ASSIGNMENT 1 : DISCUSS THE HOLISTIC MARKETING CONCEPT
Holistic Marketing Concept is a concept that focuses everything matters in
marketing. It is based on marketing program, marketing process and
marketing activities that is developed, design and implemented to
recognized their breadth and interdependencies.
Four main components of holistic marketing are: relationship marketing,
integrated marketing, internal marketing and socially responsible
marketing. In brief it integrates the new concept with the societal
marketing concept.
According to Philip Kotler in Marketing Management: An Asian Perspective
th
5 edition, this is how the relation is presented in a diagram:
HOLISTIC MARKETING DIMENSION
Senior management
Figure 1
RELATIONSHIP MARKETING
It is practiced to develop mutually satisfying
long-term relationships with the peoples that
direct or indirectly affected with the victory of
the marketing activities. This amicable relations
are developed with 4 key groups of related
bodies i.e. customer, employees, marketing
partners and members of financial community.
Those marketing partners constitute of channels, suppliers, distributors,
dealers and agencies; where members of financial community represented
by shareholders, investors and analysists.
In pursuing the appropriate result, it is important for the marketers to
understand these groups’ capability and resources, their needs, desire and
goals. The ultimate outcome is a marketing network which holds a
prosperity relationship assumed as a critical asset to the company that can
drive profit.
This relationship is working to support and nourish the stakeholders and
gain satisfied and lifelong loyal customers. As what well known philosophy;
to attract new customer is 5 times as much as doing a good enough job to
retain the existing ones, it is important for the marketers to manage
establishing this marketing effort.
Part of the activities involved is routine talks with customer, constant
dialogue through mails, brochures etc and support in developing a good
relationship with the marketing partners.
INTEGRATED MARKETING
Integrated marketing deals with the strategic issues of product, price, and
place, and the tactical issue of promotion which the end is delivering value
to the customer. It is practiced to efficiently and effectively utilize
marketing resources for that purpose. In short, they must “think customer”.
This marketing mix decision must be made to influence the trade channels
as well as the final customer. It is a matter of combining all the ideas and
effort to deliver the benefit.
Strategy aimed at unifying different marketing methods such as mass
marketing, one-to-one marketing, and direct marketing. Its objective is to
complement and reinforce the market impact of each method, and to
employ the market data generated by these efforts in product development,
pricing, distribution, customer service, etc.
A complementary breakdown of marketing activities which focus on
customer is proposed in the SIVA.
SIVA consists of:
1. SOLUTION: how can I solve my problem?
2. INFORMATION: where can I learn more about it?
3. VALUE: what is my total sacrifice to get this solution?
4. ACCESS: where can I find it?
SIVA is concluded when a company can meet customer needs economically,
conveniently and with effective communication.
Integrated marketing happens when all the company’s departments have to
work together to serve the customer value. Integrated marketing takes
place on two levels. First the various marketing functions—sales force,
advertising, customer service, product management, and marketing
research—must work together. All these marketing functions must be
coordinated from the customer’s point of view. Second, other departments
of the company such as purchasing, production, design and accounting must
embrace marketing concept.
For instant, an integrated communication strategy will involve the selection
of various media which reinforce and complement each other such as TV,
radio, event, website and print advertising.
INTERNAL MARKETING.
It is a practiced to make all the employees
is customer-oriented by embracing the
appropriate marketing principles;
especially the senior management.
They are given training and motivation and internal guidance to serve the
customer at best. In fact internal marketing must precede external
marketing-External marketing is when marketing directed at people
outside the company.
In this technique, customers’ expectation is promoted organization-wide so
that the employee is ready to provide excellent service as promise. In short,
it does not stop just with a catchy motto. It is the employees that have to
live the brand.
All the marketing functions such as sales force, advertising, customer
service, product management and so on must work together and
coordinated from the customer points of view.
Internal marketing thus requires vertical alignment with senior
management and horizontal alignment with other departments. The
ultimate goal is everyone to appreciate, understand and support the
marketing efforts.
The company is doing proper internal marketing only when all employees
appreciate their impact on customer satisfaction. It makes no sense to
promise excellent service before the company’s staff is ready to provide
excellent service.
Example of the establishment of doing the internal marketing is an effort of
giving special incentive and winning offers for the employee who achieves
the target.
SOCIAL MARKETING
Social marketing is practiced to enhance
consumer and social welfare. Most
marketing organizations do not
intentionally work in isolation from the
rest of society.
Instead they find that greater opportunity exists if the organization is
visibly accessible and involved with the public. As we’ve seen, because
marketing often operates as the “public face” of an organization, when
issues arise between the public and the organization marketing is often at
the center.
In recent years the number and variety of issues raised by the public has
increased. One reason for the increase is the growing perception that
marketing organizations are not just sellers of product but also have an
inherent responsibility to be more socially responsible, including being more
responsible for its actions and more responsive in addressing social concerns.
Being socially responsible means an organization shows concern for the
people and environment in which it transacts business. It also means that
these values are communicated and enforced by everyone in the
organization and, in some cases, with business partners, such as those who
sells products to the company (e.g., supplier of raw material for product
production) and those who help the company distribute and sell to other
customers (e.g., retail stores).
In addition to ensuring these values exist within the organization and its
business partners, social responsibility may also manifest itself in the
support of social causes that help society. For instance, marketers may
sponsor charity events or produce cause-related advertising.
Marketers who are pursuing a socially responsible agenda should bear in
mind that such efforts do not automatically translate into increased
revenue or even an improved public image. However, organizations that
consistently exhibit socially responsible tendencies may eventually gain a
strong reputation that could pay dividends in the form of increased
customer loyalty.
As a conclusion holistic marketing can bring a lot of beneficial outcomes.
Consumers gain new capabilities when they can be more interactive with
sellers or other buyers. From the company focus in integrated marketing,
there are more products and services could be chose. In the same time the
successful of internal marketing could lead the consumers to meet the sellers
more aggressively to enhance the trade ability and trade position.
The company also can gain new capabilities by more instantly, more
accurate and more comprehensive but less cost to gain and spread
information.
The collaborative with related groups in relationship marketing will not only
improve operation efficiency but also strengthen the ability of enterprise in
creating value.