Author: Adua John Daniel Famonure

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Marketing Management and the Changing Paradigms

Article Review

By

1Adua John Daniel Famonure

MBA HRM Limkokwing University of Creative Technology

Email: adua.famonure@gmail.com; fjohn_daniel@yahoo.com

Author: Adua John Daniel Famonure

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Abstract

Today’s business environment is a highly competitive one, and companies and

organizations that want to have a competitive advantage over rivals, have to have an

intricate understanding of the environments they operate in. There has to be strategic

planning and a “sense of globalization”. Different regions in the world will need a

different approach, in order that the market identifies and accepts the product being sold.

Thanks to new and faster ways of communication via the internet, information moves at a

faster rate helping companies adapt and take more accurate surveys and data analysis

all geared toward strategic planning and globalization drives.

Key words: Globalization, Technology, Deregulated economy, Market planning and

communications

Author: Adua John Daniel Famonure

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Table of Contents

Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 4

Literature review- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --Page 6

- Globalization - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 6

- Technological effects - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 8

- Communications and Planning - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 9

Theoretical Framework - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 10

Conclusions and Recommendations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page 11

Citations and extracts - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Page 12

Table of Figures

Fig. 1 Lateral partnership between competitors- - - - - - - - - - - - - - - - - - - - - - - - Page 7

Author: Adua John Daniel Famonure

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Introduction

Marketing and marketing strategies are a constantly changing event and a marketing

system that worked in the past may not necessarily work in today‘s business

environment, so also goes for the future. What works today may not work tomorrow,

therefore to continue applying a strategy developed for today‘s market is a risky venture.

Companies that want to maintain the competitive advantage have to have foresight and

pay attention to three factors that remain constant.

These factors are:

- Global forces and the continuous effect on business and personal life.

- Technological advancement and their effect on marketing and individual demand

- There will be a continuous push towards a deregulated economical sector

These three developments—globalization, technological advances, and

deregulation spell endless opportunities. But what is marketing and what does it have to

do with these issues? Marketing deals with identifying and meeting human and social

needs. One of the shortest definitions of marketing is ―meeting needs profitably.‖

Whether the marketer is Procter & Gamble, which notices that people feel overweight

and want tasty but less fatty food and invents Olestra; or CarMax, which notes that

people want more certainty when they buy a used automobile and invents a new system

for selling used cars; or IKEA, which notices that people want good furniture at a

substantially lower price and creates knock-down furniture—all illustrate a drive to turn a

private or social need into a profitable business opportunity through marketing.

Marketing is an integral part of todays business scenario, and a tactical and people

oriented approach is key to successful marketing.

In this paper I will review ten literatures in the form of articles and other publications,

that deal with the marketing management techniques and issues between 1990 to 2009

period. Topics that will be in focus are:

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- Globalization

- Technological factor

- Deregulation and the economy

- Marketing communications

- Marketing planning

- And marketing management practice

Market planning is dependent on target environment and group.―There is but one

certainty regarding the times ahead, the times in which managers must work and perform.

This certainty is that they will be turbulent times. In turbulent times, the first task of

management is to make sure of the firm‘s capacity for survival; to make sure of its

structural strength and soundness; and to make sure of its capacity to survive a blow, to

adapt itself to sudden change, and to avail itself to sudden change and new

opportunities.‖ [Drucker, 1974]

Firms in the 20th

century have to know their strengths and weaknesses in order to make

room for improvement and take advantage of opportunities as they arise

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Literature Review

Globalization has led to a restructuring of common business practices around the world.

Large international companies such as AMD, Google and Microsoft outsource

consultants and specialist from different parts of the globe leading to job shift and

company restructuring (Engardio, Bernstein, and Kripalani, 2003).

Other examples of globalization and joint marketing effort are companies such as

automakers GM – Ford – Daimler Chrystal, Ford – Mazda and GM – Honda, alliances

can also be seen in the petroleum sector amongst companies like BP – Mobil, NUPI –

Chevron Texaco. These collaborations can be seen across all business spectra from foods

to the airline industry.

Therefore Globalization can be defined asthe process of increasing social and cultural

inter-connectedness, political interdependence, and economic, financial and market

integrations that are driven by advances in communication and transportation

technologies, and trade liberalization (Eden and Lenway, 2001; Giddens, 1990; Molle,

2002; Orozco, 2002).

Globalization is an interesting phenomenon as everyone on the earths surface is

influenced by this phenomena one way or the other. Over the past decades the world has

been going thorough a process of change geared towards and increased economic,

financial, cultural political, social and importantly market and environmental

interdependence among regions. Given these changes, globalization brings about a

borderless world (Eden and Lenway, 2001; Ohmae, 1989a).

Due to globalization people change the ways they carry out their day to day activities and

this has a direct effect on demand, thus companies have to be fluid in the way they

address needs and must have a versatile marketing strategy in order that they satisfy and

appeal to markets across the globe.

Globalization has its pros and cons. For example the Asian financial crisis in 1997 has

severely affected businesses around the world (McLean, 2001; Woo, 2000) and the

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outbreak of SARS (Severe Acute Respiratory Syndrome) in 2003 has shown how

globalization permits the rapid spread of the disease (Anthony, 2003; Meredith, 2003),

which affects many airlines, the hospitality industry, and other businesses around the

globe.

On the positive side, globalization enables firms to outsource and find customers around

the world, e.g., the auto and electronics industries. The globalization of production and

operations benefits firms through the realization of economies of scales and scope

(Corswant, 2002; Reyes, Raisinghani, and Singh, 2002). Hence, no one can deny that

globalization has changed the way we conduct business.

