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Table of Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc316742280 h 3The service profit chain PAGEREF _Toc316742281 h 4Discretionary Effort and Employee Engagement PAGEREF _Toc316742282 h 9How to achieve it PAGEREF _Toc316742283 h 11Recommendations PAGEREF _Toc316742284 h 12References PAGEREF _Toc316742285 h 16
IntroductionOrganizations should focus on people issues that impact upon its service-profit-chain with the intention of instigating change for the better. This paper investigates what Citibank ought to do in order to realize authentic competitive advantage through employee attitudes and skills. This paper will also seek to establish the relationship between indisputably engaged employees and beyond average profits. With the contemporary business milieu becoming expansive and consumers being offered greater choices, the present day’s clientele demand superior value and will only continue being loyal if they are wholly satisfied. In today’s dynamic business environment, where the Internet has considerably minimized the barriers to entry for numerous industries, the capability to build and maintain a competitive advantage becomes increasingly intricate for organizations. In view of extremely competitive markets as well as shifting buyer behaviors, brought about by increased utilization of Internet media, organizations require recognizing that it is no longer adequate to have barely satisfied clientele.
Extensive research has demonstrated that, in markets where the competition is severe, there is a remarkable difference amid the loyalty of barely satisfied and wholly satisfied clientele in terms of monetary gains. In view of a high degree of competition in the American retail sector, organizations ought to raise the degree of client satisfaction from barely satisfied to wholly satisfied in order to secure the requisite customer loyalty and create greater long-term economic performance. Consumer procurement behavior reveals that barely satisfying clientele who hold the freedom of preference is not sufficient to secure their loyalty. Wholly satisfied clientele are the only truthfully loyal customers (Woodruffe 2006, p. 6).
Realizing this competitive advantage by means of better-quality customer responsiveness, however, is not simply an issue of deliverance of the same value or through differentiating founded on price (Brooks 2005, p. 50). Securing loyal and wholly satisfied customers by means of delivering better-quality customer service necessitates engaged employees that are both intellectually and emotionally loyal to the organization. Only engaged human resources exert the requisite levels of discretionary endeavor that achieves loyal customers.
Generating and managing a milieu where employees display high levels of discretionary endeavor in their jobs pose numerous managerial implications. Discretionary endeavor implies the extra effort that engaged employees are enthusiastic to provide. Up to 40% of employee endeavor is discretionary. This however depends on the degree of engagement. This paper outlines and discusses service-profit-chain whereby, a strong and direct relationship between financial performance and employee engagement instigates change for the better. In order to bring the subject matter into perspective, this paper will discuss the challenges and issues that surround employee engagement and discretionary endeavor at the same time as it highlights on the best practices.
According to Cross and Silvestro (2000, p.36), engagement has a significant influence on employees’ objectives to continue working in an organization. Research has sustained the reality that employee turnover is a credible indicator of employee satisfaction. Therefore, organizations require paying substantial interest to managing turnover by means of engaging their employees, with the intention of managing customer satisfaction.
The service profit chainThe service-profit chain (SPC) is a structure for connecting service operations, customer assessments, and employee assessments, and to an organization’s profitability. The SPC offers an integrative structure for understanding how an organization’s operational investments into the service operations are correlated to customer behaviors and perceptions, and how these convert into profits. For an organization, it offers much needed direction about the intricate interrelationships between customer perceptions, operational investments, as well as the bottom line (Brooks 2005, p. 41).
According to Pritchard and Silvestro’s (2005, p. 125), putting into practice the SPC is a persistent problem amongst the majority of service firms, and numerous efforts have been made to mold various facets of the SPC. The service-profit-chain is a widely acknowledged model that explains the sustainable competitiveness realized by organizations which possess an engaged workforce. This model suggests that profitability and growth are anchored in loyal customers who are wholly satisfied with the perceived worth of the service they obtain. The service value is approximately at all times only generated by engaged employees that demonstrate a high degree of discretionary effort since they benefit from the quality of work life that the organization provides (Hostage 2001, p. 81).
Quality of work life may be defined by the favorable environments and conditions of a workplace that promote and support employee satisfaction through guaranteeing that rewards, including meaningful work, promotion, compensation, development, and recognition meet or surpass their expectations. According to Heskett et al (1997, p. 25) high quality of work life should produce committed, satisfied, as well as productive employees who in turn should ignite a chain effect that leads to an organizations profitability and growth. Fundamentally, the service-profit chain hypothesizes that the loyalty and satisfaction of engaged employees transforms into customer loyalty and satisfaction, which sequentially creates enhanced business performance. Figure 1. The service profit chain
Heskett et al. (1997) carried out studies that gathered empirical evidence from twenty large organizations. The studies gave support and credibility to several of the relationships in the chain, particularly the link between customer and employee satisfaction. Nevertheless, it was not until the investigative study carried out by Cross and Silvestro (2000) that focused on the strength of the linkages, that organizations were subjected to an investigation of all of the relationships in the service-profit chain. The whole model was applied to a leading grocery retailer in the UK’s in order to question the fundamental postulation of the service-profit chain. This was that engaged employees sequentially create customer loyalty and satisfaction. The results revealed definite and real correlations between customer loyalty, customer satisfaction, service value, productivity, internal service quality, profit, and output quality.
