Macquarie University

Daniel Harsanyi

41787803

Semester 2 – 2010

Marketing Management

MKTG208

Holistic Marketing Essay

Word Count – 2517

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Table of Contents
Introduction........................................................................................................................ 3
Internal Marketing............................................................................................................ 4
Marketing Department........................................................................................................... 4
Senior Management................................................................................................................. 4
Other Departments.................................................................................................................. 5
Integrated Marketing....................................................................................................... 6
Products And Services............................................................................................................. 6
Communications....................................................................................................................... 7
Channels...................................................................................................................................... 8
Socially Responsible Marketing................................................................................... 9
Ethics.......................................................................................................................................... 10
Environment............................................................................................................................ 10
Legal........................................................................................................................................... 11
Community............................................................................................................................... 12
Relationship Marketing................................................................................................ 12
Customers................................................................................................................................. 13
Business Partners and the Marketing Channel.............................................................14
Conclusion......................................................................................................................... 15
References......................................................................................................................... 16

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Introduction

Holistic marketing is a concept that attempts to integrate four major areas of

marketing for a company. These are internal marketing, integrated marketing,

socially responsible marketing and relationship marketing (Figure 1). Each of

these areas individually focuses on separate dimensions of marketing for a firm,

however recently firms are discovering that to develop a brand successfully these

areas must incorporate one other and be interdependent. (Kotler, et al 2009)

This paper will discuss the concept of holistic marketing in conjunction with

discussing the importance of holistic marketing as it relates to how firms interact with

their customers, specifically focusing on how holistic marketing can help

organisations build brands within their industry and deliver value to their consumers.

Each dimension of holistic marketing will be analysed individually, discussing how

each separate area contributes to helping a firm successfully develop their brand and

communicate this value to their consumers.

Figure 1. Marketing Management, Kotler et al 2009, pp 19

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Internal Marketing

Internal marketing is one of the key aspects in helping a firm provide value to its

customers. It is in this dimension that staff are hired and trained. Hiring staff that

are motivated to provide customers with high quality products and services is a

very important first step in holistic marketing with regards to providing

customers with value. Internal marketing can be defined as ``viewing employees

as internal customers, viewing jobs as internal products that satisfy the needs

and wants of these internal customers while addressing the objectives of the

organisation'' (Berry, 1981)

Marketing Department

The marketing department is the cornerstone of the marketing operations of a

company. It is essential that all of the team members in this department are clear

as to the directions of a company. The marketing department is often the

primary point of contact that a company has with their customers, through

market researchers and product developers that often work closely with their

customers. It is for this reason that members of the marketing department need

to be customer orientated and responsive to customer’s needs, in order to

connect with them and provide them with value. (Grö nroos, 1981)

Senior Management

Senior managers, such as product managers and marketing directors now play

an important role in connecting with customers and delivering value to them. In

the past senior management was segregated from the end consumer but now

however, organisations are flattening their internal structure, enabling them to

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be closer aligned and be in a position to better understand their customers needs

(Kotler, et al 2009). Being in a position to listen to your customers more

effectively provides a company with a strong advantage in areas such as product

development. When a customer can deliver product feedback directly to the

product manager not only does it make the customer feel valued by the company

but it also means that the customers message is being delivered to an individual

that can influence product decisions into the future. This direct contact and

feedback is mutually beneficial and enables a company to build their brands in

conjunction with their customers and provide them with better services into the

future.

Senior management also has an important role to play with the hiring and

motivation of staff. It was proposed that ``to have satisfied customers, the firm

must also have satisfied employees'' (George, 1977). If senior managers can

successfully recruit motivated team members whose goals are aligned with those

of the company then these employees will continuously strive to deliver value to

their customers.

Other Departments

Traditionally, the marketing department was the only department within a

company to have direct contact with their customers. Companies are now

realising that to successfully build a brand and deliver value to its customers,

every department within a company must integrate itself with the marketing

department so that everybody understands the goals and future direction of the

company and the company as a whole can work simultaneously to achieve them.

