Oreo Company Marketing System - Case Study Example

Marketing System Name: Course: Tutor: Date: Marketing system Marketing system refers to a systematic procedure that enables many players to interact and making business or marketing deals. It aims at increasing productivity, improving efficiency, customer relations, improved coordination, communication, and channels of distribution. Those interacting are sellers and bidders (Dixon & Wilkinson 1962, p. 42). Marketing system is not only about price mechanism but also the entire system of clearing, reputation, credentials, qualifications, and regulations, which surrounds the mechanism. This mechanism makes it operate in a social and interactive business context (Marshall & Johnston 2010, p. 52). Market system depends on the assumption that players are unequally enabled and involve themselves constantly in the market system. There is the interaction between the voting and market systems because it is the voting system that interactions in the market take place. Marketing system is important political economy that involves a higher degree of market-like tradeoff and bargaining but not only simple choices and preference statements (Donnelly & Peter 2008, p. 62). According to Commerce Server of 2007, it argued that, marketing system is a versatile platform and a high-performance that can be used to perform personalized e-marketing through electronic mail or website. It is important in business transaction because it is effective in business communication and coordination. It is relevant because it communicates to the customers or shoppers by improving the sales either directly or indirectly (Marshall & Johnston 2010, p. 53). In addition, serves others functions such as cross-sell, up-sell capabilities, coupons, discounts, e-mail campaign, advertisements, and content targeting. Managing customer’s campaign is easier because it will allow fair competition in the industry because competitor’s advertisements will not appear in the same page. It creates a good image of the company because there is suggestive selling that allows the introduction of the new products in the market through the new WebPages of the company (Dixon & Wilkinson 1962, p. 43). Campaign data management It removes the expired or inactive campaign items by clearing the data. It also ensures competing adverts do not appear on the same script; hence, managing the competing advertisements. In addition, the goals can be tracked to ensure they are delivered in a specified period (Matsatsinis & Siskos 2003, p. 81). Most authors and marketers believe that, marketing system is essential for the companies to compete favorably in the market with many competitors. In addition, marketing system will the managers to come up with strategies that will create an environment that will sustain all the stakeholders needs and desires. It is important when launching new products in the market through the web (Donnelly & Peter 2008, p. 63). Even though some people argue that there is need to incorporate other factors in the system, but they have not substantiated what that means. They argue that it should create a campaign that will generate more awareness. There should be a direct mail linking all the stakeholders especially the customers who buy the products of the company in large quantities. It should enable all the interested parties to view and question the products of the company. Customer’s web is necessary so that it becomes visible and more appealing; hence, increasing awareness, which in the long run lead to increased sales (Marshall & Johnston 2010, p. 54). Marketing system is important because it cuts across all parts of the organization. The multiple strategies and approaches formulated and implemented will attract new potential customers to the company. The strategies will affect all parts of the organization such as training, human resources, accounting and finance, financial management, portfolio analysis, customer care, website marketing, and relations within and outside the organization (Dixon & Wilkinson 1962, p. 44). Conversion is essential in marketing system. If the process is well-structured, it will maximize conversing. This will include capturing of contact information and data that is regular in order to ensure communication recognition. This is done because some of the prospects take long to make decisions; hence, may not benefit the company (Donnelly & Peter 2008, p. 64). Retention has been discussed in detail as being important. The ongoing communication, which include incentives, discounts, and others offers will ensure clients or customers are satisfied with the services and products of the company. The main reason for these incentives and offers is to retain customers and for them to have no reason to look for other alternative suppliers and companies Wilkie, W. L. & Moore 1999, p. 31). Cross-selling and up-selling are important because most companies manufactures and sells more than one products. Therefore, marketing system will allow the company to look for more alternatives to sell their products. It is an opportunity too to add more services and products in the market with improved quality (Marshall & Johnston 2010, p. 55). Communication is key in marketing system; hence referrals will engineer processes that will open up new opportunities because it will be easier track and receive more