Role of Marketing in the Non-Business Environment

October 2012 -Role of merchandising in the non-business environment since article extend the Concept of trade by Philip Kotler and Sidney J. Levy was published in 1969 scripted by Anthony Chi Yuen CHAN 1 Abstract Social economicalal suppuration all over the past 40 long time has been drastic over the world. From 1970 to 2010, spheric GDP has grown over 20 times from 3,288 billion USD to 63,064 billion USDi. Government consumption expenditure per capita annexd from 140 USD to 1,640 USD on global bases. In well developed countries and economic zona (like UKii and EU), ocial protection, general national function, health c atomic sum 18, education, and national and unexclusive order and safety account for over 70% of organisation total spending. cause the increase of spending in the creation celestial sphere? What had been changed to While large amount of m wizardy had been spent, what has changed in the customary area to ensure the effectiveness of spending? underco ver sector managerial techniques, practices and orientations, merchandising strategies and dimensions helped shaping the evolution of everyday oversight to be more efficiently and effectively.The purpose of this cover is to state specific examples of the rendering of marketplaceing counselling strategies and tactics at the selected areas of prevalent services. Particular lineament provide illustrate how STP, 4Ps, and 3Ps adopted in the decision make process. Understanding the background of social evolution, we depart examine how demographic and economic improvement has driven these selling strategies in these civil services in Hong Kong over the past 40 years. IntroductionE precise organization, individual(a) sector or public services alike, depend greatly on merchandising strategies and confabulation to agitate their honourables and services. Hong Kong Government has evolved its public communion from token(prenominal) interaction to exceedingly appointment in pr eparation, researching, consulting, implementing of the spick-and-span-fangled regulations and policies. The objectives are obvious, better execution, greater adoption, less contumacious toward administrative power. After Second World War, Hong Kong was governed by British scheme.One will not be surprised to learn Hong Kong transformation from a weeny fishing village to a youthful business and manufacturing city was greatly benefited by immigrating many British public services and social management policies and finds. At the beginning of the colonial rule, many of the establishment and policies were implemented finished a direct top down approach. British Government at the U. K. assigned Governor to Hong Kong to decide and implemented all policies across the beau monde. nominal conference was noted from the Government for promotion of tonic policies. ommunication. External restriction overly put barriers to effective At the 1950s social intercourse media was very lim ited. The lack of basic formal communication tools like nakedsprint and radio broadcasting was one of the challenges at the beginning. General population literacy was clinical depression also accounted for limitation of communication. As society improved, education level has risen, government activity virgin policies were demanded to be explained and rationalized before implementation. Modern government communications drive to utilizing all available tradition and modern media. Advertising through multi-lingual newspaper publisher, outpouring time television advertising at television, radio broadcasting with advertizement and commentary shows public transportation exterior/interior advertising vigorous phone messaging smart phone application internet media (blogs facebook twitters government web sites etcetera are fully utilized to let government communication reaching complicated social segments. Likewise, the internet age of marketing communication channels also encoura ged faster and direct general public feedback be reverted to the concerned government bodies.Privatization of some public services, like park and garden management, public area hygiene, and airport security management of non-critical zone etc. , influenced the image of quality services. Service privatization also has a hoist influence back to Government to review marketing strategies. As a result, Hong Kong civil service activities are managed through a more business-like management structure, and commercial marketing strategy and tactics becoming more evidence. We will examine various examples of Government policies and activities where marketing management philosophies are adopted.Mandatory thrifty Fund (MPF) merchandise as strategy (STP) While social and economic education enriched, modern social needs becoming complicated, deeper to details, and towards long depot perceptual constancy. Majority of population has their basic humanity needs satisfied, the Government started to share long term social protection. Mandatory Provident Fund (MPF) is knowing for workforce to plan for retreat life. Before the implication of the MPF System, only slightly one-third of the Hong Kong workforce had some form retirement protection.From a marketing strategy point of view, MPF architectural plan identified the need for retirement relieve for all workforces. Therefore, any employee, no matter full time or causal, at the age among 18 to 65 is included in the segment. The main rear groups within this segment are those employee who has no experience nor has knowledge to establish his/her own retirement thriftiness program with financial institutes. Therefore, it is required by law to join compulsory 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 contri unlesse more than the minimum saving level), the MPF program has the flexibility to allow non-target group contributors to pu t spare money to the mandatory saving level. MPF is a financial saving services that persuasion itself as mass population at a periodic affordable contribution rat e. There are similar retirement saving options offered by other financial institutions, but most of them are not targeting mass market. A series of TV commercial were make and aired (for example http//www. youtube. com/watch? v=-DcC1pccSTM) for the promotion of MPF.In the video, it is clearly illustrated the segment, target, and position of this program. Intangible (services) vs Tangible (physical) 4Ps Products universe management is traditionally considered to be a service oriented sector, and therefore offering intangible harvest-tides. Public security, national health, emergency assistance, education, 3 and legal justice, just to name a few, are critical services provided by public administrators. Public disposition also provides tangible products such as subsided living accommodations, government publication , municipal piddle supply, and repose sale etc.Public living accommodations Strategy 4Ps Price Hong Kong lodging Society and Hong Kong Housing authority offer government subsidized housing for particular population segment. Because of the complexity of housing demand and affordability, Government