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  1. 1. 2012 Marketing Management Wilmon Steyn MBA General Year 1. 116753 5/2/2012
  2. 2. ASSIGNMENT COVER SHEETSurname SteynFirst Name WilmonStudent Number 116753Subject Marketing ManagementCourse/ Intake Master of Business Administration/ January 2012Lecturer Mr I SahabodienExamination Venue Cape TownDate Submitted 02 May 2012Submission (√) First √ Re-Submission SubmissionPostal Address P O Box 10638 George 6530E-Mail Numbers Work 044 – 805 2042 Cell 084 414 8868Declaration: I hereby declare that the assignment submitted is an original piece of workproduced by myself.Signature: Wilmon Steyn Date: 02 May 2012Marketing Management Page 2
  3. 3. Table of ContentIntroduction 4Question 1 5Critically analyse the various marketing strategies that three senior executives discuss.Question 2 12Duncan Watts view that word-of-mouth or viral communications play a relatively minor rolein diffusion. Do you agree? Substantiate your answer.Question 3 16Duncan Watts says that “There are some things that are predictable. And we should learnhow to predict them.” Based on the above statement how can managers effectively predictconsumer behaviour and market trends.Question 4 20“I haven‟t met anybody – and I talk to a lot of my colleagues in the marketing world – whofeels that they have the organization completely aligned with where this revolution‟s going,because it‟s happening so fast and so dramatically”.4.1 Discuss the importance of having all role players in the organization aligned to yourmarking strategy.4.2 How can the marketing manager create internal branding to enhance its marketingstrategy?Conclusion 25Bibliography 26Marketing Management Page 3
  4. 4. Introduction Marketing has evolved over the past year with greater emphasis being placed around client and consumer needs in order to gain a market competitive advantage. Companies continue to unlocked differentiation within their marketing strategy that allows them to add value to the overall customer experience through their brand resonance models. Branding Objectives atStages of Brand Development each Stage Building Brand Blocks Figure 1 - The Keller Brand Resonance Model Many marketing activities communicate and deliver value and is geared to influence trade channels and inevitable the consumer. Robert Lauterborn (1990:6) suggests that the Four P‟s of the Marketing Mix should correspond to the customers 4C‟s. 4Ps 4Cs • Product • Customer Solution • Price • Customer Cost • Place • Convenience • Promotion • Communication Figure 2 - 4P‟s alignment to 4C‟s The case study will analyse Virgin Atlantic Airways, American Express and Yahoo. The approach is to gain a greater understanding of these organisational approaches toward marketing and to test their effectiveness and impact on the market place. We will also discuss organisational buy-in to the marketing strategy through effective communication and creating internal branding. Marketing Management Page 4
  5. 5. Question 1Critically analyse the various marketing strategies that three senior executives discuss.The three organisations will be analysed separately against Ansoff‟s Product-MarketExpansion Grid, SWOT analysis and the Macro Environmental forces including BrandPositioning.Virgin Atlantic has evolved their marketing strategy which is aimed at differentiation andcreating a superior customer experience. This strategy is realized through developing thechemistry and attitudes of it staff and then connecting the right tools to the right people.Holistic Marketing is an overarching concept where everything matters.Collaboration between its customers, channels and partners has enabled Virgin AtlanticAirways to build a very integrated interactive platform that allows them to manage dailyconversations and expectation between its marketing dimensions. By involving the maximummarketing dimensions they have managed to co-create a value-based product. By opting toadopt a more Holistic Marketing approach they have strengthened their dimensionalrelationships.“Still Red Hot” allowed Virgin Atlantic to expand its Market Penetration Strategy. Whenapplying Ansoff‟s Product-Matrix Expansion grid to the “Still Red Hot” it becomes clear thatthey managed to expand (Market-Penetration strategy) in the Current Products and CurrentMarkets segment of this grid. The advert allowed Virgin Atlantic to expand in the NewMarket/ Current Products (Market Development Strategy) quartile and hence increase itsmarket Penetration figures by attracting competitor customers and looking for potentialcustomers for its existing products. Virgin Atlantic Airways additionally managed to developnew markets on geographically grow their business. Products Present New Present Market Product Penetration Development Markets New Market Diversification Development Figure 1.1 – Ansoff‟s Product-Market Expansion GridMarketing Management Page 5