Another independent study carried out by Lau (2002) investigated a section of the Heskett et al.’s model. The Lau’s research did not endeavor to present any statistical evidence for the purposes of validating every individual linkage; but instead it investigated the direct linkage connecting quality of work life, and performance in growth as well as profitability. This is a surrogate for engaged employees in regard to the service-profit chain model. The research conducted by Lau specified that, engaged employees, and quality of work life had a momentous influence on profitability and growth. The research contrasted the performance of organizations with a repute of high quality of work life against a control cluster of S&P 500 companies. The research outcomes demonstrated that the organizations with a repute of high quality of work life indeed experienced higher growth rates in comparison to the control cluster of S&P 500 companies. The results also revealed that, these disparities are statistically important. Generally, the organizations that have engaged employees experience an average growth rate in sales in the range of 23.1%, while control cluster companies experienced merely 14.5%. The discrepancies suggested that the organizations with repute of high quality of work life were growing close to 60% faster in comparison to the control cluster of S&P500 companies (Lau 2002, p. 23). Additionally, the organizations with repute of high quality of work life experienced 7.9% growth per annum for their Return on Assets (ROA), while the control cluster of S&P500 companies experienced only a 3.7% growth. This discrepancy indicated that profitability in organizations with quality work life was growing more 200% above the companies in the control cluster of S&P500 companies. This research provides great support to Heskett et al.’s concept that postulates that quality of work life, that develops engaged human resources, generates a chain effect that brings about increased profitability and growth.
A research carried out by Pritchard and Silvestro’s (2005) investigating the service-profit chain endeavored to test the relationship between customer perceptions and behavior, employee perceptions and performance, as well as financial performance. The research was based on a home improvement store chain in the UK. Measures on the linkages between every one of the variables in the service-profit chain were gathered and scrutinized through the use of the Pearson’s correlation coefficient. According to Pritchard and Silvestro’s (2005, p. 130), the outcomes indicated that, service quality and value were positively correlated with employee satisfaction. This finding suggested that, human resources that are loyal and committed demonstrate higher degree of discretionary effort, considering that engaged employees generate higher degree of service value.
It is essential to note that, the research found that service value was robustly positively correlated with customer loyalty and satisfaction. In addition, stores that demonstrated highest levels of loyalty were found also to generate the greatest perceived service value. The finding supports and validates the central postulation of the model. This means that, quality of work life produces engaged employees, which sequentially promotes loyal and satisfied customer. Consequently, this translates into profitability and growth. The most noteworthy finding of the research was the strong positive relationship between growth and employee satisfaction. This suggests that empowerment of employees and the establishment of a positive working milieu will produce financial benefits (Pritchard & Silvestro 2005, p. 135).
In wrapping up, it would be deficient of any argument in regard to the service-profit chain to disregard some potential cautions to Heskett et al.’s (1997) research as well as findings. Of primary consideration would be the danger that a full focus on the service-profit chain to the omission of all else may hamper managements understanding of every complexity of performance. Any generic model requires being adapted to take into consideration company size, trading conditions, and industry (Valarie 2003, p. 65)
Nevertheless, what is evident is that studies have demonstrated numerous important performance linkages connecting variables in the service-profit chain model by Heskett et al (1997). The studies have also sensitized on the significance of promoting the cooperative initiatives between employers and employees. These partnership interactions have been depicted as having dramatic influence in improving competitiveness and financial performance. This demonstrates the value fostering partnership linkages between employees and the organization’s management.
Discretionary Effort and Employee EngagementThe employee-customer profit chain theory was initially developed in the 1990s. This theory continues being a standard for evaluating organizational performance in modern day management. The theory postulates that employee attitudes bear direct impact the company’s bottom line. The theory specifically focuses on the chain reaction in regard to employee behavior and its impact on customer behavior, which consequently impacts financial performance. According to Norman and Ramirez (2000, p. 61), a meta-analysis carried out by the Gallup Organization found out that that the most lucrative divisions in organizations are those which have the human resources doing what they are best at, with persons they like, as well as with a well-built sense of psychological possession for the results of their work. Employee engagement, meaning where human resources are intellectually and emotionally dedicated to the organization, is a noteworthy predictor of desirable organizational outcomes. These desirable outcomes include customer satisfaction, retention, profitability, and productivity. With vast empirical verification of employee engagement that leads to desirable organizational results, organizations require to recognize the value of generating and sustaining employee engagement.
Corporate Executive Board (2004) carried out a survey of approximately 50,000 employees in 59 organizations globally. The study revealed that, employee engagement plays a considerable role in the degree of discretionary effort demonstrated by employees as well as their intention to stay with their organization. As depicted in figures 3 and 4 below, the engaged employees exhibit up to 57% increased discretionary effort as well as up to 87% decrease in the desire to depart from the company.
Figure 3. Influence of engagement on the likelihood of departure
Source: Corporate Executive Board, 2004
Figure 4. Influence of engagement on the discretionary effort
Source: Corporate Executive Board, 2004
According to Lau (2000, p.22), with the remarkable influence that engaged employees have on the financial performance and growth, clearly established by the service-profit chain, it is evident why employees and the manner by which they are managed deserve increased consideration. Particularly, American retailers who are experiencing progressively more competitive markets should start investing critically in their foundational assets. These foundational assets are human resources. Human resources play a fundamental role in an organization’s transformation. Motivating the human resources to put in their best knowledge and ability to work requires nurturing and clear policies. However, usually the management fails to provide adequate quality work life.
Organizations should understand that the involvement and development they provide to their human resources will make them extra valuable, and also a powerful inducement for them to remain in the organization (Woodruffe 2006, p. 3). Evidently there is constantly the risk that employees may leave, and hence take with them the new skills. However, management needs to recognize that human resources are increasingly inclined to leave the organization if they are denied development. Finding ways for employees to want to do on working at an organization is fundamental to generating an engaged human resource. Engaging talented human resources should be of highest value since they are the people who will keep the customers completely loyal and satisfied. How to achieve itMonetary benefits are characteristically not the most important contributing aspect to employee loyalty or satisfaction. However, it plays a considerable role in realizing the same. Woodruffe, (2006, p. 4), suggests that the principal factors for employee engagement and commitment are normally non-financial. A synopsis of best practice for engaging and retaining employees stipulates that, the key is the ability to implement an all-inclusive strategy, and capability to measure and correct every component in terms of its contribution towards improved profitability (Silvestro 2001, p. 240). The five points below provide the most appropriate way in which the organization would achieve this.
Providing the employees with the feeling of executing challenging and useful tasks. Employees who that experience worthlessness or meaninglessness in their jobs are increasingly more probable to leave an organization.
