Free Marketing Dissertations - Work By Kotler (2000) Suggests An Adaptation To The Marketing Mix Termed Mega
Work by Kotler (2000) suggests an adaptation to the marketing mix termed mega marketing as a strategy to enter blocked markets where discriminatory legal requirements, political favouritism, and cartel agreements, social or cultural bias and unfriendly distribution channels exist. The model suggests an adversarial win-lose relationship rather than lean supply collaborative relationships in the value chain that recognise longer term interdependence. Cox (2004) argues that that win-lose relationships occur because buyers and suppliers misread circumstances and pursue inappropriate power and leverage strategies that reinforce an adversarial style. This may be especially true in a foreign marketing environment.
Mega marketing is defined as the strategic co-ordination of economic, psychological, political and public relations skills to gain the co-operation of a number of parties in order to enter or operate in a given market. (Kotler, 1986, p117) By implication therefore, power and public relations are two extra P’s added to McCarthy’s 4P marketing mix concept. Kotler argues that the traditional marketer’s use of accepted theory is in itself an impediment to successful penetration of a blocked market and that it is not only penetration, but the retention of any market share by innovative methods that will ensure a sustainable competitive advantage for the firm. (Kotler, 1986 and Kotler, 2000)
The use of power in this context is seen as a push strategy whereas public relations, is a pull strategy. Influencing public opinion has a longer lead time but its effectiveness in influencing the mindset of the constituency of the creator of the barriers to entry ensures a longer term success in the market. For example, firms may identify areas that will be positively affected by corporate social responsibility initiatives thus cultivating goodwill as part of a public relations initiative. (Zadek, 2001)
The application of mega marketing principles differs further from traditional marketing in terms of higher investment costs, a mix of specialists to support the marketer and the use of power to achieve the firm’s objectives. The notion of inducement or reward as a means to achieve an end is common practice in a marketing environment. The use of coercive, legitimate, expert or referent power in order to influence on behalf of rather than over individual or grouping in order to achieve an end is less common. The use of coercion in an adversarial arms length hostile fashion to cause harm raises ethical issues, especially important in a world where good corporate governance is a critical success factor.
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