  6. 6. When applying the SWOT analysis it becomes clear that Virgin Atlantic Airlines hasmanaged to gain ground over their competitors by applying and innovating how they interactwith their customers and suppliers. A SWOT analysis helps executives to summarize themajor facts and forecasts derived from the external and internal analysis that can beimplemented in the company‟s strategic plan. The „Still Red Hot” advertising campaign wentviral and had a massively positive effect on the brand and what their positioning is about. Strenghts Weakness • Strong brand recognition • Flight delays • Consistent onboard client experience • Limited travel routes • Use of Innovative technology • September 11 saw it cutting routes • Quality Trained Staff • Late in getting on the Internet • Richard Branson • Richard Branson • Partnerships allows for transfer of core • Reliance Trans Atlantic traffic competencies • Cost of VIP services • Quality award winners Opportunities Threats • Improvements through technology • On-going global recession • In flight internet • Brand Dilution • Web site improvement • Competition for routes from BA and United • Additional routes • Cost of fuel • Virgin Galactic • Deregulation • Expanding its on-line ad campaigns • Strategic marketing around its brand positioning Figure 1.2 – Swot Analysis of Virgin AtlanticThe Macro Environmental forces that affect Virgin Atlantic are: Demographic – with the increase in disposable income and trade from the East alliances with Air China and Singapore Airline are important. Technological – continued investment into its on-line platform Political-Legal – Legislative requirements and deregulation continues to have an impact post September 11. Natural – as a global organisation care should be taken to protect the environment.Marketing Management Page 6
  7. 7. Brand PositioningKotler and Armstrong (2010:233) “the way the product is defined by the consumer onimportant attributes – the place the product occupies in the consumers‟ minds relative tocompetitor products”We ask ourselves – What makes the product stick in the mind of the customer Comprehensive Technical assistance Low Initial Price High Initial Price Adequate Technical AssistanceFigure 1.3 – Position Map of Virgin Atlantic Airways comparable to British AirwaysBlythe (2006:204) puts it forward that a brand position that includes the 4C‟s will besuccessful and the brand will sellClear – “Still Red Hot” was very effective around the brand positioningConsistent – Virgin Atlantic Airways followed up the “Still Red Hot” add campaign with“Your airline‟s either got it or it hasn‟t” which evoked a James Bond style messaging interms of being hot.Credible – The brand has proved itself by winning most industry quality awardsCompetitive – The line of advertising campaigns aligns to the product as being verycompetitive and out there.Virgin Atlantic Airways has moved away from the Richard Branson persona to a brand thatevokes emotions a smoky sensual style that screams I am that “special agent”. They haveadopted an undifferentiated marking approach that has gained them cult status amongst theirstaff, customers and suppliers; this has work really well for them. Business reputations arebuilt around customer experiences and one believes that Virgin Atlantic Airways will staytrue to Branson‟s Goal; “To provide all classes of travellers with the highest quality travel at the lowest cost”Marketing Management Page 7
  8. 8. The Ansoff‟s Product-Market Expansion grid can be applied to American Expresses “cross-business function groups”. This strategy is aligned to the Market Penetration and MarketDevelopment quadrants of the Ansoff‟s grid. Their Small Business Saturday program hasallowed them to grow their present product offering into their present and new marketsamongst their customers, staff and suppliers. “you start building your marketing plansaround the sense of joining a community” John Hayes. These marketing plans align toAnsoff‟s grid positions.The SWOT analysis for American Express shows that it strength lies in its cross-functionalteams. The success effectiveness of these teams will depend on the principles that governhighly effective teams (Plowman 2011). Strenghts Weakness • Diversified focus on generating revenues •Lack of point-of-sale debit card services • Strong brand equity •Declining Travelers check business • Global reach & presence •High interest coverage ratio increasing the • Travel services operations companys risk profile • Great Products that have led to brand loyalty • Cross business function groups Opportunities Threats • Global expansion, particularly in China •Interchange fees associated with legislative • Financial services product expansion rulings in Europe • Divestment of AEB and AEIDC •Heavy competition from other financial • Small Business Saturdays institutions •Financial turmoil in capital marketsFigure 1.4 – Swot Analysis of American ExpressThe Macro Environmental forces that affect Virgin Atlantic are: Demographic – Opportunities presenting itself in China Technological – Identity theft and security Political-Legal – Legislative requirements Economic – Financial indebtedness in American and European marketsMarketing Management Page 8
  9. 9. Figure 1.5 – Position Map of American Express comparable to Visa and MasterCardThe 4C’sClear - Small Business Saturdays was very effectiveConsistent – Very passionate community of Card HoldersCredible – Donating $100 million 87 million Membership Reward points to the Haitiearthquake disasterCompetitive – Cross-functional teams that lead with creative ideas that results in cohesiveoutcomes for their customers.Having wonderfully interactive cross-functional teams is great however the true test aroundtheir effectiveness is the conversion and putting into practice these ideas. Small BusinessSaturdays seems to be a great success however it leaves one wondering how this successcompares to the industry competitors. The success of cross-functional teams is the directionleadership provides.Marketing Management Page 9
