Marketing

2012

Marketing
Management

Wilmon Steyn
MBA General Year 1. 116753
5/2/2012

ASSIGNMENT COVER SHEET

Surname Steyn

First Name Wilmon

Student Number 116753

Subject Marketing Management

Course/ Intake Master of Business Administration/ January 2012

Lecturer Mr I Sahabodien

Examination Venue Cape Town

Date Submitted 02 May 2012

Submission (√) First √ Re-Submission
Submission

Postal Address P O Box 10638

George

6530

E-Mail wilmons@nedbank.co.za

Contact Numbers Work 044 – 805 2042

Cell 084 414 8868

Declaration: I hereby declare that the assignment submitted is an original piece of work
produced by myself.

Signature: Wilmon Steyn Date: 02 May 2012

Marketing Management Page 2

Table of Content

Introduction 4

Question 1 5

Critically analyse the various marketing strategies that three senior executives discuss.

Question 2 12

Duncan Watts view that word-of-mouth or viral communications play a relatively minor role
in diffusion. Do you agree? Substantiate your answer.

Question 3 16

Duncan Watts says that “There are some things that are predictable. And we should learn
how to predict them.” Based on the above statement how can managers effectively predict
consumer 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 – who
feels 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 your
marking strategy.

4.2 How can the marketing manager create internal branding to enhance its marketing
strategy?

Conclusion 25

Bibliography 26


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 at
Stages 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.

4P's 4C's

• 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.


Question 1

Critically analyse the various marketing strategies that three senior executives discuss.

The three organisations will be analysed separately against Ansoff‟s Product-Market
Expansion Grid, SWOT analysis and the Macro Environmental forces including Brand
Positioning.

Virgin Atlantic has evolved their marketing strategy which is aimed at differentiation and
creating a superior customer experience. This strategy is realized through developing the
chemistry 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 Atlantic
Airways to build a very integrated interactive platform that allows them to manage daily
conversations and expectation between its marketing dimensions. By involving the maximum
marketing dimensions they have managed to co-create a value-based product. By opting to
adopt a more Holistic Marketing approach they have strengthened their dimensional
relationships.
“Still Red Hot” allowed Virgin Atlantic to expand its Market Penetration Strategy. When
applying Ansoff‟s Product-Matrix Expansion grid to the “Still Red Hot” it becomes clear that
they managed to expand (Market-Penetration strategy) in the Current Products and Current
Markets segment of this grid. The advert allowed Virgin Atlantic to expand in the New
Market/ Current Products (Market Development Strategy) quartile and hence increase its
market Penetration figures by attracting competitor customers and looking for potential
customers for its existing products. Virgin Atlantic Airways additionally managed to develop
new 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 Grid


When applying the SWOT analysis it becomes clear that Virgin Atlantic Airlines has
managed to gain ground over their competitors by applying and innovating how they interact
with their customers and suppliers. A SWOT analysis helps executives to summarize the
major facts and forecasts derived from the external and internal analysis that can be
implemented in the company‟s strategic plan. The „Still Red Hot” advertising campaign went
viral 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 Atlantic

The 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.


Brand Positioning

Kotler and Armstrong (2010:233) “the way the product is defined by the consumer on
important attributes – the place the product occupies in the consumers‟ minds relative to
competitor 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
Assistance

Figure 1.3 – Position Map of Virgin Atlantic Airways comparable to British Airways

Blythe (2006:204) puts it forward that a brand position that includes the 4C‟s will be
successful and the brand will sell

Clear – “Still Red Hot” was very effective around the brand positioning
Consistent – 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 in
terms of being hot.
Credible – The brand has proved itself by winning most industry quality awards
Competitive – The line of advertising campaigns aligns to the product as being very
competitive and out there.
Virgin Atlantic Airways has moved away from the Richard Branson persona to a brand that
evokes emotions a smoky sensual style that screams I am that “special agent”. They have
adopted an undifferentiated marking approach that has gained them cult status amongst their
staff, customers and suppliers; this has work really well for them. Business reputations are
built around customer experiences and one believes that Virgin Atlantic Airways will stay
true to Branson‟s Goal;
“To provide all classes of travellers with the highest quality travel at the lowest cost”


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 Market
Development quadrants of the Ansoff‟s grid. Their Small Business Saturday program has
allowed them to grow their present product offering into their present and new markets
amongst their customers, staff and suppliers. “you start building your marketing plans
around the sense of joining a community” John Hayes. These marketing plans align to
Ansoff‟s grid positions.