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Having segregated departments in an organisation can hinder the smooth flow of

information between them as each department has a tendency to define

problems from their own standpoint. This can create a mismatch of company

goals and lead to different departments not acting as a cohesive unit. When each

department acts independently customers may suffer as a result because clear

pathways to building brands within the company and delivering value to them

are not an integrated effort.

Integrated Marketing
At its core, integrated marketing concerns itself with the “four P’s” of marketing,

namely, Product, Price, Place and Promotion. These alone however do not

comprehensively cover the concept of integrated marketing. The “four P’s” whilst

useful, often are not used in conjunction with one another. Integrated marketing

seeks to bring these four facets together and draw out the added benefits of

using them interdependently. When the “four P’s” are used collectively it is

easier for a company to efficiently connect with their customers and deliver

value to them as each dimension is working co-operatively towards a common

goal.

Products And Services

The area regarding products or services is one of the basic ways that a company

can add value for their customers. Technology, specifically the Internet, has

made comparing features and benefits of different styles and models of a product

or service very simple for today’s consumers. As such, a company must endeavor

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to add value for the customer even in the initial phase of conducting research

regarding a particular purchase.

A consumer will perceive that a brand has value to them if the benefits that they

are receiving outweigh the costs that they are incurring. It is therefore very

important that a product is able to offer a potential consumer more than what

they expected in order for them to perceive a higher level of value. A company

can do this by adding more features than a competitors offering or by having the

same features at a lower price.

A company seeking to distinguish itself through superior products and services,

integrated with holistic marketing, can also build a brand. Initially when a brand

is made available to the market it may be positioned cheaper with less features

to try and capture market share away from competitors. As a brand establishes

itself in the marketplace however, features can be added and the price raised as

awareness about the brand increases.

Communications

Building a brand for a company can be a long, arduous task. It is a task that

requires significant and constant communication to customers informing them

about why their product or service offering is superior to that of their

competitors (Yeshin, 1998). Today, marketers have many avenues through

which to reach their consumers. These avenues include; television, newspapers,

radio, magazines, outdoor advertising (such as train and bus stations), and

increasingly, the Internet. Consumers nowadays are exposed to so many

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marketing communications that it can often be a difficult task for a company to

ensure that their communications are heard through the cacophony that is

created by their competitors. The advantage for companies now is that because

there is such a wide range of media avenues available to them, they are able to

target their consumers very accurately. This accuracy of communication enables

a company to connect directly with their consumer.

When the communications aspect of integrated marketing is linked successfully

to both the products that the company is offering and also the distribution

channels that are available, creating customer value is not such a daunting task.

Communicating to customers the value that a company’s product provides can be

done through the use of advertising and promotions. Customers will consider

that one brand’s offering provides better value if that brand offers more of a

certain feature than another brand. It is then the marketing department’s duty to

communicate these features and benefits to the potential customer.

Channels

The choice of distribution channels is now vast for a company and they must

chose which channel will enable them to best connect with their customers, build

their brand and ultimately bring value to their customer. These channels may

include drop shipping to customers (a service that Amazon provides), selling

directly through individual retail outlets (such as a clothing store) or in the case

of food, selling the product through a supermarket (such as Coles or

Woolworths).

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Different customers will perceive value added in the distribution phase in

different ways. Some consumers may determine that they received value in the

distribution phase if they did not have to leave their home in order to obtain

their products (for example if a supermarket delivered groceries to their door).

Other customers however may determine that they received value through the

distribution channel if they only had to wait in a line for 2 hours instead of 4

hours to purchase an Apple iPhone on the night that it was launched.

If a company can determine how their customers would prefer to receive their

products and align the distribution channels as part of an integrated marketing

strategy within holistic marketing, this will ensure that efficient connection with

customers is achieved and will make it simpler for a company to provide value to

its customers.

