Professional Documents
Culture Documents
Content
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Introduction
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activities
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1.4 Carry out organizational auditing and analysis of external factors that
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3.2 Explain why marketing planning is essential in the strategic planning process 19
for an organization
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3.5 Explain how factors affecting the effective implementation of the marketing
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4.3 Analyze examples of consumer ethics and the effect it has on marketing
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Introduction
Executive Summary
AUNG MYANMAR electrical and machinery Group Co. Ltd is a well-organized enterprise and
it has gained a firm foothold in the electrical and machinery industry. It is based in Yangon and it
has branches in Mandalay, Naypyitaw, and Taungyi. Although the directors centered on product
and production excellence backed by technical sales support, they become aware that there is
market-led strategic change in their industry. They would like to formulate and implement a
marketing plan basing in their organization's capacities and considering the main barriers to their
activities. Therefore they want to assess the capabilities of their company as well as the external
environments that affect marketing decisions. They have already decided to overcome the major
barriers whatever they are. Some company departments are believing that a stronger marketing
function threatens their power in the organization. However, during the previous five years, from
being a relatively successful company, marketing share for AUNG MYANMAR products
dropped. The market became much more competitive with new entrants who have introduced
new and updated products to the market. Board of directors usually holds annual meetings to
discuss what have been happenings to the market for their products. The departmental heads
present relevant background data on sales, costs, the competitors, microenvironments, and
ethical issues in marketing.
With the large-scale introduction of mass techniques in the 1930s, particularly in the USA and
Western Europe, many firms adopted the selling concept. The Focus of company efforts switches
to the sales function. The main issue here is not how to produce but, having products, how to
ensure that this production is sold. The selling concept holds that consumers and businesses, if
left alone, won't buy enough of the firm's products. The firms need to undertake a large-scale
selling and promotion efforts. The aim often is to sell what the company makes rather than
making what the market wants. If focuses a creating sales transactions rather than on building
long-term customer relationship. The result was that 'hard sell' techniques were developed.
The marketing concepts emerged in the mid 1950s. The job is to find not the right cutomers for
your customers for your products, but the right product for your customer. The marketing
concept is a customer-centered sense and respond philosophy. The selling concept is a product
centered ' make and sell ' philosophy. The following figure contrasts the selling concept and the
marketing concept.
Selling concept
Starting Point
Focus
Means
Ends
Factory
Product
Selling
and Profit
promotion
Marketing
concept
Target market
through
increasing efforts
Profit
and wants
satisfaction
marketing
through
of
consumers needs
Figure 1.1
Harvard's Thevdore Levitt drew a Perceptive contrast between the selling and marketing
concepts:
"Selling Focuses on the needs of the seller; marketing on the need of the buyer. Selling is
preoccupied with seller's need to convert his product into cash; marketing with the idea of
satisfying the need of customer by means of the product and the whole cluster of thongs
associated with created with, delivering and finally consuming it; thus the marketing concept
holds that the key to successful and profitable business rests with identifying the needs and want
of customers, and providing products and services to satisfy these needs and wants. On the
surface such a concept does not appear to be a far reaching and fundamentally different
philosophy of business, but in fact a marketing concept requires a revolution in how a company
thinks about, and practices, its business activates as compared with production or sales
orientation. Under production and sales orientation, marketing planning did not play important
role.
Today, the "mass marketing" is actually splintering into numerous micro-markets, each with its
own wants, perceptions, preferences, and buying criteria. The smart marketer therefore must
design the marketing plan for well defined target markets. Thus, perspectives in marketing
planning is chaining.
1.3 Examine technique for organizational auditing and for analyzing external
factors that affect marketing planning
It is essential to understanding customers as it is a keystone of a marketing planning; it comprises
with auditing and analyzing the internal (organizational) and external (market) environments of
the organization. This involves accumulating appropriate factor at first and then analyzing it. The
types of relevant factors divided as internal and external which has shown as below.
Internal
Company mission and objectives
Existing customers - which includes the customer's satisfactions, dissatisfactions, expectations
and relationships.
Company resources - management structure, finance and information technology.
The relationships between staff, partner and capital funders.
External
PEST which is a short for of Political, Economic, Social and Technological considerations. These
factors may impact on organization's activities.
SWOT which is a short for Strengths, Weaknesses, Opportunities and Threats. It helps to assess
company culture and future situation and as well as assess external environment.
Prospective customers, it requires to understand what are their needs, motivations, behavior,
purchasing power and locations.
Market, which includes the awareness of market size, growth, price, distributions, promotion,
and product development.
1.4 Carry out organizational auditing and analysis of external factors that
affect marketing planning in a given situation
Generally, SWOT analysis is common use to carry out an organizational auditing and analysis of
external factors. SWOT represents Strengths, Weaknesses, Opportunities and Threats; The aims
of SWOT analysis is mainly take advantage of strengths and opportunities the market meanwhile
minimize the weaknesses and eliminate the threats.
