Posted at 11.26.2018
Keywords: old marketing techniques, new marketing strategies
Nowadays, customer has more choice when decide on a product since new technology and new media have managed to get easier for consumers to find more information about goods and service (includes price) also to more easily and successfully, from the comfortable home to receive the answers they have to make more prepared decision. (Philip Kotler. 2010) Therefore, more than ever before, marketing has progressed from the first days of creation orientation to today`s societal marketing concept to be able to supply the certain goods and service with right benefits and quality value to reach the targeted customer. However, don't assume all company has applied the current marketing concept. In this essay, the writer will research the motivations that why some companies still operate under the old marketing concept through a few examples; moreover, the writer will analyze how the marketing concept have an effect on the company profitability and customer satisfaction. (Leon G. Schiffman. 2010)
Today the societal marketing concept which is the most up to date marketing concept, they have widely been found in many organizations to be able to determine the needs, would like, and interests of target markets and offers the expected satisfaction better than challengers, also in a way that could increase the society's well-being. (Philip Kotler. 2010)McDonald's among the world leading fast-food Company that practice the social marketing concept in term of being more environmentally and produce balanced diet. Restaurant businesses are taking the world's energy end user, and almost 80 percent the power a restaurant uses is lost anticipated to inefficient food baking, holding, and safe-keeping. (PAGE 20 Range 5) McDonald's make an effort to build up a graphic of eco-friendly company by firmly taking steps such as: McDonald's has implemented recycling packaging for everyone its products; in addition, On Thursday, July 14, the company carried out the first "green" McDonalds in the U. S, boasting electric car recharging (CSD personnel. 2009), also in '09 2009 McDonald's released that it blueprints to convert its UK fleet of 155 vehicles to run on biofuel created from recycled vegetable excess fat from 900 restaurants. They lay claim, it will save 1, 650 a great deal of carbon per season. (Tom lyttelton. 2009) In addition, people now don't have much worry about hungry, and they concern more about how healthy is the meals they are really eating. McDonalds can be used with an image of junk food, the company has experienced increasing criticism about the type of food it sells in america such as diet of potato chips and burgers that brought on obesity in children. (Mary Gahan. 2003) However, the business attempt to copy the image to balanced diet by using new natural oils to fry their products, they state the new petrol produces less of the kind of cholesterol that can lead to strokes and center attacks, looked after reduces the degrees of dangerous trans extra fat by fifty percent. (Kim Severson. 2002) Also, McDonald's restaurants is wanting to revamp its image by introducing a new plan, the plan, called McDonald's TRUE TO LIFE Options; McDonald's restaurants will showcase posters and brochures offering with information of calories from fat, fat or glucose on all products of McDonald's TRUE TO LIFE Choices. (Mary Shomon. 2004) All these actions performed by McDonald's have attempted to copy McDonald's to a healthy and environmental brand.
However, there are numerous companies remain operating their business under old marketing approach to make profits. An example within hospitality industry could be Starbucks coffee. The company says: "We spend a lot of time in source countries looking for the finest coffees - ones with specific flavors that enchant, amaze and captivate. But of the hundreds we come across, only a important few are considered exceptional enough to become Starbucks Reserve coffees. "(Starbucks. 2011) The merchandise concept contains that consumer prefers existing product and product forms, and the work of management is too developing good visions of the products. This misses the point that consumers are trying to fulfill needs and may turn it completely different products to better meet those needs. (Philip Kotler. 2010) in other words, it is an method of business that focuses its activities on continually enhancing and refining its products, assuming that customers simply want the best possible quality for their money. The management centered how to make their cafe has better tasting with a realistic price. (ibid) Starbucks espresso thinks that the improvement of the coffee could keep gratifying their customer. Alas, customer wants evolved, but Starbucks did not match these changes. The business still produced great caffeine, but many of their customers no more wanted to drink coffee each time, they want to have significantly more choice such as liquor or carbonated drinks. Starbucks apply not only product concept directly into their business but also the offering concept which contains that consumers won't buy enough of the company`s products unless the business undertakes a large selling and promotion effort. The aim of a selling emphasis is to get every possible deal, not to fret about satisfaction following the sales or the revenue contribution of the sale. (Philip Kotler. 2010) the reselling concept is out there within the hospitality industry. A significant contributing factor is overcapacity. In the case, if there aren't much people drink Starbucks espresso, but the company still need to pay the hire of the house and personnel costs. Therefore the company always undertakes a great advertising such as: Starbucks always promote their new caffeine in a way like "buy one and get the next one free of charge". (Christine Huard. 2010) The company always makes good business due to promotion brings quite definitely people to its business. However, people who come to Starbucks not only because of good tasting coffee but also the atmosphere like comfortable seats, free internet accessed. The area became small, the internet acceleration decreased down, friends can not talk to one another in a quite environment due to the crowed of individuals. It could lead to unsatisfied customer.
The old marketing procedure has been accepted not only in hospitality industry but also in a great many other industries; a good example is Gillette which mainly runs the business enterprise in product strategy, Gillette remain producing typical shaving products nowadays. Because they believe traditional shave methodology holds more clear than e-shaving good, therefore they hold that they can obtain loyal customers by improving the grade of their product. It is true traditional shave has its benefit; the needs of some customer could be satisfied. But if some of individuals which do not much value their personal-grooming and want to have an easier life; the e-shaving product that could better satisfy their needs and demands. It may conduct a decrease of profitability due to the needs and desires of customer has transformed. Another example is insurance business, many insurance firms adopt selling theory in order to increase their income. People might not exactly need their product or services. Therefore, these companies take part in hard selling to push the product, and create understanding to the general public. However, consumers normally tend to avoid buying some things that are not essential; because compared to their daily lives, people needs and wants are not turned on because of this. Therefore, customer has almost no loyalty to the business. So if another insurance provider offers a much better deal, the customer will easily leave the business enterprise.
From the experience of previous illustrations, it is obviously doable that company could be profitable by using old marketing approach. However, the management or decision manufacturer must also go through the limitation of the strategies. The similar of all these old marketing strategy is tending to ignore the customers need and would like. In Starbucks circumstance, the business has seen that in higher china region, people have a more robust tea having culture. So to be able to delight and delight customers in Taiwan with a twist on the favorite and familiar, Starbucks Espresso Taiwan developed and introduced the Green Tea Frappuccino Blended CrЁme beverage in 2002 (Starbucks. 2011) Moreover, Starbucks coffee has recently changed their company logo tend to bring an eco-friendly image with their customer, and it established an objective of by 2015 to possess recycling available in every of our own stores where we control throw away collection and serve 25% of beverages in reusable mugs. (ibid) These steps verify that Starbucks have a tendency to apply societal marketing theory to its business, and Starbucks is actually getting advantages from it.
Marketing management wants to create strategies that will build profitable interactions with concentrate on consumers. Based on the marketing concept, the goal of marketing is to understand the needs and desires of customers and create customer value through satisfaction and quality better and efficiently than competitors to be able to increase the value of the organization. so it will not matter the marketing theory is old or newest, the main thing is to understand your targeted market needs and desires. Additionally, company is definitely not to keep using the same concept on a regular basis, maybe it's altered by changing of target customer perceptive. The main of adopting marketing concept is to find out the best option one that supplies the guiding reference for appropriate marketing action. It will always be good to look back again of the limitation when any companies apply any marketing theory to their business. And have themselves how do we provide our customers best?