Marketing Management Motorola

Question: Describe about depth understanding of the importance of designing an effective extended marketing mix which helps an organisation achieve its desired goals and objectives? Answer: Executive Summary This report gives an in-depth understanding about the importance of designing an effective extended marketing mix which helps an organisation achieve its desired goals and objectives. This report focuses on the people, process and physical evidence elements of extended marketing mix. It show how organisations such as Motorola can design their extended marketing mix in order to create a competitive advantage against rivals in todays dynamic business environment. First part of the report studies the people element of extended marketing mix for Motorola in details. It is seen how Motorola handles its employees, culture, suppliers and customers in order to secure its market position and remain committed to its corporate social responsibilities. Effective management of their people element help Motorola in developing a sustainable business. Second part of the report studies the process element of extended marketing mix for Motorola in details. It is seen how Motorola ensures its customers are informed about steps to receive their products and services and the steps the company should undergo to deliver their products and services to their customers. The complaint handling procedure used by Motorola and response time is studies in details. Third part of the report studies the physical evidence of extended marketing mix for Motorola in details. It shows how Motorola design their stores and office premises in a way to create positive perception for their company. It also studies how Motorola use social media to communicate customer reviews and create a buzz for their products in the market. Fourth part of the assignment identifies the below the line promotion activities that can help Motorola secure its market position and retain its competitive advantage. Introduction Marketing today is at the heart of all businesses and enable them achieving their desired goals, performance objectives and profitability(Baines, et al., 2013). It facilitates communication between consumers and sellers. Marketing management is an organisational discipline that is concerned with the practical application of marketing orientation methods and techniques within organisations and effective management of organisations marketing activities and resources (Czinkota Ronkainen, 2012). It is plays a vital role in achieving overall organisational success and makes the firm highly customer-oriented. Marketing activities help organisations in creating mutually beneficial relationship with their customers. It helps identifying customer needs and then finding ways for satisfying those needs in unique manner. Motorola was started in year 1928 in Chicago, Illinois as Galvin Manufacturing Corporation by Paul V and Joseph E. Galvin with a working capital of $ 565 and 5 employees (Motorola Mobility LLC, 2015). Owing to a loss of $ 4.3 billion in year 2007-2009, the company is split into two separate and independent public entities in year 2011 namely, Motorola Solutions and Motorola Mobility. Motorola Mobility in year 2012 was acquired by Google who sold it to Lenovo in year 2014. Motorola has a divisional organisational structure wherein they have made division based on their products (Motorola Mobility LLC, 2015). The three divisional products of Motorola are; Enterprise Mobility Solutions which is headquartered in Schaumburg, Illinois and provide communication services to enterprise mobility business and government and public safety sectors; Home Network Mobility which is headquartered in Arlington Heights, Illinois and provide end-to-end systems for uninterrupted access to digital entert ainment; Mobile Devices which is headquartered in Chicago, Illinois and is involved in designing and manufacturing of wireless handsets. Motorola aims at inventing, building and delivering the best mobile devices on the planet and thus improving the lives of its million valued customers. Motorola is recognised worldwide for its effective leadership and innovation in field of broadband and wireless communication. Its long term vision is to provide Seamless Mobility so that customers can easily remain connected with people, information and entertainment desired by them. Extended Marketing Mix The first step of any marketing activity involves defining the marketing mix. Marketing mix of an organisation defines the set of marketing variables that must be understood and controlled in achieve overall organisational goals and objectives (Barker, et al., 2012). Marketing mix is also referred to as the 4Ps of marketing product, price, place and promotion. Marketing mix helps ensuring that the organisation is marketing right products to right people at right price and place at right time (Dahlen, et al., 2010). As service marketing is also concerned about the intangible values attached with services the 4Ps of marketing mix was expanded to include additional 3Ps of marketing making it 7Ps of marketing mix also called as extended marketing mix (Belch Belch, 2011). The 7 Ps of extended marketing mix are; product, price, place, promotion, people, process and physical evidence (Blythe, 2013). People, Process and Physical Evidence are the three elements of extended marketing mix that is mainly relevant for service marketing and makes the organisations comparatively more customer-oriented (Ferrell Hartline, 2012). This report analyses the additional 3Ps of extended marketing mix for Motorola. People People element of extended marketing mix refers to all human resources that are directly or indirectly involved in the production, distribution and consumption of products and services offered by the