  10. 10. Duncan Watts refers to data revolution and a scientific approach to Marketing. The availablerange of the information that is available to the modern organisation is boundless.Communication today is global and instantaneous with interactive and participative audiencesaplenty. The business revolution around brand loyalty and longevity has resulted in everincreased focus on re-engineering a more customer-centric position and paying attention towhat customers, staff and suppliers are talking about via the modern communicationmediums.The Ansoff‟s Product-Market Expansion grid can be applied to Yahoo‟s “Measure-andReact” strategy. Their strategy focuses on all four quadrants of the Ansoff‟s grid.“Everything becomes data driven in real-time, reactive way”. Duncan Watts.The SWOT analysis for Yahoo shows that it strength lies in its 350 million users that they areapplying their “Measure-and React” strategy. A possible weakness is that are unable to reacttimeously and a competitor web-based company gets it right. Strenghts Weakness • Affliliate advertising • Differentiation • 350 million users • Future online advertising • Strong brand positioning • Joint Venture with telecom providers • Strategic business units • Yahoo Directory Opportunities Threats • International markts • Competition • Development of Yahoo Directory • International, cultural specific • Mobile technology competition • SME - Directory advertisers Figure 1.6 – Swot Analysis of YahooMarketing Management Page 10
  11. 11. The Macro Environmental forces that affect Yahoo are: Social-Cultural – changes in preference Technological – competitor innovation Political-Legal – Legislative requirements and Deregulation Comprehensive Technical assistance Low Initial Price High Initial Price Adequate Technical AssistanceFigure 1.7 – Position Map of Yahoo comparable to AoL and GoogleYahoo in indeed a truly global company with more than 350 million users that influencesculture and the way business is conducted. Yahoo is in the thick of technological innovation;however Yahoo can be affected unless strategic alliances are forged. China has developed itsown search engines, as has India. That could raise question as to which search engine to use.Yahoo requires to be innovating in order to retain its industry competitive advantage.Lessons can be learned and applied from other global businesses.Marketing Management Page 11
  12. 12. Question 2Duncan Watts view that word-of-mouth (WOM) or viral communications play arelatively minor role in diffusion. Do you agree? Substantiate your answer.I do not agree with the view of Duncan Watts. Word-of-Mouth Marketing, also known asbuzz marketing and viral advertising, can be highly valued by product marketers due to thepersonal nature of the communications between individuals. This sharing of productinformation is communicated in such a way that it has an added layer of credibility (Wilsonand Sherrell 1993). Research points to individuals being more inclined to believe WOMMthan more formal forms of promotional methods where the receiver of WOM tends to believethat the communicator is speaking honestly and is unlikely to have an ulterior motive.Word-of-mouth Marketing can have a direct effect on the life cycle of goods and service.There are two major differences between online consumer reviews and traditional WOM.Traditional WOM is typically limited to a local social network (e.g., Brown and Reingen1987, Biyalogorsky, Gerstner, and Libai 2001, Shi 2003). This is not a decision variable forthe seller.The impact of online consumer reviews has global reach via the Internet and an online sellercan decide whether and when to provide them to its customers on its website.Diffusion is the process by which the adoption of an innovation spreads among consumersand can be grouped into five categories of adopters in the diffusion process. Figure 2.1 - The relationship between the diffusion process and the product life-cycleMarketing Management Page 12
  13. 13. • This group is eager, educated and has multiple sources of information and shows greater INNOVATORS propensity to take risks. They appreciate technology and are motivated by the idea of being a change agent in their reference group – 2.5% • They are social astute, educated and considered the visionaries in their market and are EARLY ADOPTERS continuously looking to adopt and use new technology that will aid them in achieving dramatic competitive advantage in their industries - 13.5% EARLY MAJORITY • They are deliberate and have many informal social contacts. They are motivated by evolutionary changes – 34% LATE MAJORITY • These are sceptical, traditional and of lower socio-economic status. They are very price sensitive and require completely preassembled, bulletproof solutions – 34% • Laggards are technology sceptics who want only to maintain the status quo. They tend LAGGARDS not to believe that technology can enhance productivity and are likely to block new technology purchases – 16%Figure 2.2 - Model of Consumer Behaviour GroupsSource: Lamb Hair McDaniel Boshoff Terblanche (2005) Marketing (Second Edition) Oxford. P271Research results have show that supplying online consumer reviews can benefit