Marketing is an immensely broad term that encompasses any facet of a business where the customer's needs and wants are anticipated, researched and strived toward; for example sales, PR, e-commerce, customer support, points of sale and so on.Marketing can have a profound impact on how a company behaves, including how they set their prices, who their promotional efforts are aimed at and where they intend to base themselves in the future.
Considering how much of an impact large companies have on our day to day lives, coupled with an ever-growing consumer conscience, news pertaining to the marketing side of businesses – especially larger organisations – ought to be followed, attentively; and to point out just how imperative and eye-opening keeping in touch with business news actually is, here are three marketing stories that have occurred within the last two days, which are sure to have far reaching consequences and after effects.
On the 21st, Tesco announced that Philip Clarke, who joined the company in 1974 and became the Chief Executive Officer 3 years ago, is stepping down as a result of Tesco's poor performance in recent months. From October 1st onwards Dave Lewis, a former marketeer from Unilever will be taking the reigns, in a bid to improve Tesco's performance and take it in something of a new direction.
This kind of news ought to be welcomed by those who claim that big businesses are soulless entities that do not listen to their customers or care about their needs and opinions; as if this were true they would not be making such drastic managerial changes, and putting a successful marketeer, who is by definition customer-centric, as head of the company.
The BBC have announced that they have been carrying out budget cuts across the organisation, including the withdrawal of £6 million pounds from what they call 'talent' costs; which used to go toward the salaries of well known TV presenters and the like. On top of this, the salary of the director general has been reduced from £613,000 to £450,000 per year, which is a decrease of around 25%.
The BBC is a public funded company (in so far as the TV Licensing fees the public pay annually goes toward their funding) so how they spend their money ought to be of great concern to a lot of people. This cut back is indicative of an error being corrected in the BBC, with funds being redirected away from over-inflated salaries and put toward increased production value, essentially giving viewers more enjoyment, a wider range of shows and better, all-round value-for-money.
Publicis Groupe has announced that its UK Revenue has declined this past quarter due to the decline of the retail sector and Blackberry's market shift in the UK; not to mention the reluctance to invest from “certain clients”. This kind of news may not seem overly important to many but it shows how we as consumers have a very real impact on the future of big organisations.
Taking Blackberry as an example, the company has chosen to focus more on the business to business market, rather than consumer communications, which is undoubtedly because as consumers we lost faith in them due to their inability to effectively contend with companies such as Samsung and Apple; who were producing more desirable products. Though Blackberry eventually started producing similar phones and tablets, they were unable to recover from this loss of consumer confidence, resulting in a tactical paradigm shift and a refocusing of their efforts in to a market where they do not have to regain lost confidence whilst battling two giants who all but monopolise the market.