Marketing has become one of the major key elements, which helps to drive the business performance. It is being considered as the process that acts to promote, research and sell the products to the selected target audience. In the words of Hakansson (2015), analyzing the current business environment, it has been identified that marketing has become an important tool for sustaining in the market. The purpose of this study is to highlight the significant responsibilities of marketing function in order to drive the business performance of Sony. In this study, marketing function of Sony has been critically discussed by highlighting the interrelation between marketing and others organizational units.
Background of the company
In the year 1946, Sony Corporation was founded by Masaru Ibuka and Akio Morita in Tokyo (Sony.com 2018). The company has introduced diversified business profile in the global market with gaming, financial service, entertainment and electronics. With its strong brand image, the company has become the largest entertainment chain in the global market. Analyzing the business revenue in the market, it has been identified that in the year 2017, it was ¥ 6.593 trillion (Sony.com 2018). Target audience of the company is upper class and upper middle class people. Due to this reason, Sony always maintains its premium price strategy for maintaining its exclusive image of customers’ mind.
Role of marketing in organizational development
In the words of Hakansson (2015), in the current competitive business environment, marketing is an essential functioning tool for every organization to sustain in the market. In order to establish strong relationship between customer and employers, marketing plays an effective role. According to Lee, Kozlenkova and Palmatier (2015), it cannot be denied that the trend of competition has been escalated after introduction of technology in the marketing practices. In the organizational perspective, it can be said that the role of marketing function is to increase confidence to try new product in the marketing helps to shape the organizational image depending on which people associate with the organizational products and services. Therefore, it can be said that marketing can help to influence the branding process, which is needed for identifying the needs of the customers. Through marketing function, large organizations like Sony gets chance to deal with the emerging competitive market (Thusyanthy and Tharanikaran 2015). It cannot be denied that marketing is very important for establishing strong brand image of customers mind. With different marketing initiatives it become easier for the developing strong relationship with the stakeholders. By continuing this Thusyanthy and Tharanikaran (2015) stated that in case of profit led organizations, marketing strategies are responsible for driving the rate of profitability in an organization. By developing strong customers’ relationship, marketing function helps to increase the sales revenue, which indirectly impacts on the financial status of the company.
It cannot be denied that marketing plays an influential role to maintain market share of every organization. Analyzing the importance of marketing function, it can be said that various elements of marketing play influential role in the organizational development. Among all the marketing elements, marketing mix is being used by the organizations.
Marketing mix of Sony
According to Lee, Kozlenkova and Palmatier (2015), product is an essential element in the marketing function. In order to define the brand in an appropriate manner Sony has introduced premium quality of products in premium ranges. With its diversified products, Sony has grabbed the leading position in the entertainment industry. Sony has introduced portable gadgets with personalized navigation system for home and car use. LED and CRT based TV as well as various play stations have been introduced by Sony, which has increased its popularity in the market (Sony.com 2018).
Examining the marketing strategy of Sony, it has been identified that the company follows the skimming price strategy for it premium quality of products. By including the unique features, the product of Sony are being launched in the market. In order to maximize the rate of profitability the company highs its product price (Sony.com 2018). In time of launching new product, it decreases the price so that sales volume can be boosted. In order to survive in the competitive market, Sony follows the differentiation strategy.
Depending on the distribution channel of the company the marketing plan is being developed. In order to make the products available to the customers, Sony has introduced strong distribution channel in the market. In the distribution channel of the company, retailers, customers and manufacturers are involved. Distribution process of Sony being practices through selective dealers such as Sony world. Analyzing the target audience of Sony, it has been identified that company mainly focus on premium customers, hence, it always try to maintain high product price for maintaining its brand value. The company has kept its footprint in all over the globe. Near about 7000 distribution partners of Sony help to serve the world (Sony.com 2018).
Both direct a d indirect marketing strategies are being followed by Sony. Social media has played an influential role in terms of increasing its popularity in the market. Depending on the target market of the company, the tagline called ‘Make. Believe’ has been introduced by Sony (Sony.com 2018). The company has symbolized itself as innovation and creativity. Newspapers, billboards, magazines and televisions are being used by Sony for promoting its products in the market. On the celebrity endorsement is another promotional strategy by the company, which has helped to achieve strong position in the market.
Interrelation between marketing and other functional units
In order to introduce an effective marketing strategy, the involvement of others business units are equally important. It cannot be denied that the entire business operational units are interrelated with each other. In case of encompassing thee entire business marketing is needed. Marketing can be considered as business philosophy, by following which the organization can introduce its beliefs and values to thee target audience. Marketing is the way that helps to examine the needs of the customers. In that case communication can be considered as an important component of marketing.
Like between marketing and operation department
It is true that marketing is a specialized department in an organization that influence the business thinking process for achieving the organizational goals. In order to satisfy thee current and future demands of thee customers, production and other operational units are linked with marketing (Hassenzahl 2018).
Like between marketing and finance department
The manufacturing department produces the innovative design for bringing the creativity in the market, which is being introduced in the market through marketing. The deadline is being set by the marketing department so that the capability of manufacturing department can be strengthen up. The operations of marketing department are being done after the budget allocation from finance department. Promotion and distribution process of marketing get influenced by the finance department. By ensuring thee business opportunities and business capabilities the budget is being allocated by finance department (Oladepo and Abimbola 2015). Therefore, if the marketing strategy of an organization become successful, it can emerge thee financial opportunities for the company. As marketing helps to increase the sales revenue of the company, therefore, by building strong market share, marketing helps to maintain the cash flow in finance department.
Like between marketing and Human resource department
As stated by Baker (2016), in order to assure the appropriate skill of the employees, marketing department works closely with the human resource department. Introducing ideas for new products in the market, involvement of both the departments are required. On the other hand, meeting target of production as well as sales, the involvement of Human resource department is needed. It cannot be denied that the human resource department helps to create the competent and ambitious team for sales. In order to maintain the balance of marketing obligations. HRM department of Sony introduces training and recruitment process, so that it become easier for the company to achieve its business goals.
Marketing plays an effective role to introduce economic opportunities for the organization. Analyzing the role of marketing in organizational development by highlighting Sony, it has been identified that it has played an effective role to increase market share of Sony. Both direct and indirect marketing strategies are being followed by Sony, which has helped the company to increase its popularity in the market. By developing strong customer relationship, marketing initiatives of Sony has helped to increase its brand popularity in the market. The study has also helped to develop interrelation between marketing and production, finance and human resource department. In the discussion, it has been identified that in case of building string market share as well as improving the skill of the employees, human resource and finance department have higher level of contribution, which indirectly influence the marketing process.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Hakansson, H., 2015. Industrial Technological Development (Routledge Revivals): A Network Approach. Routledge.
Hassenzahl, M., 2018. The thing and I: understanding the relationship between user and product. In Funology 2 (pp. 301-313). Springer, Cham.
Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., 2015. Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), pp.73-99.
Nimtrakoon, S., 2015. The relationship between intellectual capital, firms’ market value and financial performance: Empirical evidence from the ASEAN. Journal of Intellectual Capital, 16(3), pp.587-618.
Oladepo, O.I. and Abimbola, O.S., 2015. The influence of brand image and promotional mix on consumer buying decision-a study of beverage consumers in Lagos State, Nigeria. British journal of marketing studies, 3(4), pp.97-109.
Sony.com 2018. Retrieved from: https://www.sony.com/en-om [Accessed on 21st Nov, 2018]
Thusyanthy, V. and Tharanikaran, V., 2015. The relationship variables to celebrity endorsement and brand equity: A comprehensive review.