organisation(Dibb Simkin, 2007). It focuses on the communities involved in relationship marketing (Boone Kurtz, 2011). It is important that this element of marketing mix is in place and works effectively in order to ensure customer needs are not only met but exceeded. Organisations must ensure they have right people to serve their target customers. Customers today have easy access to information and are better aware of their needs and wants (Brady, 2010). They want to know everything about the product they are using starting from the source of raw materials used in the production process, thus it is equally important that organisations choose their suppliers effectively in order to provide high quality product and service to their customers(Graham, 2008). Organisational culture plays a vital role in determining the way people behave within their workplaces thus is also considered an important part of people element of extended marketing mix (Jayachandran, 2004). People element of extended marketing mix for Motorola is defined below: Employees Motorola considers its employees as the most precious assets and thus ensure they are provided ample opportunities to realise their full potential on the path of innovation. In year 2014 Motorola reported the total number of employees as 19,000 who work in different locations across the globe (Motorola Mobility LLC, 2015). Employee are an important part of Motorola as they represent the company and through their behaviour and general attitude is responsible for creating the first impression of the company. Motorola greatly depends on their employees and their interaction with customers for making the business successful (Kotler, 2007). Motorola has a well-defined and standardised recruitment and selection process that help ensuring they have the right people with right skills and knowledge who can present the right image and level of service quality delivered by the company. Motorola make huge investment in satisfying the learning and development needs of their employees by conductin g regular training and development programs(Kotler, 2008). Motorola ensures that the skills and expertise of their employees are upgraded to meet the rapidly changing needs to the marketplace. Highly specialised and experienced employees help Motorola in retaining their competitive advantage against their competitors and also in securing their brand image of being an innovation leader in entertainment industry. Culture Organisational culture plays a vital role in overall success of organisation. It included the values, beliefs and norms that influence workers behaviour and perception about their co-workers and the company (Yeshin, 2012). Motorola was the first company to have adopted six sigma quality programs and was recognised as a reputed brand in the entertainment industry. In early 1990s Motorola was a truly high performing organisation marked by its innovation and socially responsible corporate attitude. Motorola organisational culture displayed characteristics of a people culture wherein employees were considered the most precious assets of the company. Motorolas organisational culture once served as a competitive advantage for the company which could not be imitated by competitors (Weinstein, 2007). Motorola has developed a knowledge sharing culture which is essential for innovation. Employees were treated with due respect and integrity and were given ample opportunities to realise their fu ll potential. Culture at Motorola encourages employees to openly share their views and actively participate in decision making. Huge amount of money was spent on employee training and development programs to meet their learning needs. However after the acquisition by Google and them by Lenovo its organisation culture has been greatly affected and the company will have to make attempts to re-establish the knowledge sharing culture to secure their market position of an innovative leader. Suppliers In order to provide high quality products and services to customers it is very important to ensure that the raw materials used for the production of goods and services are sourced from reliable vendors and are of high quality(Vieceli Valos, 2012). Motorola believes in Quality In, Quality Out wherein they understand that quality of their finished goods and services depend on the health of their supply chain across the globe (Motorola Mobility LCC, 2015). They ensure that their relationships with suppliers are governed by strict codes for social responsibility and business conduct; there are strict diligences to handle issues related to conflict minerals; and there are thoughtful materials disclosure requirements. Motorolas supplier code of conduct focuses on their suppliers corporate social responsibility standards and is a mandatory requirement which all suppliers must adhere to. Motorola assist their suppliers in improving their performance in aspects of corporate social responsibility. Motorola ensures that none of their suppliers are indulged in unethical activities such as child labor, forced labor, human trafficking and use of hazardous chemicals etc (Vieceli Valos, 2012) Through their diligence program they identify and trace tin, tungsten, tantalum and gold minerals present in their supply chain and adhere to conflicts in regions which source these minerals. The materials disclosure and legislation help them ensuring their suppliers disclose any banned, reportable or controlled substance as well as recycled substance present in parts supplied to them. All these measures help them in maintaining an ethical supply chain. Customers Motorola is a highly customer-oriented organisation that put in best efforts to analyse and identify customers entertainment needs and then designs products and services that best fits customer demands at the most affordable