Marketing Strategies & Value Creation-Free-Samples for Students

Question: Prepare a report on the use of Marketing Communications utilising an Organisation of your choice such as a Small Business, not for Profit or Corporate Enterprise. Answer: Introduction: The primary aim of any business entity is the values creation. The creation of the values by the firm helps the same to sell the products or service to the customers. The value creation is the process by which the company can ensures its profitability in the market through its products and service. The creation of the values is determined by various factors of the business as well as the strategic management of the organization (Achtenhagen, Melin Naldi, 2013). On the other hand, value creation is referred to one of the aspects of the marketing communication which is determines the firms performance in the market. The marketing communication further involves the identification and understanding of the target audience, differentiation from the competition in the market, development of the key messages and the selection of the communication channels (Luxton Mavondo, 2015). The marketing communication is thus important for the creating and values to the organizations business activiti es. For establishing the proper marketing communication and creating values for the business, different strategies are used by the firms. The strategies determine the effectiveness of the value creation through business communication (Grnroos Voima, 2013). There are some theories, models and principles that are used for utilizing the marketing communication in order to create value for organizational activities. The chosen company for the following report is Oxfam International, which is a non-profit organization. It must be noted that for any nonprofit organization the marketing communication and value creation are focused on the service of the organization and the same is not referred to the profitability. Company Background: Oxfam International is one of the biggest international nonprofit organizations based in Australia. The aim of the organization is to eliminate poverty from the world (Oxfam International, 2017). The firm is into various activities for the poor in order to create permanent solution for removing their poverty. The purpose of the organization is focused on the elimination of the poverty by supporting the poor communities in all over the world. The company believes in the right to equality and for doing the same the firm in engaged in various welfare activities through which the poor people can get opportunities to remove their poverty. The organization is committed towards the protection of the human rights of the people living in poverty throughout the world. Therefore, the area of serving the people and various communities is spared in all over the world. The company was founded in 1942 and presently serving the poor people of 20 countries. Being a charitable organization, Oxfam is not into any specific business activities, rather the company does campaign and different fundraising program for fighting the poverty. At present the company is serving 90 communities in the international context. The activities of the company include financial support, educational and health support, human development and women empowerment. Marketing Communication: Marketing communication is one of the major aspects for the business organization that ensue the effective business activities of the firm in the market of target audience. The effectiveness of the marketing communication is measured through the achievement of the business goals and objectives which are focused on increasing preferences, raising awareness and generating leads (Thorson Moore, 2013). All these activities of the marketing communication ensure the value creation and value addition to the business. Precisely, the marketing communication is the process and strategies through which the firm communicates with the consumers in order to convey right messages to the targeted audience (Vanhamme et al., 2012). Among the different types of the marketing communication, development of the key message is the majorly important in terms of making the consumers aware of the marketing and business activities of the firm for the certain stakeholders. Through the effective marketing commu nication, the firm is able to ensure the profitability and long run of the firm in the competitive market. Oxfams Marketing Communication: It is mentioned previously that being the charitable nonprofit organization, the company is not into any specific business activities that can make profit to the organization. Consequently, the company has no such competitors in the market from the same background. However, there is various nonprofit organization in all over the world, but the aim of them are different from Oxfam. On the other hand, having no such market and competitors the firms marketing communication is not based on the business activities. As mentioned earlier the organization is aimed at providing service to the poor in order to eliminate the poverty from the world. For serving this purpose the company needs financial resources by which Oxfam can provide proper support to the poor people. As the company does not have any proper business, the company sells the old second hand things that are donated by various people. The company also raises funds from various events and campaigns (Oxfam International, 2017). Hence the marketing communication of the firm is based on the fundraising programs for serving the poor. The company through its website and various campaigns and events convey its messages of providing betterment