...From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing Management Decision, 1994, Vol. 32 Iss: 2, pp.4 – 20 Christian Grönroos, Professor of Marketing at the Swedish School of Economics and Business Administration in Helsinki, Finland. Abstract Discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required.This development is supported by evolving trends in business, such as strategic partnerships, alliances and networks. Suggests relationship marketing, based on relationship building and management, as one emerging new marketing paradigm of the future.Concludes that the simplicity of the marketing mix paradigm, with its Four P model, has become a straitjacket, fostering toolbox thinking rather than an awareness that marketing is a multi-faceted social process, and notes that marketing theory and customers are the victims of today′s mainstream marketing thinking. By using the notion of a marketing strategy continuum, discusses a number of consequences of a relationship-type marketing strategy for the focus of marketing, pricing, quality management, internal marketing and intraorganizational development. Briefly comments on the possibility of developing a general marketing theory...
Words: 7925 - Pages: 32
...dominant marketing mix paradigm become a strait-jacket? A relationship building and management approach may be the answer. From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing Christian Grönroos approach to marketing which eventually has entered the marketing literature[2, 4-14]. A paradigm shift is clearly under way. In services marketing, especially in Europe and Australia but to some extent also in North America, and in industrial marketing, especially in Europe, this paradigm shift has already taken place. Books published on services marketing[15-17] and on industrial marketing[18-20] as well as major research reports published are based on the relationship marketing paradigm. A major shift in the perception of the fundamentals of marketing is taking place. The shift is so dramatic that it can, no doubt, be described as a paradigm shift[21]. Marketing researchers have been passionately convinced about the paradigmatic nature of marketing mix management and the Four P model[22]. To challenge marketing mix management as the basic foundation for all marketing thinking has been as heretic as it was for Copernicus to proclaim that the earth moved[23, 24]. The purpose of this report is to discuss the nature and consequences of the dominating marketing paradigm of today, marketing mix management of the managerial school (cf.[25] and how evolving trends in business and modern research into, for example, industrial marketing, services marketing and...
Words: 13954 - Pages: 56
...Green Marketing -A case study of British Airways By Daniel Szuster A Master Thesis in Culture, Communication and Globalisation at Aalborg University January 2008 Title: Green Marketing, a case study of British Airways Signs: 133.188 Supervisor: John Hird ----------------- Daniel Szuster Table of Contents Introduction 5 Methodology 7 The Meaning of Green 8 Introduction 10 Theoretical Framework 11 Background Information 13 Theoretical Framework 14 Green Marketing 15 Environmental management 15 Why green marketing? 17 Marketing defined and corporate social responsibility 22 What is Green Marketing? 25 Green marketing strategies 28 Implications for organisations 30 Green Consumerism 34 Consumer behaviour research 35 The green consumer 38 The green buying process 41 Influences on purchase and consumption decisions 47 Global Warming and the Impacts of Climate Change 49 Human caused global warming 49 The impacts of climate change 50 The opposition to human caused global warming 52 Background Information 53 British Airways 54 Past and present 54 Carbon Offsetting 55 Datamonitor’s SWOT analysis 58 The British Green Consumers 59 Perception and Attitudes in Relation to the Environment 59 Information on the environment 62 Solutions to environmental problems 65 SWOT Analysis 67 Strengths 68 Weaknesses 71 ...
Words: 13390 - Pages: 54
...Green Marketing -A case study of British Airways By Daniel Szuster A Master Thesis in Culture, Communication and Globalisation at Aalborg University January 2008 Title: Green Marketing, a case study of British Airways Signs: 133.188 Supervisor: John Hird ----------------- Daniel Szuster Table of Contents Introduction 5 Methodology 7 The Meaning of Green 8 Introduction 10 Theoretical Framework 11 Background Information 13 Theoretical Framework 14 Green Marketing 15 Environmental management 15 Why green marketing? 17 Marketing defined and corporate social responsibility 22 What is Green Marketing? 25 Green marketing strategies 28 Implications for organisations 30 Green Consumerism 34 Consumer behaviour research 35 The green consumer 38 The green buying process 41 Influences on purchase and consumption decisions 47 Global Warming and the Impacts of Climate Change 49 Human caused global warming 49 The impacts of climate change 50 The opposition to human caused global warming 52 Background Information 53 British Airways 54 Past and present 54 Carbon Offsetting 55 Datamonitor’s SWOT analysis 58 The British Green Consumers 59 Perception and Attitudes in Relation to the Environment 59 Information on the environment 62 Solutions to environmental problems 65 SWOT Analysis 67 Strengths 68 Weaknesses 71 ...
