Marketing Innovation and Creativity in Service Firms Dissertation

Abstract

Many scholars have done a lot of research on this topic as it has raised a lot of concern in the contemporary marketing. Technology has brought numerous changes in the world, completely redefining the way business is conducted. The service industry has experienced a massive growth in the past one decade, with the English football rated as the most popular in the world. There has been an increasing need for more information in this field. The rise in fraudulent activities in the banks, the increasing need for entertainment in the country among other emerging trends have seen the need for innovation and creativity be on the rise.

Kabani (2009, p. 589) defines innovation as the inventions of new ideas in solving current problems in a better way. It is the use of technology to bring to life creative methods of approaching marketing in a way that will make the whole process much easier and more effective. Andrzej and Buchaman (2007, p. 36) define creativity as the imaginative capability of an individual to come with new ideas and approaches every time he or she faces a similar problem or issue.

Services are products that are satisfy the needs of an individual but they are intangible. Marketing creativity therefore refers to bringing in creative ideas in the process of marketing of services, with an aim of gaining competitive advantage over the rival firms.

The marketplace is very competitive and every business unit must make a concerted effort to understand the requirement of the demanding customers. This will enable them design their products to reflect these requirements. This study examines application of marketing innovation to service firms in UK. It will sample a population of financial and insurance firms in UK with a total of 150 respondents being interviewed and filling questionnaires. The outcome of the study confirms the hypothesis that marketing innovation leads to improved sales revenues and overall firm performance.

Introduction

Background of the Study

Marketing has undergone a lot of transformation over the past two decades to become what it currently is as a sophisticated field that has embraced technology in almost all its operations. Agrarian revolution in Great Britain and the larger Europe and latter in United States of America gave rise to industrial revolution. Industrial revolution gave rise to companies that produced items in large masses. During this period, companies produced in masses and consumers had to come to the companies to make their purchase.

The emphasis then was on production. Marketing as a department had little function other than to receive orders from the customers and facilitate the process of making purchase. Marketing was purely given an inward out approach. Then the issue was to produce in masses and the market would come looking for the product.

However, this has changed a great deal. Many companies have come up offering similar line of products to the same market, posing direct challenge to old firms that had thought that the market was theirs for controlling. The consumer is also increasingly getting informed about availability of products in the market. This means that the market is getting more sensitive and more aware of the fact that a product can be available from a number of sources and that no single firm can lay claim to control the entire market.

The cost of production is making things no better. The fuel cost is constantly on the rise, the labour force – through their labour unions- is getting increasingly demanding, logistics are costly, the raw materials are no longer readily available and the governments need their corporate tax. The shareholders expect dividends from the firm and the business require extra money for its expansion and other transactional requirements.

All these finances must come from the marketing department through successful sales of the firm’s products. All other departments have their success pegged on the ability of this department to deliver to the market products in successful transactions and bring funds to the firm.

It is under such pressure that marketing units in various firms across the globe find themselves in today. They have to beat all odds to reach the market with the desired product so that it may bring to the firm, the desired finance. This has given marketing a completely new approach. Marketing has completely adopted an outward in approach to production. The products must give as much emphasis as possible to the requirements of the market.

For a marketer, things are getting no better. The market is so competitive and very dynamic that any misstep would be suicidal. There must be a proper understanding of the market forces in order to develop structures that would enable success of the firm in the market.

It is because of this, that firms have embraced creativity and innovativeness in their operations. It is only through creativity and innovation that firms can manage to withstand the competitive market successfully and tap from it the required funds. Marketers must constantly provide to the market new ideas that reflect the dynamics of the society. It is only through innovations that a marketing unit can make a positive differential advantage in the market.

Problem Statement

Technology has brought many changes in the marketplace. Marketing has assumed a new meaning from what it used to before. Because of technology, a marketer in United Kingdom can easily monitor the movement of goods from one location to another. The social media has also hit the market with a storm. Conventionally, promotional campaigns were done on the mass media like the radios and newspapers.

