Customer relationship management provides various benefits to Tesco. Some of them are
as follows. Customer relationship will aid the company to maximise its customer’s equity against
the products offered by the company. In addition to this Tesco will be able to create lifetime
value in mind of the customer in context of the products offered by them.
By creating a healthy customer relationship company will be able to recognise its brand
image and its reference groups. Along with this all, Tesco will be able create trust and
commitment in mind of the stakeholders about the company. A healthy customer relationship
with the customer will assist the company to easily cope up with the changing competitive
environment (Faiers, Cook and Neame, 2007). At last it can be said that bouncing customer
relationship management will help the Tesco to identify and understand the behaviour of the
customer in relation to the corporate identity in order to generate best products according to
customer demands.
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6. 1.4 Recommendations for the improvement in customer relationship management for Tesco
Tesco is the large multinational firm operating its business in a healthy manner. But there
are still many area where company need to improve. Therefore, some of the recommendation for
the company which they should undertake in order to improve its customer relationship
management are as follows:-
Tesco should provide the accordant responses to the queries that are raised by the
customers (Grant, 2010). These quires may arise when they are purchasing the products
from Tesco Direct catalogue or for Tesco stores by using the latest technology.
Tesco should also start using various social networking sites in order to provide better
services to the customer.
Tesco should try to offer direct contract facility to the customers. This in turn will aid the
company to collect feedback from the customer.
Company should aim to provide high quality products at an affordable price to the
customers by using latest technology.
TASK 2
2.1 Stakeholders analysis for voluntary and public sector organisation
Stakeholders are the one who directly or indirectly affects and benefits the function of the
organisation. Some stakeholders are in the internal environment of the organisation and some are
present in external environment. Stakeholder analysis is the process of gathering and analysing
various qualitative information to order to conclude whose interest should be taken into
consideration at the time of developing and implementing a program or a policy (Scott, 2006).
Voluntary sector organisation includes:-
Voluntary workers:- Voluntary works are those who work for the betterment of the
society. These workers main aim to provide better services to the society, profit
maximization is not there main objective. These stakeholder help the voluntary sector to
move towards the growth rate.
Government grants:- these are another stakeholders who work for the development of
the voluntary sectors organisation. Government provides grants to the organisation in
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7. terms of money in order to achieve their desired objectives. Grants provided by the
government are not repaid back.
Public sector organisation includes:-
Private investors:- Private investors are the one who invest into the various projects
that are started by the government. These stakeholder work with an aim to generate
more income and profit.
2.2 The nature of relationship with customers
The nature of relationships with customers can be defined in the two selected not for profit
organizations, namely, Oxfam and Coast and Country. For the not-for-profit organization, it is
crucial to reflect upon the ways in which they treat their customers. This is because these ways
define the relations that their customers maintain with the company. These organizations follow
the strategy of constituent relationship management (CRM). In order to maintain healthy
relationships with the customers, these not for profit organizations focus too narrowly on the
constituents that provide income. These include retail customers, donor foundations etc. the
relations with customers in Oxfam and Coast and Country are defined by personal interaction,
fast response to the requests, easy access etc. these elements are ensured by both the customers
as well as the organizations. Further, there are various other policies in Coast and Country (Coast
and Country, 2016). These ensure that the employees, volunteers, teachers, program managers
etc. treat the customers with respect. Moreover, fr5iendship and social interaction are two other
elements which define the nature of relationships at Oxfam and Coast and Country (Oxfam
International, 2016).
2.3 Comparing the marketing methods used in public, private and voluntary
The marketing methods of organizations vary as per the nature of business. Broadly there
m are three types of organization, public, private and voluntary. The difference in marketing
methods of these enterprises is explained as follows:
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8. ◦ Private organization: The private entities tend to focus majorly on its marketing to
enhance customer base and brand recognition (Grant, 2010). Therefore, both direct and
indirect channels of communications can be used to increase promotion. Thereafter,
heavy expenditure is done by private firms on marketing campaign.
◦ Public: The moderate level of expenditure is done by public enterprises on its marketing
campaign. They majorly focus on use of print media like newspaper, radio etc. to target
customers and boost the sales.
◦ Voluntary organization: The voluntary organization does not spend too much on
marketing and promotional activities. Therefore, they mostly rely on social media
marketing, e- marketing which involve negligible cost (Kazmi, 2007). Further, many a
times the marketing of voluntary is done by other corporation in form of sponsorship etc.
2.4 Key issues involved in marketing at virtual organization
Most of the virtual organizations are trying to incorporating several highly as well as
technological advanced marketing process into their business operations. Through such process,
they can easily market their products as well as services and attract huge base of customers.