The SWOT analysis for American Express shows that it strength lies in its cross-functional
teams. The success effectiveness of these teams will depend on the principles that govern
highly effective teams (Plowman 2011).

Strenghts Weakness
• Diversified focus on generating revenues •Lack of point-of-sale debit card services
• Strong brand equity •Declining Traveler's check business
• Global reach & presence •High interest coverage ratio increasing the
• Travel services operations company's risk profile
• Great Products that have led to brand
loyalty
• Cross business function groups

• 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 markets

Figure 1.4 – Swot Analysis of American Express

The 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 markets


Figure 1.5 – Position Map of American Express comparable to Visa and MasterCard

The 4C’s

Clear - Small Business Saturdays was very effective

Consistent – Very passionate community of Card Holders

Credible – Donating $100 million 87 million Membership Reward points to the Haiti
earthquake disaster

Competitive – Cross-functional teams that lead with creative ideas that results in cohesive
outcomes for their customers.

Having wonderfully interactive cross-functional teams is great however the true test around
their effectiveness is the conversion and putting into practice these ideas. Small Business
Saturdays seems to be a great success however it leaves one wondering how this success
compares to the industry competitors. The success of cross-functional teams is the direction
leadership provides.


Duncan Watts refers to data revolution and a scientific approach to Marketing. The available
range of the information that is available to the modern organisation is boundless.
Communication today is global and instantaneous with interactive and participative audiences
aplenty. The business revolution around brand loyalty and longevity has resulted in ever
increased focus on re-engineering a more customer-centric position and paying attention to
what customers, staff and suppliers are talking about via the modern communication
mediums.

The Ansoff‟s Product-Market Expansion grid can be applied to Yahoo‟s “Measure-and
React” 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 are
applying their “Measure-and React” strategy. A possible weakness is that are unable to react
timeously 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

• International markts • Competition
• Development of Yahoo Directory • International, cultural specific
• Mobile technology competition
• SME - Directory advertisers

Figure 1.6 – Swot Analysis of Yahoo


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
Assistance

Figure 1.7 – Position Map of Yahoo comparable to AoL and Google

Yahoo in indeed a truly global company with more than 350 million users that influences
culture 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 its
own 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.


Question 2

Duncan Watts view that word-of-mouth (WOM) or viral communications play a
relatively 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 as
buzz marketing and viral advertising, can be highly valued by product marketers due to the
personal nature of the communications between individuals. This sharing of product
information is communicated in such a way that it has an added layer of credibility (Wilson
and Sherrell 1993). Research points to individuals being more inclined to believe WOMM
than more formal forms of promotional methods where the receiver of WOM tends to believe
that 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 Reingen
1987, Biyalogorsky, Gerstner, and Libai 2001, Shi 2003). This is not a decision variable for
the seller.

The impact of online consumer reviews has global reach via the Internet and an online seller
can 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 consumers
and 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-cycle


• 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 Groups

Source: Lamb Hair McDaniel Boshoff Terblanche (2005) Marketing (Second Edition) Oxford. P271

Research results have show that supplying online consumer reviews can benefit or hurt a
seller depending on the product characteristics and the information contained in the review.
Research also shows that the seller's decision to provide consumer reviews will increase its
incentive to offer more complete product information to consumers through more traditional
marketing 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 regarding
a specific product or service. A study by Forrester Research found that half of those who
visited the retailer sites with consumer postings reported that consumer reviews are important
in their buying decisions (Los Angeles Times, Dec. 3, 1999). Amazon.com has found that
online 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.


The consumer-created product information is, by definition, user-oriented and often describes
product attributes in terms of usage situations and measures product performance from a
user‟s perspective (Bickart and Schindler 2001). More importantly, since this information is
posted by users with different preferences, levels of product knowledge, and usage situations
thus has the potential to be more relevant to consumers. Sellers can also be motivated to
supply 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 its
information strategy on the seller created information. Additionally the consumer review
supply decision increases the seller‟s incentive to provide full product information through its
traditional marketing communications.
WOMM eliminates the seller‟s control over the content of product information accessible to
consumers, and because consumer reviews may not be fully informative could have adverse
impact.
The seller‟s information supply strategy is a two-stage decision. In stage 1, the seller decides
whether to supply consumer review information to its customer. In stage 2, the seller decides
whether 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 review
information supply decision is often less flexible than the seller‟s own product information
content 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 Strategy


