Business organizations and Marketing Information
Contents
Question 1:
Explain what is organizational policies and procedures are and how they impact on products/services and marketing objectives.
Organizational policies and procedures are useful to provide the way of working in the firm and guidelines for processes of decision-making. A well-written organizational policy and procedure are supportive to provide clear results that are accountable, uniform, stable, and transparent. In this, the organizational policies are the guidelines or course of actions that need to be followed by an organization whereas procedures are considered as clear and easily understood the policy that outlines important aspects for implementing the organizational policies (Shoup, 2016).
The policies and procedures impact the products or services of an organization because the organization offers the quality and standard among the product and services based on the policies and procedures. In addition, the marketing objectives are also impacted by the organizational policies and procedures as the firm understands the constraints of their products and services to increase transparency. Due to policies and procedures, an organization treats equality to all prospective clients and provides transparency in the process (Makau, and Muna, 2020). The organization attracts the customers based on quality and increases the referrals of the service. The policies and procedures support an organization to satisfy the realistic expectations of the clients and support them by offering their needs with more accountability. A more systematic and organized way is offered by organizational policies and procedures to an organization by which the marketing objective can be achieved easily as it includes truthiness in their advertisement about the product or service. Moreover, it is also identified that the marketing team has a clear understanding of the responsibility and resources that can be used to achieve marketing objectives using policies and procedures. Besides this, it can be said that policies and procedures can have a negative impact on the products, services, and marketing objectives like need time, resources, and proper planning to implement policies and procedures (Iliya et al., 2018). It might have unclear instructions that can increase conflict to achieve objectives. However, it can be said that organizational policies and procedures impact the products, services, and marketing objectives of an organization.
Question 2:
Explain how consumer or buyer behavior can be identified and how understanding buyer behavior will influence the elements of the marketing mix.
There are certain methods that can be used to know the buyer behavior. They are as follows:
Buying situation – In this method, the conditions and situations are analyzed in which a consumer purchases a particular product. Certain situations are analyzed like in which condition a consumer purchase a product, the product is the need or the want of the consumer, the sources from which the consumers prefer to purchase a product, and how they would like to pay for the product. After identifying all the information an organization can make their product fit into that situation (Abril and Rodriguez-Cánovas, 2016). For example, an E-Commerce website after analyzing the minimum average orders of the consumers can set their limit of cash on delivery option.
Identifying substitutes – A business should identify all the substitutes of their products that a consumer might choose. There are various situations in which a customer can opt for the substitute of the product like due to the shortage of the product in the market. In such cases, the consumer shifts their interest to other substitutes and might become a regular consumer of those substitutes. This might become a hindrance to the growth and development of an organization. A business should identify when and where the consumer might choose the substitute over their product (Andika and Susanti, 2018).
Examining external environment –
The buying behavior of the consumer also depends on the external environment like a recession. The people demand increases in the time the prices of the products go down. Another factor that affects the demand for the product is the availability of technology. With the innovation in technology, a lot of opportunities come for the business. Using technology it becomes easy to understand the buying behavior of the consumer. The most popular example is digital marketing. Digital marketing has become an effective tool for every business to promote their product (Wu and Li, 2018). It helps in identifying the type of visitors visiting the business website and their buying patterns.
Identifying consumer behavior has a significant impact on the elements of the marketing mix. The development of technology has an impact on the product and promotion strategies of an organization. The behavior of the consumer on the internet helps in determining the attractive features which can be added to the product and the effective marketing channels can be determined by identifying the activeness of the consumers on a particular platform. The situations in which a consumer opts for other substitute has an impact on the product and price of the marketing mix (Blut, Teller, and Floh, 2018). The organization is required to identify its unique selling point in the product and make changes in the price to attract more number of customers.
Question 3:
What Statistical Techniques are used by business organizations to gather Marketing Information? Summarize the number of techniques and explain how you might use them to identify markets and marketing opportunities. Conduct appropriate research to answer this question.
