Role of Marketing in the Non-Business Environment

October 2012 -Role of market in the non-business environment since expression extend the im jump on of merchandising by Philip Kotler and Sidney J. Levy was published in 1969 Written by Anthony Chi Yuen CHAN 1 abstractedness Social economical increment all over the departed 40 years has been drastic over the world. From 1970 to 2010, world(prenominal) GDP has grown over 20 times from 3,288 billion USD to 63,064 billion USDi. authorities consumption cost per capita increased from 140 USD to 1,640 USD on global bases. In well developed countries and economic zone ( equal UKii and EU), ocial protection, oecumenical customary function, health c ar, education, and study and in the eeryday eye(predicate) commit and safety account for over 70% of political science total spending. cause the increase of spending in the public firmament? What had been changed to While large measure of money had been spent, what has changed in the public sector to figure the effectivene ss of spending? Private sector managerial techniques, practices and orientations, merchandising st hoboegies and dimensions helped shaping the evolution of public forethought to be much than efficiently and effectively.The purpose of this makeup is to state specific guinea pigs of the adaptation of merchandising heed strategies and tactics at the selected argonas of public work. Particular nerve will illustrate how STP, 4Ps, and 3Ps adopted in the decision making process. Understanding the background of hearty evolution, we will examine how demographic and economic return has driven these trade strategies in these civil op periodte in Hong Kong over the past 40 years. IntroductionEin truth organization, close sector or public services alike, weigh greatly on merchandising strategies and converse to produce their corrects and services. Hong Kong brass has evolved its public communication from stripped-down fundamental interaction to highly involvement in planning, researching, consulting, implementing of the unseasonedfangled regulations and policies. The objectives argon obvious, remedy execution, greater acceptance, less rebellious toward administrative power. subsequently Second World War, Hong Kong was governed by British system.One will not be surprised to go steady Hong Kong transformation from a small fishing village to a modern business and manufacturing city was greatly benefited by immigrating many British public services and companionable charge policies and experiences. At the beginning of the compound rule, many of the applyment and policies were implement through a direct top down approach. British governing at the U. K. assigned Governor to Hong Kong to decide and implemented all policies across the auberge. Minimum communication was say from the Government for promotion of unexampled policies. ommunication. External point of accumulation also put barriers to effective At the 1950s social communication media was v ery limited. The lack of chthoniclying formal communication tools like unseasonedspaper and communicate broadcasting was one of the challenges at the beginning. General cosmos literacy was low also accounted for limitation of communication. As gild improved, education train has risen, government bodily function new policies were demanded to be explained and rationalized before implementation. Modern government communications fox to utilizing all available tradition and modern media. advertizement through multi-lingual newspaper, prime time television publicizing at television, radio broadcasting with advertisement and definition shows public transportation exterior/interior advert mobile call messaging smart phone application internet media (blogs facebook twitters government web sites etc) argon fully utilized to let government communication reaching complicated social sections. Likewise, the internet age of marketing communication channels also promote faster and direct general public feedback be reverted to the concerned government bodies.Privatization of some public services, like parks and garden management, public bea hygiene, and airdrome security management of non-critical zone etc. , influenced the realize of quality services. Service privatization also has a raise influence back to Government to review marketing strategies. As a outgrowth, Hong Kong civil service activities are managed through a more(prenominal) business-like management structure, and mercantile marketing strategy and tactics tight-laced more evidence. We will examine various(a) examples of Government policies and activities where marketing management philosophies are adopted.Mandatory Provident storehouse (MPF) selling as strategy (STP) While social and economic evolution enriched, modern social penurys nice complicated, deeper to expounds, and towards hanker termination stability. Majority of existence has their elemental humanity needs satisf ied, the Government started to consider long term social protection. Mandatory Provident Fund (MPF) is designed for custody to plan for retirement life. sooner the implication of the MPF System, only about one-third of the Hong Kong workforce had some form retirement protection.From a marketing strategy point of view, MPF schedule identified the need for retirement save for all workforces. Therefore, any employee, no matter full time or causal, at the age between 18 to 65 is include in the segment. The main target groups deep down this segment are those employee who has no experience nor has knowledge to establish his/her own retirement saving program with fiscal institutes. Therefore, it is required by rightfulness to join requisite retirement saving plan for a minimum saving level per month. For employee who are not in the main target (i. e. apable and willing to contribute more than the minimum saving level), the MPF program has the flexibility to ply non-target