However, this has drastically changed over the recent past. You Tube is fast replacing the once very popular television commercials. Many multinational corporations are opting to design their adverts and air them through the You Tube because of its ability to reach individuals from different locations across the globe, through one channel. Biemans (2010) reported that Pepsi Cola pulled out of the American Bowl Games, a very popular heritage game that brings together individuals from all walks of life.

Many American corporations have always considered this as the best way to create awareness about their products to the masses that always come for these festivals. However, Pepsi Cola preferred You Tube to this game. Facebook is also very popular among the youths in most parts of the world. It is estimated that over five hundred million people are on Facebook. This massive market has attracted many marketers to make advertisements through this media.

This therefore means that marketers must embrace creativity and innovation in their activities in order to be in a position meet the demands of the market.

Research Objectives

Having been actively involved in the United Kingdom’s markets as a customer and a scholar, the researcher had developed a great interest in understanding how creativity and innovativeness affected the marketing process in this country. The researcher was interested in achieving the following objectives:

• To ascertain the positive impact of creativity and innovation on service firms; with bias on the banking and entertainment sectors.
• To ascertain the cost implications that is associated with innovation and creativity in marketing operations.
• To ascertain other non cost constraints that a firm may be forced to withstand when employing innovations and creativity in marketing.
• To establish the level to which firms in the United Kingdom have embraced the use of innovative ideas in running their marketing operations.
• To bring to focus, direct and indirect benefits that service firms in other locations outside Europe, especially in the United States and China, have incurred by successfully embracing creativity and innovation in marketing.

With this, the researcher hopes to inculcate the culture of creativity and innovativeness in the service firms operating in United Kingdom.

Research Questions

This research was motivated by the following questions that the researcher was interested in finding satisfactory answers to.

1. What is the market’s knowledge of creativity and innovation, and do firms in United Kingdom consider it as a necessity in their marketing strategies.
2. To what extent are the firms in United Kingdom using creativity and innovation in their marketing practices?
3. Is there a direct relationship between success of a firm in the marketplace and its involvement in creativity and innovation?
4. What is the impact of innovation and creativity to the marketplace, in general and the marketers in specific, with reference to growth and development
5. What does the future carry for the marketing department, with creativity and innovation gaining relevance in the current marketplace?

Study Hypothesis

The service industry in the United Kingdom has undergone a lot of transformation over the past decades. With the business environment changing, it is necessary for service firms within the country to embrace innovative approaches to marketing in order to increase their competitiveness through increased market share and dominance. This study seeks to fulfil the hypothesis that marketing innovation and creativity of service firms leads to increased sales revenue and improved financial performance of service companies in UK.

Significance of the study

Marketing is a very sensitive process that requires a deep understanding of all the forces that affect it. As a marketer, one needs to understand the fact that a customer will identify with a firm only if he or she is thrilled by the experience they get from the service. Any form of dissatisfaction always lead to loss of trust, hence lack of commitment towards such firm’s products. The main aim of any marketer is to always create and maintain a large pool of loyal customers. Collins et al. (2007) explains that for a firm to be said to be sustainable, it must be in a position to maintain its current customers. However, this may not be possible if the marketer fails to provide customers with products that are reflecting their desires.

For this reason, marketers must always keep abreast with what technology has to offer, and embrace creativity and innovation as a way of maintaining customer satisfaction.

This study focuses on creativity and innovation in the current competitive market. It is very important guide to marketers and students of marketing as it enables them understand the principles and practice of creativity and innovativeness in the market.

Justification of the Study

The marketplace is changing very fast, majorly due to the technological innovations that have transformed the world to be a global village. The geographical constrains that existed before is completely broken, and firms can now sell their products to a borderless world. The numbers of firms offering the same line of products are on the rise and competition for customers has been taken to the highest level ever.

Firms unable to cope with this competition are faced out business, while those that have mastered the market trends are able to prosper. The marketers therefore must develop marketing designs that will be able to respond to market demands and offer customers value, in order to stay in competition.

For this to be possible, such firms must embrace creativity and innovativeness in all their operations. Marketing units must appreciate the need to offer customers products that are reflective of the market requirement. Through creativity, firms are able to develop new products in the market and the marketers are able to penetrate new markets that were not ventured into before. This research brings to focus the impact of creativity and innovation on marketing.