referrals. Referrals are important because they must have heard of the high quality services and products from the company. There has been an argument in the past about how to focus on theses strategies. Some say, the organization should only focus on one at a time but many are for the view that, a person should be assigned his part to accomplish. It should be a joined up marketing that focuses on working together as a team in a continuous process (Matsatsinis & Siskos 2003, p. 82). Marketing system aims at coordinating all distribution channels either formally or informally where all members in the organization work as a team to achieve the set goals and objectives of the organization. It wants to eliminate all possible channel conflicts that may arise out of individual objectives that contrary to the organuzations’. Marketing system was design to achieve economies of scale and greater efficiency and effectiveness (Dixon & Wilkinson 1962, p. 45). Company’s background Oreo Company was established in 1912 by Nabisco. Its factory is located in Chelsea, New York city. The company was commercialized because its biscuits were too unique and ordinary. Its target market was Britain (Wilkie & Moore 1999, p. 31). Its initial products were cream and lemon meringue, which were sold in novelty can with glass tops for the customers to see the well baked cookies. In 1916, the company introduced new designs of cookies. The most popular one was cream filling but, it discontinued the production of meringue lemon. There have been many changes and improvements of the company where the modern day Oreo Company was developed by Tumier A. William in 1952. In addition, it included the Nabisco logo (Donnelly & Peter 2008, p. 65). Oreo cookies are similar to what is manufactured by Sunshine known as Hydrox cookie that was introduced in 1908. It is believed that, Nabisco, which manufactures Oreo cookie, obtained the ideas and knowledge from Sunshine. Oreo cookie dominated the market leading to Hydrox cookies being withdrawn from the market in 1999 (Matsatsinis & Siskos 2003, p. 83). It lost the market to Oreo cookies for four years. Its products are of high quality; hence, appealing to many customers in the target and already existing markets. The design and shape of Oreo cookies have not changed but, it began when it started selling different versions of cookies. In 1975, the company introduced DOUBLE STUF Oreos becoming the first version in the market to be launched officially. In addition, Fudge covered, Oreo sandwich cookies, Oreo chocolate sandwich, Halloween, and Christmas Oreos were introduced in 1987, 1991, and 1995 respectively (Marshall & Johnston 2010, p. 56). The company has been operating 114 bakeries in the United States of America. Its operating capital is more than $55 million. The Chicago-based company is a monopoly, which manufactures only cracker and cookies. The products and services of Oreo Cookie Company has been the best because of the improved quality. The employees are qualified; hence, offering professional services and manufacturing quality products (Dixon & Wilkinson 1962, p. 46). Role of marketing system It provides a legal framework for the marketing system, which ensures all roles and obligations are performed as expected. It also serves as an economic regulator in the market. This is where it seeks to discipline, promote, and guide all the operations and activities in the market. It will help the company to deal with the unfair competition in the marketing by raising an alarm. There are laws which deal with uniform measures and weights, tax, competition and food quality standards. The market is regulated because of marketing system where it seeks to ensure customers and other stakeholders get satisfied with the products and services of the company (Donnelly & Peter 2008, p. 66). In addition, it serves as a constraining function in the market. It provides laws that guide manufacturers to maintain high standards of goods that are not harmful to the customers. It restricts the operations of the companies in the market so that they can avoid undesirable social consequences. The most common ones are customer and environmental protection. These restrictions limit the level and volume of chemical substances in food. In addition, it regulates the conduct of the manufacturers in the market, which determines and specifies the preferences and outcomes in the market (Marshall & Johnston 2010, p. 57). It facilitates economic growth because it matches production and consumption patterns in the market. Effective integration of change is facilitated by marketing system. Promotion and advertising is effective because of improved communication. Responsiveness in the market sector is determined through the changes in the market (Matsatsinis & Siskos 2003, p. 84). The quality of products is controlled in production because of standardization, which aims at satisfying the customers. Marketing system will facilitate consumer-oriented marketing. It facilitates the formation of marketing mix that is useful and specific in achieving the goals and objectives marketing in the organization. Furthermore, it enables the manufacturers to understand the behaviors, expectations, preferences, and needs of consumers. The information collected will enable the manufacturers maintain high standard products of the company. Research analysis will ensure all