New Marketing Paradigm - Essay Sample

2021-07-06 15:21:56
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Business competition has become the key issue in many firms due to lack of effective business strategies (Yu & Cannella, 2013). Business strategies are the key strengths of a company that helps in curbing competition. Other aspects like quality of goods and services play a significant role in determining the progress of an organization regarding the market competition. Ensuring customer satisfaction is another aspect of promoting the value of a company that is added to the marketing strategies (Yu & Cannella, 2013). Due to competition, many businesses ensure customer satisfaction before providing the goods and services through the various marketing strategies that impress the customers as well as building trust with the company. Customer satisfaction, therefore, is the goal of all businesses and it must be maintained by all means. Depending on the type of market structure, the organization has to apply a variety of tactics to improve its sales. Apart from the monopolistic businesses which don't face any competition, other companies that apply oligopoly market structure experience many challenges of competition especially control over prices to maximize the profit (Eboreime & Adedoyin, 2013). Due to the issue of business competition, many business organizations have adopted the new marketing paradigm. This paradigm focuses on having a coherent customer by ensuring there is a customer satisfaction. By applying consumer-oriented marketing, there is a higher chance of achieving customer satisfaction (Yu & Cannella, 2013). In this discussion, it will address the new marketing paradigm and its correlation with the competition in marketing.

New marketing paradigm

Marketing paradigm illustrates how marketing is being done using a set of procedures and approaches (Don & Martha, 2009). Marketing involves strategies applied by the business organization of any product to promote first the value of a company and secondly to promote the products and services of through the different modes marketing. The various tactics that are used in marketing include social media, public relations, advertisement, and use of sales and promotions (Don & Martha, 2009). In the new marketing paradigm, the strategies used to ensure that there is a customer satisfaction. Additionally, in the marketing arena, one should understand that many other firms are doing the same. In the context of marketing, a competitive advantage is supported by unique strategies that a business organization applies. The new paradigm assists the consumers in making their decisions as well as simplifying the decision-making process.

One aspect of the new marketing paradigm is the special kind of this practice where a communal marketing has been applied (Don & Martha, 2009). In the communal marketing, the marketers involve the public in the development of marketing plan. In this new paradigm, the consumer's ideas are used in the advertising whereby their theories regarding their impression from the brands are used. The consumer testimonies are incorporated in the campaign. Additionally, the consumer theories are then shared through a cross-media campaign where an extensive community can access the information, and a communal bond is created between the brand or the service and all individuals who are connected through the used media. The cross-media advertising creates an extensive community following the relationship between products/services and the consumers. Again, this marketing tactic creates a strong connection between the products and services and their primary market. The actual practice of the communal marketing applies communal forms of information sharing including web blogs, television, podcasts and other media platforms regularly used by the consumers (Don & Martha, 2009).

The link between new marketing paradigm and competition in marketing is that both aspects apply new strategies that are developed with advancement in technology. For instance, the online shopping has been linked with online marketing thus bringing competition in the market. Competition in marketing involves the application of different marketing strategies which is the key focus of the new marketing paradigm. Again, these two aspects share a similar goal which is to have as many consumers as possible. The new paradigms assist many firms in maintaining an effective customer coherence that is used to overcome the competition in the market. Through the application of good marketing tactics, the firms can overcome competition. Another association is that these paradigms have been used to ensure consumer satisfaction thus improving the sales from a company. New marketing paradigms, therefore, are used to curb the competition in the marketing.

Literature analysis

From a literature review, different authors have postulated various applications regarding the applicability of the new marketing paradigm. According to Griffith and Shanklin, (1996), they supported the application of the new marketing paradigm by postulating the future global strategies used specifically in marketing. Through the advanced communication technologies, this has changed the world economy. Businesses have improved through the advanced communication technologies that enable organizational management (Griffith and Shanklin, 1996). From Chen, (1996), he conducted a competitor analysis together with the inter-firm rivalry. From the analysis, it is true that firms experience competition in the same market and they will engage in a rivalry competition. Through market strategies, competitors can withstand the rivalry. Competitor firms are known to produce similar products, and they target one common customer Chen, (1996), and they apply market strategies to thrive in the market. The new marketing paradigm is the only solution to competition that is propelled by market commonality.