Service Industry Description

It is reported that United Kingdom has the sixth largest economy in the world. This country has a massive purchasing power, rated as the second highest in Europe, after Germany. United Kingdom comprises England, Wales, Northern Ireland and Scotland. United Kingdom was the first country to experience a serious industrial revolution in the eighteenth century. It was the world’s leading economy in almost all the sectors, the service sector included.

The first and the second world wars posed a great challenge to it as it had to use a volt of her wealth to finance it. This saw United States of America overtake it as the world’s economic power. However, this has not dampened the growth of this various sectors in this country. The country is rated one of the most globalised in the world. London, which is the capital city, is the world’s largest business hub.

The service industry in country is very large, accounting for up to two thirds of the entire economy of this country. Some of the service sectors in this country include, tourism industry, the real estate industry, transport, warehousing and communication industry, Wholesaling and retailing industry, hospitality industry, financial services, education sector, health services, creative art industry among a host of other service firms. This sector employs over three quarters of the entire population of this country. Collins et al. (2007) reports that this sector also accounts for two thirds of the country’s total GDP. The aviation sector of this country is the third largest in the world, and its pharmaceutical industry occupies over 15% of the world’s market share.

The service industry is has had a positive growth, with its banking sector taking top position in the world’s ratings. HSBC Holdings, Barclays PLC and Royal Bank of Scotland Group are ranked second; fifth and sixth largest banks in the world in terms of assert they hold. The sports and other entertainment sectors are also experiencing positive growth.

In 2008, Greenley (2005) reports that this country started experiencing economic recession, slowing the growth of its economy. By November 2009, the country registered sixth successive quarters of negative growth, making the country’s economy shrink by close to 5%. The hardest hit by this recession was the service industry. Many banks experienced a massive loss as many people rushed to withdraw their savings.

The number of those taking loans, either for mortgages or other services drastically reduced. Many large corporation registered losses, making them withdraw their savings to foot their bills. Barclay Bank had to write of a number of bad debts by close of 2009, making it loose millions of pounds. The hotels would go without customers as the number of tourists reduced. Many other service sectors also experienced negative growth because of this recession.

However, by mid 2008, there was a ray hope as the country started experiencing positive growth in its economy. Currently, the economy is growing at about 1%. This is a relief to the service sector. Business is turning back to normalcy and many of the firms have registered profits in the third quarter of this year.

This country does not operate in a vacuum. Just as its firms are dominating the world markets, the country is open to external competition from other world’s economic powers. These firms must therefore brace up for the tough competition that is in the market. This calls for creativity and innovativeness in their marketing activities. These firms must design their marketing structure to reflect the prevailing market conditions. Tastes and preferences vary with changes in technology. Treads also vary as technology brings new ways in doing businesses. A firm that hopes to stay competitive in this market must develop competitive marketing structures.

Service Marketing in United Kingdom

United Kingdom is one the world’s developed nations with very strong economy. This nation is technologically advanced. This scholarly article asserts that the service sector in this country is well developed, with competitors that are technologically advanced. The service sector, particularly the entertainment sector requires the players to invent new ideas in order to be relevant. A customer who comes to watch a movie in London may not be amused if he comes to the Manchester city and is subjected to the same item without any modifications.

It will be boring and at times the customer may be forced to look for other forms of entertainment other than movies. For this reason, this scholar observes that the movie makers must make an effort to create new scenes whenever they go to theatre. This calls for a high level of creativity on the side of the movie maker. S/he must be creative enough to come up with new ideas that have originality and ability to capture attention of those seeking entertainment.

The banking sector is not safe from this demand for creativity either. Carson (2008, p.41) reports that Barclay Bank has continuously registered a massive loss from fraudsters who are able to manipulate the system and make away with the company finances. The bank must therefore develop its systems to be foolproof in order to be safe from the constant loss it has experienced from this group which has perfected the art of breaking into this system. It must be innovative enough to develop mechanisms of that are able to protect its data base from undesirable elements that may pose danger to the bank. There has been a massive growth of service firms in United Kingdom because of their ability to apply innovation and creativity in their marketing strategies.

