Role of Marketing in the Non-Business Environment

October 2012 -Role of Marketing in the non-business environment since article widening the Concept of Marketing by Philip Kotler and Sidney J. Levy was published in 1969 Written by Anthony Chi Yuen CHAN 1 Abstract Social sparing increase over the past 40 years has been drastic over the world. From 1970 to 2010, orbiculate GDP has grown over 20 times from 3,288 billion USD to 63,064 billion USDi. presidential term consumption expenditure per capita increased from 140 USD to 1,640 USD on global bases. In well developed countries and economic zone (like UKii and EU), ocial protection, general human beings serve, health c atomic number 18, education, and national and public order and safety account for over 70% of political science total spending. cause the increase of spending in the public sector? What had been changed to While large amount of money had been spent, what has changed in the public sector to procure the effectiveness of spending? Private sector managerial techniqu es, practices and orientations, market strategies and dimensions helped shaping the evolution of public management to be more efficiently and effectively.The purpose of this story is to state specific practice sessions of the adaptation of market management strategies and tactics at the selected beas of public function. Particular case will illustrate how STP, 4Ps, and 3Ps adopted in the decision making process. Understanding the background of social evolution, we will examine how demographic and economic improvement has driven these marketing strategies in these civil services in Hong Kong over the past 40 years. IntroductionE really organization, private sector or public services alike, depend greatly on marketing strategies and talk to throw out their goods and services. Hong Kong government has evolved its public communication from minimum interaction to highly involvement in planning, researching, consulting, implementing of the mod regulations and policies. The obj ectives are obvious, better execution, greater acceptance, less rebellious toward administrative power. later on Second World War, Hong Kong was governed by British system.One will not be surprised to learn Hong Kong transformation from a small fishing liquidation to a modern business and manufacturing city was greatly benefited by immigrating many British public services and social management policies and experiences. At the beginning of the compound rule, many of the establishment and policies were employ through a direct top down approach. British Government at the U. K. assigned Governor to Hong Kong to decide and implemented all policies across the society. Minimum communication was noted from the Government for promotion of parvenue policies. ommunication. External limitation also put barriers to effective At the 1950s social communication media was very limited. The lack of basic formal communication tools like newspaper and radio broadcasting was one of the challenges at the beginning. General commonwealth literacy was low also accounted for limitation of communication. As society improved, education level has risen, government new policies were demanded to be explained and rationalized before implementation. Modern government communications fool to utilizing all available tradition and modern media. Advertising through multi-lingual newspaper, prime time television advertising at television, radio broadcasting with advertisement and gossip shows public transportation exterior/interior advertising mobile phone messaging smart phone application internet media (blogs facebook twitters government web sites etc) are fully utilized to let government communication reaching complicated social incisions. 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 area hy giene, and airport security management of non-critical zone etc. , influenced the image of quality services. Service privatization also has a reverse 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 Provident Fund (MPF) Marketing as strategy (STP) While social and economic development enriched, modern social needs becoming complicated, deeper to percentage points, and towards yen term stability. Majority of world has their basic humanity needs satisfied, the Government started to consider long term social protection. Mandatory Provident Fund (MPF) is designed for men to plan for retirement life. Before 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 program identified the need for retirement pitch for all workforces. Therefore, any employee, no matter full time or causal, at the age between 18 to 65 is included in the segment. The main target groups inwardly this segment are those employee who has no experience nor has knowledge to establish his/her own retirement saving program with financial institutes. Therefore, it is required by law to join imperative 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 allow non-target group contributors to put extra money to the mandatory saving level. MPF is a financial saving services that position itself as mass population at a monthly 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 made 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 man management is traditionally considered to be a service lie sector, and therefore offering intangible products. Public security, national health, emergency assistance, education, 3 and legal justice, just to name a few, are critical services provided by public administrators. Public administration also provides tangible products such as subsided house, government publication, municipal water supply, and landed estate sale etc.Public Housing Strategy 4Ps Price Hong Kong Housing 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 four major types of subsidized housing programs. All of these public and subsidized housing program are targeted to different user groups, and are positioned very differently. Each of the program also has different level of discount rate, either for sale or for rent, when compare with free market value. ange of restraints 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 affordability and at the comparable time protect open market housing prices stability. Below are the tercet four main housing schemet . ? Home Ownership Scheme 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 ide ntical in construction. They are managed by the Hong Kong Housing Authority 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 mortgage and resale of these units in the second-hand market are likewise restricted to eligible low-income residents. Within a public housing estate development, some blocks may 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 set 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 at a lower place 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 get up class, who did not qual ify for low-income public housing in the Home Ownership Scheme but still had trouble affording private housing.The quality and market office 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 under market value and came with a five-year resale restriction. prop up development as new source 4Ps Place 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 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 increasingly important over years. Private sectors as well as general citizen concern about future new land supply as well as t imeworn 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 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 gip video to promote new land supply idea (see endnotes hyper link)v. Crime prevention 4Ps Promotion practice of law force goals and objective sport dramatically changed for the last four decades from mainly law enforcement performance to equally emphasizing the importance of crime prevention. Study curb shown in different agricultural that increase of police 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 cri me 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, word forum, to personal contact like public relationship division within the police force.Public sector personal and organizational marketing 3Ps People After the transfer of sovereignty to People Republic of China, Hong Kong government organization and management became increasing transparent. Hong Kong resident has increasing interest of government departmental leadershiphip, 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 appointed by the Government.Democratic election slowly started in the 1980s for local dis trict 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 political fellowships reputation. Education system reform progress 3Ps Process While every spot light falls onto the people, in the public sector, the eventual(prenominal) goal for a government is to implement set policies and procedures. Taking for example, the Education Department just recently introduced a new secondary and territorial give instruction 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. New 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 adverse situation. Conclusion Social, economic, political, and education development evolves over time. Citizens are demanding more frequent, closer, deeper, and highly transparent participation 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 fo r 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 Marketing Association (AMA) who defines Marketing for its members, have also renew the commentary to suit with the ever changing environment. In the letter from Mike Lotti and put one over Lehmann, Chairperson of the Board and Committee Chair of AMA, subjected New Definition of Marketing dated December 2007, Lotti and Lehmann said (the new definition of) Marketing is regarded as an military action 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. dozen 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 press 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 activitie s 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 expenditure 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, Raymond 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&index=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 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. Too Far David J. Luck, 1969 iv 7