Words: 13390 - Pages: 54
...Nabilah Abu Bakar Honor 301H Assignment #3 September 23, 2013 Discipline Historical Events: Marketing The discipline of marketing can be traced back as far as the Great Depression, when the term “value” was emphasized, rather than the concept of price (Sullivan). Many people have the misconception that marketing is simply the process of selling products and advertisements but there is more to it. Marketing is defined as “developing products to satisfy customers through proper pricing, promotion and distribution” (Marketing: Historical Perspectives). Essentially, marketing is the process of satisfying customer and maintaining a long-term relationship with customers. Thus, there are three events that have significant contribution to the development of marketing. The first event that happened that affected marketing was when the Communications Act of 1934 created the Federal Communications Commission (also known as the FCC). The FCC was created to replace the Federal Radio Commission, as it was more convenient to have one broad agency that dealt with the communications system. The FCC main goal was to “help regulate advertisements on the radio, and later, television” (Sullivan). This meant that broadcasters and advertisers were able to do business regarding commercial interests with the FCC (Johnson). The creation of the FCC was beneficial to the public because it made communication services such as radio and television available and affordable to the American society...
Words: 910 - Pages: 4
...The Marketing Mindset: How to Engage Yours Strategic marketing is at once a business philosophy and a practical discipline of management pervading every function of the organization with a focus on the customer and the world in which they live. It requires clear understanding and articulation of the past and present as well as a forecast of what might happen in the future. Strategic marketing is characteristically “outside-in,” meaning that your attention originates with the customer, not the organization, ultimately helping you to create products, services, and experiences to ensure an ongoing, satisfying relationship between the two. For decades, the four Ps—product, price, place, and promotion—have served as the framework for effective marketing management. The blend of these four variables resulted in a marketing mix to form the basis of an organization’s marketing initiatives. The four Ps are: Product: products and services an organization produces and sells (because it can); Price: the amount charged (to cover costs and make profit); Place: where the organization distributes products or services (because they are the easiest and cheapest places to do so); and Promotion: what the organization says about the product or service (to the masses whenever, wherever, and however they want). This framework evolved some 40 years ago, in an age of consumerism characterized by caveat emptor—let the buyer beware. Today, organizations need to adopt the four...
Words: 899 - Pages: 4
...Marketing managers are often faced with many decisions on how to best develop a brand. Branding is a focal part of marketing which helps companies distinguish themselves from one another. Today’s marketers are faced with challenges on selecting the best branding strategies; should branding be done using functional marketing and or using physic(emotional) marketing? Marketing is an ever-evolving dynamic process that doesn’t seem to have a one simple cut solution. It’s important for a company to convey their brand in a powerful manner while embodying the true essence of what the company stands for. Today’s marketplace is more challenging than ever and it’s important to have a strong marketing message that resonates well with consumers. In the post-recession era, consumers are far more meticulous and price-conscious on purchasing quality goods at the best value. Marketers need to be aggressive more than ever to develop good branding messages to chase after scarce discretionary dollars. Branding Strategies Creating a brand strategy is an intricate process while considering a company’s target market, value opportunity gap, and competitive opportunities to establish the brand’s concept. Companies place great focus on the brand concept, because this is how their product is desired to be perceived by consumers. In developing a brand marketing strategy, marketers must create a viable strategy for the long-term to create and sustain notable distinctions of a product over its competitors...
