2012

Marketing Management

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

ASSIGNMENT COVER SHEET

Surname First Name Student Number Subject Course/ Intake Lecturer Examination Venue Date Submitted Submission ()

Steyn Wilmon 116753 Marketing Management Master of Business Administration/ January 2012 Mr I Sahabodien Cape Town 02 May 2012 First Submission P O Box 10638 George 6530 Re-Submission

Postal Address

E-Mail Contact Numbers

wilmons@nedbank.co.za Work Cell 044 805 2042 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 Question 1 Critically analyse the various marketing strategies that three senior executives discuss. Question 2 12 4 5

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 havent 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 revolutions going, because its 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 Bibliography 25 26

Marketing Management

Page 3

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.
Stages of Brand Development Brand Building Blocks Branding Objectives at each Stage

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 Ps of the Marketing Mix should correspond to the customers 4Cs.

4P's Product Price Place Promotion

4C's Customer Solution Customer Cost Convenience Communication

Figure 2 - 4Ps alignment to 4Cs

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

Question 1 Critically analyse the various marketing strategies that three senior executives discuss. The three organisations will be analysed separately against Ansoffs 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 Ansoffs 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 Penetration Product Development

Markets

New

Market Development

Diversification

Figure 1.1 Ansoffs Product-Market Expansion Grid

Marketing Management

Page 5

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 companys 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
Strong brand recognition Consistent onboard client experience Use of Innovative technology Quality Trained Staff Richard Branson Partnerships allows for transfer of core competencies Quality award winners

Weakness
Flight delays Limited travel routes September 11 saw it cutting routes Late in getting on the Internet Richard Branson Reliance Trans Atlantic traffic Cost of VIP services

Opportunities
Improvements through technology In flight internet Web site improvement Additional routes Virgin Galactic Expanding its on-line ad campaigns Strategic marketing around its brand positioning Figure 1.2 Swot Analysis of Virgin Atlantic

Threats
On-going global recession Brand Dilution Competition for routes from BA and United Cost of fuel Deregulation

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.

Marketing Management

Page 6

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 4Cs 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 airlines either got it or it hasnt 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 Bransons Goal; To provide all classes of travellers with the highest quality travel at the lowest cost

Marketing Management

Page 7

The Ansoffs Product-Market Expansion grid can be applied to American Expresses crossbusiness function groups. This strategy is aligned to the Market Penetration and Market Development quadrants of the Ansoffs 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 Ansoffs 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
Diversified focus on generating revenues Strong brand equity Global reach & presence Travel services operations Great Products that have led to brand loyalty Cross business function groups

Weakness
Lack of point-of-sale debit card services Declining Traveler's check business High interest coverage ratio increasing the company's risk profile

Opportunities
Global expansion, particularly in China Financial services product expansion Divestment of AEB and AEIDC Small Business Saturdays

Threats
Interchange fees associated with legislative rulings in Europe Heavy competition from other financial 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

Marketing Management

Page 8

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

The 4Cs 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.

Marketing Management

Page 9

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 Ansoffs Product-Market Expansion grid can be applied to Yahoos Measure-and React strategy. Their strategy focuses on all four quadrants of the Ansoffs 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
Affliliate advertising 350 million users Strong brand positioning Strategic business units Yahoo Directory

Weakness
Differentiation Future online advertising Joint Venture with telecom providers

Opportunities
International markts Development of Yahoo Directory Mobile technology SME - Directory advertisers

Threats
Competition International, cultural specific competition

Figure 1.6 Swot Analysis of Yahoo

Marketing Management

Page 10

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.

Marketing Management

Page 11

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

Marketing Management

Page 12

INNOVATORS

This group is eager, educated and has multiple sources of information and shows greater propensity to take risks. They appreciate technology and are motivated by the idea of being a change agent in their reference group 2.5%

EARLY ADOPTERS
EARLY MAJORITY LATE MAJORITY LAGGARDS

They are social astute, educated and considered the visionaries in their market and are continuously looking to adopt and use new technology that will aid them in achieving dramatic competitive advantage in their industries - 13.5%

They are deliberate and have many informal social contacts. They are motivated by evolutionary changes 34%

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 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: Wordof-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 sellers website.

Marketing Management

Page 13

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 users 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 sellers 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 sellers incentive to provide full product information through its traditional marketing communications. WOMM eliminates the sellers control over the content of product information accessible to consumers, and because consumer reviews may not be fully informative could have adverse impact. The sellers 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 sellers own product information content supply decision.
Supplying Full Attribute Information Supplying Partial Attribute information Supplying Full Attribute information Supplying Partial Attributable Information
Stage 2 Seller Information Content Decision

Providing Consumer Reviews

Seller

Not Providing Consumer Reviews

Stage 1 Consumer review Supply Decision

Figure 2.3 Seller Information Strategy

Marketing Management

Page 14

There is a considerable positive relationship between the sellers 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 sellers 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 sellers 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.

