Contemporary

Issues in
Marketing
Management
Diploma in Management Studies
Lesson 4 KM and Non Traditional
Marketing

Knowledge, Information &

Data
Knowledge

The fact or state of knowing; the perception of fact or

truth; clear and certain mental apprehension.
dictionary.com

Information

Knowledge communicated or received concerning a

particular fact or circumstance;
Knowledge gained through study, communication,
research, instruction, etc.;
The act or fact of informing.
Dictionary.com

Knowledge

Individual facts, statistics, or items of information.

dictionary.com

Knowledge, Information &

Data
Knowledge

General: Human faculty resulting from interpreted information;

understanding that germinates from combination of data,
information, experience, and individual interpretation.
http://www.businessdictionary.com

Information

Data that (1) has been verified to be accurate and timely, (2) is
specific and organized for a purpose, (3) is presented within a
context that gives it meaning and relevance, and (4) that can
lead to an increase in understanding and decrease in
uncertainty.
http://www.businessdictionary.com

Data

Information in raw or unorganized form (such as alphabets,

numbers, or symbols) that refer to, or represent, conditions,
ideas, or objects.
http://www.businessdictionary.com

Knowledge, Information &

Data

Competitive Advantage

Knowledge can be divided into

Explicit and Implicit knowledge

Data

Knowledge Management
A discipline that promotes an integrated approach to
identifying, managing and sharing all of an enterprise's
information assets. These information assets may
include databases, documents, policies and procedures,
as well as previously unarticulated expertise and
experience resident in individual workers."
(Gartner Group Inc, October 1996)

"Knowledge management is the explicit and systematic

management of vital knowledge and its associated
processes of creating, gathering, organising, diffusion,
use and exploitation. It requires turning personal
knowledge into corporate knowledge that can be widely
shared throughout an organisation and appropriately
applied."
(Skyrme, D. 1997)

ICT & Knowledge

Management
ICT is used to support Knowledge management

Knowledge databases and repositories (explicit knowledge)

- storing information and documents that can be shared and reused, for example, client presentations, competitor intelligence,
customer data, marketing materials, meeting minutes, policy
documents, price lists, product specifications, project proposals,
research reports, training packs;

Knowledge routemaps and directories (tacit and explicit

knowledge) - pointing to people, document collections and
datasets that can be consulted, for example, 'yellow pages'/'expert
locators' containing CVs, competency profiles, research interests;

Knowledge networks and discussions (tacit knowledge) providing opportunities for face-to-face contacts and electronic
interaction, for example, establishing chat facilities/'talk rooms',
fostering learning groups and holding 'best practice' sessions.

Non Traditional
Marketing

Non Traditional Marketing

This is about marketing in the publicsector (essentially a non-profitmaking sector. There are many nonprofit making organisations and
many ranging from large
corporations carrying out public
services (i.e. municipal councils) to
charitable institutions and other
bodies of various sizes and purposes.

Not For Profit Organisations

Example Not-For-Profit Organisations

Not For Profit Organisations

Who are they marketing to?

Stakeholders
Stakeholders are those individuals or groups who
depend on an organisation to fulfil their own goals and
on whom, in turn, the organisation depends.

Not For Profit Marketing can be defined as:

Marketing is the management process
responsible for identifying, anticipating and
satisfying stakeholder requirements and in so
doing serves to facilitate the achievement of the
organisations objectives.

Identifying NFP
Stakeholders
Who are the Stakeholders of a NFP
organisation?

There is not a generic list of stakeholder interests.

Each case has to be taken on its merits but one
may make some generalisations about what may
be pertinent to specific settings.
Stakeholders often include
Customers
Employees
Management
Stockholders
Creditors
Suppliers
Community
Competitors.

Identifying NFP Stakeholders

Stakeholders can be identified in:

Formal structures e.g. shareholders,

suppliers, employees etc.
Informal stakeholder groups e.g. an
alliance between marketing and
production over product lines.
Stakeholders could also be long to more
than one group

Stakeholder influence
Stakeholders use power as the main mechanism for
influencing the organisation
Stakeholders have different perceptions regarding the
significance of their own stake, how management
values their stake, and with respect the power of
influence they have with management.
Powerful stakeholders possessing legitimate claims
might expect preference to be shown to their opinions
and wishes (Starik, 1994).
Stakeholders can be active or passive, arise as a result
of specific events and can transcend formal structures.

Stakeholder Mapping
Stakeholder mapping identifies stakeholder
expectations and power and helps in
understanding political priorities
Assessing the importance of stakeholder
expectations is an important part of any
strategic analysis. Three key issues need to
be answered.

How likely is each stakeholder group to impress its

expectations on the company?
Whether they have the means to do so. This is
concerned with the power of stakeholder groups.
The likely impact of stakeholder expectations on
future strategies.

Stakeholder Mapping
Power / dynamism matrix.
This assesses where the political efforts
should be channelled during the development
of new strategies.
PREDICTABILITY
High

Low

A
Few
Problems

B
Unpredictable
but
manageable

C
Powerful but
Predictable

D
Greatest
danger
or opportunities

POWER
High

Low

Stakeholder Mapping
Power / interest matrix.
Classifies stakeholders in relation to the power
they hold and the extent to which they are
likely to show an interest in the organisations
strategies.
LEVEL OF INTEREST

High

Low
POWER
High

Low

A
Minimal
Effort

B
Keep
Informed

C
Keep
Satisfied

D
Key
Players

Stakeholder Mapping Issues

Determining purpose and strategy whose
expectations need to be prioritised?
Do the actual levels of interest and power reflect
the corporate governance framework?
Who are the key blockers and facilitators of
strategy?
Is it desirable to try to reposition certain
stakeholders?
Can the level of interest or power of key
stakeholders be maintained?
Will stakeholder positions shift according to the
issue/strategy being considered.

NFP Marketing Issues

First, marketisation, which shifts public-sector
activities to commercial marketing in the private
sector by subjecting products and services to the
competitive forces of the commercial marketplace.
Second, organisations may primarily use marketing
for promoting their self-interest such as making a
living or securing a future.
Third, may be helpful in promoting the area under
the responsibility of the public organisation, such
as city marketing.
Finally, application of marketing instruments for the
key political objective.

NFP Constraints
The public sector is constrained in terms
of the services it is obliged to provide and
hence may be unable to implement a
customer-led approach even if this is
desired.
Constraints may include:

legislative restrictions,
political philosophies,
lack of physical resources,
lack of financial resources.

Nature of Marketing in NFP

Service-based organisations are
essentially concerned with managing
relations because they manage the
total buyer-seller interaction
process.

Exercise
Choose a Not For Profit organisation

Identify its stakeholders

Analyse the organisations relationship
with its stakeholders