Conflict Between Staff And Management Management Essay

Conflict Between Staff And Management Management Essay Within corporations one of the most common forms of conflict occurs between management and staff. This conflict arises when both groups are trying to fulfill the same desire, self-interest. If both parties are concerned with the overall result, it could be presumptuous to think that no conflict or controversy could arise in the given situation. However, for management to improve the company position and consequently, their own position, they need to maximize profit. Often the methods used by companies to undergo such a change would include: a lower distribution of wages, less benefits for the employee, and less funding towards safety training. These methods are in direct opposition to workers, who attempt to increase their own wages and benefits in a safe environment. Due to these incompatible ideals, conflict often occurs. As a result, negotiation is required. This report outlines the reasons behind the conflict within the Aliant company in 2004, as well as the costs, attempted solu tions, and the final result. The example of Aliant is provided to give a firsthand account of the origin of conflict, possible solutions to conflict as well as issues surrounding conflict. Aliant Inc, is the Atlantic sub division of Bell Aliant, which is the largest telecommunications company in Canada. Bell Aliant was forged when Ontario and Quebecs regional wire lines were connected (Our Focus, 2010). The company boasts its integrity in accordance with social, economic, and green issues that affect our globe on a daily basis, seeking new options, innovative programs and trying to define customer service with their impressive communication systems. (About us, 2010) A list of exceptional accomplishments of Bell Aliant includes the companys new status as of 2000, as the innovative local telephone company in North America (A history of Bell Aliant, 2010). As stated in Bell Aliants timeline of their history, in 2002, one of every five Canadians was choosing Aliant telecom call service. Bell Aliant is a socially responsible company, as well as an understanding company. It is also mentioned that in 2005, when devastating news broke of the tsunami, the company provided free long distance for calls made to the countries compromised. In 2006, Aliant announced that it would be a proud sponsor of the Vancouver Olympics Games in 2010. In the following year the company worked with the Barenaked Ladies to support and fund the Winter Games. In 2007, Aliant was the first to offer unlimited, unrestricted long distance calling across Atlantic Canada. In 2008 Aliant won the gold medal at the worldwide contact center competition. And finally in 2009 the company wo n the international award for marketing innovation (A History of Bell Aliant, 2010). Bell Aliant has been a successful company in supporting its customers and their needs. Up until 2004 the company had little dispute between executive administration and the labour force. However, in the late spring of 2004 a strike broke out. The Strike took place in Nova Scotia among the union and communication representatives. They worked and trudged through a four month long strike. The terms of the employees and executive members were negotiated and mostly resolved (A History of Bell Aliant, 2010). The terms of the conflict, and the process of resolution that Bell Aliant used to eradicate the strike will be discussed in the following section. Regardless of the chemistry of a workplace, there will always be conflicting issues. These issues can arise from clashing personalities, responsibility misunderstandings and limited resources (Rau- Roster, 2000). In the case of Aliant, limited resources were the cause of the conflict, as the Aliant employees wanted a more desirable pension (Ottawa Appoints Mediator in Aliant Strike, para. 7). Pension and the rate of pay have always been a significant factor in conflict as well as with the creation of strikes. Strikes encourage employers to listen to their subordinates and resolve conflict through negotiation. Communication problems are one of the top reasons why conflict occurs. As more employees are hired by an organization, communication weakens. This is because more employees are dependent on others, and not all employees have the same knowledge capital. Conflict can also occur when two employees with different personalities work together, this is the result of the employees not h aving the motivation or incentive to correlate ideas and information, as well as the possibility of the employees having conflicting views with regard to the task at hand. We can see both causes of conflict in the Conflict Process Model. The model shows how incompatible goals, differentiation, interdependence, scarce resources, ambiguous rules and poor communication all lead to conflict in the workplace. To resolve conflict employers must choose a conflict handling style. These include using problem solving, and compromising to negotiate what the employees would like to see change in the workplace. It is recommended that employers avoid the forcing, avoiding or yielding styles. (McShane Steen, 2009) These styles could lead to further conflict because they do not resolve what the employees want. In order for conflict to be resolved in the workplace, employees must feel as if they have been acknowledged. They must also recognize their employers compromises made in negotiation. As see n with Aliant, there can be conflict in any workplace. Employees will not always get along or they may depend too much on each other. Employer and employee conflict is also very frequent, as employees always want more from their jobs. As supported by McShane and Steen (2009) the Model of Conflict Process includes sources of conflict, conflict perceptions and emotions, manifest conflict, conflict escalation and conflict outcomes (p. 261). According to CBC News Staff (2004) the employees source of conflict at Aliant was job security, pay, hours of work and benefits. They also want[ed] better health-care and pension benefits as well as limits on contracting out (Talks Resume in Contracting Out, para. 