Unit VIII: Emerging Trends in

Marketing
Part 1: Ethics in
Marketing

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Corporate marketing ethics are broad
guidelines that everyone in the organization
must follow that cover distributor relations,
advertising standards, customer service,
pricing, product development, and general
ethical standards.

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 Need for Marketing Ethics
1. To maintain public confidence
2. To avoid government regulations
3. To regain social power
4. To boost public image
5. For enlightened self-interest

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Typical Ethical Issues in Marketing
Product • Failure to disclose risks associated with the
product, use of inferior materials to reduce
issues costs

• Price fixing, predatory pricing, failure to

Prices issues disclose the full price associated with a
purchase

Promotion • False and misleading advertising, deceptive or

issues manipulative sales

Distribution • Manipulating supply to distributors, coercing

issues middlemen

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 Improving Ethical Behaviour in
Marketing
 Organisational commitment to ethical behaviour.
 Improving the organisation’s ethical standards.
 Screening out unethical persons in the
organisation.
 Redesigning the organization’s image and culture
so that it conforms to industry and societal norms
of ethical behaviour.
 Programmes to encourage ethical decision making.

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 Improving Ethical Behaviour in
Marketing (2)
 Codes of conduct which consist of formalized
rules and standards that describe what the
company expects of its employees.
 Appointing ethics officers to disseminate code of
ethics.
 Open communication and coaching on ethical
issues to nurture ethical behaviour.
 Imposing penalties or punishment on those who
violate codes of conduct.

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Unit VIII: Emerging Trends in
Marketing
Part 2: Relationship
Marketing

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Relationship Marketing
• The process of creating ,
maintaining and enhancing strong, value-
laden relationships with customers and
other stakeholders.

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 Transaction-based versus
Relationship Marketing
 Transaction-based Marketing
Buyer and seller exchanges characterized by
limited communications and little or no
ongoing relationship between the parties.
 Relationship Marketing
Development, growth, and maintenance of
long-term, cost-effective relationships with
individual customers, suppliers, employees,
and other partners for mutual benefit.
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 The Shift from Transaction-Based
Marketing to Relationship Marketing
 Views customers as equal partners in transactions.
 Encourages long-term relationships, repeat
purchases, and multiple brand purchases from the
firm.
 Leads to increased sales and low marketing costs.

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 Relationship Marketing
 Focuses on long term rather than short term.
 Emphasizes retaining customers over making a sale.
 Ranks customer service as a high priority.
 Encourages frequent customer contact.
 Fosters customer commitment with the firm.
 Bases customer interactions on cooperation and
trust.

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Elements of Relationship Marketing

• Gather information about

their customers.
Firms build • Analyze the data and use it
long-term to modify the marketing mix.
relationships • Monitor interactions with
in four ways customers.
• Use customers’ preferences
and knowledge.

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Unit VIII: Emerging Trends in
Marketing
Part 3: Holistic Marketing

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Definition

A holistic marketing concept is based on the

development, design and implementation of
marketing programs, processes and activities that
recognize the breadth and interdependencies.

Holistic marketing recognizes that ‘everything

matters’ with marketing and that a broad,
integrated perspective is necessary to attain the
best solution.

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 1. Internal Marketing
 Based on the theme that employees are the
internal customers of a firm and their satisfaction is
of utmost importance in order to achieve the goal
of customer satisfaction.

 It ensures building a skilled and self-motivated

workforce and that every member of the
organization properly understands the company’s
marketing orientation and philosophy towards the
customer satisfaction.

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 Internal Marketing (2)
 Maintaining harmony and co-ordination among
various marketing functions and activities within
the organization.

 There should not be any conflicts within the

marketing department or between marketing and
other departments because that would somehow
negatively affect external marketing also.

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 2. Integrated Marketing
 Integrated marketing is based on the proposition
that the marketers instead of deciding for
individual marketing activities should make an
integrated marketing program with the purpose
to create, communicate and deliver value for the
customers.

