Introduction
The marketing concept is the criteria that firms and organizations use to meet the needs of their clients in the most conducive manner. A successful marketing concept is based on the philosophy that is tailored in a manner to satisfy the needs of the customer as prerequisite of their profits gains.
Many organizations are more interested in acquiring huge profits at the expense of customer satisfaction. However, HP Company has resorted to ensuring that it meets the needs of their clients through production of products aimed at the customers’ satisfactions.
Apart from merely producing customers’ specification, the organization has hi-tech systems, which ensure the ordered computers are produced promptly to avoid delays. In addition, the organization has also streamlined its delivery mechanism to ensure clients do not wait for their products for long before delivery. This report evaluates the HP marketing concept in terms of how it has helped the organization to wedge out its fierce competitors.
HP marketing Concept
The Hewlett Packard Company (HP) has often strategically reevaluated its marketing concept to provide the best customer satisfaction compared to its competitors such as Dell and Toshiba. Barton (2007) illustrates that the organization’s resolve to focus its operations on the customers is guided by believe in the power of strong brands.
The strong brand is build by developing strong customer relations. The initiative has paid off positively as the organization has reduced its cost by over ten per cent. Additionally, the organization has endeavored to use consumers as a channel to reach small business projects. The existence of a strong customer linkage has helped the organization only to produce what is required by its customers, hence reducing piling up cash through over productions.
HP’s marketing concept has been based on setting realistic goals, which are attainable within the specified period. On the other hand, the entire marketing concept is supported by a strong system that conveys timely information and feedback from both the customers and the organization.
The HP strategy to engage clients in all its operations is a clear demonstration of an effective marketing concept. According to McDaniel and Gates (1998, p. 3) an efficient system is the one that is founded on three foundations, which are consumer orientation, goal orientation and system orientation. Similar sentiments were echoed by Kotler, et al (2001, p. 488), who argued that a company’s products are worthless without consumers to purchase them.
Based by the above analysis, it is evident that HP as an organization has designed a marketing approach that meets all the essentials of a good marketing concept. On its part, HP as an organization has earnestly striven to meet the demands of their clients in the best way possible. In addition, the organization has repeatedly carried out intensive research operations aimed at ensuring equipping the firm with up to date information about customer needs.
Case study
After an intensive research, the Research and Development (R&D) department found out that customers required portable, light and sufficient Notebook PCs (Ken, 2005). The existence of a functional online feedback system has helped to meet the distant clients whose observations and recommendations were integrated in the development of the system. Therefore, the R&D then resolved to develop PC Compaq Evo Notebook N1015v. This mini laptop best suits the specifications that were identified from the customer survey process.
Apart from the cost of this model being cheap, it is fixed with a powerful battery backup that can last up to four hours before recharging. The portability of this computer was so high since it would fit comfortably in people’s handbags as well as occupying a small space in men’s briefcases.
In addition, the system has also been fixed with portable speakers to help the customers who suffer from hearing-impairment. This product was received well, leading to massive production that has ensured the organization fulfills the needs of its customers in the best very possible (Hewlett Packard, 2011).
The merger between the HP Compaq and the HP in 2002 has helped the firm to improve its operations and develop a solid customer relationship plan. HP has developed two main initiatives; “achieve more with less” and “operation one voice” (Hewlett Packard, 2011). The two projects have strengthened the firms system to reduce redundancy and hence continued production.
These two initiatives have greatly helped the organization to connect to its customers as well as enlarging customers’ linkages with the firm. The overall outcome has been intertwined mutual relationship between the firm and its customers.
Crisis management
Crisis management is the process through which organizations and firms deal with key events and situations that intimidate or are challenging to the firm, its shareholders, or the public fraternity. For any condition to qualify to be referred to as crisis, it should have three main characteristics. Firstly, it should pose some threats to the organization. Secondly, it should have an aspect of surprise. Finally, it should provide a brief decision making time (Barton, 2007, p.112).
However, a section of scholars describe crisis as the situation that arises when an existing system can no longer be sustained. Therefore, crisis management is a multifaceted deliberated action aimed at reinstating the initial situation. Due to its demanding nature, the management is expected to deploy all its resources to contain the errant situation to avoid further losses. Conversely, some managers opt to use preventive measures to mitigate the extent of the loss.