Thesis structure

The researcher divided the dissertation into five chapters. Each chapter is subdivided to address various units that relate to the various chapters. The chapters are: Introduction, Literature Review, Analysis of Data, Discussion, Conclusion and Recommendations.

The introductory part is subdivided into various parts which include abstract, background of the study, problem statement, research objectives, research question, study hypothesis, significance of the study, and justification of the study, the service industry in the UK, limitations and definitions. This first chapter brings to focus, the entire service industry in the United Kingdom and how it has grown over the past decades. It touches on the importance of creativity and innovativeness in the service sector, and how the service firms in the UK have put it into practice.

In the literature review, the researcher focuses on the secondary data available that touches on the thesis topic. It summarises works of other previous researchers to determine their relevance to this work. This helped the researcher the researcher in designing the hypothesis and its confirmation. The research is given both qualitative and quantitative approach to the data. The diagram below shows the structure of this dissertation.

Limitations and Delimitations

The researcher faced a number of challenges in the process of data collection, analysis and presentation. The researcher faced the following challenges.

• Time constrain: the research requires a deep understanding of the service industry in the United Kingdom, and this demands a longer period to research. The time limit for this research could not permit for this in-depth research.
• Financial constrain: this research requires one to travel from one region to another within the cities of United Kingdom. The researcher must also develop questionnaires and distribute them. This strains the available financial resources.
• This research targets about126 individuals from various service firms within four cities in the United Kingdom: London, Manchester, Liverpool and Birmingham. This is a limited scope, given the size of the country and the number of service firms.
• Some of the respondents who provided information for this research were emotionally unstable, and therefore provided biased answers.

However, the researcher countered these challenges in the following ways.

• The researcher distributed the questionnaires to various people in the sample location and conducted surveys simultaneously in a bid to save on time.
• To cut on costs, the researcher limited travel to longer destinations and preferred to collect data from specific limited locations through survey, distributing questionnaires to the rest of the sample locations.
• To counter the limited scope of the study and bias in the data collected, the researcher intends to conduct personal surveys. The data will be given both qualitative and quantitative approach.

Definitions

Marketing refers to the process on identifying customers, developing a positive relationship with them in a view to creating profitable transaction. It starts by the definition and identification of the market, and ends when the customer is thrilled and therefore turned into an evangelist for the firm’s product. Greenley (2005) defines creativity as the ability of an individual to come up with something new which is a development of the existing one, or is relevant to mankind.

Rao & Klein (2002) defines creativity as the use of imagination, in its most original form, to develop what has been in existence into a better and current one that reflects the current societal needs. Creativity is an art of using ones imaginative and intellectual might to bring to existence products that are able to solve human desires in a much better way than what the current products are.

According to Collins et al. (2007), innovation as the creation of new ways and methods of doing business in a more convenient manner that makes life much easier. Biemans (2010) defines innovation as the process of using imaginations to develop new strategies in solving the current problems. Innovation can be defined as the development of structures to address the contemporary challenges. Marketing innovation and creativity therefore can be defined as the process where marketer develops structures that are able to make them approach the dynamics of the market in a better way so as to remain competitive in the market.

Services are products that are able to satisfy the needs of a person, but cannot be seen or touched. They can only be felt. Greenley (2005) defines services as intangible products that offer satisfaction to the consumers. A service firm is therefore a business unit that offers intangible products in the market.

Marketing Innovation

Chapter Overview

Marketing is an important department in any service sector as it helps an organization market its products to the existing and potential customers. Due to globalization and advance in technology, many organizations have increased their growth and expanded to other countries across the globe. This expansion and growth means that an organization needs to operate at a global level rather than on a regional or at country level. These changes have made the business environment dynamic calling for innovative strategies in marketing in order to increase the competitive advantages and performance of firms in the industry.

Innovation in marketing emerges as an organization develops creative strategies that enhance the awareness and consumption of the products and services offered by the firm. This chapter discusses the innovative strategies that firms apply in the service industry while highlighting their relevance to the performance of service companies. Some of the creative strategies include use of electronic marketing mix and integrated marketing communication strategies to enhance the performance of service firms.