Offering genuine commitment and trust to employees. Affective commitment and trust is imperative in building relationships. Human resources that sense trust from the management are increasingly liable to feel helpful and are increasingly probable to bestow loyalty to an organization.
Offering development opportunities as well as good training. Human resources that are undeveloped are increasingly probable to leave an organization.
Rewarding and recognizing. Human resources like to be recognized and valued.
Implementing strategies that encourage positive workplace relationships. Human resources that have good relationships amongst themselves as well with the management are increasingly loyal than those who do not.
Lau (2000, p.63) posits that while these are effective foundations for engaging employees, these resolutions are only a start. Realizing an engaged workface is usually not an easy charge. It necessitates the efforts and commitment of management, and a legitimate passion for their staff as well as customers (Valarie 2003, p. 90)
RecommendationsThe foundation is an obligation on behalf of management to put into practice a long-term strategy whose core focus is on its customers and staff. According to Norman and Ramirez (2000, p. 67), what is requisite is a genuine enthusiasm for both customers and staff, which is sustained by specific practices.
Figure 5. Retail Linkages
In figure 5, the interrelationships between customers, employees, and management are marked A, B and C. Conventionally organizations usually place their focus on the relationships A and B. Relationship C is normally ignored as organizations fail to identify the significance of involving and developing their staff. However, according to Lau (2000, p.75) as research has demonstrated, fostering a partnership linkage between employees and management produces momentous benefits in terms of financial growth and performance. In my opinion, experience shows that so as to be at π and realize increased growth and profits, the organization needs to compute, manage and continuously improve these interactions. There is an intelligent chain to the correct practices and events. Everything begins with diagnosis, whereby a process is designed to figure out where the organization is with a clear view in terms of where the organization needs to be. Subsequently, specific recommendations in relation to recruitment solutions, procedural and policy structures, auditing and measuring tools, service and sales models, as well as feedback mechanisms may be prepared in order to develop a comprehensive program design (Silvestro 2001, p. 251).
Planning of the process of implementation follows after the recommendations. The beliefs, vision, as well as practices of management should be appraised and realigned, to be employee and customer centric. The best performing employees are acknowledged and nominated, once a customized procedure is developed, a launching strategy is established. In order for the implementation phase to be effective, it is critical that communication is available throughout the entire process. In this regard, it is essential to understand and develop the attitude of the employees. Attitude reviews are used constantly to provide comparisons and append valuable insight (Hostage 2001, p. 90).
The s rollout strategy’s performance needs to be constantly evaluated and reviewed to detect which areas require modification and what may not be working. The management as well as the staff requires being involved in the process to identify which components of the process require improvement. According to (Woodruffe 2006, p. 9), external and internal marketing requires to be evaluated to guarantee that the two are congruent. The human resources need to be suitably recognized and awarded. To sustain this strategy the management and employees should be fully dedicated. The power of this dedication is ultimately demonstrated when the organization uses its employee linkages as a powerful public relations tool and a focal point for its executives’ contact with the media.
Figure 6. The employee-customer-profit chain
Source: Cross and Silvestro (2000, p.45).
As shown in figure 6, the organization ought to implement the service-profit chain concept and adapt it to generate a range of measures, tools, training interventions, as well as management practices that would give it an intelligent implementation approach. The parts in grey represent the areas that would be statistically computed and are utilized as the fundamental drivers of growth. The parts in white represent the areas that would be developed and evaluated by means of other forms of data capture.
Citibank ought to recognize that it requires generating a compelling workplace, prior to any of the mentioned initiatives driving service levels that generate above average profitability and growth in the industry. It is essential to mention that in order for Citibank to benefit from the people issues that impact upon its service-profit-chain, it must implement the recommendation of this paper.
ReferencesBrooks, P 2005, “Why Loyal Customers and Employees Enhance the Bottom Line”, Journal of Quality and Participation, vol. 3, no.2, pp. 41-50.
Corporate Executive Board Company, 2004, Performance and Retention through Employee Engagement, Corporate Executive Board, Melbourne.
Cross, T & Silvestro, P 2000, ‘Application of service profit chain in a retail environment”, International Journal of Service Industry Management, vol. 5, no. 3, pp. 36- 45.
Heskett, J, Sasser Jr, W & Schlesinger, L 1997, The Service Profit Chain: How Leading Companies Link Profit & Growth to Loyalty, Satisfaction & Value, Free Press, NY.
Hostage, R 2001, “Quality Control in Service Businesses”, Harvard Business Review, vol. 21, no. 4, pp. 81-90.
Lau, S 2002, ‘Performance & Quality of work life’, International Journal of Service Industry Management, vol. 11, no. 5, pp. 22-75.
Norman, F, & Ramirez, T 2000, “Designing an Interactive Strategy”, Harvard Business Review vol. 6, no. 2, pp. 61-67.
Pritchard, A & Silvestro, R 2005, ‘Applying service profit chain to analyze retail performance”, International Journal of Service Industry Management, vol. 15, no. 4, pp. 125- 134.
Silvestro, R 2001, “Applying Service Profit Chain in Retail Environments”, International Journal of Service Industry Management, vol. 6, no. 3, pp. 240-251.
Valarie, A 2003, Integrating Customer Focus, Across Organizations, McGraw-Hill, N.Y.
Woodruffe, C 2006, ‘The crucial importance of employee engagement’, Human Resource Management International Digest, vol. 14, no. 1, pp. 6-9.
MARKETING SOCIETY
MARKETING IN SOCIETY
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AbstractMarketing today is a universal human activity that has greatly permeated all facets of people’s daily lives. For-profit firms employ marketing to convince consumers to buy their offerings. Non-profit enterprises leverage marketing tools to promote their motives and purposes. Political establishments motivate and encourage the electorate to vote for their candidates using marketing tools. The collective aspect of all these examples is that marketing is imperative to all societal institutions. While marketing practices have shown themselves as crucial and valuable to modern-day society, they have received significant criticism from multiple perspectives.