or hurt aseller depending on the product characteristics and the information contained in the review.Research also shows that the sellers decision to provide consumer reviews will increase itsincentive to offer more complete product information to consumers through more traditionalmarketing communications (Chen, Yubo and Xie, Jinhong, Online Consumer Review: Word-of-Mouth as a New Element of Marketing Communication Mix (July 1, 2004).Consumers continue to gain greater importance for making a purchasing decisions regardinga specific product or service. A study by Forrester Research found that half of those whovisited the retailer sites with consumer postings reported that consumer reviews are importantin their buying decisions (Los Angeles Times, Dec. 3, 1999). has found thatonline book reviews have significant impact on book sales.Online seller can provide two types of product information to its customers. Seller-created product information to consumers via its website or more traditional communication channels. Consumer-created product information by allowing consumers to post their comments on the seller‟s website.Marketing Management Page 13
  14. 14. The consumer-created product information is, by definition, user-oriented and often describesproduct attributes in terms of usage situations and measures product performance from auser‟s perspective (Bickart and Schindler 2001). More importantly, since this information isposted by users with different preferences, levels of product knowledge, and usage situationsthus has the potential to be more relevant to consumers. Sellers can also be motivated tosupply highly appropriate product information to consumers however this can be very costly.Online consumer reviews can serve as a new element of marketing the communications mix.The seller‟s information strategy on consumer-created information is aligned to itsinformation strategy on the seller created information. Additionally the consumer reviewsupply decision increases the seller‟s incentive to provide full product information through itstraditional marketing communications.WOMM eliminates the seller‟s control over the content of product information accessible toconsumers, and because consumer reviews may not be fully informative could have adverseimpact.The seller‟s information supply strategy is a two-stage decision. In stage 1, the seller decideswhether to supply consumer review information to its customer. In stage 2, the seller decideswhether to offer full or partial information to consumers via the seller-created information.The order of the decision is determined based on the fact that the consumer reviewinformation supply decision is often less flexible than the seller‟s own product informationcontent supply decision. Supplying Full Attribute Providing Information Consumer Reviews Supplying Partial Attribute information Seller Supplying Full Attribute Not Providing information Consumer Reviews Supplying Partial Attributable Information Stage 1 Consumer review Supply Decision Stage 2 Seller Information Content Decision Figure 2.3 – Seller Information StrategyMarketing Management Page 14
  15. 15. There is a considerable positive relationship between the seller‟s information channels andthe likelihood for the seller to offer consumer review information. The seller with widercommunication media is more likely to benefit from supplying consumer reviews and is thusmore likely to facilitate such a new information channel. It must be added that theseinformation channels requires constant review and monitoring by the seller. This has a directcost component attached to it.New technology is making it possible for an online seller to efficiently provide two differentforms of product information to its potential buyers: seller-created product information supplied by the seller via its website or other media, Consumer-created information self-posted by consumers on the seller‟s website.Information technology continuous to evolve and has significantly increased the overallcompetitiveness of online sellers. They can now present traditional seller-created informationat a lower cost, but also has the new attractive option of supplying information to consumersby allowing them to post their product evaluations on the seller‟s website. It can be arguedthat, since consumer-created information is user-oriented but seller-created information isproduct-oriented, the former has an advantage over the latter in helping consumers to findproducts matching their preferences.Online consumer reviews will continue to have meaningful impact on firms marketingstrategies. Consumer reviews can be and should be employed as a new element of marketingcommunications mix. These strategies could help consumers to identify products that bestmatch their needs.Viral marketing strategies and the importance of diffusion is a new component to theorganisational marketing strategy that requires careful consideration. Granted that 50% of ouradopters in the diffusion process are either late majority or laggards one must consider thelevels of income within these groups. The economic benefit to the organisation is to berealised by Innovators, Early Adopters and Early Majority. According to Parker Associates(2009) the New Agers in the US that constitute Self Actualizers and Self Esteem Customerpersonalities now comprise 60% of their generation.Marketing Management Page 15
