Industrial development in many countries today has been favoured by the increased rate of globalization which has encouraged entrepreneurs to start their own businesses and use the development to their advantage.
This has highly increased the rate of market competition especially to businesses that offer the same kind of goods and services. To counter this competition, business owners need to formulate strategies that will enable them to advertise their businesses, clearly defining what they have to offer and the benefits the buyers will get by doing business with them instead of other similar companies. Entrepreneurs should market their businesses while offering quality services and goods, accompanied by interpersonal skills of high integrity to increase the pool of their market space. This will help them to thrive in the stiff competition that discourages many business owners forcing them to close down their businesses. Marketing involves efforts of persuading the available market to acknowledge the existence of certain businesses so as to obtain the goods and services offered by those businesses. It also involves thorough research by the owners of business to learn what their potential customers require and add them to the list of products that they offer.
Knowledge obtained from the research helps the entrepreneurs to know their customers preferences in regards to the quality of products offered, amount of money they are willing to spend and the desired interpersonal skills to display. Measures that will enable the business owner to carry out their daily chores and be able to set aside money to pay their debts will be formulated. Other potential markets will be discovered enabling the business owners to expand their scope of operations.
The research also helps entrepreneurs to know if their formulated mechanisms to market their business portray the desired results (Ries & Trout 2005).This puts the owners of the businesses in a better position than their competitors as they attract a larger mass of customers when they fulfil their desires in the services and goods they are offering. Marketing strategies employed should stipulate ways that will attract more customers reigniting their interest in the services and goods provided to make them desire to have those goods and services in their possession. These strategies should ensure the desire created is irresistible in a way that the customers will have no intention of assuming what is being offered and will end up purchasing it. If care is not taken as one markets his business, the probability of displaying weaknesses of the business are high especially if wrong interpretation of the available market is done.
This highly costs the owners of the businesses as the advertising costs will have a negative effect on the overall profit margin of the business (Ries & Trout 2005).The economy of a country and global changes faced in the country form a foundation for the fundamentals of marketing. They depict an environment that informs entrepreneurs on what action to take to improve the performance of their business so as to avoid being affected by the change in the economic status and globalization. The entrepreneur should be able to study the available market to entirely understand it.
A competent market plan that will curb all the mishap portrayed by the environment and will enable efficient decisions concerning marketing operations to be made should be stipulated. For instance the advancement in technology demands an incorporation of use of the internet to help attract the emerging group of buyers who use the net to accomplish all their needs. Therefore there is need to create a good relationship between marketing and e-commerce. Incorporation of the major principles of marketing needed to yield the desired results is achieved by use of the 4P’s of business advertisement; product, price, place and promotion, using up to date technology including e-commerce into the marketing plan of the business and devising a business goal that will enable your business to increase its profit margin (Jarema 1997).Nowadays marketing a business is not as easy as it used to be as crop up of anomalies and the implications caused by these anomalies in businesses pose a phenomenon that cannot be explained even by most entrepreneurs who have been in the business world for a long time. What used to be perceived as the basic principles of marketing has changed due to unavoidable situations that present challenges to the practice of marketing. The shift in perception of the key strategies of marketing can be attributed to the high growth of globalization which has lead to formulation of strategies that will greatly improve the marketing process (Jarema 1997).
Transactional marketing was the base of marketing fundamentals in the traditional way of marketing. This strategy emphasized on service marketing and management that had devised models which catered for the economic status of the business and ignored the personality side of business. The personality side of business involves personal interaction into the process involved in conducting purchasing orders. The 21st century promotes a relationship marketing and management strategy which has proved to improve methods of enhancing a good relationship between the business owner and the customer.
