Marketing Principles Trading and Exchange

Question: Discuss about theMarketing Principlesfor Trading and Exchange. Answer: Introduction The marketing management report has been created to identify a specific issue in marketing of David Jones Pty Limited. Precisely, David Jones Limited, one of the leading retail upmarket stores operating in Australia and New Zealand, was set up in 1838 by David Jones. Meanwhile, the retail departmental business of David Jones can be identified as one of the oldest in the market. Currently, David Jones Limited has got 43 retail outlets in Australia and New Zealand market. Notably, the company has been owned by Woolworths Holdings Limited Group. The product segmentation of the retail business has offered cosmetics, fashionable products, food, furniture, electrical appliances, and modern homeware to the target demographics located in Australia and New Zealand market (davidjones.com.au, 2017). The major competitors of David Jones Limited are Myer Holdings Limited and Harvey Norman Holdings Limited in the target market. Meanwhile, leading to the issue, David Jones Limited has recently hit by marketing scams through social media that have created a negative impact on the reputation of the company. By using social media platform, some of the scammers have targeted the customers of David Jones Limited (Koehn, 2016). Thus, the marketing campaigns and promotional events of David Jones Limited have been taken a massive set back. Detailed Description of the Issue The growing social media marketing has become one of the latest trends for modern business organisations leading to successful campaigns and promotional events. On this note, the online scams in marketing have also been increased, to say the least. Leading to the issue, recently, some of the scammers have pretended to be the retailers such as David Jones Limited and sent fake emails promising the target audience to offer sample packages in exchange for detailed information of the their credit cards (Koehn, 2016). According to the complaints made by the customers, the scammers have introduced them as retailers. Moreover, the fake email sent by the scammers has influenced the target demographics to take a survey and provide detail information including credit card details. Notably, the scammers have assured that the initiative is taken by leading retailers such as David Jones Limited. Moreover, the customers have complained over the social media that after the purchase, the sample was sent to them in different types of subscription boxes. Also, the services have been charged on a monthly basis. Due to such instances, the marketing activities of David Jones Limited have been taken a severe hit. Most of the online participants have preferred to avoid the surveys made by the companys RD teams. Hence, the reputation and trust of the company towards the target audience have been hampered. Precisely, the marketing issue can be linked with global marketing, social responsibility and ethics of business. Evidently, the market research of the company has been adversely impacted by the marketing scam events (De Souza and Ferris, 2015). Decisively, such marketing scams should be dealt with efficient order to restore the lost pride of the business of David Jones Limited. However, such marketing scams must be investigated on a serious note so that social media based campaigning and promotional activities will not be hampered (Sharp, 2013). Currently, the event has forced the company to stop survey and other market investigation. In the next section, the actions taken by the management of David Jones Limited to redress the grievances of the target audience have been described. Comparison and Recommendations Comparison According to the corporate social responsibility theories, it is the sole responsibility of the corporate citizens to take care of the customers to seek healthy growth in the market. It is important for an organisation to develop social media marketing policy and customer data security policy while using online media to conduct campaign. In the case of David Jones, the company did not have any separate policy to handle the online media security issues (Koehn, 2016). Additionally, the digital media usage policy must be developed keeping in mind the marketing ethics that may not harm the customers in a negative way and meet all legal obligations. Precisely, in this case, marketing scams can be identified as one of the most negative aspects of business. Though the company personnel have not directly involved in such market issues, David Jones Limited has not taken proper initiatives to mitigate the issue (Geiger, 2017). In order to justify the issue, the retailing company must act promp tly to deal with the situation. Hence, proper steps must be taken to justify the public that the company is not responsible for such marketing scams. Meanwhile, by following the ethical code of conducts and business transparency, David Jones Limited has reached towards the target audience to make them aware of the original situation. Thus, the organisation can retain the trust of the loyal customers. To protect the loyal customers from the online imposters, David Jones Limited has continuously made efforts to mitigate such marketing scams (Sharp, 2013). But, the company has missed to develop adequate strategy to handle such issues. Hence, the company needs to develop adequate strategy considering the ethical and social responsibility theories. The company needs to take necessary steps against the scammer in place of just making the customers aware of the situation. Hence, the situation is quite different than the theories because the company has failed to develop adequate