organization resource management

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ORGANISATION RESOURCE MANAGEMENT September

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Organization Resource Management

Introduction:

Organisation resource management is related to the human resource management. What is the

organisation purpose, where it is standing, what changes should be done, what are the benefits and

many more thing include the strategy but strategy or manufacturing and non profit organisation is

bit different because there purpose aims and objectives are different. In this assignment, discussed

about the role of marketing planning, core concepts and advantages, steps, portfolio models. Market

segmentation is important part of the marketing. What is the benefit of segmentation and what is

the difference between segmentation, aggregation and monopoly?

In addition, it includes about the product life cycle, its development in replacements and which

techniques are used in marketing strategy to develop it? Branding concept is related to the product.

We will discuss about the lean organisation, total quality management and how it works and what is

the impact on the organisation. At the end what is the difference between the marketing strategy of

manufacturing company and non profit organisation.

Marketing and its importance:

Definitions:

By Drucker (1973):

Marketing is so basic that it cannot be considered a separate function on a par with others

such as manufacturing or personnel. It is a first central dimension of the entire business. It is whole

business seen from the point of view of its final result that is from its customer point of view.

We can define as:

Right product for the right people at the right time at the right place at right price at right services.

From above definitions explains the functional and vital role of marketing in any organization. It isbasic and important department of any organization or business. Marketing is science but not an

art. Marketing is done to attract the customer and to get feedback from them though marketing

about a specific product. Marketing help out to increase the productivity level of any business.

Marketing is the best source of satisfaction of the customer and efficient way of earn profit.

Marketing is a best process of planning and executing the conception and pricing, promotion and

distribution of ideas. There are following important points which describe the importance or the

marketing in business sector:

1. Efficient marketing management is the prerequisite for the successful operations of anybusiness enterprise.

2. Marketing is the basic thing on which decision making is reliable.


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3. Many departments in a business enterprise are essentials for its growth, but marketing is thestill the sole revenue producing activity.

4. Marketing is the central point of the business around which economy revolves.5. Marketing is the consumer oriented which can help out to bring positives change in the

under developed economy.6. Marketing is the best way to attract the consumer towards products.7. Marketing helps to improve standard of living of people by offering the huge range of quality

of goods and services.

8. Marketing sector give an opportunities to hire new employees in business. For examplemarketing specialist.

9. Marketing help out to set the pattern of the production of goods and services necessary tosatisfy the need of customer.

10.Marketing increase the development of the economic resource.

Marketing Planning and its role in strategy development:

Marketing Planning is decided on advance to achieve marketing objectives according to the strategy

of that organization which involves forecasting, objectives, policies, programmes, procedure,

schedules and budgeting. Marketing planning is the managerial process of developing and

maintaining the situation between organization goal, objectives and resources and the changing

marketing opportunities.

Below given diagram explain the process of strategy. For the making strategy first we have to think

about our goal, objectives and our mission as well. I should know that where our business is laid

down and where it should not. We should also have to think about the corporate objectives of thebusiness. For this we have to market analysis then we came to know that how a world is general and

business in particular is changing. Once a purpose of business has been defined then we can easily

develop the strategy through the marketing planning. We also have to do SWOT analysis and PEST

analysis of the business or organization. It can help to know the organization or business strength,

weakness, opportunities and threats. For fulfilling the plans and strategy have to forecast the price,

product, promotion and distribution of strategy. For the forecasting we need to have targeted the

market. Through market planning we came to know about the price of product and can do better

analysis through comparison of competitors product price .marketing planning can help us to do

promotion of product and distribution as well. After doing planning can easily do action and

implementation of strategy. Business can control the strategy through marketing planning.

Marketing planning is the basic thing to help in development of strategy.


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1: objectives Strategic Focus

What business is we in, should be

In and should not be in?

2: Situation

Review Identify Opportunities

3: Strategies Target Marketing

And Plans Product, price

Promotion and

distribution strategy

4: Action Action

Product Price Promotion Distribution

Corporate objectives

Marketing Audit

SWOT Analysis

Formulate Strategies

Forecasts

Budget

Implementation programme

Control

Vision

Performance review and

evaluation


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Core concepts and operationalsing the marketing strategy:

In manufacturing or non profit organisation, marketing strategy play vital role to

develop the business and to increase the demand of the good or services. Core concept of marketing

is basically focus on the consumer need, want and demand. The organisation corporate culture issystematically is committed to make customer value. If we considered customer wants then

organization should do market research if the research is done correctly then an organization can

achieve its competitive advantages.

Need:

Need are basically human requirements. It can be basic needs or luxurious as well. We eat to live; we

drink to quench our thirst. We need recreation, education, knowledge, training etc.

Want:

Needs become wants. Wants direct towards object. Want is always varying from place to place,

person to person, income level and time as well.

Demand:

Want become a demand of customer. If a customer demands anything, is he can pay for that thing

or that thing is available for the customer?

Core concept of marketing strategy is based on three main points:

1st customer wants should be researched.

2nd

information should be spread to all over the organisation and developed the product.

