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Strategic Marketing Management Assignment Help
This is solution of strategy marketing management assignment help in which we discuss the new marketing concept and critical review of contemporary literature on the globalization of market concept
“Analyse and critique the ‘new marketing paradigm’ concept and its implications on competition”
In this essay the ‘new marketing paradigm’ or NMP concept has been analyzed and critiqued in the backdrop of New Zealand environment. Also, the implications of NMP on competition in marketing have been ascertained. This is achieved through a critical review of contemporary literature on the ‘globalization of markets’ concept and its implications on competition in marketing. The NMP theory and concept has been explained. In this work attempt is made to clearly explain the link between ‘new marketing paradigm’ concept and competition in marketing, especially in the context of New Zealand environment. Within the Literature Review attempt was made to critically analyze and compare different authors’ views on the validity and applicability of the NPM concept.
“Specifically, conduct a critical review of contemporary literature on the globalisation of markets’ concept and its implications on competition in marketing.”
Next a situation was assumed wherein a successful global company extends its line of business to the local New Zealand market. In the wake of this extension of a global company, several contemporary and domestic New Zealand firms (in the same industry as a global company) take this move as a threat and put forward their reaction to such a move.
global company is likely to react to such a move by considering the following questions.
- What is the link between interfirm rivalry and market commonality?
- What is the link between interfirm rivalry and resource similarity?
- Will the domestic firm initiate interfirm rivalry?
Note: please consider any one global company and any The Literature Review was then directed so that following questions could be answered or the relevant information can be obtained pertaining to the questions:
- What is the link between inter firm rivalry and market commonality?
- What is the link between inter firm rivalry and resource similarity?
- Will the domestic firm initiate inter firm rivalry?
A global company Glory Global Solutions, which provides Cash handling solutions, extends Direct Sales & Service Presence in New Zealand. A domestic company operating in the same industry in New Zealand is PayTech solutions which offers an array of cash handling solutions and technologies. Both these companies are considered in the discussion.
Finally, in this work, as the last part current trends in global markets were considered pertaining to the industry discussed above and a couple of ways are discussed in which New Zealand domestic firms can survive and thrive.
New Marketing Paradigm (NMP)
Businesses have typically followed traditional marketing approach for instance they have followed 4Ps (i.e., product, price, place, and promotion) of Marketing. This Conventional Marketing style or this old Marketing paradigm has also been termed as transaction marketing. However, for a clear past decade or so, it has been argued by Marketing Experts that new style of marketing which includes interactions, relationships, and networks should be adopted by the business houses. Thus, ithe iNew iMarketing iParadigm ibecomes ikey ifor ibusinesses ito iformulate eitheir imarketing iactivities ito, iand ito ibuild iinteractions, irelationships, iand inetworks iwith, ia inumber iof idifferent, ibut ioften iequipollent iconsequential imarkets i(Figure i1). iThe imultiple imarkets imodel iapperceives ithat ithere iare ia inumber iof ikey imarkets ithat ibusinesses ineed ito iconsider. iApart ifrom ithe icustomer imarket, ipotentially iparamount imarkets iinclude ithe ifollowing iones: i
Referral imarkets i(word-of-mouth iby icustomers); i
- Supplier iand icoalition imarkets;
- Recruitment imarkets;
- Influencer imarkets i(individuals ior igroups ithat idirectly ior iindirectly iimpact ion ithe icompany);
- Internal imarkets. i i
To icritically ianalyze ithe idifference ione ican irefer ito ithe ibelow itable iwhich iclearly ispecifies ithe idifference ibetween ithe itwo iparadigms iat ia iglance:
Newiparadigm: Interactions,irelationships,iand networks
The ibuyer ihas ia igeneric ineed, iand ithe
The ibuyer ihas ia iparticular ineed, iand ithe
seller ihas ia igeneric ioffer
seller ihas ia iunique ioffer
The iproducts ior iservices iare
The iproducts ior iservices iare icustomized
The iinteraction ibetween iactors iare
The iinteraction ibetween iactors iare
characterized iin iterms iof, ifor iexample,
characterized iin iterms iof, ifor iexample,