Despite this criticism, marketing, practiced by countless individuals and all legal businesses, plays an indispensable role in contemporary society. Precisely, critics of marketing overlook the fact that ethical marketing provides the principal tool for creating and sustaining healthy competition, brand demand, corporate reputation, business relevance, and other aspects that render it a positive force in today’s society. In this paper, the author takes a protagonist stance in answering the question: is marketing a positive force in contemporary society? Particularly, the author adopts marketing theories and constructs to account for the positive societal aspects and effects of the marketing practice.
Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc35452058” Abstract PAGEREF _Toc35452058 h 2
HYPERLINK l “_Toc35452059” 1.0 Introduction PAGEREF _Toc35452059 h 4
HYPERLINK l “_Toc35452060” 2.0 Marketing as a Positive Force in Society PAGEREF _Toc35452060 h 4
HYPERLINK l “_Toc35452061” 2.1 Creation of New Jobs PAGEREF _Toc35452061 h 5
HYPERLINK l “_Toc35452062” 2.2. Acceleration of Economic Development PAGEREF _Toc35452062 h 6
HYPERLINK l “_Toc35452063” 2.3 Customer Information and Education PAGEREF _Toc35452063 h 6
HYPERLINK l “_Toc35452064” 2.4 Contribution to SME Development PAGEREF _Toc35452064 h 7
HYPERLINK l “_Toc35452065” 2.5 Consumer Behavior Modeling PAGEREF _Toc35452065 h 7
HYPERLINK l “_Toc35452066” 2.6 Customers’ Choice Enhancement PAGEREF _Toc35452066 h 8
HYPERLINK l “_Toc35452067” 2.7 Progressive Social Change PAGEREF _Toc35452067 h 9
HYPERLINK l “_Toc35452068” 2.8 Consumer Expectation Management PAGEREF _Toc35452068 h 9
HYPERLINK l “_Toc35452069” 2.9 National Revenue Augmentation PAGEREF _Toc35452069 h 11
HYPERLINK l “_Toc35452070” 3.0 Conclusion PAGEREF _Toc35452070 h 11
HYPERLINK l “_Toc35452071” Reference List PAGEREF _Toc35452071 h 13
1.0 IntroductionIrrespective of the forms it takes, marketing encompasses the actions and processes by which organizations promote themselves and their offerings by communicating with relevant audiences. The concept of marketing includes communication channels, tools, and tactics such as advertising, digital and social media, public relations, and others used to reach target audiences with the intended brand messages (Fill 2006; Jain and Yadav 2017). Marketing practices have been in existence for decades and have continued to evolve to respond to changing socio-economic and socio-political conditions.
Following this evolution, mixed perceptions and arguments have emerged regarding the social effects of marketing. Some scholars have criticized marketing arguing that it ignores the primary intent of sensing, serving, and satisfying the needs of consumers and enhancing the quality of their lives (Gandhi 2017). The principal premise of critics’ arguments is that the marketing function advocates high-pressure selling and materialisms, harms consumers via prices, encourages deceptive pricing practices, promotes substandard and unsafe products, limits the social good, supports planned obsolescence, causes cultural pollution, and drives poor services to disadvantaged consumers (Kaur 2018; Kotler et al. 2014; Rome Business School 2013).
However, these critics forget that only unethical marketing practices cause these problems in society. What this means is that ethical marketing practices culminate in helpful effects on individuals, businesses, and non-business institutions, making it a positive force in contemporary society. Such positive effects include job creation, economic development spurt, enhanced customer choices, constructive social change, consumer behavior modeling, and customer education, among others. The current individual assessment paper focuses on providing detailed accounts of these and other positive effects that illuminate marketing as a positive force in contemporary society.
2.0 Marketing as a Positive Force in SocietyThe correct understanding of the positive effects of the marketing concept is central to studying modern marketing as a positive force in contemporary society. Ethical marketing has a broad gamut of beneficial effects on today’s society, which include the following:
2.1 Creation of New JobsMarketing in modern society increases employment opportunities. Wilkie and Moore (2012) suggest that marketing is a system in which employment and other processes such as capital investment, planning, production, financing, risk-taking, and others occur. These processes occur with the expectations that transactional exchanges involving them will continue to happen to fuel the continuing operations of this system. So, marketing or the marketing industry itself creates direct and indirect employment and new job opportunities as organizations seek new and innovative ways of promoting themselves and their offerings. These direct and indirect jobs and employment opportunities empower the society with assured income (Anbumani 2007). Also, the creation of new jobs improves the quality of life and the living standards of the people in society as they have access to new sources of household income. An example here is the marketing of dairy products. This will culminate in an increased demand for these products, which will necessitate more hiring in dairy plants, hence creating new jobs. Also, it will encourage more breeding of milk animals and more milk production, which would directly induce employment in dairy farms.
Majumder (2008) affirmatively contends that marketing comprises of activities such as advertising, distributions, sales, branding, and others that create a climate for more services and additional production. These additional activities emanating from marketing developments automatically generate a need for more people to work in various marketing areas. This way, new employment and job opportunities are generated to benefit society. Furthermore, effective marketing operations require the input, services, and multidisciplinary collaboration of enterprises in different sectors and industries such as transportation, warehousing, insurance, finance, retail facilities, communication, and training and technical institutions. All these services require more manpower, which is derived from society, thereby creating employment while augmenting avenues of new employment. So, marketing is a multifaceted mechanism of activities that involve numerous functions and sub-functions that necessitates the collaborative functioning of different specialized and unspecialized personnel, creating employment in these areas. By estimate, 30-40% of the total population of a country engages in marketing activities either directly or indirectly (Pachori 2019).