prices (Pride Ferrell, 2008). Mobile technology today has become the most commonly preferred source of entertainment that can play music and videos anytime, anywhere thus Motorola ensures all their products completely safe, healthy and easily accessible to best fit the entertainment needs of their customers. Motorola puts their customer at the centre of all the technology they design. In order to better understand the needs of their customers they take advice from disability advocacy agencies, research organisations and standard agencies (Motorola Mobility LLC, 2015). It works work in close coordination with companies that develop assistive devices for people who have special accessibility needs and ensure the technology of such companies are compatible with var ious Motorola products. Thus, Motorola offers products that best fit with the varied needed of different customers at a price thats worth paying. Process Process refers to the systems that an organisation uses to deliver its products and services to its target customers (Marketing Mix, 2013). It include the steps a customer follows to receive the offered products or services and the activities a supplier needs to perform in order to make the products and services available to its end customers. Organisations must ensure that they perform their process activities in an appropriate manner so as enhance the customers positive perception about the quality of offered products and services (Lamb, et al., 2012). It is also important that organisations create and awareness and provide enough information to their customers of the processes they need to go through in order to receive the products and services. Thus, processes are the delivery and the operating systems of mechanisms, procedures, and flow of different activities involved in the consumption of products and services offered by an organisation (Strydom, 2005). In case of Motorola these processes include the way customers are informed how they purchase its products and services; it includes the post and pre sales services. Processes involve the customer service facilities provided by Motorola after their products and services have been sold, ways of customer complaints handling and response time. Service Delivery Motorola is a highly customer focused organisation and keeps people at the centre of all technology they design (Motorola Mobility LLC, 2015). The company is involved in extensive marketing research in order to identify the needs of their valued customers and design products and services that best fits with their needs. Motorola is the market leader in designing innovative products and services that best suits entertainment needs of the customers across the globe. Through various promotional techniques and active use of social media Motorola keeps its customers well informed about the launch of new products and services and the benefits and offers associated with them. Motorola products and services can be brought from independent retailers such as Carphone warehouse, retailing outlets of other network provider such as Vodafone and online through e-commerce websites. Motorola also sells their products and services directly from their outlets and online website(Kotler Armstrong, 2013). Phones and services purchased offline are available to the customers immediately and those purchased online are available to the customers as per time specified on the websites. Products and services available online are found to be comparatively cheaper because the intermediate channel has been eliminated. Motorola is recognised worldwide for their effective service delivery. Their offline service centres are located in different locations and products that are still within warranty period are either replaced or repaired free of cost. Employees at service centres are very customer friendly and ensure that customer queries are answered with every minute detail in order to ensure they are satisfied(Saxena, 2010). Motorola also provide online customer service facilities. As displayed on their website Motorola provide complete product support for all theory products, service and repair options, community resources and also an online tracking option wherein customers can track the status of their order or service. Complaints Organisations selling the products and services are not only responsible for their production and sales but are also responsible for providing post sales services to customers in order to ensure all customer queries and complaints are handled in the most effective manner (Richter, 2012). After sales services are the value added services offered to the customers in order to enhance customer loyalty. For companies like Motorola the quality of after sales services provided to customer greatly influence their buying behaviour. Before buying entertainment related products customer also check about the type of post sales services provided by the organisation (Jayachandran, 2004). Consumer never prefer companies whose reviews for after sales services are bad as they feel once the product has been sold such companies will hardly care about customer problems associated with the product or service(Hackley, 2010). Social media today spreads information faster than wild fire thus customers have access to enough source that provide complete information about the quality of after sales services provided by the company. Motorola is recognised worldwide for its high quality after sales services. They provide their customers with complete information related to the ways customers can register their complaints regarding any issues related to their products or services. Motorola has service centres in almost all placed where they are present and has established customer care centres which work 24*7. Customer care executives undergo extensive training before