power, iconflict, iand icontrol
trust, icommitment, iand ico-operation
The iduration iof imarketing iexchanges iis
The iduration iof imarketing iexchanges iis
independent iand idiscrete
The Figure below is typical to New Zealand Markets as it shows the number of key markets that business in New Zealand need to consider:
Figure 1: The Multiple Market Model
Implications of NMP on Competition in Marketing – A Critical Contemporary Literature Review “Analyse and critique the ‘new marketing paradigm’ concept and its implications on competition” The New Paradigm as described above, clearly critiqued and analyzed as shown in the table above with respect to the old paradigm, has one key characteristics which clearly distinguishes it with the conventional 4P style of Marketing – Networking & Interactions. As the businesses are increasingly assisted by technology, one finds that there is a lot of impact of social sites, social participation and interactions on dealings with the present and potential customers. Thus, customer relationship management is coming up as an essential feature in the NMP. It was highlighted that conventionally businesses had employed transaction marketing product, iprice, ipromotion (Borden, i1965; iCulliton, i1948; iKotler, i1997).Critically analyse and compare different authors’ views on the validity and applicability of the ‘new marketing paradigm’ concept.
However, over the past decades, it has been argued that businesses across all sectors should move toward supply chain imanagement and, most recently, interactions, relationships, and networks (Day, i2000; Grönroos, 2000; Gummesson, 1999; Hunt, 2000; Peck iet al. 1999; Webster, i2000). Thus, Customer relationship management is the hot topic in the marketing literature these days. Economic reforms in many countries, and the invention of the Internet, have set the pace for this trend. Companies want to build and maintain a good track of customer relationship management in order to survive or grow in the cutthroat competition. Consciously or subconsciously, these companies want ito iimprove their financial performance. So far in the literature very few studies exist which directly investigate ithis irelationship.Successful Global Company extends its line of business to the local New Zealand market
“Rubric Requirement: Assume a situation in which a successful global company has extended its ‘foothold’ onto the local New Zealand market. Discuss how a contemporary domestic firm (in the same industry as a global company) is likely to react to such a move by considering the following questions.”
Here a situation is assumed wherein a successful global company extends its line of business to the local New Zealand market. Specifically the example is taken of a global company Glory Global Solutions, which provides Cash handling solutions (BusinessWire, 2015). It extends Direct Sales & Service Presence in New Zealand through the acquisition of Advanced Transaction Systems NewZealandBusiness. In the wake of this extension of a global company, several contemporary and domestic New Zealand firms (in the same industry as a global company) take this move as a threat and put forward their reaction to such a move (PayTech, nd).
Providing cash solutions is an important industry which extensively relies on supply chain and customer relationship management. New Zealand is an important growth market for companies providing Cash Solutions as cash in circulation is rising year after year as records shows as early as from the year 1968. The industry has experienced strong growth and as per the statistics from the year 2010, this growth has been registered as 26 per cent. Whilst usage of debit / credit card as well as recent mobile payments has risen and experienced remarkable growth, but currently cash remains as a vital payments choices in New Zealand. Big business houses in New Zealand have recognized the opportunity offered by Automatic Teller Machines (ATMs) and other cash vending machines which reduce cost and reorient related employees to focus on other value added customer services, rather than just vending the cash.
This opportunity has been grabbed by Global Solutions, which provides automated and low cost Cash handling solutions. However, there are other firms as well in the same business like a domestic company operating in the same industry in New Zealand is PayTech solutions which offer an array of cash handling solutions and technologies. Naturally, as a foreign company arrives as a competitor there will definitely be inter-firm rivalry. Attempt was made to study the contemporary Literature Review, which was then directed so that required questions could be answered or the relevant information can be obtained pertaining to the questions.
