Marketing

Marketing

Role of Marketing

Market share is defined as the proportion of total sales in a particular market for which one or more businesses or brands are responsible. It is expressed as percentage and can be calculated by value or volume.

In the case of Kos, it can be related with the dining hall, since what he sells then he divided by the number of customers in order to identify his market share. In the other hand, it can be related to the hospital and university according to the preferences of the citizens of Loyka. (potential market share)

The Market size can be estimated or calculated by the total sales of all businesses in the market. In the form of value, which is the total amount spent by customers buying products, or in the form of volume, which refer to the physical quantity of products which are produced and sold.

In this case, either the hospital or the university can achieved market size in the form of what the Loykese choose. Kos can obtain market size in the form of value, depending in the amount of products that he sells to its customers in the dining hall. (exist regarding market share)

Market growth can be either rapidly or slowly, or they might contract and get smaller.

In the case of Kos, he could either expand his business and increase market or continue operating in the same form (dining hall, HORIZONTAL). Making reference to the hospital or university, they could increase market growth in the form of hiring more doctors or teacher (according to the project choose), since the citizens of Loyka would agree to apply in the projects.

A market is any set of arrangements that allows buyers and sellers to exchange goods and services. Marketing is not just selling products, but to carry out a range of activities to find out customers preferences, including market research.

Effective marketing will have certain features, in which building relationships with customers is included; customers as a result of marketing are likely to develop a favorable view of the business.

One of General Diane Pierce main objectives was based on her previous experience in social marketing, which was to improve the image of the “Olive Hats” in Loyka (36). For this to be achieved she believed the creation of a university of a hospital would be useful, as it will allow the Loykese to see a benefit from the presence of the “Olive Hats” (56).

Purpose of marketing

Identify consumer requirements (What do Loykese need NOW?)

Because of the civil war, the country desperately needed engineers, school teachers, nurses and many other highly skilled professionals to help rebuild the social infrastructure.

Increase access to medical care. (65)

Complications from the lack of prenatal care had increased significantly. Many young children had a variety of health issues. (69-70)

Anticipate consumer requirements (What will Loykese need in the FUTURE?)

What would bring the construction of either the hospital or the university?

Satisfy consumers (Keep Loykese happy with the presence of the UWP troops)

For this purposes to be achieved and for the best option to be selected market research must be carried out, this means gathering information of what people want and need.
- Primary research was carried out by the UWP, (95-101) 2000 surveys were distributed to local residents, and focus groups were developed in order to know the opinion of local residents. This primary research allows the UWP to make informed decisions, risk is reduced as market has been already analyzed, and public relations that improve the image of the mission.
  - For both surveys and focus groups samples of the population were required, which are representative of the whole population. Size and gender in samples can influence the results, the UWP handed in 2000 surveys and the focus groups were to consist some of man only, women only, and some of both. Larger samples tend to be more representative, so decisions based on larger samples are more likely to be accurate.

A sampling method is not mentioned in the case but one can be chosen taking into account a number of key factors such as:

Finance available
Nature of product
- For products that are uniform, such as in the case of the UWP, they must ensure that all of the populations are properly represented, and that little or no bias is introduced. Bias that could affect the research is the presence of just man, or women on the focus groups, as well as the age of the Loykese answering the surveys.
Risk involved
- The UWP’s decision will either improve or affect the image of the “Olive Hats”. The risk is the stay of the UWP mission in Loyka.
Target market
- Market Orientation: is a business that identifies reviews and analyses consumers’ needs. Effects that having a market oriented approach will produce on a business, in this case UWP:
- Consult consumers continuously, meaning carrying market research even still after the project has been chosen, to know if Loykese are happy with the decision taken, and with the presence of the “Olive Hats”.
- Design product according to wishes of the consumers, in this is not a product but a service. The project selected by the UWP (university or hospital) will be according to the wishes of the Loykese.
- Business must produce the right product (university or hospital), at the right price in the right place (botanical gardens (53)).

For many non-for-profit organizations, particularly those on the public sector, price may be less important as a component of the marketing mix than for other businesses. In the case of both projects set by the UWP mission, they will be non-profit (44), the organization will not receive money from their customers.

Social Marketing

Acorrding to Wikipedia: (en.wikipedia.org/wiki/Social_marketing)

"Social marketing is the systematic application of marketing, along with other concepts and techniques, to achieve specific behavioral goals for a social good. Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole. For example, this may include asking people not to smoke in public areas, asking them to use seat belts, or prompting to make them follow speed limits.

Although "social marketing" is sometimes seen only as using standard commercial marketing practices to achieve non-commercial goals, this is an over-simplification.

The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial". This does not mean that commercial marketers can not contribute to achievement of social good. Increasingly, social marketing is being described as having "two parents"—a "social parent" = social sciences and social policy, and a "marketing parent" = commercial and public sector marketing approaches."

Social marketing brings a change in the behavior that benefits society so it makes use of the tools of commercial marketing. Social marketing is different because its success is judged on the benefit to society rather than commercial goals.