There is a considerable positive relationship between the seller‟s information channels and
the likelihood for the seller to offer consumer review information. The seller with wider
communication media is more likely to benefit from supplying consumer reviews and is thus
more likely to facilitate such a new information channel. It must be added that these
information channels requires constant review and monitoring by the seller. This has a direct
cost component attached to it.
New technology is making it possible for an online seller to efficiently provide two different
forms 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 overall
competitiveness of online sellers. They can now present traditional seller-created information
at a lower cost, but also has the new attractive option of supplying information to consumers
by allowing them to post their product evaluations on the seller‟s website. It can be argued
that, since consumer-created information is user-oriented but seller-created information is
product-oriented, the former has an advantage over the latter in helping consumers to find
products matching their preferences.

Online consumer reviews will continue to have meaningful impact on firms marketing
strategies. Consumer reviews can be and should be employed as a new element of marketing
communications mix. These strategies could help consumers to identify products that best
match their needs.

Viral marketing strategies and the importance of diffusion is a new component to the
organisational marketing strategy that requires careful consideration. Granted that 50% of our
adopters in the diffusion process are either late majority or laggards one must consider the
levels of income within these groups. The economic benefit to the organisation is to be
realised 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 Customer
personalities now comprise 60% of their generation.


Question 3

Duncan Watts says that “There are some things that are predictable. And we should
learn how to predict them.” Based on the above statement how can managers effectively
predict consumer behaviour and market trends.

Consumers represent the most important element of the marketing environment. An
important aim of marketing is to influence the way that consumers react to the marketing
offers of the company. In an attempt to influence purchasing behaviour, a marketer must
understand why consumers behave in the way that they do. An understanding of the various
factors that affect consumer behaviour and knowledge of the consumer decision-making
process are important when seeking to persuade consumers to choose one product rather than
another.

Prediction future buying decisions can only be narrowed down by utilizing a number of
models that will enable us to apply a more holistic understanding of the client and
encapsulating this into a unique Client Value Proposition (CVP). We will discuss a number
of models and their relevance to predicting consumer behaviour.

1. Major Forces

Demographic

Political-
Economic
Legal

Technological Socio-Cultural

Natural

Figure 3.1 – Major Forces

Technological: Today this plays a critical part in all our lives and many consumers struggle
to stay abreast of technological advancement. It is the role of the marketer to understand the
technological advances and to envision the practical application and utilization thereof.


Natural: The environment is a major global concern. Marketers need to be aware of these
threats 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 warming

Political – Legal: This force encompasses laws, government agencies, pressure groups and
deregulation. Laws and deregulation has the potential to create new business opportunities.
Two major trends deal with;

Increase in Business Legislation
Growth of Special Interest Groups

2. Maslow’s Hierarchy of Needs

Figure 3.2 – Maslow’s Hierarchy of Needs

The marketer needs to have a greater understanding of the consumer in relation to Maslow‟s
Hierarchy of Needs model and the understanding that organisations and individual consumers
progress up through the model as their levels of income changes. This will determine future
spending trends based on rising income levels.


3. Consumer Lifecycle

This could serve as a predictive consumer model as to the outcomes that can be plotted to a
certain 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
Buy

All three “external” variables can impact on the consumer‟s decision-making process which
in turn determines whether a consumer buys or not.


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 and
market trends. However in combination with each other and supporting sales trends and
analysis they can assist in making a more accurate assessment. Additional factors can assist
the 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 strategy

With the combined use of the highlighted models and factors we are able to predict certain
outcomes with a degree of success, however human nature by its very nature is unpredictable
and therefore there will always be that X-factor.


Question 4

4.1 Discuss the importance of having all role players in the organization aligned to your
marking strategy.

The setting of all organisation strategy is set at the senior management level in the
organisation and is strategic by nature. The role of the Marketing Manager in an organization
is to create and deliver value to customers and to shareholders. Value is created via products
and services through the effective implementation of the marketing strategy.
The marketing strategy communication requires differentiation to your B2B and B2C
markets. The true success of any strategy is the effective communication thereof and the
alignment back to the organisational objectives and mission. All marketing strategies within
an organisation should include a communication strategy to all internal stakeholder i.e. staff
and 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 - budgets
Minutes - what are the time scales?