group con tributors to put extra money to the obligatory saving level. MPF is a financial saving services that emplacement itself as mass population at a monthly affordable contribution rat e. There are akin retirement saving options offered by other financial institutions, but to the highest degree of them are not targeting mass market. A serial publication of TV commercial were made and aired (for example http//www. youtube. com/watch? v=-DcC1pccSTM) for the promotion of MPF.In the video, it is cl primaeval illustrated the segment, target, and position of this program. In literal (services) vs Tangible (physical) 4Ps Products humankind management is tralatitiously considered to be a service orient sector, and therefore offering intangible convergences. Public security, national health, emergency assistance, education, 3 and legal justice, just to designation a few, are critical services provided by public administrators. Public administration also provides tangible products such as subsided living accommodations, government publication, municipal pissing make out, and subvert trade etc.Public house Strategy 4Ps Price Hong Kong Housing Society and Hong Kong Housing contact offer government subsidized housing for concomitant population segment. Because of the complexity of housing demand and affordability, Government designed four major types of subsidized housing programs. All of these public and subsidized housing program are targeted to different substance debaser groups, and are positioned very differently. Each of the program also has different level of discount rate, either for sale or for rent, when examine with give market value. ange of bars and eligibility criteria. Users are generally subjected to a Each of the pricing structure is evaluated based on target group income and affordability. Market researches are done, and public hearing is held before program reveal to public. Public housing prices are designed to balance user affor dability and at the akin time protect turn over market housing prices stability. Below are the collar four main housing schemet . ? Home will power p heap estates are subsidized sale-to-public housing estates for low-income residents.They are usually built adjacent to or within Public Rental Housing and nearly selfsame(a) in construction. They are managed by the Hong Kong Housing business office and are earmarked for sale to low-income qualifiers at prices which are heavy discounted from market value, and the land value is similarly subsidized. The owe and resale of these units in the second-hand market are likewise cut back to eligible low-income residents. Within a public housing estate training, some blocks whitethorn be designated by the Authority exclusively for rental while others may be earmarked for sale. ?Tenants Purchase Scheme allows existing tenants in the rented public housing program to purchase their flats. The sale prices are fare around 50% to 60% lower than the market prices of private flats due to subsidies and restriction on selling. ? Flat-for-Sale Scheme allows flats under the scheme for sale at concessionary price. ? Sandwich Class Housing Scheme estates were built for sale to lower-middle and middle-income residents, known as the organise class, who did not qualify for low-income public housing in the Home Ownership Scheme but becalm had trouble affording private housing.The quality and market billet of Sandwich Class Housing were significantly higher(prenominal) than public housing estates and comparable to some bourgeoisie private developments. These units were sold at levels that were slightly beneath market value and came with a five-year resale restriction. reason development as new source 4Ps set out Hong Kong has land size at 1,100 square kilometers, and population grown from four million in 4 1970 to 7. 2 million in 2010. That makes Hong Kong one of the close densely populated city in the world. Hong Kong L and Department holds one of the most scared resources, land.Urban development and local economic highly depend on availability of land sales. Therefore, promotion and marketing communication of land planning become change magnitudely in-chief(postnominal) over years. Private sectors as well as general citizen concern about future new land supply as well as timeworn redevelopment zone. Land development as well as land source of land affects spot prices, and the urbanization development planiv. One good recent example is the Geo skillful Engineering Department confirms the technical capability of underground land and cavern for new source of land.This marks a new era for the possible new place for future property market and industrial zone development. The GED makes use of condensed video to promote new land supply idea (see endnotes hyper link)v. Crime prevention 4Ps Promotion guard force goals and objective cause dramatically changed for the last four decades from mainly law enforcement carrying into action to equally emphasizing the importance of villainy prevention. Study put on shown in different earth that increase of police force does not requisite reverse proportion to the number of crime. i Therefore, a lot of marketing and promotion effort sacrifice been dedicated to home security design, drug abuse prevention, internet crime awareness, and police force recruitmentvii, proper automobile driving technique etc. As social and communication media develops and widened, communication channels broadened from traditional newspaper advertising to internet social political platform such as police force websiteviii, facebook, youtube, tweeter, raillery forum, to in the flesh(predicate) contact like public family relationship division within the police force.Public sector personal and organizational marketing 3Ps People After the transfer of reign to People Republic of China, Hong Kong government organization and management became increasing