Another competitor analysis conducted by Upson, et al., (2008), rivals in a competitive market make strategic moves to maneuver the market. Depending on the nature of the rivalry, the rivals place an attack to other competitors. Through the rivalry analysis, it is quite evident that marketing strategies are applicable in the competitive rivalry. The market commonality is what determines the level of competition. The new marketing paradigm as described above, it ensures that the customer is given the very best satisfaction and therefore, it will demand a variety of marketing strategies. According to Upson, et al., (2008), both internal and external strategies of a firm will determine the applicability of the new marketing paradigm. The organizational structure among other internal factors of an organization, they are used to curb the existing competition in the market. The market rivalry is a firm weakness that is addressed by the strategic planning of a firm.

The literature through Hoekstra, Leefland, and Wittink, (1999) studied the customer concept regarding the new marketing paradigm. Both marketing theory and practice are essential when applying the marketing strategies. According to Hoekstra, Leefland, and Wittink, (1999), they found that this paradigm is made up of three elements namely the concept, activities, and a domain. Through management orientation, the customer concept is what individual firms apply in the new marketing paradigm. Some of the activities include stating the vision, objectives, and strategies of the organization. It is evident that customer-oriented marketing has improved the sustainability of many organizations Leefland, and Wittink, (1999). Another applicability of this paradigm is the effectiveness of online marketing. According to{ }, this marketing strategy has acquired the best outcome when handling the market rivalry. Through the application of online marketing strategies, organizations have acquired coherent customers. Achieving the goal of this new paradigm which is customer satisfaction indicate its applicability.

Market commonality and resource similarity

Market commonality between Millennium Hotels and Accor hotels

The market commonality is the situation whereby a firm is involved in a degree of competition with its competitors in the same market by offering similar services or products for the same customer (Fatehi, Veliyath, & Derakhshan, 2008). Both Hotels operate through chain hotels, and they are located in different countries across the globe. Millennium Hotels are operated under one common management, and they serve a wide range of customers especially for summer vacations. On the hand, Accor Hotels are based in New Zealand although chain hotels are available in different locations in the world. In New Zealand, the Accor Hotels have a gained a higher rating in the recent years, and they stand a position to compete in the Hotel industry. The Accor Hotels offer accommodation services similar to those given by the Millennium hotels. The global popularity of the Millennium hotels is what makes it a five-star hotel. In New Zealand, the Accor hotels have gained a good popularity in the market. The hotel industry is facing a lot of competition where different industries apply their unique strategies to ensure customer coherent is achieved. For the Accor hotels to hit the global level that has been attained by the Millennium hotels it has to curb the existing competition.

Resource similarity between Accor hotels and the Millennium hotels

Regarding the resource similarity between these two hotel companies is that they rely on vocational tourist both international and home tourists. Accor hotels in New Zealand have about 80 % customer turn up from New Zealand. Millennium Hotel is an international firm, and it depends on both domestic customers from New Zealand as well as other customers from other countries. Another resource competition between these two hotels is that they offer similar services regarding the vocational visitors and other customers. Most of the foodstuffs are domestically acquired and thus making it a resource commonality. Concerning the customer satisfaction, it is quite difficult to obtain reliable data. The coherent customers to the hotels can make the difference between their popularity.

Interfirm rivalry between Accor Hotels and Millennium Hotels

The interfirm rivalry is the extent at which firms or companies in the same industry put pressure on each other thus limiting their profit. In the rivalry intensity, firms steal profit from one another during rivalry (Fatehi, Veliyath, & Derakhshan, 2008). From the previous definition of market commonality, two firms existing in the same industry will present a completion regarding their customers and resources. The intensity of competition between rivals determines how the new firm will maneuver the market. The domestic firm in this case which is the Accor hotels, it will initiate an inter-firm rivalry to the global hotel Millennium hotels. The background of this inter-firm industry is that both Hotels will depend entirely on domestic customers from New Zealand. To maximize their profits, both firms will have to employ different marketing strategies. Another instance of the inter-firm rivalry will occur concerning their resources. According to competitor analysis, business firms in the same industry will present completion not only for the target customer but also the resources used to run the business. In this case, the raw materials used in the hotels acquired from New Zealand presents a competition for the resources. It is, therefore, expected that the Accor hotels would have to present an inter-firm rivalry on the Millennium hotels to ensure profit maximization. Depending on the intensity of rivalry, the two firms will have to maneuver the hotel industry competition from other chain hotels.

Market strategies for the firms in New Zealand

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