While the “Olive Hats” were in the country they gave a sense of international support. This benefited the local business community because the provisions of the troop were purchased locally and the soldiers improved the damaged roads and bridges. These improvements in infrastructure helped Beral reassume their normal activities (15-20).

However, the “Olive Hats” also experienced some failures in their social marketing. The presence of the peacekeepers caused some resentment in society, and were accused of inappropriate behavior which made some of the Loykese did not want foreign soldiers in the country and some disagreements arose. (21-24).

To reduce the bad reputation of the “Olive Hats” General Diane Pierce was set as Commander, she had previous experience with social marketing and one of her objectives was to improve the bad image of the soldiers (34-32). Diane Pierce decided to build whether a hospital or a university, these would benefit both her troops and society by changing the routine and building positive relations with local society. (47-50).

A hospital would help give appropriate help to all the poor and damaged people; meanwhile a university would provide better education to the Loykese. Any option would benefit the local society by offering a better lifestyle but they would imply certain problems, hiring staff for a hospital is difficult because male doctors make clients uncomfortable, a university could be a signal of foreign intervention and center of physical attack.

To make the UWP’s social marketing effective General Diane Pierce would have to manage carefully the situation in order to prevent the possible problems building a hospital or a university could bring.

WHAT WHY HOW CAN BE APPLIED

Timeline

Timeline on the succession of events of the uwp mission to loyka.

2006- Loyka civil war starts.

2008- Civil war ceases.

2009- United World Peace (UWP) sends 4000 peacekeepers to Loyka in order to maintain peace, security and order. Local businesses in Beral were able to resume their trade activities to the same levels as before the civil war.

Resentment at the presence of “the Olive Hats” – some Loykese just not want foreign soldiers in their country.

Local community leaders accuse the troops of inappropriate behavior and the local governor often has disagreements with General Meiri about the frequency of UWP patrols in the Beral area.

The reputation of the UWP troops gradually deteriorates and General Meiri does not seem able to control the situation.

“The Olive Hats” in Loyka started to resent being there and motivation was beginning to deteriorate.

2011- General Ron Meiri is replaced by General Diane Pierce as commander.
UWP headquarters in Geneva prepare a force field analysis to evaluate whether the UWP Mission to Loyka should change its strategy in 2011.

General Pierce decides to undertake a major improvement of social infrastructure in Loyka by using the resources of the UWP to build either a new hospital or a new university campus.

General Pierce delegates the responsibility for investigating the feasibility of the two projects down the chain of command to Colonel Michael Donovan, Head of the Civil Engineering Group.

The results of the research did not give General Pierce the clear indication that she

Had hoped for as a slight majority preferred the hospital.

Kos starts to think about the future of his own small produce distribution business, thinking of expansion.

Kos discusses potential sources of finance with his bank.

Kos prepares a business plan and compiled information comparing his current income to his forecast income if he increased his scale of operation and draws up 3 possible options.

General Pierce is yet to take a decision.

Glossary

Concept	Definition	Application to the case
Focus groups	Another method for collecting primary research which involves a group of customers being brought together on one or a number of occasions.	They are asked to answer and discuss questions prepared by market researchers. Colonel Donovan conducts several focus groups to discuss the two options, some of the groups consist of men only, some of women only and some of both. (99)
Peacekeepers	Peacekeeping is an activity that aims to create the conditions for lasting peace therefore peacekeepers are the people appointed to do so.	The UWP sent 4000 peacekeepers to Loyka with the aim of maintaining order, peace and security within the zone torn by civil war. (5)
Primary research	Also called Field Research. It involves collecting primary data, which is information that did not exist before the research began; it is collected by a market research agency or by the business itself.	General Pierce ordered Colonel Donovan to carry out primary research in order to obtain the people’s preferences on whether to construct a hospital or a university campus. (95,169)
Public relations	The discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behavior. It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its stakeholders.	General Diane Pierce has the strategic objective to improve the image of the Olive Hats in Loyka in order to improve public relations. (37)
Research and development	It involves discovering new knowledge about products, processes, and services, and then applying that knowledge to create new and improved products, processes, and services that fill market needs.	A new university would be prestigious and contribute to the long-term development of Loyka by training future professionals. It could also attract private capital for future public-private partnerships in research and development (R&D). (116)
Social marketing	Social marketing brings a change in the behavior that benefits society so it makes use of the tools of commercial marketing. Social marketing is different because its success is judged on the benefit to society rather than commercial goals.	General Diane Pierce has an experience in social marketing from previous UWP missions. (34)
Survey	A method for collecting primary research which consists of a series of questions designed to find out the views and opinions of a respondent. It must be designed to meet the needs of the company carrying out the survey. It may contain open or closed questions.	Colonel Donovan carried out a survey to 2000 local residents for a more valid and reliable indication of the local community’s opinion of which was needed more, a university or a hospital. (97)

Topics

References

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