social media policy and social security policy while using digital media campaign. David Jones Limited was trying to conduct survey in order to collect the feedbacks of the customers to observe the customers preferences. On the other hand, the company launched the social media PR activities to enhance brand image and target younger generation customers (Lewis, 2009). Furthermore, the digital media campaign was launched by the firm to conduct market research and enhance its market positioning. On the other hand, the company was quite successful in collecting the feedback of the customers during the preliminary phase. But, the scammers took advantage of the social media campaign to send fake emails to the loyal customers of the firm. The scammers were able to get the details of the potential customers over the social networking sites that were used in the campaign (Steyerl, 2011). Hence, it is important for the company to use particular indication to make a difference between the official and fake emails. For example, the company must make the customer aware that there is no need to share financial data and credit card information to any of the mails that comes under the name of David Jones. Hence, the company was unable to implement adequate policy to use digital media campaign that led to such devastating marketing outcome. If the company would have followed the social responsibility and ethical theories effectively, the company would have saved the customers from scams. However, it is the responsibility of the company to inform the customers about not to share any credit card details during the social media campaign (Steyerl, 2011). Furthermore, the company should conduct a legal proceeding against the scammers so that such incident can be avoided in the future. Recommendation The recommendations to mitigate the marketing issues have been presented herein below: Social Media Campaign: The Company must initiate campaign via social media to explain how to deal with the situation. The management must clarify that David Jones Limited will never ask for financial statements or finance related details in their survey. Also, the organisation should ask the customers to contact the customer support section to report such marketing scams (Bagdare, 2015). In addition, the company must try to educate the public to be aware of such online marketing scams by conducting press release (Koehn, 2016). Develop Social Media Using Policy: David Jones Limited must develop social media usage policy through which the customers details are kept secret. The customers details must be not shared publically to maintain the security of the information. On the other hand, the customers must be informed in every mail to not share any personal details in the survey (May, Cheney and Roper, 2007). Implement Social Media Marketing Team: Additionally, David Jones must employ a social media marketing team that will manage such marketing issues in a professional way. The team must be trained about the problems as well as the ways to mitigate the issues. Undertake Legal Proceeding: The Company must undertake legal proceedings against the scammers by following the social rights of the customers to mitigate the issue of loss of reputation and loyalty of the customers (May, Cheney and Roper, 2007). Conclusion By considering the above analysis, it is quite clear that the management of David Jones has no hand in the scams taken place in the recent months. But, the company should have maintained proper policy to deal with such problems earlier such as social media information security policy. A proper application of the social responsibility and ethics theory would have helped the company to avoid such frauds. Hence, it is the liability of the firm to take necessary action against the scammers and make the customers feel safe. Furthermore, the company must launch PR campaign to make the people aware of such scams and make them understand that the company will never ask for any credit card information or personal data without proper concern. Conclusively, the David Jones Limited must take care of the marketing theories and apply those theories effectively while using social media campaign for the promotion of its brands. References Bagdare, S. (2015). Emotional Determinants of Retail Customer Experience.International Journal of Marketing and Business Communication, 4(2). davidjones.com.au. (2017).The Story of David Jones. [online] Available at: https://www.davidjones.com.au/About-David-Jones/The-Story-of-David-Jones [Accessed May 2017]. De Souza, I. and Ferris, S. (2015). Social Media Marketing in Luxury Retail.International Journal of Online Marketing, 5(2), pp.18-36. Geiger, I. (2017). A model of negotiation issuebased tactics in business-to-business sales negotiations.Industrial Marketing Management. Koehn, E. (2016).David Jones, Myer hit by marketing scams: How to shut down scammers by listening to what the internet says about your business - SmartCompany. [online] SmartCompany. Available at: https://www.smartcompany.com.au/industries/retail/david-jones-myer-hit-marketing-scams-shut-scammers-listening-internet-says-business/ [Accessed May 2017]. Lewis, R. (2009).Stick it to the man. 1st ed. New York: Skyhorse Publishing, Inc. May, S., Cheney, G. and Roper, J. (2007).The debate over corporate social responsibility. 1st ed. Oxford: Oxford University Press. Munger, J. (2013). Retail Changes and Their Effects on Business-to-Business Markets.Journal of Business-to-Business Marketing, 10(2), pp.79-100. Sharp, B. (2013).Marketing: Theory, Evidence, Practice. 1st ed. Melbourne, Austtralia: Oxford Univ. Press. Steyerl, H. (2011). Digital Debris: Spam and Scam., pp.70-80.