designed quaternion major types of subsidized housing programs. All of these public and subsidized housing program are targeted to different substance abuser groups, and are positioned very differently. Each of the program also has different level of discount rate, each for sale or for rent, when compare with straight-from-the-shoulder market value. ange of restrictions and eligibility criteria. Users are in general 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 affordability and at the same time protect open market housing prices stability. Below are the iii four main housing schemet . ? pedestal Ownership Scheme demesnes are subsidized sale-to-public housing estates for low-income residents.They are normally built adjacent to or within Public Rental Housing and nearly identical in construction. They are managed by the Hong Kong Housing Authority and are earmarked for sale to low-income qualifiers at prices which are heavily discounted from market value, and the terra firma value is similarly subsidized. The mortgage and resale of these units in the second-hand market are in addition restricted to eligible low-income residents. Within a public housing estate development, some blocks may be designated by the Authority exclusively for lease 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 rigid around 50% to 60% lower than the market price s of one-on-one flats collectible 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, cognize as the sandwich class, who did not qualify for low-income public housing in the Home Ownership Scheme but still had trouble affording private housing.The quality and market positioning of Sandwich Class Housing were significantly higher than public housing estates and comparable to some middle-class private developments. These units were sold at levels that were slightly below market value and came with a five-year resale restriction. Land development as new source 4Ps conduct 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 most densely populated city in the world. Hong Kong Land department holds o ne of the most scared resources, land.Urban development and local economic exceedingly depend on availability of land sales. Therefore, promotion and marketing communication of land planning become increasingly important over years. Private sectors as well as general citizen concern about prox new land supply as well as commonplace redevelopment zone. Land development as well as land source of land affects property prices, and the urbanization development planiv. One good recent example is the Geotechnical Engineering Department confirms the technical capability of belowground 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 short video to promote new land supply idea (see endnotes hyper link)v. Crime prevention 4Ps Promotion Police force goals and objective book dramatically changed for the determination four decades from mainly law enforcement operation to equally emphasizing the grandeur of plague prevention. Study have shown in different country that increase of law of nature force does not necessary reverse proportion to the number of crime. i Therefore, a lot of marketing and promotion effort have 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 platform such as police force websiteviii, facebook, youtube, tweeter, discussion forum, to personal contact like public descent division within the police force.Public sector personal and organizational marketing 3Ps People After the transfer of sovereignty to People majority rule of China, Hong Kong government organization and management became increasing transparent. Hong Kong resident has increasing bear on 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 politician were all ordained by the Government.Democratic election slowly started in the 1980s for local dominion representatives and a portion of Legislative Council. Personal marketing in the public services became more and more importantix. Two examples are the recent Legislative Council (LECO) Election, and Hong Kong Special Administration 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 policy-making partys reputation. Education system reform progress 3Ps Process While every spot light falls onto the people, in the public sector, the ultimate goal for a government is to implement install policies and procedures. Taking for example, the Education Department just recently introduced a new secondary and territorial school system in Hong Kong. The new system revised the seven years secondary schooling to six years, but extending the normal three years under graduate programmes to four years. upstart Product (Education System) Development 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 case of indecent situation. Conclusion Social, economic, political, and education development evolves over time. Citizens are demanding more frequent, closer, deeper, and highly transparent participation in public nerve.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 guests or end user in the public administration model. Because of the rising demand by the guests 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 descent with public policy development four decades ago.American Marketing Association (AMA) who defines Marketing for its members, have also renew the definition to suit with the ever ever-changing environment. In the letter from Mike Lotti and Don Lehmann, Chairperson of the Board and delegacy Chair of AMA, subjected New Definition of Marketing dated December 2007, Lotti and Lehmann state (the new definition of ) Marketing is regarded as an activity instead of a function and positions marketing as a broader activity in a company/organization, and not just a department.The new definition also positions marketing as providing long term value rather than narrowly as an exchange of money (short-term) for the benefit of the shareholder/organization. xii European marketing community also published similar notion a few years earlier than its US counterpart, defining that long-term customer relationships are considered as the cornerstone of marketingxiii. This is in line 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 argue 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 the 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 continue, 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 spend since 1963, Simon Rogers, 3 June 2012, guardian. o. uk iii Milestones Hong Kong Housing Society Housing Price, Land tack and Revenue from Land Sales, Raymond Y. C. Tse, 2012 v Enhanced use of underground seat in Hong Kong, Geotechnical Engineering Department, http//www. you tube. com/watch? v=jZ_IX0KocNk&list=UUi4fX-nEJseYhlAuY4DJ0wQ&index=7&feature=pl cp vi Law Enforcement Marketing Perceptions of a police force, dickhead 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 Inappropriate or merely difficult? Peter Graham, 2010 xii th AMA Definition of Marketing Mike Lotti and Don Lehmann, December 17 , 2007 xiii Defining Marketing A market-Oriented Approach Christian Gronroos, 1989 xiv Broadening the Concept of Marketing. as well Far David J. Luck, 1969 iv 7