2.2. Acceleration of Economic DevelopmentEthical marketing also impacts society positively by accelerating economic development. Several researchers have indicated that marketing drives economic growth and development. For instance, Kotler et al. (2014) stress that marketing is central to economic development because it stimulates demand and consumption. In another study, Sheth and Sisodia (2005) concluded that when marketing is practiced with control and wisdom, it stimulates economic growth while aligning corporate activities with customers’ needs in mutually beneficial ways. Further, Gandhi (2017) argues that marketing enhances economic efficiency and economic performance, which are factor prerequisites of economic advancement. In a different research effort, Jocz and Quelch (2008) associated marketing with augmented consumer sovereignty and democracy, which are essential elements underlying economic growth.
The clear consensus amongst these researchers is that successful and ethical marketing practices propel economic development to the society’s benefit. This is by driving a customer economy characterized by job creation, growing demand and consumption, augmented tax revenues for the government, sectorial expansion, and wealth creation, all culminating in economic growth. Marketing also bridges the gap between producers and consumers (Jocz and Quelch 2008; Kotler et al. 2014). This means that it serves as the link between two essential wheels of an economy: production and consumption (Sherlekar, Prasad, and Victor 2010). By linking and balancing these two wheels, marketing stabilizes employment and prices while ensuring steady economic conditions. This ensures a stable and robust economy that benefits the entire society. Using an example, the marketing of cellphones increases the production and global consumption of cellphones. Consequently, this creates new employment, generates government revenues, and expands the telecommunications sector, leading to further economic growth and expansion.
2.3 Customer Information and Education
Marketing also influences the society positively by informing and educating consumers, a fact that Fill (2006) confirms. Essentially, marketing is the effective connection between businesses and society that educates people, eliminates barriers to knowledge, and provides information that cultivates values and characters in their minds. This does not only lure them towards buying whatever is being offered to them but also maximizes their satisfaction, producing a better community of consumers. Anbumani (2007) agrees with this assertion by suggesting that through aggressive marketing, businesses get consumers to participate in business operations, which augments the feeling of patronage and corporate citizenship. This benefits both businesses and society.
Besides augmenting consumer satisfaction and engagement, marketing also provides practical customer education and information that can assist in guiding consumers in making smart purchasing decisions, get updates about brand offerings, and knowing the value of products and their usage (Heath and Chatzidakis 2012; Kaur 2018). This form of brand awareness does not only boost a firm’s competitive edge and reputation through amplified brand prominence but also stimulates more and more consumer engagement with the organization as marketing keeps the conversation going. Consequently, this gives customers a sense of belonging which increases their satisfaction by adding value to their lives to the betterment of society. Lastly, ethical marketing observes consumers’ right to be well-informed and educated as per customer protection legislation. This assures them of the quality expectations, approved prices, and their safety upon consumption of particular products (Gandhi 2017; Kotler et al. 2014). Such customer education and information add value to their lives and society overall.
2.4 Contribution to SME Development
In contemporary society, marketing is the mainstay of boosting the popularity of small- and medium-sized enterprises, which are an essential source of livelihood for the society, hence their development. According to Mokgoatlheng (2013) and Walsh and Lipinski (2009), marketing supports the ability of owners of SMEs to think strategically towards fueling the success of their businesses. Also, marketing activities and strategies augment the business performance of SMEs by ensuring that microenterprises obtained optimum performance that ought to be identified, advanced, and implemented in a planned way (Mokgoatlheng 2013). Furthermore, marketing, coupled with strategic positioning, and an entrepreneurial focus, enables SMEs to attain and maintain a competitive advantage that is key to their growth and survival amidst large competitors (Walsh and Lipinski 2009). The success and thriving of SMEs enhance the well-being and quality of life of people in these businesses, which essentially contributes positively to contemporary society.
2.5 Consumer Behavior Modeling
Proper and ethical marketing contributes positively to modern society by allowing for consumer behavior modeling. Jocz and Quelch (2008) concur with this point by stating that marketing that prioritizes consumer interests play a vital role in shaping and changing consumer behavior. Consumer behavior entails understating marketing stimuli (the economic, cultural, political, and technological force and events) that work within the consumer’s environment to influence observable buyer responses (Kotler et al. 2014). Marketing involves working towards comprehending customer behaviors to produce promotional messages that influence this behavior.
Such understanding provides the basic framework for economic analysts and researchers to model consumer behaviors. Specifically, these analysts and researchers use marketing data and how it correlates with consumer behaviors to discover what guides consumer purchasing decisions. This way, they learn ways of crafting awareness campaigns regarding major social and public issues affecting society. Also, modeling consumer behavior provides a paradigm for comprehending consumers’ loyalty, wellbeing, interpersonal relationships, and other brand-related measures of consumer satisfaction (Appel et al 2020). This way, marketing contributes positively to contemporary society
2.6 Customers’ Choice EnhancementAnother way in which marketing influences society positively, hence being a positive force, is by allowing for the enhancement of customer choices. Besides educating consumers, aiding the modeling of their behaviors, and offering practical information relating to brand offerings, ethical and sustainable marketing assists in facilitating the choices made by customers (Kotler et al. 2014). According to Sahin, Zehir, and Kitapçı (2011), consumers are inclined to relying on trusted brands, along with the consistency emanating from brand loyalty. Also, they use the information generated by consumer advocacy groups as the basis for learning the most reliable brands that offer the premium value for them to choose. With this knowledge, businesses leverage the power of marketing to raise customers’ awareness regarding major market changes that influence offerings and their quality. Ethical marketing provides this type of information in a way that abides by government regulations that bar marketers from providing misleading and false information (Kotler et al. 2014; Nuseir 2018; Wilkie and Moore 2012). Consequently, customers end up making informed decisions and choices without being exposed to many risks that they would otherwise encounter if they engaged in purchasing without benefits of the marketing function. This way, marketing enriches customer choices and purchasing decisions, making contemporary society better.