Marketing Innovation

Many scholars have done a lot of research on this topic as it has raised a lot of concern in the contemporary marketing. Technology has brought numerous changes in the world, completely redefining the way business is conducted. The service industry has experienced a massive growth in the past one decade, with the English football rated as the most popular in the world. There has been an increasing need for more information in this field. The rise in fraudulent activities in the banks, the increasing need for entertainment in the country among other emerging trends have seen the need for innovation and creativity be on the rise.

Kabani (2009, p. 589) defines innovation as the inventions of new ideas in solving current problems in a better way. It is the use of technology to bring to life creative methods of approaching marketing in a way that will make the whole process much easier and more effective. Andrzej and Buchaman (2007, p. 36) define creativity as the imaginative capability of an individual to come with new ideas and approaches every time he or she faces a similar problem or issue.

Services are products that are satisfy the needs of an individual but they are intangible. Marketing creativity therefore refers to bringing in creative ideas in the process of marketing of services, with an aim of gaining competitive advantage over the rival firms. The marketplace is very competitive and every business unit must make a concerted effort to understand the requirement of the demanding customers. This will enable them design their products to reflect these requirements.

Marketing Mix Creative Strategies

Kotler et al. (2001) asserts that a marketer should understand the prevailing marketing conditions and internalise the market requirements. S/he should be in a position to relate the current technological inventions and determine how it may impact the market. It is only through this that a marketer can develop a working marketing strategy that would make the firm manage market competition and emerge prosperous.

This astute marketer explains that developing marketing strategy starts with market segmentation. This helps the marketer understand which product will be appropriate for each target group. With this, a marketer can develop an approach to reach into each of the market segment.

Marketing innovation and creativity is very important in product positioning in the market. After defining the market segment, a marketer will have to determine the right product for that particular market.

The Product

This is the good or service provided by an organization in a given market for its clients. Groucutt, Leadley and Forsyth (2004) note that there are other non-physical elements of the products of an organization that the company customers may be interested in. They may include factors such as packaging, quality, features and the brand name. A new organization offering new products in an industry must think of these features as elements that sell the product.

The product being sold should meet the specific needs of the target market. Biemans (2010) adds that the appearance of the product make up what the customer is buying. In order to provide the products and services with desirable features to the customers, a comprehensive market survey is necessary. In addition, during the establishment of a new product, the firm should ensure that the new product bundle meets the business strengths and weaknesses. Before any venture is undertaken, long term though in the line of broadening the product bundle should be undertaken. This would reduce the chances of product maturity and exit from the industry.

Price

The price represents the money that the company charges for its products or service. According to Dean and Patrick (1993), price determination is a tricky and frightening exercise for a new organization. In spite of the need to set the prices of the company product lower than competitors in a new market, the low price can send different signals. For instance, consumers may perceive low prices as an indicator of low quality.

The pricing approach adopted by an organization should reflect appropriate positioning of the product in the market hence the need to use a price that covers the incurred costs and the profit margin. Thus, the outcome price should be neither timid nor greedy because a greedy price would drive the firm out of the market while a timid price would reduce the chances of growth for the firm. Various pricing strategies can be applied by an organization in various markets as explained below:

• Cost-plus strategy: this strategy adds a standard percentage of profit above the incurred production cost. The cost can be effectively arrived at after comparison of costs incurred in production.
• Value-Based strategy: this strategy is based on the valuation perceptions of consumers of the product. The perceptions of consumers are based on various product related factors such as quality, prestige and healthy issues.
• Competitive pricing strategy: this strategy is based on the evaluation of the competitor prices and charging the price that are related to competitors. The strategy is simple to apply because what is required is the comparison of competitor’s prices. Market surveys and gathering of information is vital for the strategy.
• Going rate: The strategy charges prices based on the prices that the good is going in the market. It is applied in markets that the firm lacks control of the price in the market.
• Skimming strategy: the strategy targets high consumers. Thus, it introduces a product in the market at a high price with the intention of targeting affluent consumers.
• Discount pricing: the strategy is based on the reduction of the advertised price by a given percentage.
• Loss Leader: the strategy aims at selling the product at a price that is lower than the cost incurred in producing the product. The goal of the strategy is to attract customers to the firm. New entrants mostly apply it.
• Psychological: this strategy sets the prices of products at a psychologically better price such as $9.99 instead of $10.00.