Socially Responsible Marketing

Customers today are increasingly scrutinising companies not only on the

products that they make, but also the manner in which they produce it. Ethical

and environmental issues in today’s society have garnered substantial interest

and can be a major influencing factor for a customer when making a purchase

decision. Socially responsible marketing is not so much about adding value for a

customer as it is about realising this new awareness trend in consumer

behaviour and attempting to connect with customers through sincere

environmental and societal campaigns. Connecting with customers by being

socially responsible is important in integrating a holistic marketing campaign.

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Ethics

Companies can connect with their customers by conducting their business

ethically to earn their respect and possible purchase. Increasingly, companies are

taking note of the ethical concerns of their customers and are taking steps to

ensure that their products are produced ethically. An example of this is

Starbucks who have created “Starbucks Shared Planet”, which is Starbucks

commitment to ethically sourcing and trading its coffee. This program has

positively affected over one million coffee farmers and workers (Starbucks,

2007).

In 2010 Cadbury began introducing their new range of Fair Trade certified dairy

milk products. This means that farmers are guaranteed a minimum price for

their products, decent working conditions and local sustainability (Cadbury,

2010). By ethically producing products customers can see that a company is

attempting to reduce its global footprint. A company that provides good working

conditions and a minimum wage for their employees may influence a customer’s

decision when it comes to making a purchase.

Environment

Environmental and ethical issues have similar importance to consumers and

there is a growing concern about the environment and the way that a company

treats it while producing their product can have a lasting effect on a consumer

when making a purchase decision. Large companies now cannot be seen to be

taking advantage of the environment to generate profits and some modern

consumers may refuse to buy products from such companies.

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A company that is seen to be making a sincere effort to reduce their footprint on

the environment has an opportunity to build their brand and their brand

awareness in the marketplace and can align themselves with likeminded

consumers.

One such company is car rental company Europcar. In 2010 Europcar, through

their partnership with Greenfleet, is aiming to raise enough money to plant 8000

trees in 8 weeks to help offset the carbon emissions brought about by the use of

their cars (Europcar, 2010). This enables them to connect with environmentally

conscious consumers and may be the deciding factor when choosing which

company to hire a car from.

Legal

For many companies the requirement to follow the law whist conducting

business will not necessarily help them connect with or add value to their

customers, as most people would assume that a company is abiding by the law.

Where the legal aspect of adding value for a customer may be important

however is in the area of refunds or exchanges. In Australia statutory rights in

relation to refunds protect people when dealing with a company. If a person

seeks a refund and does not have a receipt, the company can alter their own

internal policy and by doing so, build a relationship with that customer who will

probably purchase from them again due to the positive experience.

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Community

Positive relationships with the community are essential for a company to build

its brand, connect with their customer base and provide them with value. Many

companies are aware of the importance of supporting local communities by way

of grants and social events in helping to connect with consumers. Coles

supermarkets are currently running a promotion entitled “Coles Sports For

Schools” that is aiming to subsidize the cost of new sporting equipment for

Primary and Secondary Schools in Australia through the collection of vouchers

(Coles, 2010). This campaign is an effective way to connect with local

communities and help bring customers in to Coles supermarkets.

Relationship Marketing

Building lasting relationships with business partners and customers as part of a

holistic marketing campaign is vitally important to the success of a business.

Strong relationships create a “marketing network”, consisting of the company

itself and all other stakeholders that support it (Kotler, et al 2009).

Companies increasingly need to manage not only their products and services but

also these relationships in order to connect with their customers. This in turn

drives profit and can assist a company in building a brand and communicating it

to others.

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Customers

To begin a successful relationship with a customer, customer loyalty must be

established first “so that a stable, mutually profitable and long-term relationship

is enhanced” (Ravald, Grö nroos, 1996). Companies have a variety of tools at their

disposal to connect with their customers and build positive relationships with

them. One technique is using a “VIP” or loyalty program. A customer who has an

interest in that particular area usually instigates this common, yet effective form

of relationship. A company can build on this relationship by offering special

discounts and promotions available only to their database of customers. This is

intended to turn the customer into a repeat purchaser and continue to grow the

relationship. Through these loyalty programs value can easily be communicated

and delivered by way of promotions and special offers.