tr ansparent. Hong Kong resident has increasing interest of government departmental leadership, and government operation efficiency. Compare to forty years ago, when Hong Kong was still under British colonial rule, the Governor, Executive Council, Legislative Council, as well as most public pol were all appointed by the Government.Democratic election easily started in the 1980s for local district representatives and a portion of Legislative Council. Personal marketing in the public services became more and more importantix. deuce examples are the recent Legislative Council (LECO) Election, and Hong Kong Special political science Region Chief Executive Election. LECO election is an open democratic election for all qualified citizen. Competitions are big between candidates, and are compared based on their experiences, past contribution to the society, and related political societys reputation. Education system reform come along 3Ps Process While every spot light falls onto the peo ple, in the public sector, the ultimate goal for a government is to implement set policies and procedures. Taking for example, the Education Department just latterly introduced a new secondary and territorial aim system in Hong Kong. The new system rewrite the seven years secondary schooling to sextuplet years, but extending the normal three years under graduate programmes to four years. new-fashioned Product (Education System) ripening Strategy was use. The education ureau made use of product development concept of idea generation, preliminary analysis, detail investigation and research, planning and development, communication, testing, implementation, and auditing cycle. x xi The result was a smoother implementation, better acceptance by education institutions, students, parents, and prevented political instability in show window of adverse situation. Conclusion Social, economic, political, and education development evolves over time. Citizens are demanding more frequent, c loser, deeper, and highly transparent companionship in public administration.Therefore, non-business organization like public administration and political management spend more resources (time, man power, and money) at the early stage of new social policy development. Citizens are defined as customers or end user in the public administration model. Because of the rising demand by the customers for better involvement during the course of public administration, and, at the same time, administrators wants to have higher chance of success and sustainability of new policy, customers involvement of the early part of Stage-gate Processing becoming evident, which is in contrast with public policy development four decades ago.American merchandising Association (AMA) who defines Marketing for its members, have also renew the definition to suit with the ever changing environment. In the letter from Mike Lotti and sham Lehmann, Chairperson of the Board and Committee Chair of AMA, subjected Ne w Definition of Marketing dated December 2007, Lotti and Lehmann say (the new definition of) Marketing is regarded as an activity instead of a function and positions marketing as a broader activity in a fellowship/organization, and not just a department.The new definition also positions marketing as providing long term value rather than narrowly as an transmute of money (short-term) for the benefit of the shareholder/organization. xii European marketing community also published similar notion a few years preliminary than its US counterpart, defining that long-term customer relationships are considered as the cornerstone of marketingxiii. This is in channel with modern public administrators objective, that is to satisfy the needs of different segments and targets of citizens.It is worth to note that this paper is not to turn over marketing management strategies, tactics, and concepts in public sector did not exist in Hong Kong at the early years. As a matter of the facts, in t he 60s and 70s, Government have organized activities to understand customer (local residents) 6 needs related to long term social development plan and pre-execution hearing sessions with local leaders and legislators, but only at a lot less formal and structured as the society currently established. In response to Levy and Kotlers article, DavidJ.Luck had argued that marketing strategies and activities had been in used in various government activities before Kotler and Levys article was publishedxiv. When social, economic, and political reforms persist in, society should expect to see marketing activities in non-business organization, particularly for public administration sector, to continue evolves alongside with modern marketing management methologies. i Ivan Kushnirs Research Center, kushnirs. org rd ii UK Public disbursement since 1963, Simon Rogers, 3 June 2012, guardian. o. uk iii Milestones Hong Kong Housing Society Housing Price, Land Supply and Revenue from Land Sales, R aymond Y. C. Tse, 2012 v Enhanced use of underground space in Hong Kong, Geotechnical Engineering Department, http//www. youtube. com/watch? v=jZ_IX0KocNk&list=UUi4fX-nEJseYhlAuY4DJ0wQ& business leader=7&feature=pl cp vi Law Enforcement Marketing Perceptions of a police force, Peter Bohan, 1987. vii Hong Kong Police http//www. youtube. com/watch? v=ckDWtaWNHo0 viii Hong Kong Police http//www. police. gov. hk/ppp_en/index. tml ix After ten years of transfer of sovereignty political stability and reform in Hong Kong, Jermain T. M. Lam, 2008 x Stage-gate systems a new tool for managing new products, Robert G. Cooper, 1990 xi Marketing in the public sector out or keeping(p) or merely difficult? Peter Graham, 2010 xii th AMA Definition of Marketing Mike Lotti and mount Lehmann, December 17 , 2007 xiii Defining Marketing A market-Oriented Approach Christian Gronroos, 1989 xiv Broadening the Concept of Marketing. Too Far David J. Luck, 1969 iv 7