they go live on handling customer queries (Morgan, et al., 2003). Motorola ensures that their customer care executives have the needed skills and knowledge to answer basic customer queries on the first call itself. Motorola also provide online chat options to their customers through their website where customers can directly chat with customer care executives and get instant response to their queries (Moschis, et al., 1997). Motorola also provide online options such as support forums and developer resources that very helpful for customers. Motorola w ith their talent resources ensure that every single customer complaint gets due attention and is resolved as soon as possible in a way that exceeds customer expectations. Response Time Response time is the measure of time taken by businesses to respond to customer queries and resolve customer complaints (Pelsmacker, 2010). Motorola make huge investment on the training and development of its employees in order to ensure employees are efficient enough to deliver high customer satisfaction. The company ensures that employees have sufficient knowledge about the products and services and the response time for answering customer queries remains less. Depending upon the complexity of the problem, response time vary from 1 hour to 24 hours(Motorola Mobility LCC, 2015). Motorola ensures that the response time never exceeds 24 hours and the customer query tickets are closed only when customers are fully satisfied with the service. Thus, Motorola ensures all aspects of process element of extended marketing mix are in place and work effectively. Physical Evidence In the earlier days when consumer activities and their buying behaviour was quite predictable the physical evidence element of extended marketing mix hardly had any influence on consumer choices and their perception about the organisation (Lamb, et al., 2008). However in todays dynamic business environment it is very difficult to predict consumer buying behaviour(Clemons, 2008). Customers today have access to all information needed about the product and services they are interested in. Customers are free to share their experiences about the product and services on the internet and through several social networking sites. There are a number of online consumer forums where consumers come together and share their stories related to the product and service(Haugtvedt, et al., 2005). Today consumers can easily read reviews and suggestions provided by other consumers and based on that can decide for or against the product and service. Social media today plays the most vital role in developi ng a companys brand image and market position(Jong, 2011). Consumers today are not only influenced by the features of the products and services but are also influenced by the infrastructure of the stores from where they are buying products. The look of the companys office premises and production centre also influence consumers perception about the organisation. Apart from these consumers perception is also guided by the presentation and contents of companys official website which is expected to deliver all information related to the company and its offerings. Physical evidence element of extended marketing mix relates to the environment in which products and services are delivered and the tangibles that help communicate and perform the services (Blythe, 2013). Physical evidence element of extended marketing mix for Motorola is described below: Office and Store Infrastructure Motorola enjoys a wide global presence with operations spread worldwide covering almost every country across the globe. Motorola make huge investment in developing infrastructures that is not only employee friendly but also environmental friendly. Motorola outlets especially those deal in providing entertainment related products and services are designed in a way to enhance customers experience and influence their mood(Motorola Mobility LCC, 2015). The lightening, layout and sound effects at their stores in addition to the appearance and attitude of their store employees help create a unique brand perception in the minds of customers. Motorola ensures that all their store employees specially those in customer facing roles are well dressed and carry a positive attitude while they inform the customer about products and services of handle post sales customer queries. Motorola ensures that the customers should receive the same treatment before and after the products and services have bee n sold to them. User Stories and Recommendations There are a number of factors that influence consumer buying behaviour; psychology is one of the main factors wherein individuals tend to get attracted to products and services which are either being used by others and is recommended by other consumers (Dibb Simkin, 2007). As consumers are becoming more and more active on social media they are connecting to each other and are narrating their stories related to their experience about products and services they use. Word of mouth publicity is considered the best promotion technique as it is the fastest and creates a lasting impact on consumers. Motorola offers its consumers an opportunity to post their stories and experiences about Motorola products and services on the service forum section of their website. Its an open forum that can be accessed by all visitors and they can go through user testimonials and experiences. The company do not hide customer comments so one can find both good and bad comments and can get an idea of advantag es and disadvantages associated with Motorola products and services. Consumers are also provided an opportunity to rate the products and services they have used and the ratings are visible to all website visitors. These user stories and recommendations are also displayed on TV screens of Motorola offline