Words: 2241 - Pages: 9
...CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PHONE BUYING AMONG UMP STUDENTS : MARKETING VERSUS ENVIRONMENTAL STIMULI. ABSTRACT Consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Factors affecting how customers make decisions are extremely complex. There are many factors that can affect this process as a person works through the purchase decision. According to the black box model of consumer behavior, there are two main stimuli that is related to buyers response towards buying a certain product, in this research; mobile phone. But, which one can be much more influencing than the other in terms of buying decisions. But, which one can be much more influencing than the other in terms of buying decisions. Based on the black box model of consumer behavior, this research’s objectives are to find out the relationship between environmental factors with buyers decision making process. This study also intends to compare the two elements in environmental factors in terms influencing buying decisions to find out which stimuli is the main stimuli that mostly influence consumers mobile phone buying decisions. A survey questionnaire were conducted among 100 randomly chosen UMP students. INTRODUCTION According to Kotler and Armstrong (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Consumers...
Words: 1185 - Pages: 5
...CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PHONE BUYING AMONG UMP ABSTRACT Consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Factors affecting how customers make decisions are extremely complex. There are many factors that can affect this process as a person works through the purchase decision. According to the black box model of consumer behavior, there are two main stimuli that is related to buyers response towards buying a certain product, in this research; mobile phone. But, which one can be much more influencing than the other in terms of buying decisions. But, which one can be much more influencing than the other in terms of buying decisions. Based on the black box model of consumer behavior, this research’s objectives are to find out the relationship between environmental factors with buyers decision making process. This study also intends to compare the two elements in environmental factors in terms influencing buying decisions to find out which stimuli is the main stimuli that mostly influence consumers mobile phone buying decisions. A survey questionnaire were conducted among 100 randomly chosen UMP students. INTRODUCTION According to Kotler and Armstrong (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Consumers around the world are different in various factors...
Words: 1180 - Pages: 5
...Introduction The Indian market is seeing a paradigm shift in the consumption patterns. The ever-growing middle class is one reason for this change. Population growth and economic development are driving consumption around the world and will continue to do so as billions of consumers – especially in China, India and other emerging economies add to the demand for goods and services. This has resulted in depletion of several valuable natural resources. Green consumerism refers to recycling, purchasing and using eco-friendly products that minimize damage to the environment. More and more businesses and industries are joining in the green movement, either out of a real interest in saving the planet or a desire to capitalize on the growing consumer demand for greener ways. For example, Wal-Mart anticipates savings to the tune of billions of dollars by reducing packaging across the supply chain and Wells Fargo issues carbon credits to offset its customers' credit card purchases. Very few consumers, who have realized the importance of going green, have been practicing it. For many, the perception about the idea is vague. Many organizations are actively trying to induce a paradigm shift in their green marketing strategies to enable them to reach the consumer. Has their attempt in this endeavour yielded results? The study is aimed at exploring the answers to these questions. Purpose and Scope of the Study This study is an attempt to understand the attitude...
Words: 2274 - Pages: 10
...intends to become the first global, provider of unique experiential marketing solutions to the automotive and motorsports industries. emotive creates and executes automotive based experiences for the world’s leading car manufacturers and corporations , operating in one of the fastest growing marketing environments - direct consumer experiences. In an increasingly competitive market, automotive sales are in decline . Manufacturers need ever more compelling methods to conquest the consumer. The emphasis on traditional advertising by these companies has changed with a far greater emphasis on direct consumer marketing. Experiential marketing’s unique ability to reach , engage and make relevant connections with consumers has contributed to its growth in this climate with significant year on year increase predicted . The reason is simple; it works, it is measurable, it sells cars and adds value to brands. emotive programs take many forms, from the sales-generating consumer driving events to the thrill-seeking sports & race car driver training and the educational (teen driving programs) to custom designed programs that satisfy the client’s objectives. emotive is uniquely positioned to change the way people interact with cars, collaborating with clients, CEOs, marketing managers, consumers, safety experts, engineers and drivers to develop compelling experiences in an era of increased consumer control and desire for authenticity. The group has brought together an international...