Firstly, the corpus of relevant literature was studied to determine as to what would be the link between inter firm rivalry and market commonality. It was found that the inter firm competition is a bitter contest to defeat competitors for a leading position or to achieve the advantage in the niche market (Chen et al., 2010). Based on this Glory Global Solutions had attained a formidable position from the start by acquiring the local company in the same industry -- Advanced Transaction Systems. So it started with the advantages of being a domestic firm and the merits it brought as a global leader in providing cash handling solutions. Moreover, being a multi nationals company (MNC), Glory Global Solutions has a higher degree of Market commonality compared to the local firms. Researchers and their findings in the contemporary research reveals that the Global firm (MNC), having a higher degree of Market Commonality, and resource similarity with competitors would not easily initiate aggressive actions, which is consistent with past researches (Chen et. al., 2010). This, although there was rivalry existing between firms, but there was no remarkable aggressive actions witnessed amongst the companies in the same cash solutions industry within the New Zealand Market.
Secondly, in the endeavor to find the link between inter firm rivalry and resource similarity, it was determined that Glory Global Solutions had much resource similarity with the other domestic firms like other domestic companies which were operating in the same industry in New Zealand like country’s own PayTech solutions which offered an array of cash handling solutions and technologies. This was so as Glory Global Solutions had fully acquired the domestic company in the same business Advanced Transaction Systems. So this acquisition helped to provide the similar model of working and high resource similarity.
From the above discussion is clear that the domestic firm will definitely attempt to initiate inter firm rivalry if the new Global presence has dissimilar resource and operational model. If the new Global firm which shows up in the new country and has a definite foreign culture, the domestic firms will succeed in initiating and launching an attack and try to oust the new entrant. However, the new entrant can survive if it is successfully able to bring resource similarity as well as able to display competitive advantage due to Market commonality and superior operations. Glory global solutions had all the three required characteristics which helped the company to flourish in the New Zealand market.
“Rubric requirement Considering current trends in global markets in the industry discussed in question 2 above, discuss two ways in which New Zealand domestic firms can survive and thrive.”
Current Trends in the Cash Handling solutions
Current Trends in the Cash Handling solutions in context with the New Zealand Market in particular and the world market in general are that the cash requirements have been growing. It was pointed out earlier that offering cash solutions is still a strong industry. This industry heavily relies on efficient supply chain and customer relationship management. Secure and efficient supply chain enables the industry to survive in this business as it should have the efficient partners in the network, who could provide or transport the required cash at the desired locations with pre-determined schedule or on demand. World in general and New Zealand is particular present a growing market for companies providing Cash Solutions as cash in circulation is rising year after year. This has proven from the statistics coming from the records as early as from the year 1968. This trend will continue to grow at least for coming few years or more. In the past also the industry has experienced rich growth and as per the statistics from the year 2010, this trend has registered a record growth of 26 per cent. This growth rate of 26 % is really very high and there should be no reason that it will see a downfall in coming many years. There is no doubt that the use of debit / credit card as well as recent mobile operating payments have also grown, but, there are other problems, like online security and fraud are associated with online transactions, Hence, it is estimated that the cash will continue to be a vital style of payment choice in New Zealand.
- Borden, N. H. (1965).The concept of the marketing mix, in Schwartz, G. (Ed.), Science in Marketing, John Wiley & Sons, New York, pp. 386-397.
- BusinessWire (2015). Glory Global Solutions Extends Direct Sales & Service Presence in New Zealand Through the Acquisition of Advanced Transaction Systems. Retrieved from http://www.businesswire.com/news/home/20151102005472/en/Glory-Global-Solutions-Extends-Direct-Sales-Service
- Chen, M. J., Lin, H. C. and Michel, J. G. (2010). Navigating in a hypercompetitive environment: The roles of action aggressiveness and TMT integration. Strategic Management Journal, 31(13),