After the company has developed a new product it is really important to determine whether customers will be willing to purchase it or not. Profit is important for the business and it is important to determine that the product or service will give them the desired profit or not. For this purpose, a business organization should conduct market research. An organization can use various marketing techniques to collect information about the market. It helps in identifying the product that is produced will have a demand in the future or not (Abril and Rodriguez-Cánovas, 2016). It helps in designing, packaging, and prices of the product. It also helps in determining which channel of marketing will be effective for the product.
Gathering information through observing market – This is the technique where an organization observes the market in the independent environment and environment with many restrictions and constraints. Here the elements of observation show their natural behavior as they do not know that they are under observation. The only drawback of this technique is that it is very time consuming and may be expensive. It helps in determining the actual response and reaction of the individuals. This technique helps in determining what factor plays a lead role in the purchasing made by a consumer (Wu and Li, 2018). This technique identifies how the consumer purchases the product and its process. Some customers might be affected by the price, some might be affected by the ingredients used or maybe some other factor. This method shows accurate results.
Evaluating sales – Analyzing the previous sales of the product is an effective technique to determine the demand for the product. It helps in examining the customer preferences and behaviors towards the product. It provides an effective insight into the market condition. Understanding of the customer preferences will also help the organization to determine the consequences of implementing a particular marketing strategy. The forecasting and prediction of the results become easy after knowing the customer purchasing pattern. In the regular changing world, it is important to determine the changing needs of the customers (Andika and Susanti, 2018). By analyzing the sales the buying habits of the customers and changes in their demands can be easily determined.
Experimenting – This type of technique is used to determine the cause and effect relationship between the dependent and independent factors. Various independent factors are considered to determine the effect of them on the dependent factors. Here all the factors behave naturally without any bias. Sometimes the variables which are involved are not fully aware of the fact that they are the part of this experiment. But in this type of technique, various ethical issues are raised by the authorities and therefore it is not easy to implement this kind of technique. But if the experiment is successful then the information can be gathered in a really short period and in an easy way (Wu and Li, 2018).
Direct communication – In this type of technique, the target individuals are contacted directly either through telephones, email, or door to door survey. Various interviews are also conducted by market researchers to determine the psychology of the consumers. It will help in collecting the knowledge that might be effectively used by an organization to expand its products in different markets (Blut, Teller, and Floh, 2018).
The above methods will help in identifying the different markets in which an organization could operate. After gathering all the Marketing Information by using the above methods. They can be used to identify market opportunities. Segmentation of the consumers can be used. This will help in determining what group of consumers need and purchase the product and they will become potential customers (Abril and Rodriguez-Cánovas, 2016). An organization could use separate marketing techniques for different groups of consumers to attract them towards their product. This is the best way to exploit marketing opportunities.
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References
Blut, M., Teller, C., & Floh, A. (2018). Testing retail marketing-mix effects on patronage: A meta-analysis. Journal of Retailing, 94(2), 113-135.
Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce. Internet Research.
Andika, A., & Susanti, F. (2018). Pengaruh Marketing Mix Terhadap Keputusan Pembelian Parfum di Azzwars Parfum Lubeg Padang.
Abril, C., & Rodriguez-Cánovas, B. (2016). Marketing mix effects on private labels brand equity. European Journal of Management and Business Economics, 25(3), 168-175.
Iliya, N. S., Ntayi, J. M., Kamukama, N., & Munene, J. C. (2018). Organizational culture and voluntary disclosure practices of listed firms in Nigeria. Journal of Economics and Management Sciences, 1(1), p51-p51.
Makau, M. M., & Muna, W. (2020). Effects of internal organizational policies on performance of government owned commercial banks in Kenya. International Academic Journal of Law and Society, 1(2), 1-27.
Shoup, J. R. (2016). Leadership, Organizational, and Institutional Studies: Reconciling and Teaching Competing Perspectives. Journal of Leadership Education, 15(4).