Friends of Earth (HK) Services Marketing; Ethical & Corporate Social Responsibility
Prepared for:
Ms. Doti Chee (Lecturer)
Unit 41: Contemporary Issues in Marketing Management
Banking Academy, Hanoi
BTEC HND in Business (Finance)Word number: 3,500
Prepared by:
LGD group
Executive summary
With the nature of being a service organisation working in the environmental sector, it is important for FoE to understand clearly about the extended marketing mix, including 7Ps to apply in its operation and the ethical issues relating to the business.
Due to the development of service sector in recent years, traditional marketing mix (4Ps) has been renovated into extended marketing mix (7Ps). The new mix adds in three factors, which are people, process and physical evidence to support the service. It enhances the value for both customers and the service company.
Nevertheless, service marketing encounters some problems related to the characteristics of service and managing service provision that needs to be addressed by the marketers.
In order to operate swiftly and effectively, IT needs to be taken into account by every company, especially in service marketing management. This is the new concept that needs deep research by every organisation to improve their business.
Apart from the adoption of the 7Ps, ethical issue associated with business is another element that has risen in recent years. There are four tiers of ethical issues. FoE has to be aware of these issues in their operation. FoE is also an organisation that works toward protecting environment, so it has to adopt the concept of corporate social responsibility (CSR). More than that, the activities that FoE carries out sometimes are influenced by other pressure groups and the media. It can be considered as both threats and opportunities for FoE. It needs to adjust accordingly to the influence of those factors, as it can improve the operations of the organisation.
Table of Contents…

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Part 1 – Some experts believe that selling is the map of fulfilling clients ‘ demands and wants. Critics believe nevertheless, that selling goes beyond that and creates demands and wants that might hold ne’er existed earlier. What is your considered place? Do you believe marketing forms consumer demands OR do you believe marketing simply reflects the bing demands and wants of consumers?

There are many definitions of selling but a common subject of most is the mention to selling as being a procedure that is involved in fulfilling client demands and wants. One of the universe ‘s most celebrated governments on selling, Philip Kotler, believes that selling is…

& A ; lsquo ; the concern map that identifies unfulfilled demands and wants, defines and steps their magnitude, determines which target markets the organisaztion can outdo service, decides on appropriate merchandises, services, and plans to function these markets and calls upon everyone in the administration to believe and function the client. ‘ ( Kotler, P. , 1997, page seventeen )

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The cardinal word in this definition is & A ; lsquo ; unfulfilled ‘ and Kotler clearly believes that selling has a function in fulfilling the unrealized demands and wants of consumers. A similar but more compendious definition of selling is offered by the Chartered Institute of Marketing which states that selling is & A ; hellip ; ‘The direction procedure responsible for placing, expecting and fulfilling client demands productively ‘ ( Chartered Institute of Marketing web site, 2010 ) . The word & A ; lsquo ; productively ‘ is important here and is unaccountably losing from Kotler ‘s definition.

There is small point in any concern trying to fulfill consumer ‘s demands and wants unless it can do a net income from so making. Without concerns being profitable so economic systems can non bring forth wealth, which in bend leads to low degrees of employment, increased trust on province aid, and hapless criterions of life. As far back as 1947, moneyman Paul Mazur stated that selling was & A ; lsquo ; the bringing of a criterion of life to society ‘ ( Mazur, P.M. , 1947, page 138 ) . Kotler ( 1997 ) supports this position and believes that stronger and more advanced selling plays a polar economic function, particularly in times of recession. Kotler ( 1997 ) besides supports the position that selling is simply brooding of consumer ‘s demands and wants. He postulates that marketing starts with basic human demands and wants and that this finally leads to more sophisticated demands for peculiar trade names of merchandises and services, which it is beholden on selling to fulfill.

Despite support from renowned faculty members and practioners for the function of selling in assisting to fulfill echt consumer demands, there are those critics of selling who believe that it has nil to make with fulfilling consumer demands and wants but is simply a cagey manner to act upon consumer demands to help a concern in disposing of its merchandises. Some critics travel even farther by proposing that marketing really creates demands and wants that have non antecedently existed. This position has mostly been fuelled by the fact that the map of selling is frequently confused in people ‘s heads with the subject of advertisement. Consequently, the general cynicism in peoples ‘ heads towards advertisement in general is transferred to selling. Indeed, publicizing has such a hapless repute that, harmonizing to Jonathan Bond ( 1998 ) , merely 10 % of Americans believe that advertisement bureaus tell the truth about the merchandises they promote.