The decision on the strategy to be employed in pricing is accompanied by determination of payment periods, product bundling, discounts and allowances (Dean & Patrick, 1993).

Place

After a careful selection of the target market, the product needs to be distributed to the consumers. The place refers to the distribution channels used to distribute the product. The nature of the product is usually considered in the choice of the distribution channels. According to Kotler et al. (2001), the type of firm being established determines the section of the supply chain that the firm would be.

A retailer would occupy the lower end of the channel of distribution. A firm can decide whether to supply its products directly to the consumers or sales through an intermediary (Reseller sales). Whichever strategy adopted by the firm, the management needs to decide the market coverage of the product. In order to cover the market, the firm can use intensive distribution where it places its products to as many places as possible within the market. This strategy is often accompanied by low pricing (Kotler, et al. 2001).

The company can perform selective distribution where it narrows the distribution of its products to only a few businesses. This strategy enables the firm to establish a good relationship with its customers because high quality product selling retailers are provided with the opportunity to sell the products of the company. The organization can also be involved in exclusive distribution in which it restricts distribution to a single reseller. The sales volumes will dictate the inventories to hold and the best means of transportation of the products to the market. All kinds of logistics including acquisition of raw materials should be applied in order to realize the cost minimization objective.

Promotion

Product promotion refers to all means that a firm is involved advertising and selling of the product. Through promotions, the firm lets its customers and potential customers know about the features of the products being offered. Promotion aims at revealing the specific good features of the product being offered with the goal of convincing the consumers to purchase it. The promotion of company products should contain a clear message conveyed through an appropriate channel. The targeted audience should be people with the ability to purchase the product. After a successful market survey, the firm should identify the target for its product hence the promotion. Various promotional channels include the radio, television and the print media. Others include the electronic media and use of word of mouth.

An organization can also rely on public relations to create a good image and reputation hence enhancing the marketability of its products. Personal selling could be utilized with sales persons being employed to sell the products of the firm.

Electronic Marketing Mix Strategies

Marketing mix are tools used by an organization to shape the nature of its offers to customers. The marketing mix is made up of products, pricing, promotion, place, and people. The elements are interpedently linked to make the market mix offering credible and attractive to consumers. Internet is changing the way we sell our products or services. The online marketing reach consumers through research and purchase using features, styling, packaging, process, quality, branding, physical evidence, service delivery and people through the internet. The marketers use affiliated marketing, website monitoring, online advertising, email marketing and pay-per-click with paid search to reach to their customers. A large number of people use internet to make purchases and also to research on their needs.

Marketing mix factors for online marketing

Product tangibility disappears but it’s improved by availability of product features which attract the consumers to purchase. A description of the product is provided to enable the consumer to distinguish the products to suit the expectation and needs before purchase (Saunders, Lewis, & Thornhill, 2007). Pictures and videos are provided to enhance the characteristics of the product to the customer. Internet is therefore used for online booking and information systems of products by the organization.

Internet promotion is used to communicate information about goods and services the organization provides to target consumers facilitating online exchange process. Online marketing also reaches many customers and at their own time making online marketing the most profitable and widely used venture in the organization. Online marketing is based on use of a recognizable domain name, website, banner, web public relations and direct mail.

Internet has made pricing very competitive due to easy access to price controls and information by consumers. A cost incurred in payment of employees is cut reducing the full cost of products further reducing the prices. Payment is done through PayPal and online credit cards. The organization should adjust to these changes.

Online facilitates effective market offering through providing the right service at the right time, right price and sites. A consumer purchase products direct from the organization cutting out some retailers. Online becomes the distributor of links and advertisements. This helps the organization to organize itself.

