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MKT 420 Contemporary Issues in Marketing


MKT 420 Contemporary Issues in Marketing Chapter 1 Marketing in the Contemporary Organization – PowerPoint PPT presentation

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Title: MKT 420 Contemporary Issues in Marketing

MKT 420 Contemporary Issues in Marketing
  • Chapter 1
  • Marketing in the Contemporary Organization

  • Review current debates about the nature of the
    marketing role in contemporary organizations
  • Provide a background context for the specific
    topics that will be discussed in future chapters.
  • List topics that currently impact the way
    marketing is researched and practiced

Definitions of Marketing Critique/Analysis
  • Marketing as a phenomenon has changed
    significantly over the last several years.
  • New fields of study have emerged such as
    relationship marketing, services marketing and
    the network perspective on business-to-business
  • Attempts have been made to redefine both the
    terminology and the environment of marketing.
  • Scholars are concerned about the direction in
    which marketing conceptualizations are moving
    (Wilkie, 2005 Gronroos, 2006).

Definitions of Marketing Critique/Analysis Contin
  • Several issues raised for the definition of
    Marketing by AMA (2004)
  • Marketing is an organizational function and a
    set of business processes for creating,
    communicating, and delivering value to customers
    and for managing customer relationships in ways
    that benefit the organization and its

Definitions of Marketing Critique/Analysis Contin
  • Major concerns were related to its conception of
    the role of marketing within the organization,
    the role of consumers within the marketing
    relation and the wider societal role of
  • Definition was considered to view marketing as
    one function amongst others, and that such a
    conception of marketing is ill equipped to deal
    with new forms of relationships with customers.
    (Gronroos, 2006)
  • Consumers are defined to have value delivered to
    them although this is becomes a social problem
    as all marketers simply propose too much
    consumption for each consumer. (Wilkie, 2005, p.

Definitions of Marketing Critique/Analysis Contin
  • Marketing system is structured as if finance is
    not important for the consumer.
  • Delivery of value to customers also ignores their
    role in actively producing value (Vargo and
    Lusch, 2004). Value is considered to emerge both
    in interactions between the consumer and
    supplier, and also through a series of subsequent
    consumption practices by consumers.
  • AMA (2004) definition only captures the role of
    the marketing manager, and ignores the wider role
    of marketing within society.
  • The definition of marketing that embraces a
    macro-marketing perspective where marketers
    engage with the big issues in society.

Definitions of Marketing Critique/Analysis Contin
  • Due to debate generated by earlier 2004
    definition of marketing, the AMA produced a
    second updated version in 2007, as below
  • Marketing is the activity, set of institutions,
    and processes for creating, communicating,
    delivering, and exchanging offerings that have
    value for customers, clients, partners, and
    society at large."

Future of Marketings role in the Organization
  • In a survey of 30 large US companies more than 30
    per cent indicated that they spend less than 10
    per cent of their time discussing marketing or
    customer related issues at board level. (McGovern
    et al., 2004)
  • Following the closure of corporate marketing
    departments, companies have plugged the gap by
    creating the position of Chief Marketing Officer

Future of Marketings role in the
Organization Continued.
  • Concerns about the high turnover of these
    positions because Position is often ill-defined,
    little formal authority, corporate expectations
    are frequently unrealistic
  • Tension between CMOs and other board members due
    to the creative approach taken by successful
    marketers, which is at odds with the more
    structured and disciplined approach required in
    other parts of the organization.
  • The difficulties in measuring marketing outcomes
    mean that marketers struggle to demonstrate
    returns on organizational investments in
    marketing programs.

Future of Marketings role in the
Organization Continued.
  • Key marketing functions are dispersed throughout
    the organization. Today, marketing in many large
    companies is less of a department and more a
    diaspora of skills and capabilities spread across
    and even outside the organization.

What do Consumers think of Marketing?
  • Main purpose of marketing is to serve customers,
    so their views about marketing need attention.
  • Survey by Yankelovich (cited in Sheth and
    Sisodia, 2006) says that 60 respondents had
    negative views about advertising and marketing
  • Gaski and Etzel (2005) observed that out of four
    marketing activities, product quality carries
    more importance in influencing customers,
    followed by price, retail service and

What do Consumers think of Marketing? Continued.
  • Customers are positive about creativity, fun,
    humorous advertising and attractive people
  • On the negative side consumers feel marketers are
    lying, deception, deceitful, annoying,
    manipulating, gimmicking, exaggerating, invading,
    intruding and brainwashing.
  • In terms of marketing practices telemarketing,
    online pop-up advertisements and junk mail were
    viewed most negatively.

Doing Marketing in a Different Way
  1. Fill the Scholarship-Practitioner gap in
    marketing Scholars should broaden their
    conception of practitioner audience, to embrace
    not only marketing but Strategic Management,
    Operations, Supply Chain, HR, Finance etc. The
    concept of customer focus and competing
    through service should be adapted by all
    business functions.
  2. Fruitful partnership between academics and
    business leaders Business leaders should reflect
    on the role of marketing in their organizations.
    They can give insights of challenges they face,
    and ways in which marketing is affecting their

Doing Marketing in a different way? Continued.
  • Create systems to bring the customer closer
    Systems to create mutual value, rather than
    directing the creation of value by consumer
    alone. Internet has resulted in do it yourself
    form of marketing where middlemen are eliminated.
    E.g. eBay, online marketing, e-payment etc.