3rd

organisation should keep in eye customer satisfaction and adjustments are made if necessary.

Techniques for operationalsing the marketing strategy:

Quantitative marketing research:

Quantitative method usually based on sampling. That sample datais estimated level of accuracy, population or universe which they are drawn.

It is classified in the three groups:

1. Market measurements2. Customer files or segmentation3. Attitudinal data

Qualitative market research:

Qualitative market research is classified in the following group:

1. Observation


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2. Focus group3. Depth interviewing4. Projective interviewing techniques

Customer complaints departments:

For the effective marketing strategy organization has to give focus on the complaints

departments which are more helpful to improve the business. Through this organization

also came to know either we are following the right marketing strategy.

Customer hotline:

Customer hotlines means through using the internet and telephone. On the organisation specific

website customer can give feedback, do complaints and many other option are there. This also a

best way to know about the condition of the effective marketing strategy.

Portfolio models analysis:

In one of article Global Income Investing Strategies, it describe about the portfolio management. It

explains that through the portfolio management system we come to know about the causes of

economic problems. Many companies are based on bench marks system to minimize the risk. If the

rate of interest is increased due to the increase in supply of money that can be a cause of credit risk

which is unlikely preserve to the portfolio values. In many businesses investment is basis of high

interest rate and dividend but its risky for the business but many owners like to take risk. If the

interest rate will be low then business have to face fix income level, lack of good independent

search.

Market segmentation and its value:

Market segmentation means increase relation with customers, giving them exactly what they want

or may want, and building powerful relationship with channel associates and co marketing partners

and communication with high developed media. For examples event sponsorship with interact web

sites, personalized e-mail, magazines and TV advertisement. Market segmentation is helpful for

organisation to know about the needs and demand of customers. After segregating of consumers in

specific categories will help the company identify other applications for their product that may or

may not be self evidence. Those new displayed ideas is useful for goods and services to helping the

organization for achieving the goals a large number of audience in the same demographic categories

and increase the market shares among these sub market bases. Market segmentation have its own

value and it can developed a huge rang of characteristics found among the customers. One group

which is identified by the gender, by divisions in age, location can be as a market segmentation

which can include income level and education level. Market segmentation is playing a vital role in

development of markets. There is another important this is that through market segmentation

organization can take knowledge about the loyalty of customers through existing customers.


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Requirements of market segmentations:

Identifiable. Accessible.

Substantial. Unique needs. Durable.

Bases for segmentation in consumers markets:

Geographic Demographic Psychographic Behaviouristic

Bases for segmentation in industrial markets:

Location Company type Behaviour characteristics

Distinguishing between differentiated, undifferentiated and

monopoly markets:

Undifferentiated market:

Differentiated market is also called market aggregation. It concentrates on mass market on single

offer and avoids segmentation. These types of organization make just one product, pricing structure,

distributions and promotional programme to attract the large number of people. In this type of

organization, they seek to gain competing edge by differentiating itself from its competitors image.

For examples, banking is an industry with little product differentiating the institutions. As a result,

many banks engage in undifferentiated marketing with mass media image banking campaign that is

primarily designed to set a bank apart from the competition in the minds of customers.

Differentiated markets:

Differentiated markets known as multiple segmentation. An organization selects two or more

segment as target on market. It might done one of two ways: a firm might offer different product to

each market segments or it might offer the same product but vary offer through the promotional

strategy. For example, we can see about large automobile manufactures company aimed at each

market segments like Ford and Chrysler. there is also example of second point is Johnson & Johnson

shampoo which is producing shampoo not only for children for adults as well.

Monopoly markets:

Monopoly is that organization which has no close substitute and has no competitors and in which

monopoly firms operates called monopoly market. A monopoly market is saved by barriers that

prevent other firms from selling that goods and services. For example if you want to stamp your


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letter then you need to go post office which is used just Royal Mail stamping in London there is no

close substitute.

Product life cycle

What is product?

A product can a good or can a service. Goods is referred to physical or tangible thing which

can be owned, traded and distributed to different places at different time without changing

their identity. There are three different kinds: tangible mean physical, intangible means

non- physical and service.

Stages ofProduct life cycle

There are five stages of product life cycle:

1.

New product development stage: Very expensive No sales revenue Losses

2. Market introduction stage: Cost high sales volume low losses

3. Growth stage: Cost reduces economies of scale


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Sales volume increase significantly Profitability Price to maximize market share

4. Mature stage: Cost are very low as you are well established in the market Generating revenue and sales on high volume Very profitability No need to publicity

5. Decline stage: Costs become counted optimal Sales volume decline Price, profitability diminish

Brand Extension:Brand extension mean using the existing brand identity launching the new product in the

market. That is also called line extensions. There are few of the reason using brand

extension. If any company has invested a lot and producing one product and have capacity

to produce other products by using the same brand name. It will be cheaper and keep it

towards success. To compete with the competitors can be a reason. Some time

environmental change and market change offers to the organisation to produces new

products. For example, COCA COLA Company is producing many products under one brand

name like diet Coke, Cherry Coke many other products as well.