People, process and physical evidence is created by technology which allows; tactics, in which people are replaced, enhance the experience of the customer with the marketer, and methods and procedures to be used to allow loyal customers to be tracked and incentives to be targeted. Online marketing reaches too many people allowing the marketer to advertise his products and services in advance for customers to view it whenever they are in need or when looking for them. The marketer includes his contacts and location in order to create confidence to customers about the transaction. The organization will have a chance to increase its orders and reduce its expenses and consequently maximize profits.

Social Media Marketing

Social media marketing is a form of marketing that employs social networks like You Tube, Facebook, Tweeter and such other networks. For the past three years, social medias has gained a lot of relevance in the society. When Facebook came into existence in February 2004, many marketers never thought that it would turn into a massive channel of communication. Some traditional marketers developed negative attitude towards it because of its popularity among the youths.

However, this is not the case as at current. Facebook has over 500 million viewers per day in every corner of the world. You Tube has an equal number of viewers and is the fastest growing and most popular site for entertainment seekers. Tweeter also has a large following. This new invention has made many marketers shift from the mainstream mass media marketing to social media marketing. Many service firms have found more relevance on the social media as it has a clear target market in terms of age.

As this scholar notes, social Medias reaches over 85% of the youths in the United Kingdom. Service firms can therefore take advantage of this new invention to market their product to this market segment. For firms offering entertainment services, this is the best target group because they are known to like entertainment. Such sites offer them the best medium to reach them. The banking sector can target this group as they are customers who will be available for a longer period of time, as opposed to the aging group.

Role of internet in Marketing

Internet marketing reduces the costs incurred in hiring and firing employees, increases the accessibility of marketers to potential customers, and makes it easy to target specific customers against an acceptable amount of money. In addition, it enables customers to view a variety of products before purchase to enhance their satisfaction, and also due to the large number of customers reached; it enables the organization to generate more revenue and turn-over.

Using Internet to Vary Marketing Mix

Internet uses tactics in which people are replaced with methods and procedures. Internet influences price on other elements of marketing mix. In products and service offering, price is used by the marketer to reflect the value of products and services. The services are highly complex hence perceived quality is very important in attracting consumers. The marketer uses internet by offering a variety of offerings at valid price levels to suit as many potential customers as possible. Other products may be offered at a discount for quality or regular purchase.

Food is an essential product for wellbeing of living beings making the prices sensitive to consumers. Promotional price is included in the promotion message. Price sensitive products or services often rely on attracting customers on price and communication to potential customers. Price deductions and offers are used to present the key part of the promotional mix.

The prices charged on a product or service reflects its quality. Food requires expensive products or services which often require higher levels of staff training and specialized knowledge of the product or service. Internet ranks the features and attributes of a product or service against the price allowing customers to make judgment on quality when little information is provided.

Online branding strategy

Aspects of branding include; brand name, brand image, brand loyalty, and corporate reputation. In some cases, consumers tend to care about the brand and not the manufacturer of the product. The marketer has to take advantage of online marketing to attract and maintain more customers by creating a strong brand that respond to all demands. The areas that determine branding that the marketer will use include; a brand that is used across the market, a brand name that responds to foreign cultural demands, a brand that is favoured by perception of the country of origin, and brand names with regard to the former colonial master country.

It creates sustainability and unique identity to differentiate the marketer from its competitors. The customer is required to have knowledge on the technical aspects and understanding of programming possibilities of website developments. The internet provides the customer with a description of the product or the service, an online advertisement, search engine optimization service, a user tracking and web analytics device, a graphical design of its site and achievements, and a report delivery method.

A company that has a variety of products under the same brand name uses umbrella branding but the brand loyalty may differ according to customer tastes and preferences. Most products provide different tastes and preferences but are of the same value to the customer.

This strategy develops to help the company remain competitive in the market by providing a variety of products or services the customer may need. Most of these companies seek to build a worldwide brand by establishing and protecting one strong brand used across the market. The brand names depict the product image. It is upon the company to ensure that their brand name demand is high in the target market. Vivid advertisement is used to increase awareness of the great products the company has offered to its customers to increase their interest and attention

Target market (s) for online marketing mix strategies

They are designed to generate more profits through reaching too many customers. They could help customers to do shopping and enjoy their variety of food products and services at ease. Experts create web sites for communication between the customer and the marketer. Ecommerce is used by the marketer to promote his/her products or services when people need them or when looking for them through the internet.

