Understanding Contemporary Marketing Challenges and Innovations Case Study

Understanding Contemporary Marketing Challenges and Innovations

Introduction: Understanding Contemporary Marketing Challenges and Innovations

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Every business has a vital role in marketing its success. Effective marketing signifies the key success of the business in every corner of the world. If the business is run in different parts of the globe it faces several challenges. The contemporary marketing issue is also part of the marketing challenges that the business is facing while operating across the world. The contemporary issues in the marketing section of the company can only be seen when the company is functioning in the changing global economies. This report throws light on contemporary marketing issues and innovations with a deep understanding of the business marketing theory. The report also highlights the marketing process knowledge in the context ofEnterprise Rent-a-Car," which is a contemporary business founded by Jack Taylor in 1957. Along with this, the report consists of a famous marketing strategy model which is the marketing mix.

The marketing mix and other key marketing theories

Marketing mix or other crucial marketing concept can have a major influence on the success of the marketing practices, mainly with the orientation to consumer satisfaction (Lahtinen, et. al. 2020). The marketing mix denotes to four Ps of business marketing that are product, price, place, and promotion. When these components are appropriately aligned then they can subsidize consumer satisfaction by meeting their client's expectations or needs.

Main four elements of the marketing mix are described below:

Product- The well-designed product of a company, which meets the customer expectations or needs, plays an important role in meeting customer satisfaction.

Price- The price of the product should be affordable or competitive, and it must be aligned with a consumer's perceived value of a product.

Place- This element of the marketing mix signifies the destination of the product or services of the company at which the consumer is purchasing or consuming an organisationoffers with satisfaction.

Promotion- An effective promotion can raise consumer attentiveness towards the product or services of the company while creating positive client perceptions.

The key marketing concepts like customer relationship management (CRM) or segmentation, which can affect client satisfaction, are followed by the Enterprise Cars. Customer relationship management of the case company focused on forming a lasting relationship with the consumers, understanding their preferences or needs, as well as modifying marketing events to meet particular necessities (Juanamasta, et. al. 2019).

This will result in increased client satisfaction or reliability. Segmentation includes dividing market in the smaller teams of clients with a similar preferences or requirements. By targeting particular sections with marketing actions, which meet particular needs, Enterprise Cars can develop consumer satisfaction or develop the effectiveness of marketing practices (Minaee, et. al. 2021).

Figure 1: Customer satisfaction

A client satisfaction approach contains offering the consumers guarantees and warranties (Nguyen, 2019). Warranties assist as the agreement in which product will accomplish as assured and some practice of compensation will be provided to consumer.

The marketing mix or another key of a marketing theory plays an important role in consumer satisfaction. An organization should align its promotion, product, place and price actions to meet the expectations or needs of the company’s target market or utilize the methods like CRM or segmentation to create strong relations with the consumers or increase client satisfaction.

Knowledge and understanding of the marketing process in the contemporary business context

Marketing defines how any business can create its value from the perspective of consumers while building a strong customer relationship to attract more new customers and value from its customers in return (Hoffman, et. al. 2022). It is done within a proper framework and steps to effectively achieve the marketing goals of the company. The marketing process is comprised of five steps.

Figure 2: The marketing process

Such steps are described as under:

• Understanding marketplace and consumer needs or wants- The first step refers to the theoretical or practical knowledge and understating of the marketplace, or customers' wants and desires. It is very significant to recognize the customer demands, needs, and wants to form the want-satisfying marketplace assistance or develop value-laden consumer relations (Di Domenico, al. 2021). This will raise the customer equity for a company in the long-run.
• Designing a consumer-driven marketing plan- A second step shows two ways by which the marketer can prepare or develop the marketing strategy of the business. The marketer focuses areas to design the marketing strategy and selecting the customers to define the target market and selecting the value of the proposition to decide how to serve consumers in the best way.
• Constructing a combined marketing strategy that provides superior value- An organization’s marketing plan outlines to which consumers the firm will assist or how this will create value. After this marketer creates combined marketing strategies, which will be anticipated value to target consumers.
• Create profitable relations- Client relationship management is a whole procedure of maintaining or creating profitable client relationships by supplying superior consumer value or satisfaction. Consumer relationship management's purpose is to yield high consumer equity, an overall combined client lifetime beliefs of all of the consumers. Significant criterion to build long-lasting relations is formation of larger consumer satisfaction or value.
• Capturing value from the consumers- The more loyal to an organization’s profitable consumers, the higher the consumer equity in a company. Consumer equity might be a better mode to the extent of its presentation than the market share and current sales. Marketers cannot build consumer value or build client relationships by themselves. They have to combine with the other departments of a company along with the partners that exist outside the business.

A final stage of marketing procedure is to assemble the necessary resources to carry out the marketing strategy, convert the plan into action, or apply control over it. For the execution of a marketing strategy, the case company needs to form a marketing business. Enterprise Rent-a-Car Company should hire several specialists accountable for carrying out product improvement, marketing study, consumer service, promotion, etc.

For example, Enterprise Rent-A-Car targets a broad range of consumers including both personal and business renters. Some of the major points that Enterprise's target consumers enjoy include:

Convenience: Enterprise offers a wide range of rental locations across the world, making it easy for customers to find a rental location close to where they need it. This is particularly attractive to business travellers who are often on the go.