the stakeholders get satisfied with the company’s products and services in the competitive market (Layton 2007, p. 222). Marketing system improves the quality of life of the customers and other interested parties. It will improve performance of the company due to instability and survival in the growth of the market. Quality of life will be improved because of the improved communication between the producers, customers and other stakeholders (Wilkie & Moore 1999, p. 32). Volume and growth of the products in the market will increase; hence, there are no shortages experienced by the customers. Distributive justice and fairness will be improved; hence, the quality of life will be improved because inequalities will have been reduced. Satisfaction of the customers will be achieved in the market because of the innovation and invention responsiveness in the market. Despite the wideness of the marketing system, it will facilitate the introduction of effective and efficiency of the product strategy. This will be necessitated by the compatibility of product development with consumer needs (Donnelly & Peter 2008, p. 67). Communication of central message will give the new business a chance to evaluate the business and see how different it is in the market. The business should offer what is unique in the market because it offers what the customers enjoy in the market. Furthermore, it plays a crucial role in developing multiple forms of opportunities due to increased customers. Customers will increase significantly in market due to awareness created through advertising and promotion. When customers increase in the market share, sales volumes increases too; hence, in the long run, it will lead to profit increase. Public relations, target advertising, and market partnerships will be improved (Dixon & Wilkinson 1962, p. 47). Though marketing is not specific, marketing system is important in indicating marketing success because it will be based on sales volumes in the market. Marketing system will retain customers because of the discounts and incentives offered to them. The incentives are meant to satisfy the customers of the organization (Layton 2007, p. 223). This means that, customers will not have any other reason to look for other products from other companies offering substitute or supplementary products in the industry. Cross-selling and up-selling are important because most companies manufactures and sells more than one products. It will create a marketing strategy used to attract and retain customers in the organization. Therefore, marketing system will allow the company to look for more alternatives to sell their products (Marshall & Johnston 2010, p. 58). Marketing system promotes referrals that will open up new opportunities because of the improved image and reputation of the company. The reputation and image of the company will be improved because of the quality products and services offered by the company that meets customer’s needs in the market (Wilkie & Moore 1999, p. 33). Customers determine the success or failure of the organization because when they are not satisfied, they will not buy the products of the company; hence, a loss to the company. The assignment of roles and responsibilities will improve effectiveness and efficiency in the company because it will reduce cases of conflicts and misunderstanding in the organization between customers, top management, employees, and other stakeholders (Donnelly & Peter 2008, p. 68). Marketing system plays an important role in communication and coordination in the organization. Distribution channels are improved because of proper role assignment to all employees in the organization (Matsatsinis & Siskos 2003, p. 85). In addition, marketing system will improve the lives of customers because it will improve team work due cooperation from all stakeholders interested with the organization. Furthermore, marketing system plays an important role in the achievement of economies of scale, which is only possible because of effectiveness and efficiency. Management of customer campaigns are achieved because of the fair competition experienced in the company due to the adoption of marketing systems (Layton 2007, p. 224). Introduction of the new products will be facilitated by the web advertisement because there is overlapping of adverts in the page used to advertise the products. Advertisement is easy because the image of the products is boosted by the company’s webpage. Inactive campaigns are eliminated because the items are cleared. The goals and objectives can be tracked so that they can be measured whether they have been achieved or not. Time is a factor that the marketing system maintains in the environment because objectives need to be achieved within a certain period of time (Matsatsinis & Siskos 2003, p. 86). Division of labor refers to the assignment of roles, tasks, and duties to the individual person according to his or her qualifications, skills, and competence. Dividing complex tasks into manageable ones will create specialization because it will increase the output or productivity. Specialization is created because different jobs are divided to skilled workers who best understand them; hence, leading to specialization. Layton Marketing System Model Social Matrix Portfolio strategy The major portfolio strategy applicable is known as infrastructure management. This is important