2.7 Progressive Social ChangeMarketing is an agent of social change that makes society a better place. Scheyban (2015) attests to this fact by stating that marketing paints a particular picture of society, thereby shaping how people see and understand things, think, act, view themselves, and also what they aspire. Biehl-Missal and Saren (2012) agree with this fact by acknowledging that marketing systems play a role in enhancing both cultural and social change. Heath and Chatzidakis (2012) and Kotler et al. (2014) echo the same belief by suggesting that transformative marketing inspires positive social change that enriches or expands consumer well-being. So, ethical marketing can be pivotal in unlocking positive social change. This statement means that while marketing itself does not change social behavior that causes social change, it provides a set of instruments and practices for influencing behavioral change that culminates in social change, thereby serving as an imperative agent of positive social change (Andreasen 2002; Lauri 2015).
Critics would argue that marketing can bring negative social change by promoting unhealthy behaviors. For instance, marketing of tobacco, alcohol, and unhealthy food products can hurt children by augmenting smoking, drinking, and obesity respectively as Scheyban (2015) submits. With such claims, they forget that marketing that translates to such outcomes is unethical, deceptive, and improper. So, ethical, appropriate, and truthful marketing characterized by positive messages is an imperative agent of positive social change because it creates an environment in which inclusions of societal portrayal are reflected towards benefiting both the society and the firm’s bottom line. Such an environment encourages the overlap between ‘for-profit’ and ‘for the good’, and such an overlap is an integrated framework that helps to unlock the powerful engines for positive social change (Scheyban 2015). Also, ethical, correct, and honest marketing stimulates positive social change that brings sustainability to markets while ensuring marketing ethics, effective social marketing, and marketplace initiative (Wilkie and Moore 2012). Furthermore, such marketing empowers groups in society by giving a voice to the marginalized people outside the mainstream system, hence achieving even greater social change.
2.8 Consumer Expectation ManagementAngelova and Zekiri (2011) acknowledge that marketing should principally be grounded on customer expectations. This implies that marketing is all about communicating or conveying messages about the qualities of service or product offerings that attract the targeted audience. Customer expectations are the wants and needs of the target audiences that are attracted to buy product or service offerings through the marketing function. These expectations reflect an understanding of customer service on the marketers’ side and typical actions valued as imperative on the consumers’ side as they interact with organizations. What this means is that customer expectations draw a clear picture of what constitutes consumer satisfaction and customer loyalty of the targeted audience (Khadka and Maharjan 2017).
Thus, ethical and sustainable marketing offers the platform for setting and managing customers’ expectations as Kotler et al. (2014) and Majumder (2008) submit. Such marketing achieves this in three ways. Firstly, marketing enables the corporation to customize and personalize its offerings in a way that reflects an understanding of consumers’ usage of these offerings towards meeting their needs and wants (Appel et al 2020; Kotler et al. 2014; Mokgoatlheng 2013). This allows the marketers to refine their engagement with the consumers relative to their past shopping experiences, thereby making them feel more cared for and understood. A good example of a company that has succeeded in tailoring and personalizing its offerings to meet customer expectations is Amazon. It does so by offering and recommending extra features after customers make purchases, and this is for customers who have shopped at Amazon earlier (Chaffey 2018; MerchantWords, Inc. 2018). This meets one of the most significant consumer expectations: the desire to be treated rightfully as individual human beings, not as a part of homogenous groups.
Secondly, ethical and appropriate marketing enhances customer service by adopting customer service approaches and techniques such as convenience, reliability, marketing ethics, efficiency, and competency (Appel et al 2020; Kaur 2018; Kotler et al. 2014). This facilitates a pleasant and harmonious purchasing experience that meets customer service expectations. Met service expectations help in building immediate consumer goodwill and augmenting customer loyalty (Angelova and Zekiri 2011), leading to greater customer satisfaction. Thirdly, marketing provides the channel for communicating their offerings’ differentiation to customers. An important customer expectation in the digital era relates to how organizations differentiate their offerings to make them unique, innovative, and trendy. Marketing fulfills this expectation by informing consumers how particular offerings are differentiated for uniqueness and trendiness and the technological breakthroughs underlying the offerings’ innovativeness. By meeting and managing these and other consumer expectations, marketing augments value for consumers and enhances their satisfaction, which is an indication of the beneficial impacts of marketing on contemporary society.
2.9 National Revenue Augmentation
Marketing is also an influential, positive force in modern-day society because it increases national revenue collected in each independent economy. Kotler et al. (2014) subscribe to this point by stating that effectively conducted marketing and a properly developed marketing mix culminate in worthwhile and adequate relationship marketing in which relationship revenues exceed relationship costs. National revenue refers to the sum of services and goods a country possesses. Marketing contributes to this revenue in four ways. The first is that the net effect of all marketing activities and effort is an increase in production in different sectors and industries. This creates new investment options and the provision of more offerings. Secondly, marketing techniques create demand for existing and new offerings, which culminates in an increase in production and wealth. Thirdly, marketing attracts new consumers, which augments revenue options available for companies that eventually increase national income through revenue taxation. Lastly, marketing enhances brand value, which generates revenues through increased brand generation (Ökten et al. 2019).
The increase in production and wealth courtesy of marketing makes a nation richer, augmenting national income, which leads to a rise in per capita income. The increase in and growth of national income benefits society in several ways. For example, national revenues are what the government use for spending on infrastructure development, healthcare provision, and financing other economic development stimuli. Sirgy et al. (2012) concur with this observation by acknowledging that tax revenues emanating from marketing are used in providing efficient public services that eventually contribute positively to the nation’s overall quality of life and peopled long-term well-being. From this perspective, marketing is a valuable technique that accelerates the development process and stimulates economic activity that augments national income. This income is used in bettering life’s quality and wellbeing, hence influencing the society positively to depict marketing as a positive force in contemporary society.
3.0 ConclusionThe discussion in this individual assessment paper has highlighted nine items that help in the broader comprehension of marketing as a positive force in present-day society. Specifically, it has established that marketing influences society positively by creating new jobs, spurring economic development, enhancing customer choices, and enabling the modeling of consumer behavior. Marketing also provides customer education and information, facilitates the management of customer expectations, contributes to SME Development, augments national revenue, and serves as an agent of positive social change. These nine positive effects are associated with a broad range of beneficial outcomes for society, providing sufficient and evidence-centered proof that marketing is a positive force in today’s society. Even so, these positive effects are only realized when marketing is conducted appropriately, ethically, and truthfully. Otherwise, the outcomes would portray marketing as a negative force in contemporary society.