Virtual organizations are network organizations which do not have any of their physical
presence. ICT is the most effective concern which supports the collaboration between these
organizations by facilitating the exchange as well as sharing of information and knowledge. At
the time of marketing they might face several dilemmas, a loss of control as well as a need for
the new managerial skill. In this regard, it can be determined that virtual organizations marketing
functioning are supplemented with various problems. They are facing huge difficulty at the time
of convincing their employees as they do not have any physical evidence. Consumers are not
sure with the service quality of the products as it is only visible to them in terms of images as. In
order to resolve such issues it is essential for management to take adequate actions.
TASK 3
3.1 Use of extended marketing mix in Tesco
The marketing mix can be defined as a combination of various marketing activities which
Tesco uses to best meet the needs and demands of its target market. There are mainly 4P’s of
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9. extended marketing mix which is equally important for the successful business. These elements
are highly useful such as:
Physical evidence: It is the most important type of marketing mix which determines the
environment in which company operates and sells products. Tesco has always maintained
their quality standards and deliver an excellent service to their customers. Quality
physical layout is one of the most important parts in a range of service providers such as:
Tesco always provides good ambience, facilities and attractive layouts for the shopping
(Zastrow and Kirst-Ashman, 2006).
Process: At the time of delivering customer services there are number of process
involved in making marketing more effective in an organization. For the same, Tesco
always use to maintain better relationship with their customers by providing them
excellent customer support services. Handling customer complaints and identifying their
needs and requirements make their customers loyal and retain them as well.
People: Customer service lies at the heart of the management of Tesco. They are highly
responsible for delivering high quality services to their customers. Consumers are likely
to be loyal if company serves them well (Hollensen, 2015). In this regard, Tesco is
regularly organizing training sessions for their workers so that they can become more
effective and productive.
Promotion: It is the last element of extended marketing mix through which Tesco can
easily attract huge base of customers towards their services. For the same, company is
promoting their services through internet as well as various other sources (Roberts-
Lombard, 2010).
3.2 Enhancing value through product/service mix
Product mix is all about the total range of products or services offered by company. It is
considered to be the most important part for enhancing the value for the customers as well as
organizations. A range of products or services of Tesco are involved in this process which yields
larger sales as well as revenue when marketed together. Moreover, an organization’s value can be
easily enhanced by continuously improving how they meet out the requirements of customers.
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10. By setting appropriate product/service Mix Company can easily enhance its customer value.
They require setting the width in which they can measure that how many different types of
products Tesco offers (Ansari, Mela and Neslin, 2008). Each of their products required to be
distinct with each other in terms of providing huge benefits to their customers. Further, Tesco can
enhance its overall firm’s value by adding any latest product as well as services in their business
operations.
There are various services which are intangible in nature and all of them add a value to
product mix. As per the depth of product mix company need to add various additional services
within their business operations by the means of better satisfying the needs of customers. Product
mix is a tool to enhance the value of a customer organization by designing its marketing mix in
terms of width, depth, positioning and product characteristics. In addition to this, by setting
appropriate positioning as well as product characteristics they are able to attract more number of
customers. Sometimes, Tesco can also enhance its customer’s value by repositioning its product
mix. Majority of customers are highly centred with the three qualities i.e. quality, functionality
and style (Keller, 2009). Further, it is essential for Tesco to maintain the brand’s durability by
delivering promised benefits to their customers. It significantly strengthens the competitive
strength of brand as well as increasing service sector growth.
3.3 Difficulties in marketing of services
Customers are the key elements of every organization and providing them quality
services are becoming their major responsibility. Managing the quality of services provisions are
becoming major concern. At the time of marketing their services Tesco might has faced several
difficulties due to the changing perception of their customers. In this case, it is essential to
manage the quality of service provisions in terms of attracting huge base of customers (Ziska,
George and Frenz, 2007). Company can easily overcome with the problems on regard to the
marketing of their services by entailing appropriate service provisions. Through this, they can
enhance the satisfaction level of customers and change their perception towards the quality of
services. In this regard, it can be determine that Tesco can overcome with their existing
marketing issues with the help of measurement of customer satisfaction level.
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11. They need to take feedbacks from their customers and provide them appropriate solution
as per their problems. With the help of satisfaction survey company can easily identify the
problem faced by customers and try to resolve their queries. It is the only source through which
company can identify the requirements of their customers (Newell, 2001). With the help of
managing the quality of service provisions Tesco can retain their customers and manage their
satisfaction level. For the same, they can provide them various solutions regarding their queries
and improve their quality of services. In this way, it can be determine that marketing service of
Tesco helps in retaining all their workers by changing the perception of customers as well.