than the normal marketing mix because it will improve the company’s performance. It is not possible to achieve when using traditional marketing mix because it not comprehensive like infrastructure portfolio strategy. Infrastructure management will entail information technology that should be adopted in the organization to improver performance and quality of life (Dixon & Wilkinson 1962, p. 48). Infrastructure management involves a lot of components such as human resources, equipment, data, information, processes, equipment, procedures, external contacts, and policies that will promote efficiency and effectiveness of the company. This approach should be applied because it aims at improving all the performance of the organization. This approach will improve the quality of the products and the performance of the employees because training is part of this approach. For easy management, the portfolio strategy has been divided into three categories. These important categories to the organization are system management, network management, and storage management (Layton 2007, p. 225). For the organization to improve on the operations of the organization, it must utilize the portfolio strategy to achieve its goals and objectives. Managing of services and products of the company effectively will depend on the availability of proper policies in the organization. Infrastructure management will ensure availability and application of the portfolio strategy in the management of the whole organization (Wilkie & Moore 1999, p. 34). This is possible because employees will be trained on what they are supposed to do in the organization. This portfolio is meant to improve the effectiveness and efficiency of the organization in providing solutions to the problems facing the organization. This portfolio strategy was initiated to reduce on the costs of operations so that profit margins of the company are increased significantly (Donnelly & Peter 2008, p. 69). Challenges facing the organization especially related to marketing system can be solved. This is because it focuses on the company’s improvement especially advertising and promotion. However, the application of this infrastructure management strategy may not be easy because it requires a lot of knowledge, skills, and training (Matsatsinis & Siskos 2003, p. 87). This may not be achieved because of the complex scenarios associated with it. Though the policies and procedures are clear, the employees may not adhere to them; hence, not achieving its set goals and objectives in the long run. All the components of the infrastructure management should be well linked in order to achieve its goal. This strategy is essential than the traditional marketing mix because it does not focus only on the price, product, place, and promotion, but also on the procedures, employees, equipment, data, information, processes, equipment, and other components that will improve the performance of the company (Layton 2007, p. 227). The performance can be measured by the number of customers, sales volume, profit margins, and the markets it control. In addition, differentiation of the products will be achieved because customers who are satisfied are easy to be retained for a long time. Furthermore, the company will gain competitive advantage in the industry because of the clear policies and strategies that are used in organization. A company that operates at a lower cost is more competitive because it is able to sustain itself in the market (Dixon & Wilkinson 1962, p. 49). Conclusion Marketing system is essential in the organization because it improves the performance of the organization than the traditional marketing mix. Marketing system is not only about price mechanism but also the entire system of clearing, reputation, credentials, qualifications, and regulations, which surrounds the mechanism. Marketing system plays an important role in the achievement of economies of scale, which is only possible because of effectiveness and efficiency (Layton 2007, p. 229). Management of customer campaigns are achieved because of the fair competition experienced in the company due to the adoption of marketing systems. It provides laws that guide manufacturers to maintain high standards of goods that are not harmful to the customers. In addition, it helps develop a market growth because it comprises of many factors that will sustain its operations and performance in the competitive market. Customers are the main focus because they determine the success or failure of the organization. Communication, productivity, coordination, procedures, and deals can be sustained using the marketing system because it encompasses many factors (Matsatsinis & Siskos 2003, p. 88). References Dixon, D. F. & Wilkinson I. F. 1962. The Marketing System. Melbourne: Longman Chesire Pty Limited. Pp. 42-49. Donnelly, J. H. & Peter, J. P. 2008. A Preface to Marketing Management. New York: McGraw- Hill/Irwin. Pp. 62-69. Layton, R. A. 2007. “Marketing System-A Core Macromarketing Concept.” Journal of Macromarketing. Pp. 222-229. Marshall, G. W. & Johnston, M. W. 2010. Marketing Management. New York: McGraw-Hill. Pp. 52-58. Matsatsinis, N. F. & Siskos, Y. 2003. Intelligent Support Systems for marketing decisions. Boston: Kluwer Academic. Pp. 81-87. Wilkie, W. L. & Moore, E. S. 1999. “Marketing Contribution to Society.” Journal of Marketing. Pp. 31-34. Read More