9). Evan Cronk, union negotiator, stated that he thought that they à ¢Ã¢â€š ¬Ã‚ ¦went over backwards this week to get a deal but the end result was the company tabled an offer this morning that took most of what we were prepared to do but offered nothing in return (As cited by CTV News Staff, 2004, Aliant Telecommunications Workers go on strike, para. 8). Evan Cronks statement reveals his conflict perception. According to McShane and Steen (2009), conflict perceptions and emotions manifest themselves in the decisions an d behaviours of one party toward the other (p. 261). This decision on behalf of Cronk to believe that the company was offering nothing to union workers further escalated the conflict and forced the strike to carry on for months longer than (Aliant)was prepared for. McShane and Steen (2009) call these visible changes in behaviour conflict episodes (p. 261). The perception that Aliant was not willing to provide their employees with what they wanted seemed to start a visible conflict as seen through the conflict style of both Aliant and their employees. Both parties seem to have been using what McShane and Steen describe as the win-lose orientation [which is] the belief that conflicting parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive (p. 264). With both parties using this style of conflict it was extremely hard for them to reach an agreement that would end the strike and save the company from losing millions of dollars. There were many negative outcomes as a result of the conflicting styles of negotiation used by both parties. The service of Aliant deteriorated greatly over the length of the strike. CTV News Staff (2004) found that Over the course of the dispute, the Canadian Radio-television and Telecommunications Commission (CRTC) which regulates Canadas phone industry received an increasing number of complaints over the deteriorating quality of service (Taking a Toll section, para. 5). The situation of Aliant employees deteriorated so much that one employee had been à ¢Ã¢â€š ¬Ã‚ ¦evicted from his home, and othersà ¢Ã¢â€š ¬Ã‚ ¦found themselves having to use community food banks (CTV news staff, 2004, Taking a Toll section, para. 6). Whilst union workers were on strike About 2,200 managers did the workOne manager in New Brunswick was injured after falling while working on a power pole. However, Aliant wouldnt provide any details on such incidents (CTV news staff, 2004, Taking a Toll Section, para. 7 ). As reported by CBC news staff (2004), The strike also caused numerous problems for people needing phone service and there were also allegations of union sabotage in June when vandals knocked out service to 250,000 people in Newfoundland and 5,000 in Nova Scotia (Deal Reached in Aliant Strike, para. 8). The low performance of workers, high stress and low morale of the company are all categorized as conflict outcomes in the Model of the Conflict Process (McShane Steen, 2009). According to the CTV News Staff (2004) the four month long Aliant strike was unsuccessful for both parties. When the employees went on strike in late April their hopes, as with most strikes, were to increase wages and benefits as well as job security(1). CBC News Staff (2004) reported that employer loses were significant. In the affected quarters over a 20 million dollar decrease in revenue was reported when compared to the same period of time in the previous year. (Ottawa Appoints Mediator in Aliant Strike, para. 2). As reported by CTV News Staff (2004) this is due, no doubt, to the fact that the companys customers thoroughly felt the impact of the strike. The customers were affected by the quality of service they received. {1} To satisfy company needs, the company was forced to train over 2000 managers to do basic duties that were usually performed by employees. This training cost the company money. The managers, who are paid higher wages, caused higher wage costs allocated to basi c customer service. Many of the employees were not ready for a strike, especially one that would last five months. They began to notice dramatic lifestyle changes as they had not seen a pay cheque for months. The union also reported that some employees were in such financial trouble because of the strike that their houses had been foreclosed on. (Ottawa Appoints Mediator in Aliant Strike, para. 2) It is clear that both management and employees view this strike as a severe failure. http://autos.ctv.ca/servlet/ArticleNews/story/CTVNews/20040423/aliant_strike040423?s_name=Autosno_ads http://www.cbc.ca/canada/story/2004/08/27/aliant_040827.html McShane and Steen (2009) name communication problems as one of the main sources of conflict within organizations (p. 262). They state that conflict often occurs due to the lack of opportunity, ability, or motivation to communicate effectively (McShane Steen, 2009, p. 264). Ellen Malcolmson, Senior Vice-President- Operations, Bell Canada stated that their à ¢Ã¢â€š ¬Ã‚ ¦industry has changed significantly and permanently and the union must recognize thisà ¢Ã¢â€š ¬Ã‚ ¦In such an environment, there are limits to how far the company can go and remain competitive (As cited by France Poulin, 2004, Bell Receives 72 Hours Strike Notice, para. 5). These limits, however, are somewhat ambiguous. The striking union members did not seem to know how far the company was able to go in regards to negotiations while they were à ¢Ã¢â€š ¬Ã‚ ¦demanding greater job security and better pension and benefit packages (CBC News Staff, 2004, Deal Reached in Aliant Strike, para. 7) Had these limits been define d earlier in the negotiation process, it is possible that the strike would not have escalated to the magnitude it reached. Negotiation is defined as the process whereby two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence (McShane Steen, 2009, p. 269). In the case of Aliant, Federal Labour Minister Joe Fontanaà ¢Ã¢â€š ¬Ã‚ ¦appointed a mediator in the four-month-old strike (CBC News Staff, 2004, Ottawa Appoints Mediator in Aliant Strike, para. 1) A mediators à ¢Ã¢â€š ¬Ã‚ ¦main purpose is to manage the process and context of interaction between the disputing partiesà ¢Ã¢â€š ¬Ã‚ ¦[they] have little or no control over the