With reference to Tesco, customers most of the time feels their service quality is low and
they are not satisfied with the services. In this concern, company is incorporating various means
of service provisions through which they can satisfy the needs of their consumers (Goi, 2009).
With the help of this, Tesco can meet out the range of expectations as well as needs of their
consumers.
Definition of quality in terms of business and service provisions
Service quality is all about the assessment of how well delivered services meet out the
clients expectations. In reference to the service provisions it is highly related with to the
customers of company in order to improve their services as well as quickly identifying the
problems and better assessments of client’s satisfaction (Kozlinskis and Guseva, 2006).
However, service quality can be easily measured with the help of service provisions and also
helps to reach out the satisfaction level of customers.
3.4 Role of IT in Service marketing management
Information and communication technology is becoming one of the most important parts
of every organization these days for better communication. Information technology plays a most
important role in service marketing management. ICT canUninersity Assignment Help be used
by majority of organizations these days in order to manage the process of marketing in the
service industry. With the help of using Information technology Tesco can easily market their
products and services through internet. They can easily communicate with their customers
worldwide and provide them appropriate solution for any type of problems as well. Information
and communication technology plays a major role through which company can easily maintain
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12. the overall information of their customers. Maintaining customer database is one of the most
crucial element by which Tesco can keep all their customers information as well as data updated
(Cravens and Piercy, 2008). They can easily contact with any of their consumer at the time of
requirement and avail them various discount offers. Service marketing is all about the delivering
high values to customers as well as managing better customer relationships. It is the main
responsibility of marketing team to ensure the better execution of marketing. By the adoption of
information and communication technology company can go through the internal marketing
research and easily analyse the appropriate information regarding their sales as well as revenues.
By properly maintaining their customer database they can make better relationship with them
and enhance their loyalty towards their company. Another main role of IT in service industry is
its capacity analysis (Ansari, Mela and Neslin, 2008). Firm can easily go through the proper
evaluation of their production capabilities as well as service quality. It is all about their cost as
well as production analysis. In this regard, it can be generalize that Information technology helps
ICT in measuring better relations.
TASK 4
4.1 Impact of ethical issues on the marketing planning
To survive in long run, it is important for enterprises to ensure they work in accordance
with business ethics and morals. The ethical issues can impact the ability of company to serve in
domestic as well as international market. It can also lead to the failure of marketing planning.
The ethical issues can place the leading retailer position of Tesco to losing one. It can further
lead to failure of marketing strategy a result into loss of time and effort. Therefore, the ethical
issues have direct impact on the competitive position of organization in global market.
Thereafter, various ethical issues can have negative impact on the market image of company. The
violation of business ethics can further result into range of legal actions from the domestic and
foreign government (Hopkins, 2012). The major impact of ethical issues is on the customer
satisfaction and can result into failure of products and service. For instance, the quality of
electronics provided in the stores of company was not appropriate and lead to electric shock etc.
This further lead to dissatisfaction among customers and legal actions against company.
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14. Therefore, it is crucial for company to ensure that it operates in conformation with ethical
practices. Further, company can ensure proper follow up of ethical practices and use the same as
a tool for promoting and marketing its services.
4.2 The concept of CSR
Corporate social responsibility refers to duties of an organization towards the society in
which it is operating and rendering services. It can be also refereed as voluntary actions adopted
by company to assure it perform its functions in sustainable manner. The CSR activities is a
manner by which Tesco fulfill its commitment towards society. Further, company commits to
grow it business, attain economic growth while giving proper consideration on enhancing the
living standards of employees, their families (Gottschalk, 2011). Further, the CSR practices help
in improving the quality of life of society to a great extent. By considering the CSR practices,
Tesco can offer ethical product and services. Further, it can make change in its production
process so that less harm can be caused to environment. For instance, Tesco is planning to reduce
carbon footprints by 50% therefore, it is doing intense research and development to find new
production technology. Thereafter, company also uses eco friendly process that enables
conservation of environment. The CSR activities may lead to the innovation in services and also
cost saving operations. For example, to minimize the consumption of electricity, company is
started using solar panels, CNG etc in various processes. This has further reduced the operating
cost of company. Therefore, by conducting CSR activities, company can enhance the satisfaction
and trust level of various environmental, social groups, government etc.