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Angelova, B, and Zekiri, J 2011, ‘Measuring customer satisfaction with service quality using American Customer Satisfaction Model (ACSI Model),’ International journal of academic research in business and social sciences, vol. 1, no. 3, pp. 232-258.
Appel, G, Grewal, L, Hadi, R and Stephen, AT 2020, ‘The future of social media in marketing,’ Journal of the Academy of Marketing Science, vol. 48, no. 1, pp. 79-95, Doi: https://doi.org/10.1007/s11747-019-00695-1.
Biehl-Missal, B and Saren, M 2012, ‘Atmospheres of seduction: A critique of aesthetic marketing practices,’ Journal of Macromarketing, vol. 32, no. 2, pp.168-180, Doi: 10.1177/0276146711433650.
Chaffey, D August 14, 2018, Amazon.com case study – 2018 update, Smart Insight (Marketing Intelligence) Limited, viewed March 18, 2020 <https://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/>.
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MIS603 MICROSERVICES ARCHITECTURE ASSESMENT
MIS603 MICROSERVICES ARCHITECTURE ASSESMENT
By Name
Course
Instructor
Institution
MIS603 Microservices Architecture Assessment
Introduction
Microservices currently form the backbone of many enterprises across the globe. Without this technology, several revolutionary ideas and businesses would not have come to fruition. Having worked for 15 years as a certified solutions architect, my roles have included many microservice architect project design, development and maintenance processes. As information systems professional, part of my role over these years have included but not limited to designing available, cost-efficient, fault-tolerant and sustainably scalable microservice architecture systems. Over the years, I have effectively demonstrated knowledge and competencies on how to architect and deploy secure and robust applications. I have defined several solutions through architectural design principles centered on organization needs visa to vie their respective customer needs and expectations. I have provided many implementation guidance structures and protocols that outline best practices to all the organizations I have served as clients and this support service has been consistently encouraged throughout the life cycle of the project.
I have accumulated extensive knowledge, skills, and expertise in a microservices architecture. My abilities and achievements extend from using computers, networking, storage and database development, and management services. Also, with the understanding that microservices architecture is broad and complex, I have been able to put forward many protocols that help organizations to identify and define technical requirements for any microservice architecture-based application. The protocols enable organizations to design applications that meet specific technical needs and requirements based on the architectural principles of building cloud-based solutions. Microservices architecture is a global concept and thus an understanding of the Microservices architecture global infrastructure also comes in hand when defining problems and finding solutions to the problems. As interesting as all these sounds, Microservices architecture is a concept that has evolved through the years with increasing improvements in the frameworks and operation methodologies. This evolution has been closely tied to the evolution of computing and computers, part of which I have had a lot to say and do over the years.
The History of Software Development
The advancements seen the contemporary society including the dawn of the informational age, are directly attributable to the invention and evolution of software. Simply put, the software is a programmed instruction that is stored in the computers for execution by the processor. This technology was not availed to humanity until the 19th Century era where scholars like Charles Babbage and Allan Turing. Charles Babbage came up with the Analytical engine but had challenges developing the computer because his theory on the discipline had proved insufficient at the time. The breakthrough came when Allan Turing came up with a theory for what we now call software.
Turing’s ideas lead to the development and advancement of the two facets of technology; Computer science and software engineering, which are both, concerned with the study of software and its development. At the time Babbage had proposed the analytical engine that was to become a mechanical digital computer. The proposed concept described the analytical engine as a machine that has a memory store and a central processing unit. The analytical engine was to selectively perform functions based on the control assistance done by a program of instructions contained in punched cards connected with ribbons ((Bromley, 1998, Gobbo & Benini, 2013).
The modern computer and the present-day information systems significantly vary from the previous generations in several ways, including design, structure, functionality, and use. For example, Babbage’s analytical engine was aimed at processing numerical values and assisting with mathematical computations. This was a very limited functionality until Adda Lovelace came up with the modern programing language ADA. Beck then when Babbage worked on creating the Analytical engine, worked closely with Lovelace who foresaw the possibility of having a machine that could execute limitless functions including none numeric computations like musical composition rather than just performing mathematical calculations alone.
Unlike the present-day computers running sophisticated programs with highly efficient software, the earliest computers were analog. They required a mechanical operator who would be setting up the machine components and feeding in instructions for computational analysis. The most advanced computing technology at the time was Vannevar Bush’s differential analyzer. The analyzer was the first large-scale automatic general-purpose mechanical analog computer (Bush, 1931). The breakthrough came with Turing’s principle of the modern computer. Turing’s proposal envisioned a computer that has a limitless memory with a scanner moving back and forth, analyzing what it is given and writing further symbols and instructions that are stored in the memory in the form of symbols. This was a machine having the capabilities of operating on and modifying its program for optimum functional efficiency.
In 1994, the first fully digital computer called Colossus was availed. The Colossus was used successfully to decipher German radio communications. The first fully functioning electronic digital computer in the US was ENIAC. ENIAC was an advancement of Colossus and was more functionally flexible. Fast forward to the present day, we now have mainframe-computing machines capable of automated transaction processing. It is imperative to point out that the evolution of computers is tied to the evolution of software development and programming. The two work in a symbiotic fashion whereby as more and sophisticated modern computers were invented, the need for equally sophisticated and efficient software programs was needed to make these computers functional and operational. The modern computers operate via modern microservices architecture design systems and programs that enable the computer to perform multiple functions such as financial computations, word processing, database management, contact linking, emailing, music composition, music sharing, video creation, editing, and sharing, among other numerous functionalities.
