RELATIONSHIP BETWEEN HOLISTIC MARKETING AND BRAND EQUITY

by
PINKY TALREJA

A thesis
submitted in partial fulfillment of the requirements
for the degree of Master of Business Administration
to Office of Research, Innovation & Commercialization
(formerly IQRA University Research Centre - IURC)
At Iqra University
main campus, Karachi

Karachi, Pakistan
DECEMBER, 2016
 Relationship between holistic marketing & Brand Equity 1

Chapter 2: Literature Review

The companies strive hard to grab larger market share from the industry in which the

particular company is operating through different marketing strategies such as advertising,

promotions, celebrity endorsement, sales force. It is hard to achieve desirous marketing results by

focusing only on one or two parts of the company. A new marketing concept (i.e. Holistic

Marketing) has emerged which focus not only on one or two divisions but it oversee a whole

business including people, products and processes. An idea behind it is to tailor the marketing

solution with the organizations system, policy, product and services in order to provide customers

with environment that may delight customers with flawless and consistent brand experiences

across all channels (Hansen, & Birkinshaw, 2007).

Simoes, and Dibb (2001) argued that the holistic concept stands for a whole, highlighting the

overall marketing mix for internal and external marketing approach. The offerings that do

companies provide to customers, is so wide that only a model with sufficient consistency. This

consistency emerges in the four areas describing the holistic model, namely; integrated

marketing, internal marketing, relationship marketing and socially responsible marketing that are

used for the implementation of holistic marketing plans as follows.

 Relationship between holistic marketing & Brand Equity 2

Figure. 2.1 Holistic marketing (Kotler & Keller, 2006)

2.1 Relationship marketing (Distribution Channel Management)

An important goal of marketing is to maintain long-term relationships with organizations

and persons who have an impact on the success of the operation (Kotler & Keller, 2006). In

addition, the current brings market entails that companies should present itself as a reliable

partner. Therefore, it is important that in order to meet customers’ expectations and to increase

brand equity, companies are investing in their relationships with customers (Boonekamp, 1994).

"The product of any service is the results of complete supply chain efforts ranging from

manufacturing distribution and retail to reach the final consumer.

This is composed of (groups of) individuals, institutions and other organizations not only with

each other are connected but are interdependent: it is a network of stakeholders (Bloemer, &

Dekker, 2007). Relationship marketing provides powerful technical, economic and social

relationship between the relevant stakeholders such as customers and organizations which make

the product available to final customers (Kotler & Keller, 2006).

 Relationship between holistic marketing & Brand Equity 3

So it's not just in the chart to the relationship with the customer (Client Relationship

Management: CRM), but also the relationship with the other partners (Partner Relationship

Management: PRM). In caring partners consist of vendors, government, care agency, health

insurance and investors (Grönroos, 1994).

Boulding, Staelin, Ehret and Johnston (2005) suggested that relationship Marketing is an idea to

manage long run relationship with customers by focusing on retention and loyalty of the

customers. The idea is based on Customer Relationship Management (CRM) that customer would

be loyal with the company for his whole life rather than for short term if the company provide

customers with benefits more than the cost paid by the customers. Customers must be convinced

of the value of the product over the product offered by competitors (Aaker, 1996).

The research conducted by Galbreath, and Rogers (1999) suggested that in order to prolong the

customer relationships with customers and the customers to be loyal with the company, the

companies in today’s competitive business environment should focus on the things that they can

claim that; we offer the best product than our rivals, we know our customers’ preferences and

requirements, we ensure that the customers lack nothing when experiencing our products or

services, we provide a beautiful shopping environment. All these factors, mentioned above are

key to build long run relationships with customers to make customers loyal of the company which

ultimately can build brand equity for that company (Blattberg, Getz, & Thomas, 2001).

In order to divide the marketing activities of the ten clusters Moncrief (1986) selected settings in

a validated instrument that is previously used by Kotler & Clarke (2006). This instrument is used

for the marketing orientation to measure customer relationship management of the company.

With the aid of literature on relationship marketing, the study will define the strategy that will

work as a building block for customer relationship management. Thereby, for example
 Relationship between holistic marketing & Brand Equity 4

distinction, can be created between service marketing, product / marketing focus (Lovelock &

Wright, 2001).

Marketing is a way that can be expressed this identity to clients. marketing it is a profitable way

to meet various needs of the customers (Kotler & Keller, 2006). After all, it takes the necessary

capital. Understanding and knowing your customers as good that offerings must meet the

customer expectations and must be sold by itself, is the key aim of marketing (Drucker 2006).