conflict resolution decision (McShane Steen, 2009, p. 272). This intervention worked and à ¢Ã¢â€š ¬Ã‚ ¦agreement [came] after five days of negotiations conducted by two federally appointed mediators (CBC News Staff, 2004, Deal Reached in Aliant Strike, para. 4) As mentioned earlier, the conflict handling style used by Aliant and union workers during the à ¢Ã¢â€š ¬Ã‚ ¦four-monthà ¢Ã¢â€š ¬Ã‚ ¦strike by 4,300 workers at Aliantà ¢Ã¢â€š ¬Ã‚ ¦ (CBC News Staff, 2004, Deal Reached in Aliant Strike, para. 1) can be compared to McShane and Steens (2004) win-lose orientation (p. 264). The win-lose orientation is affiliated with the forcing style which occurs when one side of the bargaining process tries to gain something at the expense of their opposition (McShane Steen, 2009, p. 264). Forcing is the conflict handling style with the highest risk of relationship conflict (McShane Steen, 2009, p. 266). From comparing the five conflict handling styles it can be seen that compromising may have been a better tactic during the negotiations between Aliant and their unionized workers. Aliant needed their unionized workers in order to maintain the same profit level that they had been used to, and the unionized workers needed the cooperation of Aliant in o rder to gain the à ¢Ã¢â€š ¬Ã‚ ¦greater job security and better pension and benefit packages (CBC News Cast, 2004, Deal Reached in Aliant Strike, para. 8) that they were seeking. Thus, it would be fair to say that both parties had fairly equal bargaining power. Compromising [is the] preferred style when parties have equal power, time pressure to solve the conflict [and when] parties lack trust/ openness for problem solving (McShane Steen, 2009, p. 266). From July 30 [alone]: the strike has cost [Aliant] $21M (CBC News Staff, 2004, Ottawa Appoints Mediator in Aliant Strike, para. 2). The time pressure component was certainly present throughout the Aliant strike as seen through the continually decreasing profits and poor living conditions of unionized workers. We rarely know for certain that mutual gains are not available, so entering into a conflict with the compromising style may cause the parties to overlook better solutions. (McShane Steen, 2009, p. 267) Even if the forcing styl e seemed most appropriate during the beginning of the conflict, due to thoughts that the other party would take advantage of more cooperative strategies (McShane Steen, 2009, p 267), it should have been noted sooner than four months that forcing was inappropriate. One of the oldest recommendations for resolving conflict is to seek out and find common goals (McShane Steen, 2009, p. 267). How could Aliant and their union workers possibly have common goals when The company and the unions are trying to reach their first contract since the phone companies of Atlantic Canada merged to form Aliant in 1999 [?]. Thats meant trying to transform nine collective agreements into one (CTV News Staff, 2004, Aliant Telecommunication Workers go on Strike, para. 13). Common goals generally increase employees commitment to the organization and reduce conflicting goals within different segments of the company, which in turn could make employees happier and reduce the risk of strikes while increasing the ability to compromise effectively (McShane Steen, 2009, p. 267). Aliant should have made a more concerted effort to establish common goals within the organization so that employees would feel a sense of unity with the company. This may have decreased aggressiven ess between management and their subordinates. Time Passage and Deadlines are mentioned as being an important situational influence on negotiations. (McShane Steen, 2009, p. 271) One problem is that time pressure inhibits a problem-solving conflict management style, because the parties have less time to exchange information or present flexible offers (McShane Steen, 2009, p.271). Both parties in the Aliant dispute felt a great pressure to settle the negotiations in a timely fashion. This pressure may have resulted in less concessions being made during the offering process. McShane and Steen (2009) believe that parties taking place in negotiations under time constraints usually do not have the ability to process information as well as they would under other circumstances (p. 271). The union leaders had a strict notion that the company was going to take advantage of them. This may have had an impact on the way that they viewed offers made by Aliant. The time constraint would have further enabled this conception by forcing them to think quickly and rely on their initial perceptions (McShane Steen, 2009, p. 271). Aliant could have started negotiations of a contract much earlier when they were formed in 1999, thus reducing the time constraint and the chance of a strike. As shown in the Aliant case, conflicts which arise within companies often have a much greater effect than would be thought initially. In this case, not only did the company lose money but the staff suffered financially, mentally and emotionally as they were required to rely on others such as food banks despite having a job. Management also suffered because of Aliants financial loss because of the physical and mental strain they undertook as they tried to do both their own job as well as that of their subordinates. Customers suffered because the overall quality of service dropped. Finally, all parties suffered a significant loss of trust. In order to resolve this problem the two parties were forced to enter into binding arbitration. Binding arbitration was used because other avenues of negotiation failed. These included talks with and without a mediator. The final solution was one that satisfied no one and left the chance of future conflict. Conflict exists now as it always has and it will continue to do so. People will always search for different ways to resolve conflict. Negotiation is a tool commonly used today. However, negotiation has evolved and will continue to do so. Nevertheless negotiation will always be reliant on communication. Conversation, barter, mediation, arbitration are all tools which can prevent and solve conflicts by allowing people to surpass differences in order to reach understanding.