 The aim of integrated marketing is to gain synergy

out of all marketing activities and it is only
possible when an integrated approach is adopted.

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 3. Relationship Marketing
 Relationship marketing is concerned with building
long-lasting relationships with various parties
connected to a business including the customers,
employees, suppliers, financial institutions,
regulatory bodies, competitive firms and the society
in general.
 Relationship marketing is about building
relationships with all those who can affect the firm’s
success or are capable of adding value to it at any
level.
 The traditional selling approach where the
customers and firm interacted only during sales is
no more acceptable in current environment. 19
 Relationship Marketing (2)
 Today the firms need to maintain a regular contact
and keep reminding of the brand to the customers.
 Repeat purchases by the customers demand a
strong relationship with them.
 Relationship marketing suggests not only building
relationships but also enhancing them over the
time.

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 Societal Marketing/ Socially
Responsible Marketing
 Holistic marketing suggests that the marketer’s
responsibility is not limited to the customers but it
extends to the society in general.
 Societal marketing suggests that marketing should
consider ethics, society, laws and the environment
while designing activities.
 Any such marketing activities which are
economically profitable but socially harmful are
strictly restricted under societal marketing aspect
of holistic marketing.

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 Societal Marketing/ Socially
Responsible Marketing (2)
 The marketing should not adopt an irresponsible
behaviour towards the society.
 The increasing popularity of societal marketing
aspect can be well understood by the larger
evidences of corporate social responsibility
activities undertaken by most firms now days.

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Unit VIII: Emerging Trends in
Marketing
Part 4: Green Marketing

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 Green Marketing
 According to the American Marketing Association,
green marketing is the marketing of products that
are presumed to be environmentally safe.

 Thus green marketing incorporates a broad range

of activities, including product modification, changes
to the production process, packaging changes, as
well as modifying advertising.

 Also called, Environmental Marketing and

Ecological Marketing.
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 Green Marketing (2)
Green Marketing refers to holistic marketing
concept wherein:
 the production, marketing consumption an disposal
of products and services happen,
 in a manner that is less detrimental to the
environment,
 with growing awareness about the implications of
global warming, non-biodegradable solid waste,
harmful impact of pollutants etc.,
 both marketers and consumers are becoming
increasingly sensitive to the need for switch in to
green products and services. 25
While the shift to "green" may appear to be
expensive in the short term, it will definitely
prove to be indispensable and advantageous,
cost-wise too, in the long run.

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 Green Products
 The products those are manufactured through
green technology and that caused no
environmental hazards are called green products.
 Promotion of green technology and green products
is necessary for conservation of natural resources
and sustainable development.

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 Green Products (2)
 Products those are originally grown.
 Products those are recyclable, reusable and
biodegradable.
 Products with natural ingredients.
 Products containing recycled contents, non-toxic
chemical.
 Products contents under approved chemical.
 Products that do not harm or pollute the
environment.
 Products that will not be tested on animals.
 Products that have eco-friendly packaging i.e.
reusable, refillable containers etc. 28
 Importance of Green Marketing
1. Opportunities
◦ Xerox introduced a high quality recycled
photocopier paper
2. Social responsibility
3. Governmental pressure
4. Competitive advantage
5. Cost factor

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 Unit VIII: Emerging Trends in
Marketing
Part 5: Rural Marketing

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 What is Rural marketing
• The process of taking region specific
goods and services to the rural market
leading to exchanges between urban and
rural markets, simultaneously satisfying
consumer demand and achieving
organisational objectives.