1. Affordable pricing: Enterprise is known for offering affordable rental rates, making it an attractive option for budget-conscious travelers. They also offer discounts and special deals to customers, making it even more affordable.
2. Reliability: Enterprise is known for its quality service and well-maintained vehicles, which is important to both personal and business renters. This reliability helps build trust with customers, who appreciate the peace of mind that comes with renting from Enterprise.
3. These three points are just some of the things that Enterprise's target consumers enjoy about the company, but they are certainly some of the most important. Whether a customer is looking for a rental car for a personal trip or a business trip, Enterprise Rent-A-Car is a brand they can trust to deliver on their needs.

An organization creates its iconic image by providing high-quality services, and this helps to spread awareness of the company through a word of mouth.

Figure 3: Enterprise Cars Logo

The marketing process in the contemporary business context involves several steps to understand, attract, retain and satisfy the target market (Othman, et. al. 2021). These steps are:

• Market research- This step involves gathering data about the target market and the competition to gain insight into consumer needs preferences and behaviour.
• Market segmentation- This step includes dividing market in the smaller teams of consumers along with similar requirements or characteristics, to better target the promotion efforts.
• Product development- Based on the research findings, a product is developed that meets the needs and preferences of the target market.
• Pricing- The pricing of the product is determined based on the cost of production, competition, and perceived value to the target market.
• Promotion- A promotional strategy is developed to effectively communicate the product to the target market and build awareness and interest.
• Place or distribution- Decisions are made regarding the most effective channels for distributing the product to the target market, whether it be through physical stores, online sales, or a combination of both.

Demonstrate understanding of the concept of the marketing mix

The marketing mix is a framework that helps businesses understands how to effectively market their products or services (Hanaysha,et. al. 2021). It consists of four key elements: product, price, promotion, and place. Enterprise Rent-A-Car effectively uses the four elements of the marketing mix to reach and serve their customers. By offering a wide range of vehicles at competitive prices, promoting their services through a mix of digital and traditional marketing, and having a large network of locations, they are able to meet the needs of a diverse customer base. In relation to Enterprise Rent-A-Car, the following is how each element of the marketing mix can be applied:

• Product: Enterprise Rent-A-Car offers a wide range of vehicles, including economy cars, luxury vehicles, SUVs, and vans. They have a large fleet of vehicles and are known for having a wide selection of vehicles at competitive prices.
• Price: Enterprise Rent-A-Car is known for having competitive pricing, especially when compared to other rental car companies. They offer various discounts and promotions that make their vehicles even more affordable. Additionally, their rental terms are flexible, which allows customers to choose the rental period that best suits their needs.
• Promotion: Enterprise Rent-A-Car heavily relies on a mix of digital and traditional marketing to reach potential customers. This includes advertisements on television, radio, and in print, as well as social media, search engine optimization, and email marketing. They also use referral programs, partnerships, and event sponsorships to reach customers.
• Place: Enterprise Rent-A-Car has a large network of locations around the world, including airport locations and neighbourhood branches (Darmawan, and Grenier, 2021). This allows them to be accessible to customers wherever they need a rental car. They also have a user-friendly website and a mobile app that make it easy for customers to find and book a rental car.

Figure 4: 4Ps of marketing mix

Explain how this is employed when developing a new product/service

When emerging new product or service, marketing mix elements are employed as follows:

Product- The product design, features, quality and branding are all carefully considered to meet the needs and preferences of the target market.

Price- The price of the new product is determined based on the cost of production, competition, and perceived value to the target market.

Place or distribution- Decisions are made regarding the most effective channels for distributing the product to the target market, whether it be through physical stores, online sales or a combination of both.

Promotion- A promotional strategy is developed to effectively communicate the product to the target market and build awareness and interest.

Physical evidence- It refers to anything tangible or the physical presence of materials about the company's product and service, such as any resources needed to widespread an organization’s service and deliver its product.

Process- This component of the marketing mix is employed when large inner creativities are taken to maintain the product introduction, like comprising the sales person in a goal setting.

People- The Company should welcome an honest response from its employees about an organization which also encourage them to subsidize their passions or ideas to help a business develop or thrive.

By considering each of these marketing mix elements, the new product can be positioned effectively in the market and have the best chance of success.

Conclusion/Recommendations

Based on the above report it is concluded that the organizations that are running their business across the world are very much affected by their marketing practices. Marketing is a vast zone that creates the pathway for the company toward its success. When the business is operating in different parts of the globe it will face contemporary marketing challenges.

Each company has to market its products and services according to the country's preferences, cultures, and traditions. The marketer of an organization should follow the marketing process or align all its components to bring effective marketing and a large base of customers with good customer relations, customer value and their satisfaction.

References

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Darmawan, D. and Grenier, E., 2021. Competitive Advantage and Service Marketing Mix. Journal of Social Science Studies (JOS3), 1(2), pp.75-80.

Di Domenico, G., Sit, J., Ishizaka, A. and Nunan, D., 2021. Fake news, social media and marketing: A systematic review. Journal of Business Research, 124, pp.329-341.

enterprise.co.uk, 2023. Logo of the Enterprise Rent a car, (Online). https://www.enterprise.co.uk/en/home.html accessed on 10.02.2023

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Othman, B.A., Harun, A., De Almeida, N.M. and Sadq, Z.M., 2021. The effects on customer satisfaction and customer loyalty by integrating marketing communication and after sale service into the traditional marketing mix model of Umrah travel services in Malaysia. Journal of islamic marketing, 12(2), pp.363-388.