Marketing Management

Page 15

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

PoliticalLegal

Economic

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.

Marketing Management

Page 16

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. Maslows Hierarchy of Needs

Figure 3.2 Maslows Hierarchy of Needs

The marketer needs to have a greater understanding of the consumer in relation to Maslows 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.

Marketing Management

Page 17

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 Factors Perception Motivation Learning Values, beliefs, attitudes Personality, selfconcept, lifestyle The Buying Decision Purchase reason Purchase time Physical surroundings

Social Factors Culture Reference Groups Opinion leaders Family Social Class

Individual Factors

Social Factors

The Buying Situation

Consumer Decision Making Process Buy or not to Buy

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

Marketing Management

Page 18

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.

Marketing Management

Page 19

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?

Marketing Management

Page 20

TIER 1 Board of Directors, Senior Management TIER 2 Division Heads Middle Management

Strategic

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
Marketing Management Page 21

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 CEOs 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 Opportunities Management Other Departments Communication Product & Service Channels Internal Marketing Holistic Marketing Integrated Marketing

Socially Responsible Marketing Ethics Environment Legal

Relationship Marketing

Community Customers

Channel

Partners

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 everyones business.

Marketing Management

Page 22

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 companys 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 customers 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)
Marketing Management Page 23

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

Marketing Management

Page 24

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 todays 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 todays 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.

Marketing Management

Page 25

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. http://www.virgin-atlantic.com/gb/en/indexb.html 10. http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/forstudents.jsp 11. http://www.studymarketing.org/articles/Presentation_Slides/Marketing_Strategy.html 12. http://en.wikipedia.org/wiki/A/B_testing 13. http://za.yahoo.com 14. http://www.cs.cornell.edu/home/kleinber/www11-bucket.pdf 15. https://www.mckinseyquarterly.com/How_we_see_it_Three_senior_executives_on_th e_future_of_marketing_2835 16. http://www.mindtools.com/pages/article/newSTR_94.htm 17. http://www.valuebasedmanagement.net/methods_marketing_mix.html 18. http://howwemove.blogspot.com/2011/09/keller-model-does-anyone-use-models.html 19. http://www.extension.purdue.edu/extmedia/ec/ec-730.pdf 20. http://news.yahoo.com/blogs/sideshow/dreamliner-jet-draws-boeing-logo-acrossnorth-america-163127660.html 21. http://www.straitstimes.com/BreakingNews/TechandScience/Story/STIStory_793519. html 22. http://www.kgsepg.com/project-id/1050-marketing-dead-long-live-marketing 23. http://www.unescap.org/stat/meet/rrg3/twsa-module1.pdf 24. http://www.businessweek.com/magazine/content/05_07/b3920042_mz011.htm 25. http://www.mba-tutorials.com/marketing/117-intensive-growth-strategies-ansoffsproduct-market-expansion-grid.html 26. http://www.itweb.co.za/index.php?option=com_content&view=article&id=51730
Marketing Management Page 26

27. http://www.virgin-atlantic.com 28. http://www.learnmarketing.net/pestanalysis.htm 29. http://www.wikiswot.com/SWOT/13_Financial_Sector/American_Express.html 30. http://cbe.elmhurst.edu/gopal/documents/wom.pdf 31. http://www.quickmba.com/marketing/product/diffusion/ 32. http://www.marketingteacher.com/swot/yahoo-swot.html 33. http://www.marketing91.com/steps-in-consumer-decision-making/ 34. http://www.hsdent.com/The_Dent_Methods 35. http://www.parkerassociates.com/Emailers/ParkerAssociates-NewsReleaseSmallIsBeautiful-100128.htm 36. http://www2.ufp.pt/~lmbg/com/lsimoes2_spocom08.pdf 37. http://www.businessballs.com/pr_smiths_sostac_planning_method.htm 38. http://www.businessweek.com/smallbiz/content/dec2009/sb20091210_167541.htm 39. http://marketing.about.com/od/marketingyourbrand/a/internalbrand.htm 40. http://www.brandchannel.com/images/papers/514_10-10_BrandToolBox_KSpeak.pdf 41. http://www.marketingteacher.com/swot/yahoo-swot.html

Marketing Management

Page 27