There are several kinds of crises, which are generated by diverse causes. The main causes of crisis include natural disasters, technical challenges, management misconduct, deception, confrontations, malevolence and skewed management virtues.
Management needs first to understand the cause of the problem before making any action. Just as common knowledge demands, the management should deal with the root cause of the problem to avoid future recurrences. For any organization to deal promptly with a crisis, it needs to have adequate risk warning systems to alert the management of impending threats to avoid sudden surprises.
HP crisis
The giant technological Organization has been suffering from management crisis ever since merging with HP Compaq In 2002. Although HP Company had a stable management for the last one decade, the situation has been so strained since the merger in 2002. Carly Fiorina’s strategic leadership blueprint that was developed to provide a cohesive leadership during the merger has proved unreliable.
Analysis of the leadership strategy has proved that mergers require a more complex multi-layered decision making processes rather than an operational standpoint. Although Mark Hurd, the then HP CEO is a brilliant leader, his management has fallen short of the requirements of leading a merging initiative (Chu, 2010).
After a flourishing merger that resulted into hefty profits, the HP Company’s revenues have been on the to the extent that it had to be declared a crisis. The crisis grew in magnitude and consequently compelled the CEO to resign. The management crisis was exacerbated by the rapid expansion of the organization that has led to opening of numerous branches worldwide.
The management has reached the point where they feel much stretched that they require injecting new blood into the system in order to bring harmony and stability in its operations. Although the firm has been doing well, its steady revenue decline has reached its worst ever. Hence, it was paramount for Mark Hurd to come up with new strategies or just step aside and give room for a total overhaul of management with new strategies and solutions that are more creative.
Solution Matrix
HP’s board of directors proposed several remedial measures to reinstate the organization to its expected performance levels. These measures are aimed at bringing a new management board that will have several decision-making organs that report to the board of directors.
Such a management system will not only provide a wide range of changes but also new approach to issues. The management overhaul is also expected to enhance teamwork thus ensure management is not practiced single handedly. By fostering delegation as a leadership system, the management will ensure that any errant decision by a single manager is detected and corrected before it is too late.
The board suggested that the organization ought to redesign its mission to accommodate the future needs adequately. This was made by ensuring that the Research and Development department is more vibrant in developing the next generation’s computers.
The same department is also expected to generate creative solutions to the problems that are facing the organization currently. However, this suggestion proved to be an expensive venture, which required that adequate financial resources be allocated for such a noble investment (Chu, 2010).
The other major solution consisted in the appointment of the new CEO MR. Léo Apotheker, on September 30, 2010. The New CEO is expected to redeem the blurred glory of the giant computer firm.
Apart from dealing with the current performance slump, the CEO is expected to spearhead and steer the organization’s strategic plan. The immediate impact of the new CEO has been felt in terms of the revival of the organization’s revenues. This is a good omen and it suggests that the organization has been able to turn around its worst economical performance.
Conclusion
HP Computer’s exemplary performance over time has been due to its well-tailored marketing concept. The focus of marketing in HP is on developing strong customer relations to meet customer needs in the best possible way. Its marketing plan has helped the organization to develop customer specified computers, which in the end have helped the organization in reducing costs.
Despite its initial phenomenal performance, the organization has been faced with management crisis that forced the CEO to resign even after helping HP to merge with the Compaq Company. Through a managerial overhaul, which consisted in the board of directors appointing a new manager, the firm seems to have overcome the crisis and it is reclaiming lost glory. This is indicative of a good future for the organization after having had a crisis.
References
Barton, L., 2007. Crisis Leadership Now: A Real-World Guide to Preparing for Threats, Disaster, Sabotage, and Scandal. McGraw-Hill: New York.
Chu, D., L., 2010. HP’s Hurd Crisis Creates a Value Play. Web.
Hewlett Packard., 2011. The HP Corporate Information. Web.
Ken, J., 2005. CMA Helps Hewlett Packard Implement Marketing Strategy Pollution in the Government. Computer Associate Press: Vienna.
Kotler, P., Cunningham, M., H., & Turner, R., E., 2001. Marketing Management. Pearson Education: Montréal.
McDaniel, S., D., & Gates, C., R., 1998. Marketing Research Essentials. West Publishing Company: Ohio.