TIER 1
Board of
Directors, Senio
Strategic
r Management
TIER 2
Division Heads
Middle Management
Tactical

TIER 3
Junior Management
Operational

Figure 4.1.1: Communication lines in a 3 Tier organisational structure and levels of management

Effective Communication between the organisational levels is critical to any Marketing
Strategy.

Tier 1

Their organisational role is the developing of strategies and quality control measurements to
monitor performance, which they are responsible for. They do not get involved in the daily
operational implementation; however they do oversee the developing of measurements to
meet organisation objectives and regulatory requirement. These managers normally have a
great depth of experience as they have moved up through the organisation structure.

Tier 2

Middle-level managers are responsible for carrying out the goals set by top management and
are normally some of the more knowledgeable and operationally experienced staff members
in an organisation. They act as the conduit for relaying strategic intent into workable actions
as set out by top management. This is operationalised by setting goals for their respective
business units‟ i.e. sales targets. They are the motivators for first line managers and
traditionally communicate with senior managers regarding suggestions and feedback.

Tier 3

These managers are responsible for the daily management and operational requirements of
the organisation. They are present in every work unit in the organisation. These managers
traditionally do not set goals for the organization, however they are integrally responsible for
ensuring that these goals or objectives are met and where possible exceeded on. These are the
managers that most employees interact with on a daily basis, and hence have great influence
in the organizational structure. Traditionally they communicate with middle-management


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 Communication
Opportunities Management Departments Product &
Service

Channels
Internal Integrated
Marketing Marketing

Holistic
Marketing

Socially Relationship
Responsible Marketing
Marketing

Ethics
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.


4.2 How can the marketing manager create internal branding to enhance its marketing
strategy?

Branding is ultimately perceived as an outbound process that reaches out to customers and
stakeholders resulting in the neglect of the organisations internal audience. This has resulted
in a perceived brand gap view between employee and customer. Building a truly world-class
brand requires that the company makes sure that all of its internal processes, practices and
symbols, fit its brand values. Employees „own‟ the brand and are by large part supposed to be
an 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 they
need to develop a shared understanding of the brand values. If the company‟s brand is
playing the role it should in creating value for the company, it should be viewed as a simple
cohesive framework for organising all of the internal practices and processes and making sure
they aligned to a shared desired customer experience. Successful companies do not see one
single department as custodian of the customer relationship and do not rely only on market
research data to get to know their customers. They seek to better understanding the
customer‟s values, and the ways customer relate with their brand. Sharing this understanding
at an intuitive level throughout their organisation becomes critical. Organisations build a
shared understanding of the desired brand experience and how it delivers value to the
customers and emphasise trust amongst employees.
The key principles that an organisation should implement in building a strong brand through
its 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)


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 Behaviors

Internally, 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 image

Successful brands build loyal relationships with customers and these relationships are
reinforced 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 find
unique 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 initiatives
and strategies that are taking place within the organization. Employee support is critical in the
support of the organizational marketing strategy.

Internal branding is about more that a "Go team, go!" mentality. It's about supporting your
competitive advantage at every level of the organization, in every activity. Which means
ensuring compensation structures, reporting systems - everything - tracks progress against the
brand strategy? In order for internal branding to work, organizations need to see the brand as
the corporate strategy, not just a communications platform.
Stephanie Jackman, Integrated Marketing Strategist, Venture Communications - April 1, 2002


Conclusion:

Marketing continues to be a dynamic and exciting discipline. It has continues to be an
increasingly important business function and valuable activity for all organisations. The
marketing concept which emphasises a co-ordinate effort to satisfy customers needs and
aligns to the organisations objectives is a philosophy guiding today‟s marketing managers.
Marketers continue to strive in creating long-term relationships with customers that are
mutually advantageous. Based on customer analysis firm continue to develop marketing
strategies that will be most appropriate for products and services. The Market Mix consists of
product, distribution, promotion and price variables. In today‟s complex world, marketing
managers must continue to plan and make decisions in an ever changing environment. Market
managers must be aware of and be able to adapt their marketing strategies to the
demographic, economic, Socio-cultural, natural, technological and political-legal
environments. Today global markets, increased technological change and changes in
industries from deregulation and consolidation have fundamental impact on the modern
marketer.


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.
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