4.3 Role of pressure groups in influencing the ethical social marketing policies of Tesco
There are various stakeholders that influence and impact the ethical and social marketing
policies of company. The pressure groups refers to government bodies, customers, suppliers and
rivals that directly impact the functioning of company in various markets. The dissatisfaction
among pressure groups can lead to negative impact on the market image of company. The
violation of ethical policies can result into legal actions and decline in market sales and
proficiency. For instance, Tesco was found indulged in dominating its diary product suppliers,
fixing the price and violating the competition policy. This resulted into fine of £6.5m that further
had a negative impact on the image of company and reduction in profitability (Actions against
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15. Tesco, 2013). Thereafter, the company is also accused for dominating the farmers to supply
groceries etc. below the market price. Thereafter, the claim from the customer is increasing as
company is accused for offering low quality and unethical products. In addition to this,
organization is also blamed for unfairly dismissing the workforce and staff. All these factors have
led to increase in legal consequences, litigation and penalty. All these factors are having overall
negative impact on the market image of company. Thereafter, the buyers of company are shifting
towards competitors’ products and services.
4.4 Role played by published or broadcast media in influencing the ethical and social marketing
policies
Tesco can use published or broadcast media for attracting wide range of customers by
using ethical business practices as a tool. The organization can use newspapers, magazines etc to
show the CSR activities conducted by company (Cant, Strydom and Jooste, 2009). This will
help company in generating information among public regarding the ethical practices done by
the organization. Further, through radio, social media enterprise can seek the support of various
members in attaining the social purpose. Thereafter, the published and broadcast media help
Tesco in facilitating ethical transformation smoothly.
CONCLUSION
From the above research it has been articulated that there is a huge importance of
relationship marketing in contemporary organizations. ICT plays a major role in managing better
relationship with customers. Further, it has been founded that customer relationship management
is the most important concern by which companies can easily enhance their target market. In
addition to this, pressure groups influence the marketing activities of organizations in negative
concern. However, company is incorporating CSR activities in their business operations through
which they can attract more number of customers and retain them as well. Moreover, it has been
concluded that product/service marketing mix helps in enhancing the values for the customer’s as
well as organizations.
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16. REFERENCES
Books and Journals
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Marketing Research. 45(1). pp.60-76.
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Cant, M., Strydom, J. and Jooste, C., 2009. Marketing Management. Juta and Company Ltd.
Cravens, D. and Piercy, N. F., 2008. Strategic marketing. McGraw-Hill Irwin.
Faiers, A., Cook, M. and Neame, C., 2007. Towards a contemporary approach for understanding
consumer behaviour in the context of domestic energy use. Energy Policy. 35(8).
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Goi, C. L., 2009. A review of marketing mix: 4Ps or more?. International Journal of Marketing
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Gottschalk, P., 2011. Corporate Social Responsibility, Governance and Corporate Reputation.
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Graetz, F. and Smith, A. C., 2010. Managing organizational change: A philosophies of change
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Grant, R.M., 2010. Contemporary strategy analysis and cases: text and cases. John Wiley &
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Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Hopkins, M., 2012. Corporate Social Responsibility and International Development: Is Business
the Solution?. Earthscan.
Kazmi, S. 2007. Marketing Management: Text and Cases. Excel Books India.
Keller, K. L., 2009. Building strong brands in a modern marketing communications environment.
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Kozlinskis, V. and Guseva, K., 2006. Evaluation of some business macro environment
forecasting methods. Journal of Business Economics and Management. 7(3). pp.111-117.
Levi, M. D., 2007. International Finance: Contemporary Issues. Routledge.
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17. Moyer, R.C. And et.al., 2011. Contemporary financial management. Cengage Learning.
Newell, F., 2001. Loyalty. com: Customer relationship management in the new era of Internet
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Pepall, L., Richards, D.J. and Norman, G., 2005. Industrial organization: contemporary theory
and practice (p. 198). Thomson/South-Western.
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car rental group in South Africa. African journal of business management. 4(4). pp.62.
Scott, A.J., 2006. Creative cities: conceptual issues and policy questions. Journal of urban
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Zastrow, C. and Kirst-Ashman, K., 2006. Understanding human behavior and the social
environment. Cengage Learning.
Ziska, L. H., George, K. and Frenz, D. A., 2007. Establishment and persistence of common
ragweed (Ambrosia artemisiifolia L.) in disturbed soil as a function of an urban–rural
macro‐environment. Global Change Biology. 13(1). 266-274.
Online
Actions against Tesco. 2013. [Online]. Available through:
<http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9895895/Tesco-to-
pay-6.5m-fine-in-dairy-price-fixing-settlement.html>. [Accessed on 27th
January 2016]
Coast and Country. 2016. [Online]. Available Through:
<https://www.coastandcountryhousing.org.uk/>. [Accessed on 27 January 2016].
Oxfam International. 2016. [Online]. Available Through: <https://www.oxfam.org/>. [Accessed
on 27 January 2016].
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