Herbert Jack Rotfeld ( 2005 ) , a professor of selling at Auburn University in the USA, cites the issue of fleshiness in America as a good illustration of this cynicism towards advertisement. It is obvious to most people that, except in the instance of a familial sensitivity to fleshiness, the best manner to lose weight is to use more Calories through exercising than are ingested through feeding and imbibing. However, despite this many Americans are non prepared to travel down this path and have been led to believe that pills and potions that promise speedy and easy weight loss can replace reasonable feeding and exercising. Without the selling of such fake merchandises, the demand and want for such a redress for fleshiness would non be. Rotfeld goes on to state that he believes that the unethical usage of such advertisement claims has led to selling professionals being some of the most to a great extent criticised of all concern people.

However, whilst selling can doubtless hold a powerful proactive consequence on how consumers perceive their demands and wants clearly it is non the lone country of influence. Joel B. Cohen ( 1991 ) in his & A ; lsquo ; Handbook of Consumer Behaviour ‘ describes how consumer demands and wants are besides capable to psychological influence. Cultural and societal contexts, attitude, old acquisition, and personal perceptual experience can all hold powerful reactive consequence on how a merchandise or service is considered and evaluated by a consumer.

So, in decision it can clearly be seen that selling, in the form of the authoritative four P ‘s of the selling mix ( Price, Place, Promotion, and Product ) clearly has the ability to act upon consumer demands and even to make demands that have ne’er existed before. It besides has an of import economic function to play. However, selling does non run in a vacuity ; psychological inputs besides have a profound consequence on consumer attitudes and behaviour towards merchandises and services.

Part 2 – Some experts believe that with sellers following more refined market cleavage strategies, mass selling is dead. Others believe that there will be ever room for big trade names and companies that employ selling programmes designed for immense mass markets. What is your considered place? Do you believe mass selling is dead OR do you believe that mass, uniform selling is still feasible for some trade names?

Mass selling is the broadcast medium of a message about a mass entreaty merchandise designed to make the largest figure of people possible. Traditionally aggregate selling has focused on the usage of telecasting, wireless, postings and newspapers as the media to most efficaciously reach this wide audience. The Model T Ford was likely the first major merchandise to follow mass selling techniques and Coca-Cola is a premier illustration of a merchandise that has systematically been successfully mass marketed. It is sold in more than two 100 states globally and is the universe ‘s prima non-alcoholic drink ( Coca-Cola web site, 2010 ) . In 2008 Coca-Cola spent & A ; lb ; 20.4 million on advertisement in the UK with over 80 % of this sum allocated to the mass market media of telecasting and out-of-door postings ( Billets Media Monitoring, 2009 ) .

Equally good as comparatively low per capita promotional costs, mass selling besides allows for low production costs due to economic systems of graduated table. In position of this, major planetary trade names like Coca-Cola will go on to deploy mass selling techniques in the hereafter. Besides, with the globalization of merchandise markets and the interrupting down of societal and cultural differences between the universe ‘s peoples, consumers have become much more cognizant of international, mass-market trade names and are able to purchase these trade names from the same types of retail merchants in many states across the universe ( Blackwell, R.D. et Al, 2001 ) . Therefore, by definition, mass selling, both within and across national boundaries, is the most efficient and cost effectual manner to make these audiences and it is likely that this will go on to be instance.

The modern construct of market cleavage, as opposed to mass selling, was originally put frontward by Phillip Kotler, who defined it as the & A ; lsquo ; sub dividing of a market into homogeneous subsets of clients, where any subset may be conceivably be selected as a market mark to be reached with a distinguishable selling mix ‘ ( Kotler, P. , 1972, page 166 ) .

Businesss are now frequently heard mentioning the mantra that & amp ; lsquo ; the universe is our market place ‘ . The World Wide Web has been instrumental in easing this position, both in footings of stimulating and fulfilling the planetary demand for peculiar merchandises and services. However, with the diminution of the traditional, mass-market advertisement media such as telecasting, at the disbursal of new niche media such as synergistic societal media on the cyberspace ( Forrester Research, 2009 ) , big, mass-market trade names may be forced to re-evaluate their selling schemes. Besides, in malice of the coming of the new & A ; lsquo ; planetary ‘ consumer, market cleavage ( or niche selling ) techniques are going more refined and are progressively being adopted by both little concerns and planetary trade names.