Software architecture
Software architecture can be described as the major functional components of a software system and the process of developing and maintaining such software structures or systems. Software is comprised of several components including the software elements, the functional relationships between the components and the corresponding properties of each element concerning how they contribute towards the functioning of the whole software. To understand software architecture, one can consider looking at architecture in the general sense of building design and construction. As an analogy, abuilding architecture is a design blueprint that outlines all the components of the building and how each component is supposed to take like and function. Several people each with certain skills and expertise often work on the architecture.
Similarly, software architecture is just like building architecture. A collective of software engineers and computer scientists develops it by performing a need-based analysis of the problem at hand and come up with software architecture that would best suit and solve the problem, efficiently, cost-effectively and reliably. According to Subramanian, (2010), software architecture involves making many structural design choices. Some of these choices are always permanent and cannot be changed easily. The software architecture choices are informed by several factors including resource availability, the problem to be solved, the need for efficiency and sustainability, the preexisting software architectures, among other factors. To understand software architecture, let us consider Amazon Inc. as an example.
Amazon is among the top multinational corporations operating in almost all countries across the globe. The company operates an online E-commerce platform that collects and distributes goods to people. The company has a web-based platform and mobile application versions that offer the service functionality. To sell or order goods, one must register in the system. Part of the software architecture thus needed functionality for registration and database management that will accept and keep records of both the sellers and the buyers. To place an order, a customer would want to search for it and thus this informs another architectural choice. Also, once a customer has placed orders, he or she will need to pay. The platform is designed to automatically compute the value totals for all the selected items and then automatically ad shipping fees and other related charges necessary before the customer pays, meaning there has to be an infrastructure for facilitating accepting and processing money transfer.
Additionally, after an order is placed, the seller is notified about the sale Amazon accepts credit cards, PayPal and other money transfer technologies. These have been made possible as a result of a deliberate software architecture design choices concerning the prevailing needs and conditions of the business. These are but a few aspects of Amazon’s software architecture. The whole concept is an illustration of how the fundamental structural choices are made. All in all, part of the software architecture process involves the determination of the link and the functionality relationship and mechanisms between all the design choices so that the software functions efficiently and reliably as a whole.
Framework for Software architecture
While architecture is the abstract design concept of the software or a description of how the moving parts of the software are connected, the software architecture framework is the pre-built general or special purpose architecture that is usually designed to be extended. The framework, therefore, becomes the architecture of a foundation for software. For example, some frameworks deal with either augmenting or scaffolding. When it comes to scaffolding, the framework provides a prebuilt module that can be used or extended repeatedly without having to start from scratch every time. An example of a scaffolding framework would be the likes of Django, Pylons, and Codeigniter.
These elements make software implementation, and database connection processes simplistic and efficient. Frameworks dealing with augmenting on the other hand help in filling in missing pieces like a feature that originates from other languages among other extension functionalities. An example of an augmenting framework would be the Underscore Lib, which functions to extend the core functionality of JavaScript. The other augmenting frameworks include JQuery that helps with the process of querying the HTML DOM. JQuery has also created an avenue for adding and writing cross-browser compatible AJAX requests. A software framework thus exists to either augment or scaffold within the software architecture and deployment processes.
Importance of having the Software architecture
Software architecture as described earlier is like the plan that outlines all the aspects and decisions makes up software. It takes into consideration all the possible choices based on the requirements such as efficiency, reliability, performance, and security among other vital components. It identifies all the components of the systems and how each component relates and communicates with the others towards desired task completion. Having good software architecture is important in any contemporary business because it will form the basis for communication, ease decision-making and make the model reusable and easily transferable when there is a need (Orlov & Vishnyakov, 2017). The software architecture forms the basis of communication between all involved stakeholders in the enterprise including the management, the user-side, and the customers among others. Because some components of the business model cannot be changed once the decision is made, having software architecture will inform what the first decision should be made at the initial business development stages. Also, having software architecture makes it possible to reuse the code, transfer the model or readjust components easily without having to start from scratch, which can be very costly for an organization in the long term. Businesses that intend to keep up with the changing technological dynamics in the global economic sphere must, therefore, have good software architecture. For example, a decade ago, there was nothing like the blockchain technology, which is now becoming a common security feature application adopted by most companies. Incorporating such new technologies into the preexisting model is made possible through software architecture. Developers can reuse the code to incorporate the new technological additions rather than having to build a new system from scratch.
The main types of Software Architecture
Presently there are about six main software architecture variants. These include monolithic, Client-server, layering and stack, service-oriented architecture, software as a service and microservices architecture. Monolithic architecture, for example, is software that combines all the functions into one single file to make a tightly packaged application. Client-server architecture, on the other hand, is a software design that separates all the components into either the client or server component. Also, layering and stack architecture is one that facilitates the movement of data across networks. It is also important to point out that choosing between any of these software architecture variants means accepting both the advantages and the disadvantages that come with every one of them.
Conclusion
Software development and business development have become vital components that form the backbone of every global business. As the world adopted computer technology and Internet-based business modeling, the needs for revolutionary software architecture continue to rise. Having the understanding of the intricate details and the relationship between the two gives one an advantage and a strategic opportunity to try and predict the next technological frontier in software design and development and how that advancement will contribute towards streamlining business operations and reliability across the globe just as has been witnessed so far over the years since the invention of the first computer and software concept.
References
Bromley, A, 1998, Charles Babbage’s analytical engine, 1838, IEEE Annals of the History of Computing, 20(4), pp.29-45.
Bush, V, 1931, The differential analyzer. A new machine for solving differential equations, Journal of the Franklin Institute, 212(4), pp.447-488.
Gobbo, F, & Benini, M, 2013, From ancient to modern computing: A History of information hiding, IEEE Annals of the History of Computing, 35(3), pp.33-39.
Orlov, S, and Vishnyakov, A, 2017, Decision making for the software architecture structure based on the criteria importance theory, Procedia Computer Science, 104, pp.27-34.
Subramanian, N, 2010, Software architecture interference – an important non-functional requirement for software ecosystems, International Journal of Software Architecture, 1(1), pp.15-16.