stores in order to help offline consumers in their decision making. Buzz Buzz is a term mostly used in viral marketing wherein consumers and users of the products and services interact with each other which result in amplification or alteration of the original marketing message(Czinkota Ronkainen, 2012). Social networking sites today are the best places wherein consumers and users interact with each other and create a buzz. Motorola understands the importance of social media marketing and how it has redefined the ways organisations connect with their customers. Motorola connects to its consumers through various social networking sites such as Face book, Twitter, Pin it, Instagram, LinkedIn etc (Dibb Simkin, 2007). Whenever a new product is launched or considerable improvements are made to existing products Motorola ensures that a Buzz is created in order to ensure the customers are aware of it. This type of marketing activity also help Motorola in informing their customers about the special offers and discounts running over specific products. This type of viral marketing has both positive and negative effect on customers perception about the company thus Motorola ensures that they keep a regular track of customer comments and try clarifying doubts as and when possible. Below the line promotion for Motorola Promotion is the most important element of marketing mix as it helps organisation in communicating their message to their target audience. Promotion is also called as marketing communication because it helps organisations in passing all information to the potential customers with an aim to either encourage them to buy or to influence their attitudes and buying behaviours (Brady, 2010). Promotion activities can be broadly classified into two groups namely; above the line and below the line promotion. When promotion is carried out through use of mass media such as television, newspapers, radios etc is called as above the line promotion. In this case a fee or commission is paid to the recognised advertising agency that operates on behalf of its clients and is responsible to handling all their advertising activities related to mass media (Dibb Simkin, 2007). On the other hand below the line promotion refers to all forms of non-media communications which also include non-media advertisin g (Blythe, 2013). In this case organisations do not need pay additional fees or commission to any third party. Below the line promotion include a number of activities such as sales promotions, public relations, merchandising, branding, direct selling, exhibitions, sponsorship activities and trade discounts etc. Motorola indulges in a number of below the line promotion activities in order to reach their target customers and ensure that the intended message is effectively convey to target audience. Some of the below the line promotion activities performed by Motorola are; Sales Promotions Sales promotion refers to all marketing activities that aim at improving sales and does not include advertising (Lamb, et al., 2008). These are short term incentives that companies provide in order to gain long term benefits from enhanced customer loyalty. Motorola indulge in a number of sales promotion activities whose objectives are directed at three main groups namely; customers, salesforce and intermediaries (Motorola Mobility LLC, 2015). For its customers Motorola provide a number of special sales offers, considerable price cuts on specific products, coupons for availing special services, buy one get one free, free gifts, lucky draws etc. In order to motivate its salesforce Motorola have several rewards and recognition schemes where in incentives are directly linked to the volume of sales generated by them (Motorola Mobility LLC, 2015). The company also provide incentives in form of cash, gifts, travel options and lucky draws. In order to encourage its trade network to recommend their products to customers Motorola provide them with special schemes that involve extra commissions and overrides (Brady, 2010). The company also organisation events and parties for their trade network to keep them motivated. Public Relations Effective public relations at Motorola enable it in developing and retaining a mutual understanding with its people. Public relations not only help creating a positive perception in the minds of customers about the company but are also effective in enhancing employee commitment and stakeholders trust (Barker, et al., 2012). Some of the public relations activities undertaken by Motorola are; frequent press meets, seminars, lobbying, charitable donations, community relations and sponsorships. Motorola adhere strictly to their corporate social responsibilities. They have created a highly ethical and sustainable global supply chain and also support their suppliers in enhancing their corporate social responsibilities. Branding Branding refers to the marketing activity that helps adopting values, awareness, image, recognition, features, quality, name and benefits onto a product or service (Saxena, 2010). Branding thus refers to the intangible value created by a badge of reassurance and at the same time help differentiating the products or services from those offered by competitors. Motorola has gained worldwide brand recognition as an innovative leader in wireless and broadband communications technologies. Customers trust Motorola products and services for meeting their entertainment needs (Motorola Mobility LCC, 2015). Customers are informed how the company works in close coordination with research agencies and disability centres to better understand the needs of their customers. Motorola offers its customers with most hi-tech products with high device accessibility a feature that is unmatched by competitors. Direct selling Direct selling is that form of marketing wherein the