Strengths
Market share
Skilled and expertise
Business location
Quality processes and procedures
Innovative and new product or service.
Brand loyalty
Strong financial background
Weaknesses
Business location
Lack of skilled and expertise
Low market share
Poor quality products or services
Poor financial background
Bad reputation
Low brand loyalty
Poor distribution network
Opportunities
Competitor weakness
Market growth
Opportunities
Marketing information system has been well established an marketing research is occasionally
conducted
some major competitors are having difficulty keeping their customers because of quality and
delivery problems
government is making efforts to solve the electrical problems of people urgently and to
mechanize farming
Threats
AUNG MYANMAR's large customer is threatening to switch to another supplier because of the
company's higher average prices
Being not keep pace with the rapid technological change in the industry
Recent and forecast trends in the exchange rate hinder the semi-finished imports of the
company.
Ethics carrying principles of right conduct that shape the decisions people or organizations make.
Practicing ethics in marketing has deliberately addresses the standards of fairness, moral
principles and wrongs in the organization. The main purpose of marketing ethics is to stop
anyone to do any deceive or take advantage from unethical activities.
Once our economic system has successfully fulfilled consumer's wants and needs, there would be
a concern on organizations adhering to ethical values rather than simply providing products or
services. The reason of being so, that is due to firstly, when an organization has behaves
ethically, manifestly its customers would develop positive attitudes about its products, services
and the company itself. With unethical issues in a business, it may lead to bad publicity and
reputation, customers' dissatisfaction, lost the business opportunity and consumers' trust and also
a legal action between consumer and organization.
In short, unethical marketing practices would directly influence a good marketing process and
affect marketing plan. Hence, most of organization has trained to be sensitive with customer's
needs and opinions in order to maintain this long-term interest in their business. Moreover, social
responsibilities are subjected to marketing practices to protect consumer rights, avoid unfair
trading and stimulate trade in a wide range.
Marketer of AUNG MYANAMR Company never work hard to keep up with changes in
regulations and the products and productions operations are banned because they are damaging
health, or because they pollute the environment. In Aung Myanmar Company, the selling and
marketing of goods is restricted by laws on the description of goods because the products of
AUNG MYANAMR Company has dangerous packaging weights and measures.
Besides, organizations should provide an ethical training to strengthen and gain their employees'
personal ethical framework to ensure that it practice employees' self-discipline and capable to
make an ethical decisions in a difficult circumstances. Meanwhile, organizations should be
avoiding these unethical issues happen in their institution:
Product: Misleading product information, lack quality control and deliberately produce poor
quality product, unfit product description.
Price: Expensive price with a poor quality product
Place: Different product price in different location
Distribution: Control the product supply and increase the product selling price when out of stock.
Stony Field 's responses to ethical issues
Raising the socially responsible marketing calls for main three pronged attack that relies on
proper legal, ethical and social responsibility behavior. One company that puts social responsible
marketing squarely at the center of all it does is Stony field Farm from US. Stony field is the
global market leader in organic Yogurt and it works with socially responsible suppliers, adopts
environmentally friendly manufacturing practices, and uses packaging to promote its views on
environmental and health issues. Stony field donates to secret of profits to efforts that help and
protect and restore the Earth and has launched a non-profit foundation called ' climate Counts'.
Progressive business practices have not hurt its financial performances. Stony field is the
member three yogurt brand in the limited states, and it now also sells smoothies, milk, frozen
yogurt and ice cream.
4.3 Analyze examples of consumer ethics and the effect it has on marketing
Mintel (1994) explain "ethical consumer" as a consumers who considered environmental issues,
animal issues and ethical issues, including oppressive regimes and armament when shopping. In
order to proceed with a good marketing plan, the organization shall take consumer's right into
account. As being immoral in product sales and product purchase, it may cause bad attitude or
situation. For example, if customer purchasing product which is illegal or against the law,
obviously the organization would not consider about customer's right for the sales. It would
directly affect to the market itself and unethical behavior will be spreading around.
Examples of consumer ethics are False insurance claims, warranty deception, misredemption of
vouchers, returns of merchandise, illegal downloads, coding and distribution ( music, film,
software).
Out of these, some such as false insurance claims, warranty deception and misredemption of
vouchers are illegal and others are unethical.
Whatever it may be the consumer must observe laws and ethics.
If consumers are violating laws and ethics for the sale of their own interests, it may be difficult to
build strong customer relationships and customer loyalty.
It may hinder markets to implement marketing planning successfully.
Reference
Website
K;otler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson
Education.
Book
Kotler, P. and Armstrong, G., 2010. Principles of Marketing. 3rd ed. New Jersey: Pearson
Education. (Author, Intial., Year. Title. Edition. Place of Publication: Publisher.)