  16. 16. Question 3Duncan Watts says that “There are some things that are predictable. And we shouldlearn how to predict them.” Based on the above statement how can managers effectivelypredict consumer behaviour and market trends.Consumers represent the most important element of the marketing environment. Animportant aim of marketing is to influence the way that consumers react to the marketingoffers of the company. In an attempt to influence purchasing behaviour, a marketer mustunderstand why consumers behave in the way that they do. An understanding of the variousfactors that affect consumer behaviour and knowledge of the consumer decision-makingprocess are important when seeking to persuade consumers to choose one product rather thananother.Prediction future buying decisions can only be narrowed down by utilizing a number ofmodels that will enable us to apply a more holistic understanding of the client andencapsulating this into a unique Client Value Proposition (CVP). We will discuss a numberof models and their relevance to predicting consumer behaviour.1. Major Forces Demographic Political- Economic Legal Technological Socio-Cultural Natural Figure 3.1 – Major ForcesTechnological: Today this plays a critical part in all our lives and many consumers struggleto stay abreast of technological advancement. It is the role of the marketer to understand thetechnological advances and to envision the practical application and utilization thereof.Marketing Management Page 16
  17. 17. Natural: The environment is a major global concern. Marketers need to be aware of thesethreats and opportunities associated with six trends. Shortage of raw material especially water and oil Increased cost of energy Increased pollution Changing roles of governments Increased population levels Global warmingPolitical – Legal: This force encompasses laws, government agencies, pressure groups andderegulation. Laws and deregulation has the potential to create new business opportunities.Two major trends deal with; Increase in Business Legislation Growth of Special Interest Groups2. Maslow’s Hierarchy of NeedsFigure 3.2 – Maslow’s Hierarchy of NeedsThe marketer needs to have a greater understanding of the consumer in relation to Maslow‟sHierarchy of Needs model and the understanding that organisations and individual consumersprogress up through the model as their levels of income changes. This will determine futurespending trends based on rising income levels.Marketing Management Page 17
  18. 18. 3. Consumer LifecycleThis could serve as a predictive consumer model as to the outcomes that can be plotted to acertain degree of certainty.4. Consumer Behaviour Model Individual Social Factors The Buying Factors Decision • Perception • Culture • Purchase reason • Motivation • Reference • Purchase time • Learning Groups • Physical • Values, beliefs, at • Opinion leaders surroundings titudes • Family • Personality, self- • Social Class concept, lifestyle The Individual Social Buying Factors Factors Situation Consumer Decision – Making Process Buy or not to BuyAll three “external” variables can impact on the consumer‟s decision-making process whichin turn determines whether a consumer buys or not.Marketing Management Page 18
  19. 19. 5. Buyer Behaviour Source: [Kotler, P., 2000, Marketing management, Millennium edition, U.S.A.: Prentice-Hall, p. 161.]It must be noted that not one of these models can accurately predict consumer behaviour andmarket trends. However in combination with each other and supporting sales trends andanalysis they can assist in making a more accurate assessment. Additional factors can assistthe organisation in predicting consumer behaviours and market trends with greater accuracy. Continue to advertise, however utilise a variety of platforms Marketing strategy aligned to social networks Embrace new communication technologies. Stick to what works Develop smart and unusual value marketing campaigns aimed at the Millennium generation Humour to be included in the marketing campaign Build Brand loyalty by; Interacting with your customers (CVP) Reducing defections Manage your customer base (CRM) Developing Loyalty programmes Create institutional ties Have an effective Win-Back strategyWith the combined use of the highlighted models and factors we are able to predict certainoutcomes with a degree of success, however human nature by its very nature is unpredictableand therefore there will always be that X-factor.Marketing Management Page 19
  20. 20. Question 44.1 Discuss the importance of having all role players in the organization aligned to yourmarking strategy.The setting of all organisation strategy is set at the senior management level in theorganisation and is strategic by nature. The role of the Marketing Manager in an organizationis to create and deliver value to customers and to shareholders. Value is created via productsand services through the effective implementation of the marketing strategy.The marketing strategy communication requires differentiation to your B2B and B2Cmarkets. The true success of any strategy is the effective communication thereof and thealignment back to the organisational objectives and mission. All marketing strategies withinan organisation should include a communication strategy to all internal stakeholder i.e. staffand suppliers. The marketing plan implementation is strategic in nature.Simple Tools to assist in designing an effective marketing plan is SOSTAC® + 3M.SOSTAC® essential elements include;Situation Analysis – where are we now?Objectives – what do you want to achieve?Strategy – how are you going to get there?Tactics - what are the details of the strategy?Actions – who is going to do what, and by when?Controls – how are you going to measure success?The 3M model deals with resources that include;Men - people, expertise and abilities to do different jobs.Money - budgetsMinutes - what are the time scales?Marketing Management Page 20