seller gets in direct contact with the buyer and informs them about the benefits and drawbacks if any associated with the products or services (Dibb Simkin, 2007). This form of below the line promotion help sellers in better identifying customer needs and offering them the most suited products or services. Motorola indulge in telemarketing which is a commonly used form of direct selling. Telemarketing is also referred to as telephone sales wherein companies use telephone as the primary means to contact target customers. Motorola has made huge investment in setting up specialised customer service centres which not only handle customer complaints but also make cold calls to inform customers about new product or service launch. All these below the line promotional activities undertaken by Motorola help ensuring that customers are well informed of their products and services and the associated benefits. Conclusion This report gives in-depth understanding of how Motorola defines its people, process and physical evidence elements of extended marketing mix in order to secure its market position and retain its competitive advantage. In todays dynamic marketplace defining the 4Ps of marketing mix is not enough in influencing customers buying behaviour thus it has become very important for organisations to define 7Ps of marketing mix in order to achieve desired organisational goals. Presentation Introduction Marketing management is concerned with the application of marketing orientation techniques within the organization and effective management of organisations marketing activities and resources. Motorola was started in year 1928 in Chicago, is recognised worldwide as the innovative leader in wireless and broadband communication industry. People People element of extended marketing mix of refers to all human resources that are directly or indirectly involved in the production, distribution and consumption of products and services offered by Motorola Employees: Motorola has 19,000 employees working across different location. Motorola greatly emphasize on training and development of employees People Culture: Motorola has a knowledge sharing culture which serves as a competitive advantage for the company Suppliers: Motorola believes in Quality In, Quality Out wherein they understand that quality of their finished goods and services depend on the health of their supply chain across the globe Customers: Motorola believes in Quality In, Quality Out wherein they understand that quality of their finished goods and services depend on the health of their supply chain across the globe Process Process refers to the systems that an organisation uses to deliver its products and services to its target customers Service Delivery: Motorola is a highly customer focused organisation and keeps people at the centre of all technology they design. Motorola is recognised worldwide for their effective service delivery. Process Complaints: Motorola has service centres in almost all placed where they are present and has established customer care centres which work 24*7. Response Time: Depending upon the complexity of the problem, response time vary from 1 hour to 24 hour Physical Evidence Physical evidence element of extended marketing mix relates to the environment in which products and services are delivered and the tangibles that help communicate and perform the services Office and Store Infrastructure: Motorola make huge investment in developing infrastructures that is not only employee friendly but also environmental friendly. The lightening, layout and sound effects at their stores in addition to the appearance and attitude of their store employees help create a unique brand perception in the minds of customers. Physical Evidence User Stories and Recommendations: Motorola offers its consumers an opportunity to post their stories and experiences about Motorola products and services on the service forum section of their website. Buzz: Motorola connects to its consumers through various social networking sites such as Face book, Twitter, Pin it, Instagram, LinkedIn etc Below-the-line Promotion Below the line promotion refers to all forms of non-media communications for which no fee or commission is paid. Sales Promotions: Motorola indulge in a number of sales promotion activities whose objectives are directed at three main groups namely; customers, sales force and intermediaries. Motorola provide a number of special sales offers, considerable price cuts on specific products, coupons for availing special services, buy one get one free, free gifts, lucky draws etc. Below-the-line Promotion Public Relations: Some of the public relations activities undertaken by Motorola are; frequent press meets, seminars, lobbying, charitable donations, community relations and sponsorships. Branding: Motorola offers its customers with most hi-tech products with high device accessibility a feature that is unmatched by competitors Direct Selling: Motorola has made huge investment in setting up specialised customer service centres which not only handle customer complaints but also make cold calls to inform customers about new product or service launch Conclusion In todays dynamic marketplace defining the 4Ps of marketing mix is not enough in influencing customers buying behaviour thus it has become very important for organisations to define 7Ps of marketing mix in order to achieve desired organisational goals. References Baines, P., Fill, C. Page, K., (2013) Essentials of Marketing. Oxford: Oxford University Press. Barker, N., Valos, M. Shimp, T. A., (2012) Integrated Marketing Communications. New York: Cengage Learning. Belch, G. Belch, M., (2011) Advertising and Promotion: An Integrated Marketing Communications Perspective. Chicago: McGraw-Hill Education. 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