(amonrat thoumrungroje, 2004) in her thesis built on the conceptualization of Morgan

and Hunt (1994), strategic alliances represent one form of lateral partnership between

competitors. Figure 1.1, taken from Morgan and Hunt (1994), illustrates the relational

exchanges in relationship marketing.

Fig. 1 Lateral partnership between competitors

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The supplier and buyer partnerships indicate vertical relationships between a focal firm

and its suppliers and/or buyers. While internal partnerships deal with horizontal

relationships within an organization, lateral partnerships are more concerned with the

focal firm‘s relationships with external parties such as competitors, non- profit

organizations, and government. It is the cooperative relationships between the focal firm

and its competitors.

Technology, which can be defined as ―know how‖, is a big factor to consider when

designing products for the market. Firms or organizations with the ‗know how‘ are a

force to recon with in their market sector. Technology goes beyond product design it also

plays a key role in communications.

Technologies like the Internet and satellite TV have made the acquisition of data almost

instantaneous.Marketing through Print technologies have been on the decline since the

advent of the Internet.According to the Newspaper Association of America show that the

decline of newspapers is more rapid than previously thought, with total print advertising

revenue in 2007 plunging 9.4% to $42 billion compared to 2006, the biggest drop in

revenue since 1950, the year they started tracking annual revenue. Online provides some

solace for the dead-tree business, with internet ad revenue growing 18.8% to $3.2 billion

compared to 2006, but a rate significantly lower than the 31.4% growth the year before,

and not even close to replacing the losses from print.

Online revenue now represents 7.5% of total newspaper ad revenues.

Though technology can be typically described as an exogenous variable in classical

economic theory, the definition offered I this review reflect the emerging tradition within

economics of viewing technology in general as that, which changes the firm‘s production

function (Mansfield 1966).

Derrick Daye in his article ―The impact of Technology on Brand Marketing‖ says that

technology teaches us how to engage, and it is not a means of engaging. Technology

changes the way people perceive things and conceptualize options available to them.

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From an economic point of view, the easier and cheaper an activity is to execute

(liquidity) the more it will be executed. Therefore with technology marketing can cover a

wider area of reach at a faster rate. The down side is that when an activity becomes

readily available and the rate of liquidity increases, that operation turns trite and people

take it for granted. The main impact of technology on brand marketing is not the advert

spaces it‘s the demand and expectations consumers develop and apply to market

interaction. Technology in essence increases the power of the consumer and the way they

think setting a high bar for marketers and their products.

Various literatures try to explain the divergent performance of the European and United

States of American Labor markets during the early 90‘s. they have focused on the impact

on the labor market by economic variables [cf. Ljungqvist and Sargent (1998,2004), den

Haan, Haefke, and Ramey (2001)] and upon hiring and firing restrictions.

Author: Adua John Daniel Famonure

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Theoretical Framework

The primary objective of this literature review is to determine the changing paradigms of

marketing, between the early 90,s to the end of the first decade of the 21st century.

Many authors have written about the effect of globalization on growth and market

conditions (e.g., Ariño and Torre, 1998; Hitt, Keats, and DeMarie, 1998; Hwang and

Burgers, 1997; Ohmae, 1989b), there is no empirical study that establishes any links

between the two.

ittle research attention has been paid to co-marketing alliances. Thetwo reviews of

literature on strategic alliances conducted by Spekman et al. (1998) and Ireland, Hitt and

Vaidyanath (2002) indicate that most empirical studies focus on strategic supplier-buyer

alliances (supply chain alliances) and technological alliances between firms in high-tech

industries. Very few studies pay attention to alliances among firms at the same level of

the value chain (e.g., Bucklin and Sengupta, 1993; Robson and Dunk, 1999; Venkatesh,

Mahajan, and Eitan, 2000; Young, Gilbert, and McIntyre, 1996). To further develop this

under-researched area of alliance research, we chose to focus on co-marketing alliances.

Author: Adua John Daniel Famonure

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Conclusion and Recommendation

Change is one constant we can expect in life and in order to keep of with the times firms

have to continuously analyze their existing strategies in order to make an impact in

today‘s market. The world of today is now a global village and large companies have to

deal with different regions independently because they individually offer a unique

scenario of customer demand and marketing techniques needed in their region.

Marketing is influenced not only by globalization and global trends, factors like political,

cultural, technological and economic factors have to be considered and there impact on

marketing practices. In this article I gave examples of some ways multinational

companies overcome this hurdle. A Very good example is the collaboration between

automotive manufacturers GM – Honda. Technology is shared and market analysis can

easily be conducted in their respective regions so that customers are satisfied with the end

product.

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Citations and extracts

http://www.gb.axcesscapon.com/sites/default/files/page_uploads/33.pdf

http://www.nctr.usf.edu/pdf/77810.pdf

http://www.brandingstrategyinsider.com/2011/11/the-impact-of-technology-on-

brand-marketing.html#.UUZOyFtZ55U

Monique Ebell Humboldt University of Berlin and Study Center Gerzensee

Christian Haefke Universitat Pompeu Fabra, CREA and IZA Bonn Discussion

Paper No. 957 December 2003

Amonrat Thoumrungroje, 2004 Phd - The Effects Of Globalization On Marketing

Strategy And Performance

Market-Driven Management: A Critical Literature Review - Niccolò Gordini

Marketing and technology, a strategic co – alignment - Noel Capon and Rashi

Glazer

http://www.gurukpo.com

Concept based notes Marketing Management – Nandita Sarsar Lecturer Dept. of

Commerce & Management Biyani Girls College, Jaipur

Airline marketing and management – Stephen Shaw

Marketing and management – McGraw hill (2009)

Marketing management millennium edition – Philip kotler (2002)

Marketing management in changing times – Frederick E. Webster