Attributes of lean enterprises:

Some say glass is half full; other says the glass is half empty.

Lean thinkerschallenges the size of glass. (Keith Kilpatrick)

Lean is process of developing the strategy compromising the tools, Elements, rules. Firstly, lean

always focus on the waste thing in the process and try to minimize it. Lean enterprises are those

which have slow sales and revenue generating process is slow as well. Production system is not well

and pulling the element of lean as a result improvement in production system. There are eight type

of waste in manufacturing organisation. Rectification of errors, production of inventory, processing

steps that are not needed, unnecessary transport of material, unnecessary moments by employees

and many other elements are involved. For the lean manufacturing company need strategy with

great attention. There should be some lean methods which is not created by own. It should need

some lean culture.


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Total quality management:

Total quality management is continues process in development of individuals, groups of people and

the whole organisation. That is the concentration on the improvement in management system which

makes differentiation from other management system. Through this total quality management

people came to know how to do, which things are right to do at right time and can measure the

improvement of process and current level of achievement.

There are six key concepts of total quality management:

Customer (internal and external) Never ending improvement Control of business processes Upstream preventive management Ongoing preventive action Leadership and team work

Supply chain architecture:

Supply chain is arrangement of organization that bring products or services to the market. Supply

chain is a process of distribution of work of procurement of materials, transformation of the

materials in intermediate and to finished goods and convey these product to customers. There are

four main steps of supply chain operations. First need to have planning. What is the main purpose of

the organization and how to make strategy of the organization successful .second option is source

which sources organization got have and which activities have to perform to create inputs of productand services. In source there is procurement and second is collection and credit. Third is make this

step is including operations required to develop and manufacture products and services. This step

includes production management, facilities and managements. Last step is deliver mean product is in

finished good shape and ready to deliver to customer. That is complete supply chain structure which

is planned by any organization.

Distinguishing between marketing strategies of manufacturing

service and non profit organisation:

Manufacturing organisation:

Manufacturing organisation are those who produced goods. These organisations start with raw

material, labour, production over head, finished goods and end at the market. Basic purpose of

these organizations is to earn profit and secondary purpose is social well fare. So marketing

strategies of manufacturing companies is basically for to attract the customers and increase there

and reduce cost of production. In marketing manufacturing used advertisements method.

Advertisements are giving on television, radio, magazines and newspapers. Strategy of

manufacturing organisation is help to reduce cost of production, manage the time and help out in

budgeting.


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Service organisation:

Service organisations are those who provide services to the people. Basic purpose of these

organisations to provide good and better quality services to their customers. For example ,

mobile companies, land line connects, internet broadband connection. Except theses theresome other companies who provide the service not for the sake of profit like Donation and

Charities organisations.

Non profit organisation:

Non profit organisation are those who have primary objective is not earning profit .its basic concept

is welfare of people. So marketing strategy of non profit organization is to attract the customers but

for their benefit and social welfare. Many NGOs are running and they advertising but the process is

different than the manufacturing companies because they not produce products and good, they

provide different services to the people or customers. For examples, recruitments centres are opento help out the jobless people. Their primary function is help out the people not earning profit.

Marketing strategy of non profit organization is start from the aim, objective, and end at the benefit

for people not for their organization.

Conclusion:

At the end, marketing plays vital role in the development of strategy. Marketing is helpful in

promotion of the business. Marketing is the wide sector which has importance internationally.

Portfolio models are the best analysis techniques to examine the markets situation and about the

competitors as well. Market segmentation is beneficial for the customers because they can get

products under one roof market. Product life cycle explain about the launching of new product in

the market and marketing strategy is help out for launching the new product. Non-profit and

manufacturing organisations have different aims but if these organisations follow the marketing

strategy and its approaches they can move towards success.


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Bibliography

Wilson. R.M.S and Gillian. C (2005) strategy marketing management (3rdEd) ElsevierButterworth-Heinemann, Oxford

Kumar .N and Mittal. R (2001)marketing management , Anmol publishers, NewDelhi

Baker, M.J.(2000) Marketing strategy and management, (3rdEd), Basingstoke:Macmillan

Hague .P(2003), market research,(3rdEd), kogan page: London, UK Pezzullo .M.A. (1998), marketing financial service, American banker association,USA Parkin .M, Powell M and Mathews .K(2008) economics (7thEd) Addison Wesley:

England

Hall R.E and Leuberman.M (2008) microeconomics principles and applications (4thEd) Thomson south-western, USA

Saaksvuore. A and Immunen. A(2008) product life cycle management (3rdEd)Springer, Finland.

Peratec (1995) total quality management (2nded) Chapman & hall, London Hugos .M (2006) essential of supply chain management (2ndEd) Wiley, New Jersey. Danaher, Anthony(2010)Global income investing strategies, wall street transcript

References: http://www.netmba.com/strategy/matrix/bcg/ http://www.wisegeek.com/what-is-market-segmentation.htm http://www.netmba.com/marketing/market/segmentation/

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