Another, more targeted technique that a company can use is purchase tracking.

Purchase tracking is a very useful tool for marketers to use as it allows for very

specific information to be directly targeted at an individual consumer. Value for a

customer is easily added using this technique as relevant offers and promotions

can be delivered to them based on previous purchases.

Connecting with customers via positive relationships is arguably the most

important relationship to have, as it is these loyal customers that are usually the

most profitable.

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Business Partners and the Marketing Channel

It is not sufficient for a company just to build a good relationship with its

customer base. To successfully build a brand a company must have mutually

positive relationships with their business partners; namely employees, suppliers,

distributors and other stakeholders (Kotler, et al 2009). If a marketing network

can be created that is committed to building a brand and connecting with

customers the success of a company will most likely follow.

To effectively manage a relationship with business partners such as suppliers

and distributors it is often necessary to create relationships outside of business

hours. Social events, such as taking a partner to dinner, can create such a

relationship (Kotler, et al 2009). This social relationship will often have a

positive effect on the business relationship.

Companies can create positive relationships with their employees through the

use of incentives such as small competitions designed to drive employees to

obtain the best sales figures. These incentive programs keep employees

motivated and dedicated employees will be more likely to engage customers and

build relationships with them.

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Conclusion
Holistic marketing has four key areas that were addressed in this paper.

Separately discussed, these areas contribute to the success of a company.

The internal marketing area, where confident, dedicated employees need to be

hired and all departments in an organisation aligned with one another to ensure

a focused and dedicated team environment.

Secondly, integrated marketing was discussed where it is vitally important that

all areas of a marketing undertaking, including products, communication and

distribution channels are interdependent.

Socially responsible marketing was discussed as the third branch of holistic

marketing, where a company must ensure that its conduct meets the standards

set by modern consumers and finally, relationship marketing was addressed. In

this sector of holistic marketing a company must build mutually satisfying

relationships with both their customers and other stakeholders in order to build

the company.

It is evident that moving forward successful companies will need to integrate the

four areas of holistic marketing in order to create a focused marketing campaign

that will ultimately build a brand, connect with its customers and finally deliver

value to these customers.

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References

Barius, B 1994, ‘Simultaneous Marketing: A Holistic Marketing Approach to

Shorter Time to Market’, Industrial Marketing Management 23, pp. 145–154.

Berry, LL 1981, ‘The Employee As Customer’, Journal of Retail Banking, Vol. 3, pp.
25-8.

Cadbury Pty Ltd 2010, Cadbury Fairtrade: About Fairtrade, viewed 5 September
2010,
<http://www.cadburyfairtrade.com.au/Fairtrade/AboutFairtrade.aspx>

Coles Supermarkets 2010, Coles Sports For Schools, viewed 9 September 2010,
<http://sportsforschools.coles.com.au/>

Europcar 2010, Reduce your carbon footprint with Europcar, the eco friendly
company, viewed 9 September 2010,
<http://www.europcar.com.au/carbon-footprint-reduction.aspx>

George, WR 1977, ‘The Retailing Of Services - A Challenging Future’, Journal of

Retailing, pp. 85-98.

Grö nroos, C 1981, ‘Internal Marketing - An Integral Part Of Marketing Theory’,

Marketing of Services, American Marketing Association Proceedings Series, pp.
236-8.

Kotler P, Keller, KL & Burton S, 2009, Marketing Management, Pearson Education

Australia/Prentice Hall, NSW Australia

Ravald A, Grö nroos C 1996, ‘The value concept and relationship marketing’,
European Journal of Marketing, Vol. 30, No. 2 pp. 19-30

Starbucks Coffee Company 2007, Social Responsibility – Ethical Sourcing, viewed

5 September 2010,
<http://www.starbucks.com.au/enAU/_Social+Responsibility/Ethical+Sourcing.
htm>.

Yeshin, T 1998, ‘Integrated Marketing Communications’, Reed Educational and

Professional Publishing, Massachusetts, USA

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