In the current essay I would like to consider marketing business function and outline and discuss the changing nature of work and employment in this area. Also, I would like to consider how entrepreneurs can impact on the economy.
Q1. Choose a business function (e.g. marketing; HR; finance) and outline and discuss the changing nature of work and employment in this area.
I will choose the marketing business function and I will review the nature of work and employment in this area. To begin with, it should be noted that the classical idea of marketing can be expressed in a capacious formula “understand and satisfy”¯, which was a revolution in business practice. However, the technological progress of the 80 ”“ 90-ies of the XX century questioned the hegemony of the traditional model of consumer marketing. As a fact, classical marketing concept is actually very simple and elegant – find a need and satisfy it. In this model, the starting point for marketing has always been a disclosure has not satisfied the needs of the target audience and the wording of the relevant commercial offers. It can be said that the main task of the marketer-traditionalists was the creation of ideal products that satisfy all the desires of the consumer. The first step was in defining these desires and analyzing them, further, the company created new or updated old product, as described in The marketing function.
For many years, since the formulation of this paradigm, it remained the basic principle of action for those, who were engaged in art and science of consumer marketing. However, today in the market practice has spread radically different model of marketing that can bring a big success to completely different generation of marketers. Unlike the first model, it can be called as “marketing ideas”¯. The main motto of this model is quite radical: invent the goods, position them as a brand, explain to consumers how to use it, and maybe it will come to their liking. The most striking examples of “marketing ideas”¯ can be found in IT sphere. For example, there was a moment when the world used personal computers based on Intel-processor 286 and there was not any objective necessity to race speed of the processor and develop Pentium-4 processor. In fact, the company Intel was unveiled with the results of studies that showed that even after two years on market of 486 processor, only 5% of consumers felt a real need for it. The remaining 95% were completely satisfied with the possibility of less powerful processors. Does the average user, who spends most of his time in text editors, and sometimes in programs such as Microsoft Excel, which recently added Internet browsers and email clients need a processor that processes information at a rate of more than 1000 MHz? Despite this, Intel has continued and continues to pursue a policy of aggressive expansion in the market of microarray, raising the computer industry to previously uncharted heights with each output processor on the market, as described in The marketing function.
It should be noted that the emergence and consolidation of the new scheme of work was greatly facilitated with the advent of personal computers and new technologies that followed it. As a source of pure innovation, the computer allowed to appear for such a powerful and at the same time a public means of communications and distribution, as the Internet. It is the Internet has become the determining force behind all the transformations in the field of marketing concepts. It is the Internet allows the innovator in the field of marketing to gain access to any market – from the broad to specific. However, much more significant is the Internet’s potential in the area of distribution. Today the buyer may conduct financial transactions via the Internet, listen to live radio, read a specially-designed morning papers, download software, go to the virtual library or bookstore, and all this in a fairly comfortable environment. Moreover, a list of these features becomes longer every day. So, the real magic of the Internet is that it allows innovative entrepreneurs, who have little capital, to reach target groups in the shortest possible time and with such minimal costs, which previously was difficult to imagine. Thus, this factor has led to the democratization of the conditions of market expansion for players with completely different initial conditions, as described in Small business marketing.
As a result, today, in the framework of the marketing ideas coexist big-technology and cost-effective branding. In the first case, the owner of a very strong brand name – name that can provide large-scale budgets for promotion, creates innovation, and promotes it with powerful attacks through advertising, PR, trade marketing and special events, creating a huge wave of interest in the goods. In this case, the owner of the brand risk that those investments in promotional programs do not yield the expected dividends. For more modest budgets, there is a second way to move goods to market. In this case, innovation finds its way into the hearts of consumers slowly and gradually, but with minimal cash investment. Usually promotion starts with using the web-site, as well as forums and chats on the Internet. First, the product is fixed in the specialized market niches, whose number is gradually increasing. The main risk of this model is that a product or service may be morally outdated before it created for them the critical mass of buyers. Nevertheless, many business leaders (for example Dell) was able to cope with such a risk.