From Marketing Mix to Relationship Marketing Essay

This report discusses how the marketing mix management paradigm has dominated the marketing thought, research and practice since it was introduced almost 40 years ago, but today new marketing approaches are being introduced and used. The globalization of business and the evolving recognition of the importance of customer retention and market economies and of customer relationship economics, among other trends, reinforce the change in mainstream marketing. Marketing Mix The term â€Å"marketing mix† is probably one of the most famous marketing terms used by millions of people. Its elements are known as the Four P’s, which are price, place, product, and promotion. These four variables are the variables that marketing managers can control in order to best satisfy customers in the target market. Figure 1: Marketing Mix Model – 4Ps Marketing the way most textbooks treat it today was introduced around 1960. The concept of the marketing mix and the Four Ps of marketing – product, price, place and promotion – entered the marketing textbooks at that time. Quickly they also became treated as the unchallenged basic model of marketing, so totally overpowering previous models and approaches, such as, for example, the organic functionalist approach advocated by Wroe Alderson as well as other systems-oriented approaches and parameter theory developed by the Copenhagen School in Europe that these are hardly remembered, even with a footnote in most textbooks of today. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) The marketing mix refers to variables that a marketing manager can control to influence a brand’s sales or market share. Traditionally, these variables are summarized as the Four Ps of marketing: product, price, promotion, and place (i. e. , distribution). Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’ products in terms of quality. Promotion refers to advertising, detailing, or informative sales promotions such as features and displays. Price refers to the product’s list price or any incentive sales promotion such as quantity discounts, temporary price cuts, or deals. Place refers to delivery of the product measured by variables such as distribution, availability, and shelf space. The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are keys, they are just a subset of the detailed probing that may be required to optimize your marketing mix. Amongst the other marketing mix models have been developed over the years is the 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions. Another marketing mix approach is Lauterborn’s 4Cs, which presents the elements of the marketing mix from the buyer’s, rather than the seller’s, perspective. It is made up of Customer needs and wants (the equivalent of product), Cost (price), Convenience (place) and Communication (promotion). Cultural policies to promote diversity of cultural expressions today must deal with numerous factors and needs, some of which concern the right of all groups to their forms of expression, and others strictly with business feasibility and the possibility of marketing on a global scale. These different factors may be difficult to reconcile but they are complementary as none can survive and be managed without referring to or involving the other. From the perspective of production development, it is frequently stated that cultural expressions need to find their market in order to survive, but it is also the case that the sacrificing of cultural content with little market value lowers the value of cultural production overall. From the perspective of rights to and processes of identity construction, culture generates services that cannot be governed exclusively by the market, especially in view of the marginality of subaltern groups. Nevertheless, it is almost impossible to think of cultural practices and consumption today without involving the market in some way. For marketers in the cultural industry it is important to identify the factors influencing consumers’ purchasing. Cultural factors are essentially important in selection of the two elements of â€Å"place† and â€Å"product†. For example, someone brought p in an environment that values art would be more likely to buy artistic products. Even it may be important considering customers in terms of their sub-culture. One may be surrounded by people who not only value art but place a higher priority on paintings as opposed to the music. As a result, they will be more likely to buy paintings rather than musical instrument. â€Å"Pr icing† the artistic products and activities should also follow a logic trend. This practice may be done through some standards set among artists of the same class or by the very artist creator of his work. In general, as it can be seen, due to the difference. (Shahhosseini & Ardahaey, 2011) The Four Ps of the marketing mix became an indisputable paradigm in academic research, the validity of which was taken for granted. For most marketing researchers in large parts of the academic world it seems to remain the marketing truth even today. The Four Ps of the marketing mix had been even referred to as â€Å"the holy quadruple†¦of the marketing faith written in tablets of stone. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) The marketer plans various means of competition and blends them into a â€Å"marketing mix† so that a profit function is optimized, or rather satisfied. The â€Å"marketing mix†, concept was introduced by Neil Borden in the 1950s, and the mix of different means of competitions was soon labeled the Four Ps. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Any marketing paradigm should be well set to fulfill the marketing concept, i. e. the notion that the firm is best off by designing and directing its activities according to the needs and desires of customers in chosen target markets. Gronroos, Toward a Relationship Marketing Paradigm, 1994) American Marketing Association, in its most recent definition states that â€Å"marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives† (emphasis added) (Gronroos, From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing, 1994) The problem with the Marketing Mix One can easily argue that the four Ps of the marketing mix are not well able to fulfill the requirements of the marketing concept. As Dixon and Blois put it, â€Å"†¦indeed it would not be unfair to suggest that far from being concerned with a customer’s interests (i. e. somebody for whom something is done) the views implicit in the Four P approach is that the customer is somebody to whom something is done! † (emphasis added) . To use a marketing metaphor, the marketing mix and its four Ps constitute a production-oriented definition of marketing, and not a market-oriented or customer oriented one. Moreover, although the interactive nature of the Ps is recognized, the model itself does not explicitly include any interactive elements. Furthermore, it does not indicate the nature and scope of such interactions. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Van Waterschoot and Van den Bulte recognize three flaws in the Four P model: * â€Å"The properties or characteristics that are the basis for classification have not been identified. * The categories are not mutually exclusive. * There is a catch-all subcategory that is continually growing† . Many marketing-related phenomena are not included. Moreover, as Johan Arndt has concluded, marketing research remains narrow in scope and even myopic, and methodological issues become more important than substance matters. Gronroos, From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing, 1994) The Nature of the Marketing Mix The usefulness of the Four Ps as a general marketing theory for practical purposes is, to say the least, highly questionable. Originally, although they were largely based on empirical induction and earlier lists of marketing functions of the functional school of marketing, they were probably developed under the influence of microeconomic theory and specially the theory of monopolistic competition of the 1930s, in order to add more realism to that theory. However, very soon the connection to microeconomic theory was cut off and subsequently totally forgotten. Theoretically, the marketing mix became just a list of Ps without roots. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Managing the marketing mix makes marketing seem too easy to handle and organize. Marketing is separated from other activities of the firm and delegated to specialists who take care of the analysis, planning and implementation of various marketing tasks, such as market analysis, marketing planning, advertising, sales promotion, sales, pricing, distribution and product packaging. Marketing departments are created to take responsibility for the marketing function of the firm, The marketing department approach to organizing the marketing function has isolated marketing from design, production, deliveries, technical service, complaints handling, invoicing and other activities of the firm. As a consequence, the rest of the organization has been alienated from marketing. Therefore, it has made it difficult, often even impossible, to turn marketing into the â€Å"integrative function† that would provide other departments with the market-related input needed in order to make the organization truly market oriented and reach a stage of â€Å"co-ordinated marketing† the marketing specialists organized in a marketing department may get alienated from the customers. Managing the marketing mix means relying on mass marketing. Customers become numbers for the marketing specialists, whose actions, therefore, typically are based on surface information obtained from market research reports and market share statistics. Frequently such marketers act without ever having encountered a real customer. The marketing department concept is obsolete and has to be replaced by some other way of organizing the marketing function, so that the organization will have a chance to become market-oriented. A traditional marketing department will always, in the final analysis, stand in the way of spreading market orientation. The use of the marketing mix management paradigm and the Four Ps has made it very difficult for the marketing function to earn credibility. Some firms have solved this problem not only by downscaling or altogether terminating their marketing departments but also by banning the use of the term marketing for the marketing function. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) What is the History of the Marketing Mix? A paradigm like this has to be well founded by theoretical deduction and empirical research; otherwise much of marketing research is based on a loose foundation and the results of it questionable. Let us look at the history of the marketing mix paradigm and the four P’s. The marketing mix developed from a notion of the marketer as a â€Å"mixer of ingredients†, which was an expression originally used by James Culliton (1948) in a study of marketing costs in 1947 and 1948. The marketer plans various means of competitions and blends them into a â€Å"marketing mix†, so that a profit function is optimized, or rather satisfied. The marketing mix is actually a list of categories of marketing variables, and to begin with, this way of defining or describing a phenomenon can never be considered a very valid one. A list never includes all relevant elements, it does not fit every situation, and it becomes obsolete. And indeed, marketing academics every now and then offer additional P’s to the list, once they have found the standard â€Å"tablet of faith† too limited. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Kotler has, in the context of megamarketing, added public relations and politics, thus expanding the list to six P’s. In service marketing. Booms and Bitner (1982) have suggested three additional P’s, people, physical evidence and process. Judd (1987) among others, has argued for just one new P, people. Advocators of the marketing mix paradigm sometimes have suggested that service should be added to the list of P’s (e. g. Lambert and Harrington 1989 and Collier 1991). J It is, by the way, interesting to notice that after the four P’s were definitely canonized sometime in the early 1970s new items to the list are almost exclusively put in the form of P’s It is also noteworthy that Borden’s original marketing mix included 12 elements, and that this list was not intended to be a definition at all. Borden considered it guidelines only, which the marketer probably would have to reconsider in any given situation. In line with the â€Å"mixer of ingredients† metaphor he also implied that the marketer would blend the various ingredients or variables of the mix into an integrated marketing program. This is a fact that advocators of the four P’s (or five, six, seven or more P’s) and of today’s marketing mix approach seem to have totally forgotten. In fact, the four P’s represent a significant oversimplification of Borden’s original concept. McCarthy either misunderstood the meaning of Borden’s marketing mix when he reformulated the original list in the shape of the rigid mnemonic of the four P’s where no blending of the P’s is explicitly included; or his followers misinterpreted McCarthy’s intentions. In many marketing textbooks organized around the marketing mix, such as Philip Kotler’s well-known Marketing Management (e. g. 991), the blending aspect and the need for integration of the four P’s are discussed, even in depth, but such discussions are always limited due to the fact that the model does not explicitly include an integrative dimension. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Contemporary Theories of Marketing In most marketing textbooks the marketing mix management paradigm and its Four Ps are still considered the theory of marketing. Indeed , this is the case in much of the academic research into marketing; however, since the 1960s alternative theories of marketing have been developed. As Moller observes in a recent overview of research traditions in marketing, â€Å"from the functional view of marketing ‘mix’ management our focus has extended to the strategic role of marketing, aspects of service marketing, political dimensions of channel management, interactions in industrial networks; to mention just a few evolving trends. The interaction/network approach to industrial marketing was originated in Sweden at Uppsala University during the 1960s and has since spread to a large number of countries. Between the parties in a network various interactions take place, where exchanges and adaptations to each other occur. A flow of goods and information as well as financial and social exchanges takes place in the network. In such a network the role and forms of marketing are not very clear. All exchanges, all sorts of interactions have an impact on the position of the parties in the network. The interactions are not necessarily initiated by the seller – the marketer according to the marketing mix management paradigm – and they may continue over a long period of time, for example, for several years. The seller, who at the same time may be the buyer in a reciprocal setting, may of course employ marketing specialists, such as sales representatives, market communication people and market analysts but in addition to them a large number of persons in functions which according to the marketing mix management paradigm are non-marketing, such as research and development, design, deliveries, customer training, invoicing and credit management, has a decisive impact on the marketing success of the â€Å"seller† in the network. In the early 1970s the marketing of services started to emerge as a separate area of marketing with concepts and models of its own geared to typical characteristics of services. In Scandinavia and Finland the Nordic School of Services more than research into this field elsewhere looked at the marketing of services as something that cannot be separated from overall management. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) The New Approaches and the Marketing Mix The interaction and network approach of industrial marketing and modern service marketing approaches, especially the one by the Nordic School, clearly views marketing as an interactive process in a social context where relationship building and management is a vital cornerstone. They are in some respects clearly related to the systems-based approaches to marketing of the 1950s (compare, for example, Alderson 1957). The marketing mix paradigm and its four P’s, on the other hand, is a much more clinical approach, which makes the seller the active part and the buyer and consumer passive. No personalized relationship with the producer and marketer of a product is supposed to exist, other than with professional sales representatives in some case. The development of innovative theories, models and concepts of industrial marketing (interaction/network approach) and service marketing has clearly demonstrated that the marketing mix paradigm and its four P’s finally have reached the end of the road as the universal marketing theory. From a management point of view the four P’s, undoubtedly, may have been helpful. The use of various means of competition became more organized. However, the four P’s were never applicable to all markets and to all types of marketing situations. The development of alternative marketing theories discussed above demonstrate