Words: 899 - Pages: 4
...com/watch?v=4Wf1yndBO 0w • AJ Hackett’s Tower in Macao –Auckland Stock Exchange B – 764 feet Chapter Objectives When you finish this chapter, you should understand why: • Consumers use products to help them define their identities in different settings (think of consumers as role players who need different products). • For example, many family social occasions are accompanied by food and drink, and the consumption of these goods acts as a shared bond that the group uses to define membership in that group. Another example is the style of clothing (e.g., A & F, Hollister) worn by young people to define their group membership. • Consumer behavior is a process involved when individuals or groups select, purchase, use, or dispose of products, services 1-3 Chapter Objectives • Marketers need to understand the wants and needs of different consumer segments (product usage, demographics, and psychographics- redneck bank) • The Web is changing consumer behavior: a problem is the loss of privacy and the deterioration of traditional social interactions • Consumer behavior relates to other issues in our lives-public policy issues (e.g., ethical marketing practices) and the dynamics of popular culture • Consumer activities can be harmful to individuals and to society (terrorism-poisoning, drug and gambling addiction, and compulsive consumption-excessive shopping) • Many different types of specialists study consumer behavior (micro vs. macro)...
Words: 2306 - Pages: 10
...Chapter 1 Summary * A strategy is a set of related actions that managers take to increase their company’s performance goals. * The major goal of companies is to maximize the returns that shareholders receive from holding share in the company. To maximize shareholder value, managers must pursue strategies that result in high and sustained profitability and also in profit growth. * The profitability of a company can be measured by the return that it makes on the capital invested in the enterprise. The profit growth of a company can be measured by the growth in earnings per share. Profitability and profit growth are determined by the strategies mangers adopt. * A company has a competitive advantage over its rivals when it is more profitable than the average for all firms in its industry. It has a sustained competitive advantage when it is able to maintain above-average profitability over a number of years. In general, a company with a competitive advantage will grow its profits more rapidly than its rivals. * General managers are responsible for the overall performance of the organization, or for one of its major self-contained divisions. Their overriding strategic concern is for the health of the total organization under their direction. * Functional managers are responsible for a particular business function or operation. Although they lack general management responsibilities, they play a very important strategic role. * Formal strategic planning models stress...
Words: 3601 - Pages: 15
...sustainable practices within the organization. - These practices promote sustainable practices at every touch point; farms (where the raw materials are produced); distribution of raw materials, packaging of products and delivering of goods. - b) Outline and explain Marshall & Toffel’s (2005) hierarchy of ecological motivations model, including the implication of the model for marketers when discussing sustainability. (40%) - c) Detail at least four benefits of pursuing a sustainability strategy, using examples to support your response. In addition, comment on the potential risks of implementing such a strategy. (40%) - Sustainable development defined as the configuring of human activity so that societies are able to meet current needs while preserving natural ecosystems for future generations is essential...
Words: 3322 - Pages: 14
...1) Ted Devine, CEO Insureon Inside the LaSalle Atrium Building in downtown Chicago, a short walk from Lake Michigan, Insureon CEO Ted Devine has his desk arranged in one corner of the company's open-plan office space. The CFO is adjacent. The head of marketing sits just 15 feet away, and the head of sales is nearby. There are no offices--not even cubicle dividers. In fact, from where Devine sits, he can look out on all 20 of his employees at company headquarters. Devine came to Insureon in 2011 from Aon Risk Services, where, as president, he worked in a more traditional setting, one befitting the guy in charge of an operation with 28,000 employees and $5 billion in annual revenue. But it drove him crazy, Devine says, to sit in his resplendent office and see people lining up in the hallway outside, as if waiting to be granted an audience with the pope. So for Devine, the open floor plan he instituted at Insureon conveys a message that extends far beyond any interior design aesthetic. It goes to the heart of the company's management style and workplace culture. It symbolizes an openness of spirit and Devine's availability to everyone in the company, no matter their station--and no waiting required. "For me it says a couple things about leadership," he says. "One is: No walls, no barriers, no hierarchy. Everybody can talk to everybody. Everybody can participate in a decision. We work together, and that's very important in leadership." In his eagerness to tear down the...
Words: 2276 - Pages: 10