During the 1990 ‘s Mothercare was possibly the best known and most successful mass market trade name of babe and yearling apparels in the UK. However, by 1999 niche marketed trade names such as & A ; lsquo ; Baby Gap ‘ and & A ; lsquo ; Next for Kids ‘ had eroded Mothercare ‘s market portion and finally caused the closing of some 69 Mothercare shops ( Jardine, A. , 1999 ) . Many successful planetary trade names such as Apple, Ducati, Red Bull, Swatch and Ben and Jerry ‘s have been built on niche selling. Founded in 1978, Ben and Jerry ‘s was deserving over $ 200 million by the late 1990 ‘s, before it was acquired by Unilever in 2000. It achieved this success through a set uping a & A ; lsquo ; quirky ‘ placement in the luxury terminal of the ice pick market and bear downing a premium monetary value. This was as opposed to the scheme of the more constituted mass market participants like Walls ice pick.

In drumhead, the belief amongst some faculty members and selling professionals that mass selling is dead and that the market for many merchandises and services is spliting into a big figure of separate sections, or niches, is non needfully the instance. There is surely grounds that the cleavage of the media has been accompanied by a growing in metameric selling but that is non to state that mass selling will non last. Marketing tendencies are notoriously volatile and techniques that are stylish today may non needfully be stylish in the hereafter. Indeed there is a position that the much trumpeted, niche-marketing technique of & A ; lsquo ; societal ‘ selling is already on the diminution with visits to societal networking sites falling by 19 % in the twelvemonth to July 2008 ( BizReport, 2008 ) .

Huge, broad-appeal, planetary trade names like Coca-Cola will ever deploy mass selling techniques to be efficaciously reach their mark audiences. Media, such as telecasting, that rely on advertisement gross from such trade names will besides last although they will hold to diversify into other countries, such as online, which has already started to go on. Equally, niche media will go on to boom by back uping those smaller and more diversified concerns that rely on them to present their extremely targeted messages.


Notes Media Monitoring, 2009. Cited in the Grocer Magazine 02 May 2009 ; BNET & A ; lt ; hypertext transfer protocol: // & A ; gt ; . Accessed 19.04.10

BizReport, 2008. & A ; lsquo ; Is Social Networking Dead or Dying? ‘ & amp ; lt ; hypertext transfer protocol: // # & A ; gt ; . Accessed 19.04.10

Blackwell, R.D, Miniard, P.W. , and Engel, J.F. , 2001. & A ; lsquo ; Consumer Behaviour ‘ . Ninth edition. Thomson Learning.

Chemical bond, J. , and Kirshenbaum, R. , 1998. & A ; lsquo ; Under the Radar. Talking to Today ‘s Cynical Consumer ‘ , page 1. John Willey and Sons.

Chartered Institute of Marketing web site, 2010. & A ; lsquo ; Definition of Marketing ‘ & As ; lt ; hypertext transfer protocol: // & A ; gt ; . Accessed 19.04.10

Coca-Cola web site, 2010. & A ; lsquo ; How we operate ‘ . & A ; lt ; hypertext transfer protocol: // & A ; gt ; . Accessed 24.02.10

Cohen, JB. 1991. Adapted and extracted from & A ; lsquo ; Affect and Consumer Behaviour ‘ – & A ; lsquo ; Handbook of Consumer Behaviour ‘ pages 188-240.
Forrester Research, 2009. Five Year Prognosis. Cited in & A ; lsquo ; The Decline of Traditional Advertising and the Rise of Social Media ‘ . & A ; lt ; hypertext transfer protocol: // . Accessed 19.04.10

Jardine, A. , 1999. Marketing magazine. & A ; lsquo ; Mothercare web scheme purposes to hold retail losingss ‘ . & A ; lt ; hypertext transfer protocol: // & A ; gt ; . Accessed 19.04.10

Kotler, P. , 1972. & A ; lsquo ; Marketing Management ‘ . Second Edition. Englewood Cliffs, New Jersey, Prentice-Hall, Inc. , page 166.

Kotler, P. 1997. & A ; lsquo ; Marketing Management ‘ . Sixth Edition. Englewood Cliffs, New Jersey, Prentice-Hall, Inc. ,

Mazur, P.M, 1947 & A ; lsquo ; Does distribution cost plenty? ‘ Fortune 36 ; ( November ) ; page 138.

Rotfeld, J.R. , 2005. & A ; lsquo ; The misanthropic usage of selling to the unintentional consumer ‘ . Journal of Consumer Marketing. Volume 22 ; Number 2 ; 2005: Pages 60-61.


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