that even from a management perspective, the marketing mix and its four P’s became a problem. Their pedagogic elegance and deceiving sense of simplicity made practical marketing management look all too clinical and straightforward even for actors in the consumer packaged goods field where they were originally intended to be used. Consumer goods amounts to a considerable business, and there the four P’s could still fulfill a function. However, many of the customer relationships of manufacturers of consumer goods are industrial-type relationships with wholesalers and retailers, and the retailers of consumer goods more and more consider themselves service providers. In such situations the four P’s have less to offer even in the consumer goods field. Moreover, as far as the marketing of consumer goods from the manufacturer to the ultimate consumers is concerned, there is a growing debate whether one can continue to apply marketing in the traditional mass marketing way. Gronroos, Toward a Relationship Marketing Paradigm, 1994) The Future: The Relationship Marketing Concept In the relationship marketing concept to be presented here the core variables are relationships, networks and interaction. The choice is not arbitrary; these variables recurrently emerge in the new marketing theories that have challenged the reigning marketing management paradigm during the past twenty-five years. These variables are not new; they were there thousands of years ago and they present themselves ‘‘here and now. ’ They will be here in the future, no matter if they are represented by relationship marketing or something else. They are part of society. In fact, society is nothing less than a network of relationships within which we interact, and marketing is a dimension of society. Research and education in business have only recently begun to acknowledge the existence of relationships, but have not as yet understood their omnipresence and deep impact on marketing. Although it is encouraging that relationships have been made visible and that the interest in them is soaring, major problems follow. One is that those who start to explore and implement relationship marketing techniques are often not sufficiently familiar with the foundations of relationship marketing, its paradigm. Furthermore, relationship marketing is put under siege by the traditional marketing management paradigm, and the techniques used in relationship marketing implementation are often more grounded in marketing management values than in relationship marketing values. (Gummesson, 2002) An integral element of the relationship marketing approach is the promise concept, which has been strongly emphasized by Henrik Calonius According to him the responsibilities of marketing do not only, or predominantly, including giving promises and thus persuading customers as passive counterparts on the marketplace to act in a given way. Fulfilling promises that have been given is equally important as means of achieving customer satisfaction, retention of the customer base and long-term profitability (compare also Reichheld and Sasser). He also stresses the fact that promises are mutually given and fulfilled. (Gronroos, Toward a Relationship Marketing Paradigm, 1994) Relationship Marketing There are many definitions of relationship marketing, most of them stressing the development and maintenance of long term relationships with customers and sometimes with other stakeholders. Total relationship marketing is marketing based on relationships, networks and interaction, recognizing that marketing is embedded in the total management of the networks of the selling organization, the market and society. It is directed to long term win-win relationships with individual customers, and value is jointly created between the parties involved. It transcends the boundaries between specialist functions and disciplines. Total relationship marketing embraces not just the supplier-customer dyad as does one-to-one marketing and CRM (customer relationship management) but also relationships to a supplier’s own suppliers, to competitors and to middlemen; these are all market relationships. (Gummesson, 2002) Is There a Paradigm Shift in Marketing? Relationships do not function by themselves. As McInnes said already three decades ago, â€Å"the existence of a market relation is the foundation of exchange not a substitute for it†. Only in extreme situations, for example when the computer systems of a buyer and a materials provider are connected to each other in order to initiate and execute purchase decisions automatically, the relationship, at least for some time, may function by itself. In such situations one comes close to what Johan rndt called â€Å"domesticated markets†, where â€Å"transactions†¦are usually handled by administrative processes on the basis of negotiated rules of exchange†. Normally, advertising, distribution and product branding, for example, will still be needed, but along with a host of other activities and resources. (Gummesson, 2002) However, what marketing deserves is new perspectives, which are more market-oriented and less manipulative, and where the customer indeed is the focal point as suggested by the marketing concept. Conclusion Marketing mix as a general perspective evolved because at one time it was an effective way of describing and managing many marketing situations. Before the marketing mix there were other approaches. Now time has made this approach less helpful other than in specific situations. New paradigms have to come. After all, we live in the 1990s, and we cannot for ever continue to live with a paradigm from the 1950s and 1960s. However, bearing in mind the long-term damages of the marketing mix as the universal truth, we are going to need several approaches or paradigms Relationship marketing will be one of them.