The strategy of attracting and maintaining customers has highly been improved allowing trust and commitment to prevail between the two parties. Relationship marketing aims at identifying a client, introducing a relationship that will be long term and formulating ways in which the long term relationship can be maintained. It also encourages short term relationship thus creating a wider scope of attracting customers by maintaining both relationships as opposed to transactional marketing which only catered for short term relationship. This explains why entrepreneurs of today prefer to use more money to create a cartel of clients than to maintain the clients (Hennig-Thurau & Ursula 2000).Business activities in the 21st century depict a mature market that consists of customers who have defined their needs and wants more specifically. They have gotten over the phase of trying out things to see which suits them and have gained a more sophisticated approach of choosing what they have defined.
Most of them have grown financially stable thus increasing the demands of goods and services as most people now have the purchasing power in their possession and can engage in long term business activities. Due to their firm background they are not lured by the ego established in marketing strategies. This is in opposition to the traditional marketing and management strategy which had geared its activities to cater for the needs of a growing market. This market did not demand sophistication in the goods and services provided as the customers had not clearly defined their needs and wants.
Most people were still thriving in poor economic status and thus had no purchasing power to engage in long term business activities, thus there was low demand for the services and goods available in the market (Hennig-Thurau & Ursula 2000).This explains why advertising a business is not among the core plans of entrepreneurs in the relationship marketing and management like it was in the transactional marketing and management era. The available market has been broken into various segments that are more detailed and demands high-tech advertisements so as to attract them. This has in the overall increased the amount of money needed to set up a convincing advertisement. This makes the advertising practice to be very expensive and out of control for many entrepreneurs to handle, thereby devising other ways of luring customers. To help surpass this ordeal businesses that provide the same kind of services and goods have resulted to merge to increase their pull of resources thus are in a better position to fulfil the desires of the new customer base that has been created by the evolution of globalization. In the traditional marketing setting business were deriving their motivation by engaging in competitions with other businesses that provided the same type of goods and services to the market; merging was considered as a suicidal attempt since businesses excelled due to their independence (Jarema 1997).
Relationship marketing and management aims at creating loyal customers who will strongly recommend the company they purchase their goods and services from to other people, encouraging them to purchase their goods and services from the same company too. They tend to use the customers as a secondary means of advertising their business which is cheap and not rigorous compared to the primary advertisement they do. Also this process proves to be reliable as many advised customers tend to have faith with what they are told trusting they will achieve maximum satisfaction. As opposed to advertisements placed by companies which creates room for development of doubt towards what the advertisements depicts, as was the case of service marketing and management (Hennig-Thurau & Ursula 2000).
In this current setting of marketing strategy, entrepreneurs have resulted to adding incentives into their mode of transactions. They device their incentives according to the behavioural response of their potential clients for instance using discounted prices and warranty providence that always the customers to return the purchased product if it did not meet their standards. These warranties define a specific period of time that limits the time of possession of the products by the clients. These strategies make customers to gain trust and confidence in what they are purchasing as they know they can return the products if their desires are not satisfied and will get a refund of their money. This further creates a long term base of relationship between the customer and the company.
In traditional marketing where creation of macroeconomic models was the main focus of business owners, incentives were considered as resource wastage. Therefore the time spent convincing or following up on customers to create a base of trust was not put into consideration. This resulted to growth of short term relationships that were based on a one time purchase. The urge of a customer to buy his goods and services again from the same company depended largely on the customer’s preference (Hennig-Thurau & Ursula 2000).Creating a relationship marketing and managing strategy in a business embeds an environment which makes sure the provider and the consumer of products benefit. The results of such a relationship are fruitful transactions, because interpersonal skills demanded by the mature market are instilled into business practice. Thus the social interaction that results plays a big part in advertising the business and creating strong advocates for the businesses. Hence relationship marketing and management is better than traditional marketing and management since the overall amount of money invested by the business owner to create and retain customers is lower than in the latter.
Also, a larger pool of customers is attracted and maintained in relationship marketing than in traditional marketing, increasing the number of sales which improve profit margins for businesses.Word Count: 1794Reference ListHennig-Thurau, T. & Ursula, H., 2000. Relationship marketing: gaining competitive advantage through customer satisfaction and customer retention.
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