The research conducted by Chasin, (2000) also suggested that relationship marketing is the sales

pitch superfluous. relationship Marketing is intended to know the wishes of the client and to

apply the product on to it. For the customer is a growing market in different sectors, is a positive

development because institutions should be required to take more account of the needs of their

clients. To save not miss the point, it is important that the company has worked out its customer

needs and wants. Marketing is shaped by several steps saga inadequate (ICPS, 2000).

Park, Jaworski and Maclnnis (1986) commented that the relationship marketing is just one

particular concept that allows companies to enter their markets. For example, there are also

manufacturing, product and sales concepts. The four points of production, product, sales and

marketing respectively lay emphasis on mass marketing, innovation, aggressive sales and meet

the customer demand. In this thesis is a completion given to the marketing concept. In front of

facilities provided that they meet customer demand.

Establishing and maintaining relationships and forming the right marketing gives companies a

strong foundation to build on strong relationships with the customers (Sheth & Parvatiyar, 2000).

2.2 Integrated Marketing

Integrated marketing and relationship marketing are more developed than the socially responsible

marketing and internal marketing. Marketing is not a one-time activity. Rather it integrates all the
 Relationship between holistic marketing & Brand Equity 5

aspects of the marketing which give rise to integrated marketing, which combines all the key

factors of marketing communication such as advertising, sales, promotion, public relations, direct

marketing and social media marketing through their respective marketing mix. Integrated

marketing is aimed at providing a unified and flawless environment to customers to intermingle

with the brand or the company (Baghel, Parthasarathy, & Gupta, 2014).

The companies with the help of integrated marketing strategy can focus on the right customers /

clients to acquire them, understand their needs, make them loyal by providing them great

purchase experience and finally retain them for the whole life to bring customer life time value to

build strong brand equity for the company (Berry, 1995).

For the orientation of the marketing products, Kotler and Clarke (1987) give back five aspects

which the marketing orientation of any sector can be measured: 1. Consumer philosophy:

Awareness about the company for a good marketing strategy is necessary to know the wishes of

the consumer. 2. Integrated marketing: Does the company personnel who engaged a marketing

analysis, planning, implementation and control? There is cooperation within these functions so

that the consumer demand can be answered with services or products? 3. Adequate marketing: Is

the marketing orientation system of such quality that it gives the correct information about

developments in the market? 4. Strategic orientation: has the management a plan from approach,

a working method, designed to strategic goals achieved? 5. Operational Effectiveness: Has the

company developed a management system that can check that the effective marketing be used?

By measuring how high company offerings score on these five pillars, each institution may level

marketing orientation to be calculated. Also becomes an institution clearly the pier most focus

lies.

Lovelock (1983) stated that marketing in health care differ from marketing in the industry; health

care is strongly regulated by the government or the business community and healthcare work
 Relationship between holistic marketing & Brand Equity 6

largely with public money. There are also sometimes suspicious looked great marketing concerns

(related) settings (Kinnell, 1989). Many providers also again offer a wide range of services. When

they multispectral actively providing care, is that they always serve a different audience and

marketing thereon must adapt.

To win consumers life time value and loyalty, Zeithaml, Lemon, and Rust (2001). Suggested that

the company has to work with strategic integrated marketing; what we have to offer as an

organization and how we go to the next s put on the card? The integrated marketing deal with the

overall processes of the company, including what to offer, cost versus benefits should be

extensively analyze to make easier for customer to make purchase decision at all channels.

Integrating marketing has the function all marketing activities as well as possible to each other

votes. It involves the combination of activities such as marketing mix (i.e. Product, Price, Place

or availability of the product, and Promotion or creating awareness of the product offerings

(Berthon, Pitt, McCarthy, & Kates, 2007).

Kotler has one more addition done on the four P's, namely Politics and Public Opinion (Kotler,

1999). Product - The product allows for the provision of residential care institution; the design of

the building, style, image, care services and security. The knowledge and motivation of the staff

affected on services and hence on the quality delivered. A strong brand a distinctive and

recognizable position in the particular market, has a binding effect within the institution, gives a

guarantee of quality and allows expansion into new service markets (Ba, & Pavlou, 2002).

Place - the place, the location of the products from where customers can easily purchase the

products of their choice. Therefore customers get the right product delivered at the right time

when the customers want to buy and at the right place.

Price - The price is the charges that customers pay for the benefits they receive from the product

experience. The price of the products can vary widely across companies in the same industry
 Relationship between holistic marketing & Brand Equity 7

depending the quality, quantity, product attributes, services, brand equity etc. The price of the

product should be set by keeping in mind the customer perception about the brand and the

competition of that brand. The customers are willing to pay more for the products which meet

their expectations.

