Contemporary Issues in Marketing Management

Diploma in Management Studies Lesson 4 KM and Non Traditional Marketing

Knowledge, Information & Data

Knowledge

The fact or state of knowing; the perception of fact or truth; clear and certain mental apprehension.
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Information

Knowledge communicated or received concerning a particular fact or circumstance; Knowledge gained through study, communication, research, instruction, etc.; The act or fact of informing.
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Knowledge

Individual facts, statistics, or items of information.

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Knowledge, Information & Data

Knowledge

General: Human faculty resulting from interpreted information; understanding that germinates from combination of data, information, experience, and individual interpretation.
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Information

Data that (1) has been verified to be accurate and timely, (2) is specific and organized for a purpose, (3) is presented within a context that gives it meaning and relevance, and (4) that can lead to an increase in understanding and decrease in uncertainty.
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Data

Information in raw or unorganized form (such as alphabets, numbers, or symbols) that refer to, or represent, conditions, ideas, or objects.
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Knowledge, Information & Data

Competitive Advantage

Data

Knowledge can be divided into Explicit and Implicit knowledge

Knowledge Management
A discipline that promotes an integrated approach to identifying, managing and sharing all of an enterprise's information assets. These information assets may include databases, documents, policies and procedures, as well as previously unarticulated expertise and experience resident in individual workers."
(Gartner Group Inc, October 1996)

"Knowledge management is the explicit and systematic management of vital knowledge and its associated processes of creating, gathering, organising, diffusion, use and exploitation. It requires turning personal knowledge into corporate knowledge that can be widely shared throughout an organisation and appropriately applied."
(Skyrme, D. 1997)

ICT & Knowledge Management

ICT is used to support Knowledge management

Knowledge databases and repositories (explicit knowledge) - storing information and documents that can be shared and re-used, for example, client presentations, competitor intelligence, customer data, marketing materials, meeting minutes, policy documents, price lists, product specifications, project proposals, research reports, training packs; Knowledge routemaps and directories (tacit and explicit knowledge) - pointing to people, document collections and datasets that can be consulted, for example, 'yellow pages'/'expert locators' containing CVs, competency profiles, research interests; Knowledge networks and discussions (tacit knowledge) - providing opportunities for face-to-face contacts and electronic interaction, for example, establishing chat facilities/'talk rooms', fostering learning groups and holding 'best practice' sessions.

Non Traditional Marketing

Non Traditional Marketing

This is about marketing in the publicsector (essentially a non-profit-making sector. There are many non-profit making organisations and many ranging from large corporations carrying out public services (i.e. municipal councils) to charitable institutions and other bodies of various sizes and purposes.

Not For Profit Organisations

Example Not-For-Profit Organisations

Not For Profit Organisations

Who are they marketing to?

Stakeholders Stakeholders are those individuals or groups who depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends.

Not For Profit Marketing can be defined as:

Marketing is the management process responsible for identifying, anticipating and satisfying stakeholder requirements and in so doing serves to facilitate the achievement of the organisations objectives.

Identifying NFP Stakeholders

Who are the Stakeholders of a NFP organisation?

There is not a generic list of stakeholder interests. Each case has to be taken on its merits but one may make some generalisations about what may be pertinent to specific settings. Stakeholders often include

Customers Employees Management Stockholders Creditors Suppliers Community Competitors.

Identifying NFP Stakeholders

Stakeholders can be identified in:

Formal structures e.g. shareholders, suppliers, employees etc. Informal stakeholder groups e.g. an alliance between marketing and production over product lines. Stakeholders could also be long to more than one group

Stakeholder influence
Stakeholders use power as the main mechanism for influencing the organisation
Stakeholders have different perceptions regarding the significance of their own stake, how management values their stake, and with respect the power of influence they have with management. Powerful stakeholders possessing legitimate claims might expect preference to be shown to their opinions and wishes (Starik, 1994). Stakeholders can be active or passive, arise as a result of specific events and can transcend formal structures.

Stakeholder Mapping
Stakeholder mapping identifies stakeholder expectations and power and helps in understanding political priorities Assessing the importance of stakeholder expectations is an important part of any strategic analysis. Three key issues need to be answered.
How likely is each stakeholder group to impress its expectations on the company? Whether they have the means to do so. This is concerned with the power of stakeholder groups. The likely impact of stakeholder expectations on future strategies.

Stakeholder Mapping
Power / dynamism matrix.
This assesses where the political efforts should be channelled during the development of new strategies.
PREDICTABILITY High Low

Low POWER High

A Few Problems

B Unpredictable but manageable

C Powerful but Predictable

D Greatest danger or opportunities

Stakeholder Mapping
Power / interest matrix.
Classifies stakeholders in relation to the power they hold and the extent to which they are likely to show an interest in the organisations strategies.
LEVEL OF INTEREST
High Low

Low POWER High

A Minimal Effort C Keep Satisfied

B Keep Informed D Key Players

Stakeholder Mapping Issues

Determining purpose and strategy whose expectations need to be prioritised? Do the actual levels of interest and power reflect the corporate governance framework? Who are the key blockers and facilitators of strategy? Is it desirable to try to reposition certain stakeholders? Can the level of interest or power of key stakeholders be maintained? Will stakeholder positions shift according to the issue/strategy being considered.

NFP Marketing Issues

First, marketisation, which shifts public-sector activities to commercial marketing in the private sector by subjecting products and services to the competitive forces of the commercial marketplace. Second, organisations may primarily use marketing for promoting their self-interest such as making a living or securing a future.
Third, may be helpful in promoting the area under the responsibility of the public organisation, such as city marketing. Finally, application of marketing instruments for the key political objective.

NFP Constraints
The public sector is constrained in terms of the services it is obliged to provide and hence may be unable to implement a customer-led approach even if this is desired. Constraints may include:

legislative restrictions, political philosophies, lack of physical resources, lack of financial resources.

Nature of Marketing in NFP

Service-based organisations are essentially concerned with managing relations because they manage the total buyerseller interaction process.

Exercise
Choose a Not For Profit organisation

Identify its stakeholders Analyse the organisations relationship with its stakeholders