service to the society. For selling the products donated by the people, the company uses its marketing communication. However, it must be noted that the company is more focused on the values creating through strategic management rather to focus on marketing communication. Marketing Strategies: Marketing strategies are the major and primary part of the marketing in business. the proper and effective marketing strategies determine the profitability and success of the business in the market. Marketing strategies are a set of ways and process through which the company runs its business activities effectively and uniquely (Hollensen, 2015). Each company has different set of marketing strategies for its business activities. However, there are some theoretical and corporate set of marketing strategies that are popular among the successful business organization as the same have shown its effectiveness. The organizations use their marketing strategies not only for the successful business activities, but also connecting their corporate activities to the society which leads the organizations to sustain in the market (Grnroos Voima, 2013). In short the proper and effective marketing strategies and its implementation by the organization ensure the firms sustainability, but also create values for its business. Value Creation through Marketing Strategies: The uniqueness of the marketing strategies for each business entity is responsible for the value creation. The purpose of the marketing strategy is to add value to the organizational business and corporate social activities. The uniqueness and the differentiation of the products or service are rendered to the consumers through the effective marketing strategies (Lindgreen et al., 2012). For example, the marketing strategies of the organization often exaggerate the specifications and qualities of the products or service offered by the company. Such marketing strategies undoubtedly add values to the firms business activities by attracting more customers towards the firm. On the other hand, such marketing strategies lock the sustainability of the firm in the competitive market. Oxfams Marketing Strategies: It is repeatedly mentioned in the report that Oxfam is a charitable firm and does not operate any active business. Rather, the nonprofit organization is into serving the poor. Therefore, the marketing strategies of the firm are focused on achievement of the organizational goals. As mentioned in the strategic planning report of Oxfam, the firm has six goals and for its achievement the companys strategy is to respond effectively and swiftly to the humanitarian crisis, support the poor for claiming their rights and work for bringing about long term and significant changes in government policies and practice (Oxfam International, 2017). These strategies are not exactly the marketing strategies but a part of the strategic plan for achieving the noble aim of eliminating poverty from the world. Through the annual report of Oxfam, the firm let its stakeholders know about the strategic plan and the awareness of the people from the same adds value to the activities of the organization. Theoretical Approach on Value Creation: There are different theories of value creation as preferred by the scholars. The theoretical approach of the value creation of the organizations indicates the effectiveness of the marketing strategies in order to add values to the firms business activities (Husted, Allen Kock, 2015). This must be noted that the theories of value creation are different for profit and nonprofit organizations because the marketing strategies are different for the firms. The theoretical approach of the value creation enables the firms to ensure the success of its business activities. Collaboration: One of the major strategies of the firm for value creation is the collaboration. There are so many organizations that collaborate with various other business entities for adding more value to the business. Collaboration makes the organization increase its public image and social values. On the other hand, the collaboration increases the profit through the more approachable business activities. As opined by Pedersen and Solerd, (2016), most of the business entities are now moving forward to collaborate with other local business organization, be it small or big, for profitable outcomes through increased business. To win the competition in the market, the company must ensure meaningful and long lasting relationship with the consumers. For strengthening the relationship with the stakeholders as well as wit the customers, the firm therefore chose the collaboration. The local business entities are more popular to the customers and have the brand loyalty; hence it adds an advantage to firms business as well as to the public image when it collaborates with the local business organizations (Austin Seitanidi, 2012). Along with this, both the collaborating organizations are provided with wide range of resources through the collaboration which are beneficial for both of them. Similarly, Oxfam is no different. Oxfam also believes in the collaboration for enhancing the process of value creation to its business (Oxfam International, 2012). However, the collaboration for Oxfam in not indicated towards the increase of firms rate of profit (Sodhi, 2015). On the opposite side, the collaboration organizations are provided with the scope to participate in the social welfare program as conducted by Oxfam, which enable the profit-firms to overcome business model and social liabilities (Dahan et al., 2010). In regard to this, it must be mentioned that Corporate Social Responsibilities (CSR) is one of