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 Factors Responsible for the Boom
in Rural Marketing in India:
1. Increasing population of India
2. Rise in rural income
3. Government rural development programs
◦ Mahatma Gandhi National Rural Employment
Guarantee Act, Pradhan Mantri Gram Sadak
Yojna, National Social Assistance Programme
4. Development of transport & communication
networks
5. Foreign investments

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 Constraints in Rural Marketing
1. The need for a selective approach
2. Problems in reaching the rural consumer
3. Literacy and medial habits
4. Constraints in developing the rural market
◦ High distribution costs
◦ High initial market development expenditure
◦ Inability of the small retailer to carry stocks
without adequate credit facility
◦ Inadequate infrastructural facilities (connecting
roads, warehouses)
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Strategy in Developing Rural
Markets

Marketing Marketing
communication research

Distribution Product
management development

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 1. Marketing Research
i. Opportunity research: what type of product, at
what price, what kind of packaging, where and
when and in what quantities.

ii. Effort research: what type of efforts will be needed

in advertising, promotion and distribution to
realise the existing opportunity.

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 2. Product Development
 Product must be simple in design, simple to
understand, operate, maintain and repair
 Functionality matters more
 Price should be affordable
 Package should be simple, should make the
product easy-to-use
 Brand name should be appropriate for the rural
area

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 3. Distribution Management
Some of the channels that may be used:
 Ration shops
 Retailers dealing in agricultural inputs
 Semi-wholesalers in mandi-towns
 Retailers in a village may be given some incentive to
bring it from wholesalers in a nearby town
 National consumer co-operative societies
 State consumer co-operative societies
 Individual consumer co-operative societies

Transportation used: road, rail and road agency, or

company owned delivery vans 38
 4. Marketing Communication
 Advertising
 Radio
 TV, wherever possible
 Painted walls
 Stalls in rural fairs
 Hoarding
 Vernacular newspapers, where they are popular
 Personal selling

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Unit VIII: Emerging Trends in
Marketing
Part 6: People, Processes and
Physical Evidence as Other “P’s”
of Marketing Mix

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 People
 People is one of the elements of service marketing
mix.
 People define a service.
 If you have an IT company, your software engineers
define you. If you have a restaurant, your chef and
service staff defines you. If you are into banking,
employees in your branch and their behaviour
towards customers defines you.
 In case of service marketing, people can make or
break an organization.
 This is an “internal” competitive advantage a business
can have over other competitors which can
inherently affect a business’s position in the
marketplace. 42
 Process
 Service process is the way in which a service is
delivered to the end customer.
 Examples: McDonald’s and Fedex.
 Both these companies thrive on their quick service
and the reason they can do that is their confidence
on their processes.
 On top of it, the demand of these services is such
that they have to deliver optimally without a loss
in quality.
 A well-tailored process needs to be in place to
minimize costs.
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 Physical Evidence
 Physical evidence of a business’ presence and
establishment
 Services are intangible in nature. However, to
create a better customer experience tangible
elements are also delivered with the service.
 Take an example of a restaurant which has only
chairs and tables and good food, or a restaurant
which has ambient lighting, nice music along with
good seating arrangement and this also serves
good food. Which one will you prefer?
 Several times, physical evidence is used as a
differentiator in service marketing.
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 Example: McDonald’s
1. Process:
◦ In all McDonald’s worldwide, the same
process is used for making the food. The food
specifications for size, weight and content are
the same everywhere. All suppliers need to
meet these specifications. Kitchen and
restaurant layouts are the same. There are
also defined processes for service delivery
such as all orders need to be filled within 90
seconds in the restaurant while drive through
wait time is 3.5 minutes. 45
 Example: McDonald’s
2. People:
◦ The company staffs locally and also promotes
from within. This allows the team managing
the operations to understand local cultures
as well as the corporate philosophy. The
people chosen are trained in both technical
skills and customer focus.

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 Example: McDonald’s (2)
3. Physical Evidence:
◦ All McDonald’s locations are similarly created
with a family friendly environment.
◦ There is a play area for children, and service is
always provided with a smile.
◦ All menus are structured in similar ways with
fries and drink combos.
◦ The children’s meal always has toys.
◦ These are all elements of physical evidence that
are standard in all McDonald’s locations.
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