Consumer Behavior Essay

Consumer behavior is an attempt to understand & predict human actions in the buying role. It has assumed growing importance under market-oriented or customer oriented marketing planning & management. Consumer behavior is defined as â€Å"all psychological, social & physical behavior of potential customers as they become aware of, evaluate, purchase, consume, & tell others about product & services†. * Each element in this definition is important. * Consumer behavior involves both individual (psychological) processes & group (social processes). * Consumer behavior is reflected from awareness right through post-purchase evaluation indicating satisfaction or non-satisfaction, from purchases * Consumer behavior includes communication, purchasing & consumption behavior * Consumer behavior is basically social in nature. Hence social environment plays an important role in shaping buyer behavior. * Consumer behavior includes both consumer & business buyer behavior In consumer behavior we consider not only why, how, & what people buy but other factors such as where , how often, and under what conditions the purchase is made. An understanding of the buyer behavior is essential in marketing planning & programmes. In the final analysis buyer behavior is one of the most important keys to successful marketing. MAJOR FACTORS INFLUENCING BUYER BEHAVIOUR CULTURAL FACTORS Cultural factors exert the broadest and deepest influence on consumer behavior. The roles played by the buyers culture, sub culture and social class are particularly important. * CULTURE- Culture is the most fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behavior through his or her family or other key institutions. * SUB-CULTURE- Sub-culture includes nationalities, religions, racial groups, and geographical regions. Many sub-cultures make up important market segments, and marketers often design marketing programs tailored to their needs. * SOCIAL CLASS- Social classes are relatively homogenous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. Social classes do not reflect income alone but also other indicators such as occupation, education, and area of residence. SOCIAL FACTORS * REFERNCE GROUPS- A Person’s reference groups consist of all the groups that have a direct or indirect influence on the person’s attitudes or behavior. Groups having direct influence on a person are called membership groups. * FAMILY- The family is the most important consumer buying organization in society, and has been researched extensively. Family members constitute the most influential primary reference group. * ROLE AND STATUSES- A person’s position in each group that he participates throughout his life –family, clubs, and organizations can be defined in terms of role and status. A role consist of activities that a person is expected to perform. Each role carries a status. Marketers are aware of the status symbol potential of products and brands. PERSONAL FACTORS A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age & stage in the life cycle, occupation, economic circumstances, lifestyle, personality & self concept. * AGE & STAGE IN THE LIFE CYCLE- People buy different goods & services over their lifetime. They eat baby food in the early years, most foods in the growing & mature years & special diets in the later years. People’s taste in clothes, furniture & recreation is also age related. * OCCUPATION- A person’s occupation also influences his or her consumption pattern. Marketers try to identify the occupational groups that have above – average interest in their products and services. A company can even specialize its products for certain occupational groups. * ECONOMIC CIRCUMCTANCES- Product choices are greatly affected by one’s economic circumstances. Economic stability consist of their spend able income (its level, stability and time pattern), saving a nd assets (including the percentage that is liquid), debts, borrowing power, attitude toward spending versus saving. * LIFESTYLE- People coming from the same subculture, social class & occupation may lead quite different lifestyles. A person’s lifestyles the person’s pattern of living in the world as expressed in the persons activities, interests & opinions. * PERSONALITY AND SELF-CONCEPT- Each person has a distinct personality that influences his or her buying behavior. By personality, we mean a person’s distinguishing psychological characteristics that lead to relatively consistent and enduring responses to his or her environment. Personality can be a useful variable in analyzing consumer behavior, provided that personality type can be classified accurately and that strong correlations exist between certain personality types and product or brand choices. PSYCHOLOGICAL FACTORS A person’s buying choices are influenced by four major psychological factors-motivations, perception, learning, beliefs and attitudes. * MOTIVATION- A person has many needs at any given time. A need becomes motive when it is aroused to a sufficient level of intensity. Motivational researchers hold that each product is capable of arousing a unique set of motive in consumers. * LEARNING- When people act they learn. Learning involves changes in an individual’s behavior arising from experience. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and providing positive reinforcement. * PERCEPTION- Perception is the process by which an individual selects, organizes, & interprets information inputs to create a meaningful picture of the world. A motivated person is ready to act. How the motivated person actually acts is influenced by his or her perception of the situation. * BELIEFS & ATTITUDES- A belief is a descriptive thought that a person holds about something. Through doing & learning, people acquire beliefs & attitudes. These in turn influence their buying behavior. Particularly important to global marketers is the fact that buyers often hold distinct disbeliefs about brands or products based on their country of origin. An attitude is person’s enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies towards some object or idea. People have attitude toward almost everything: religion, politics, clothes, music, food, and so on. Attitude put them into a frame of mind of liking or disliking an object, moving toward or away from it.

Why Fraud Is The Most Common Reason - 2077 Words

Fraud is defined as a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses through deception or concealment (Albrecht et al, 2014). Occupational Fraud as defined by the ACFE is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets (Association of Certified Fraud Examiners, 2012). Traditional fraud triangle theory explains that propensity of fraud occurring in an organization lies on three critical elements, which are Pressure, Opportunity, and Rationalization (Albrecht et al., 2014). Pressure is the driving force behind most fraud being committed (Albrecht et al., 2014). It is†¦show more content†¦Asset misappropriation can be broken down into several â€Å"schemes† (Association of Certified Fraud Examiners, 2012). Revenue and cash receipt scheme which is the skimming or stealing of cash assets before they are been recorded in the accounting record or the theft of merchandise or donated items. Purchase and disbursement scheme which is mainly credit card abuse, and involves using organization credit card for personal use or copying donors card number for illegal usage and fictitious vendor scheme which involves issuing fake receipt to claim payment from the organization. Payroll and employee expense schemes involve the continued payment to terminated workers, overstating employees working hours, and fictitious expenditure fraud. The existence of external fraud is not as common as internal fraud or external theft but occurs in the following forms: fraudulent billing by vendors, which involves double billing, failure to deliver purchases, or price gouging. Financial assistant fraud, involves when financial aid is granted in order to support a project that is actually nonexistent. 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