  21. 21. TIER 1 Board of Directors, Senio Strategic r Management TIER 2 Division Heads Middle Management Tactical TIER 3 Junior Management OperationalFigure 4.1.1: Communication lines in a 3 Tier organisational structure and levels of managementEffective Communication between the organisational levels is critical to any MarketingStrategy.Tier 1Their organisational role is the developing of strategies and quality control measurements tomonitor performance, which they are responsible for. They do not get involved in the dailyoperational implementation; however they do oversee the developing of measurements tomeet organisation objectives and regulatory requirement. These managers normally have agreat depth of experience as they have moved up through the organisation structure.Tier 2Middle-level managers are responsible for carrying out the goals set by top management andare normally some of the more knowledgeable and operationally experienced staff membersin an organisation. They act as the conduit for relaying strategic intent into workable actionsas set out by top management. This is operationalised by setting goals for their respectivebusiness units‟ i.e. sales targets. They are the motivators for first line managers andtraditionally communicate with senior managers regarding suggestions and feedback.Tier 3These managers are responsible for the daily management and operational requirements ofthe organisation. They are present in every work unit in the organisation. These managerstraditionally do not set goals for the organization, however they are integrally responsible forensuring that these goals or objectives are met and where possible exceeded on. These are themanagers that most employees interact with on a daily basis, and hence have great influencein the organizational structure. Traditionally they communicate with middle-managementMarketing Management Page 21
  22. 22. however in modern organizations where hierarchical structures have flattened these managers are encouraged to communicate and suggest efficiencies to top management. In the modern organisation employees are encouraged to share information and ideas across the organisational hierarchy. Today in many Good to Great (Jim Collins, 2001) companies CEO‟s regularly engage with first-line managers and ordinary staff to share the company objectives, vision and values. An effective marketing strategy communication requires an organisation integrated approach. Employees are often encouraged to share organisation objectives in cross-divisional teams which in turn encourage cross-functional communication. Cross-functional work groups that are properly led greatly improve the operationalization of the marketing strategies into its most basic outcomes that align back to the strategy. It also presents a platform for giving and receiving feedback around the current marketing strategies and to validate understanding. Holistic Marketing is an overarching concept where everything matters. Marketing Senior Other CommunicationOpportunities Management Departments Product & Service Channels Internal Integrated Marketing Marketing Holistic Marketing Socially Relationship Responsible Marketing MarketingEthics Community Partners Legal Channel Environment Customers Figure 4.1.2 –Holistic Marketing Dimensions Source: Kotler and Keller (2012). Marketing Management. (14th Edition). Upper Saddle River, New Jersey: Prentice Hall. P41 Holistic Marketing can be viewed as the development, design and implementation of marketing programmes, processes, and activities that support the interdependencies of their efforts. Communicating this effectively to all levels within the organisation will ensure the buy-in and support at all organisational levels. Marketing is everyone‟s business. Marketing Management Page 22
  23. 23. 4.2 How can the marketing manager create internal branding to enhance its marketingstrategy?Branding is ultimately perceived as an outbound process that reaches out to customers andstakeholders resulting in the neglect of the organisations internal audience. This has resultedin a perceived brand gap view between employee and customer. Building a truly world-classbrand requires that the company makes sure that all of its internal processes, practices andsymbols, fit its brand values. Employees „own‟ the brand and are by large part supposed to bean intrinsic part of the brand and ultimately responsible for delivering on the brand promise.In many ways employees are the brand and should be treated as a priority audience.Employees are now seen as a critically important component of the brand, and as such theyneed to develop a shared understanding of the brand values. If the company‟s brand isplaying the role it should in creating value for the company, it should be viewed as a simplecohesive framework for