Promotion - The promotion includes all communication with the intended target to give them a

certain message (Kotler, & Zaltman, 1971). In addition, it usually involves the following

communication: personal selling, promotion, advertisement and public relations. When

companies integrate all these aspects of the organization, they become market leaders and give

tough time to the competitors in the market. Other than Product, Price and Promotion, People (i.e.

staff of the company directly or indirectly dealing with the customers) and processes or

operations of the company must be integrated or synchronized and aligned to develop overall

integrated marketing strategy in order to know the customer need and to delight customers with

offerings which they wanted to buy (Buttle, 2009).

2.3 Internal Marketing

Also internal marketing is introduced; staff within the organization should be on the objectives of

the organization noted. What consumers want and how do companies respond to this question?

When each sector such as banking and manufacturing are distinguished from other institutions

and make this clear with marketing, they facilitate the choice for the consumer. They then try to

have an edge over their competitors with the help of their personnel to trend them for offer best

services to customers (Lannoo, Ooteghem, Pareit, Leeuwen, Colle, Moerman, & Demeester,

2007).

Chotechuong, and Vesdapunt (2015) conducted study to identify an internal marketing strategy

model for managers in the life insurance industry in Thailand. In-depth interviews with senior life

insurance executives were conducted to survey factors in successful life insurance companies. A
 Relationship between holistic marketing & Brand Equity 8

questionnaire was developed for use as a research instrument, and was tested and qualified for

content validity and reliability. The sample was composed of 495 life insurance agents of three

most successful life insurance companies in Thailand. The findings revealed that leadership

behaviors and internal marketing factors jointly predicted 56 percent of agents’ organizational

commitment. Finally, study concluded that internal marketing significantly and positively affects

commitment of the agents with an organization, enhanced positive impact of relation-oriented

behaviors and positively mediated negative impact of task-oriented behaviors on agents’

organizational commitment. Committed life insurance agents will provide better services to the

customers and will bring more business and will stay long term with the company (Zeithaml,

Parasuraman, & Berry, 1990).

Brehaut, O'Connor, Wood, Hack, Siminoff, Gordon, & Feldman-Stewart, (2003) stated that

internal marketing is a way to focus the entire company on the customer and to gain support for

the marketing plan. Internal marketing means that the staff provides excellent care shares a desire

with management. To guide the process of internal marketing is a marketing officer needed with a

clear job description. A person, who manages the marketing process, controls and motivates staff.

The staff should have the information about how and why processes the setting and the

opportunity to improve themselves in providing good service to customers. Thus, both the

management and staff on the shop floor to work on the same goal to make the customer happy

with needed offerings. When is internally consistent about the purpose of the organization (the

strengths highlighted in a marketing campaign) People here are motivated to do their best (Kotler

and Keller, 2006). The will to give effect to the goal alone is not enough. There should also be a

strategy are being formed. It describes how to help workers, how they the marketing objectives

can own and how to obtain information for a good way with customers and other stakeholders to

go. In this way, CRM can profitably and effectively be implemented (Stefanou, Sarmaniotis &

Stafyla, 2003).
 Relationship between holistic marketing & Brand Equity 9

2.4 Socially responsible marketing

What is the impact of the companies producing diverse range of products to meet customer

demand on the welfare of society? Do organizations meet the short and long term interests of

customers and society is a key aim of socially responsible marketing? (Kotler & Keller, 2006).

There is literature available on societal marketing’s impact, upon corporate image and

brand equity (Ross & Patterson 1992; Davis 1994; Webb & Mohr 1998; Sen &

Bhattacharya 2001). However, most prior empirical studies used a convenience sampling

method and small sample sizes so their results cannot be generalized. Additionally, most

of the explanatory models or theories in corporate image management lacked the

empirical testing necessary to support them (Maignan & Ferrell 2001). Regarding the

influences of demographic factors, some literature indicates that a consumer’s evaluation

of corporate societal image is affected by interaction between consumer individual

characteristics and features of corporate social responsibility communications (Berger,

Cunningham & Koziets 1999; Goldberg 1999; McWilliams and seigel 2001; Ozanne,

Humphrey & Smith 1999; Straughan & Roberts 1999). However, the empirical

evaluation of these variables on a consumers’ attitude toward corporate image remains

relatively limited and inconclusive.

2.5 Research Hypotheses

Following are the proposed hypotheses of the study:

H1: There is a significant relationship between Relationship marketing and brand equity.

H2: There is a significant relationship between Integrating marketing and brand equity.

H3: There is a significant relationship between Internal marketing and brand equity.
 Relationship between holistic marketing & Brand Equity 10

H4: There is a significant relationship between Social responsible marketing and brand

equity.
 Relationship between holistic marketing & Brand Equity 11

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