the emerging strategies that have became almost necessary for the firm operating its business in a broader context to avoid the legal obligation (Lee, Olson Trimi, 2012). Through the strategy of collaboration the profitable organization is able to engage in CSR activities practiced by the non-profit organization. Collaborative Value Creation Framework: As discussed the collaborative value creation framework is one of the major and effective framework that aims at the creation of the value for the non-profit organization through collaboration. The theoretical approach defines value as the transitory and enduring benefits relative to the costs that are generated due to the interaction of the collaborators and that accrue to organizations, individuals and society (Pedersen Solerd, 2016). This theoretical framework is divided into four sections: The Value Creation Spectrum, Collaborative Stages, Partnering Processes and Collaborative Outcome (Austin Seitanidi, 2012). The Oxfams value creation strategies follow this theoretical approach through collaboration (Oxfam International, 2012). This model of value creation proposes an analytical, extensive and conceptual approach to the firms marketing strategies. Figure 1: The Value Creation Framework Source: Koschmann, Kuhn Pfarrer, 2012 Stakeholders Importance: Stakeholders are the most important and basic part of any organization. Stakeholders are the people of the firm who are responsible for successful business activities. The importance of stakeholders is measures by overall business activities of the firm in the competitive market. For any international business organization, the stakeholders play the most vital role in determining the success and profit of business in the international market. It must be mentioned that the stakeholders are not only the employees of the consumers of the organization, but also refers to all the people involved in the business activities directly as well as indirectly. As stated by (Austin Seitanidi, 2012), stakeholders are the basis of the business which influence the sustainability of the firm in the market. In addition, the stakeholders also are capable of influencing the value creation of the business. Both the profit and nonprofit organizations are dependent on their stakeholders engagement in the business activities and CSR activities for long term existence in the market. The key stakeholders of the firms are the investors, employees, shareholders, vendors and customers. All the key stakeholders are important for playing its own role which individually adds value to the business. On the other hand, the engagement of the stakeholders is determined by the organizational activities and image in both the market and society. Therefore, the firms take some important and effective strategies to engage people to the organizations activities. Better communication, social and environmental activities, transparency in the business activities, giving importance to the stakeholders opinions are some of the strategic management that ensures the involvement of the same in the organizational activities (Sodhi, 2015). Similarly, for Oxfam the stakeholders play the most important role in ensuring the firms process of value creation (Andr, 2014). However, the consumers are less for the organization, but there are other stakeholders engaged in the organizational activities for serving the poor. The firm also follows the stakeholders theory for the engagement of more people for serving the noble purpose of Oxfam. Stakeholder Theory: Considering the importance of the stakeholders engagement in the firms activities, the stakeholder theory is aptly consistent with the maximization of value for the firm. The stakeholders theory is indicated towards the management of the organization to comply with the constituencies in the part of the stakeholders that is capable of affecting the firm (Sodhi, 2015). The theory of stakeholders implies that the organization must pay attention to the employee management; consumers benefits and suppliers risk reduction, governmental regulation and organizational ethics maintenance, community development and competitors analysis in terms of creating and adding value to organizational activities (Dentoni, Bitzer Pascucci, 2016). Similarly, Oxfam maintains the stakeholder theory as a strategy to secure the value creation for the firm. Figure 2: Stakeholder Theoretical Framework Source: Harrison Wicks, 2013 Conclusion: Therefore it can be concluded from the above report that the value creation is one of the major aspects of the business. The report identifies that the value creation is possible through effecting and successful marketing communication. It is presented in the above report that the marketing communication determines the profitability of the firm. The chosen organization, Oxfam being a nonprofit organization does not have any specific business, and hence the marketing communication and the value creation of the firm are based on its service to the society. It is found in the report that the organization is focused on making a poverty free society where people have equal rights and for serving this purpose the firm raises funds through various activities. The value creation of Oxfam is therefore attached to the fundraising programs for the intended service. The report further discuses two theoretical approach for the value creation of the nonprofit organization that is practiced by the chosen firm. In addition, it is found that the report defines that the theoretical frameworks for nonprofit organization are different from that of profit organizations. 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