organising all of the internal practices and processes and making surethey aligned to a shared desired customer experience. Successful companies do not see onesingle department as custodian of the customer relationship and do not rely only on marketresearch data to get to know their customers. They seek to better understanding thecustomer‟s values, and the ways customer relate with their brand. Sharing this understandingat an intuitive level throughout their organisation becomes critical. Organisations build ashared understanding of the desired brand experience and how it delivers value to thecustomers and emphasise trust amongst employees.The key principles that an organisation should implement in building a strong brand throughits people are: Emphasise freedom not control - Trust the employees to do the right thing Decentralise Synchronize Your Brand Personality, Values and Corporate Culture Do things differently - Emphasise uniquely owned processes and practices Communicate own brand positioning to your people first - building a deep intuitive understanding of the brand among own employees Get Your Employees behind Your Brand Keep it simple – applies use of language and the organisational processes Cross-functional – collaboration between HR and Marketing (Karl D. Speak Internal Brand Building: Leveraging an Innovative Collaboration Between Marketing and HR, 2009)Marketing Management Page 23
  24. 24. Think long term Measure - the things that really matter and give feedback to the frontline staff in a way that drives actions Reinforce and Repeatedly Explain Brand Values and BehaviorsInternally, specific structural changes are required to promote unity, not simply ask for it: a clear, articulated vision and mission statement rolled up individual brand financial targets into group targets, making them internally public new product platforms to connect content from different business units consolidated and centralized customer invoicing and customer service processes new advertising, marketing collateral, trade exhibits, and internal communications that for the first time demonstrated a unified imageSuccessful brands build loyal relationships with customers and these relationships arereinforced through employees, based on their consistent delivery on the brand promise. Thus,successful brands are those that align employee actions with a place that customers findunique and meaningful. They create brand “stickiness”. Marketing starts from the inside out.It is important that all organizational employees are informed and included in new initiativesand strategies that are taking place within the organization. Employee support is critical in thesupport of the organizational marketing strategy. Internal branding is about more that a "Go team, go!" mentality. Its about supporting yourcompetitive advantage at every level of the organization, in every activity. Which meansensuring compensation structures, reporting systems - everything - tracks progress against thebrand strategy? In order for internal branding to work, organizations need to see the brand asthe corporate strategy, not just a communications platform.Stephanie Jackman, Integrated Marketing Strategist, Venture Communications - April 1, 2002Marketing Management Page 24
  25. 25. Conclusion:Marketing continues to be a dynamic and exciting discipline. It has continues to be anincreasingly important business function and valuable activity for all organisations. Themarketing concept which emphasises a co-ordinate effort to satisfy customers needs andaligns to the organisations objectives is a philosophy guiding today‟s marketing managers.Marketers continue to strive in creating long-term relationships with customers that aremutually advantageous. Based on customer analysis firm continue to develop marketingstrategies that will be most appropriate for products and services. The Market Mix consists ofproduct, distribution, promotion and price variables. In today‟s complex world, marketingmanagers must continue to plan and make decisions in an ever changing environment. Marketmanagers must be aware of and be able to adapt their marketing strategies to thedemographic, economic, Socio-cultural, natural, technological and political-legalenvironments. Today global markets, increased technological change and changes inindustries from deregulation and consolidation have fundamental impact on the modernmarketer.Marketing Management Page 25
  26. 26. Bibliography 1. Kotler Keller. 2012. Marketing Management. 14th edition. Pearson 2. Lamb Hair McDaniel Boshoff Terblanche. 2004. Marketing. 2nd edition., Oxford 3. Bateman & Snell. 1999. Management: Building Competitive Advantage, 4th Ed. 4. Pearce & Robinson. 1997. Strategic Management: Formulation, Implementation, and Control. Sixth Edition, Page 171. 5. Eileen Hammar & Anne Malatchi. 2011. Seven Habits of Highly Effective IEP Teams 6. Online Consumer Review: Word-of-Mouth as a New Element of Marketing Communication Mix Management Science, Vol. 54, No. 3, pp. 477-491, 200 7. Duncan J. Watts and Jonah Peretti. 2007. Viral Marketing for the Real World 8. Jim Collins.2001. Good to Great. Random House 9. 10. 11. 12. 13. 14. 15. e_future_of_marketing_2835 16. 17. 18. 19. 20. north-america-163127660.html 21. html 22. 23. 24. 25. product-market-expansion-grid.html 26. Management Page 26
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