It includes online advertising and search engine market which require advance advertisements. Online marketing make use of CPM basis by use of banners to build brands. Email market use emails to communicate to customers and marketers. Social media market use web public relations, articles and, media to communicate to their customers. Web analytics take advantage of customers’ website monitoring to identify needs and wants and how to satisfy them. This will help the business a great deal in communicating to their customers and improving their perception of the products and services they offer.

Evaluation metrics of internet marketing mix strategies performance

Evaluation metrics are designed to improve ways of creating awareness, attracting and maintaining customers. It includes evaluation of the online marketing techniques for potential revenue generation capabilities of clients’ websites. This presents online marketing activities against the overall business objectives and goals. It requires a specification of the type of control that internet marketers rely on to ensure that performance is enhanced and the expected impact on marketing mix is achieved. In order to do this effectively, controls must be build in the internet to enable measurement of its effectiveness.

It serves the purpose of ensuring communication objectives are met, target consumers receive the message, and determining the response of customers to their product offers through measuring the sales volume and the level of demand. The methods to use include; marketing research, competitive analysis, strategic positioning, evaluation of development of internet marketing, and direct responses. They are done by experts in online marketing and website development. They ensure that online marketing uses high level technology, it’s able to detect errors, provide quality communication, feedback, and experience of the customer with the marketer and ensure usability and functionality of web sites.

Tactical Communication Activities

The competitive business environment calls for the marketing team of an organization to employ a well-structured communication structure that will respond to their needs. Many global corporations consider the use of internet marketing as a way of reaching out to the targeted global audience. An organization can take the use of its website, social media (Facebook, Tweeter, and You Tube) to market its products and services. It can also consider limited use of mass Medias like the print media, television and radio advertisements.

Facebook

Facebook is the most popular social network with a population of 400 million users across the globe. Evans (2010, p.18) reports that the population that visits this media is so loyal that they can hardly go for a whole day without visiting this site. The highest percentage of the users of this site is teenagers aged fifteen to nineteen years of age. They are the age that is the target audience of this institution. Treadaway (2010, p.12) explains that Facebook allows users to communicate through short text messages and chat. The user creates a wall through which s/he posts the desired communication message. The friends will easily view the message the moment they go to that wall. Alternatively, the message can be sent directly to the desired recipients in their Facebook pages.

Many service companies have join this large community and have created their walls ion which clients could post as well as read messages posted on the wall. Through this wall, it can post several messages to the desired customers.

These messages can be about the programs that the institution offers as well as its products. However, Drewniany & Jewler (2008) note that the marketing team must make an effort when designing such communications to create a differential advantage for the organization in order to depict the aspect of creativity and uniqueness. They should make the viewer see the difference that exists between the company and its competitors in the industry.

Drewniany & Jewler (2008, p.19) caution that it may not be advisable to send messages to individuals not known to the institution as this may be regarded as junk message. This may end up creating a negative impression among the prospective customers who may consider the organization as being so desperate for the client thereby becoming counterproductive. This social media is recommendable because it reaches individuals from all parts of the world. A person who is in Europe will receive this communication as fast as the one in Africa, America, Asia or any other continent around the world (Eastman, Ferguson & Klein 2006, p.22)

You Tube

You Tube has a following of close to 400 million users. It is very popular among the youths because it allows users to send and receive movies and such other related documentaries. Jarboe (2009, p.18) explains that this feature has seen many youths shift from the normal method of watching movies on televisions or in theatres. They now prefer to watch these movies in You Tube. This is because this social media offers a large variety of movies from which to choose. Most of these movies are also very current.

An organization can take advantage of the popularity of this site and develop short adverts to be featured just before or after the movies. When doing this, care must be taken to ensure that the featuring of the company’s adverts do not become a bother to the viewers. Wayne and Hoyer (2008, p.39) advice that the viewers should not see the advert as junk that does nothing but interfere with their normal entertainment, as this can be the beginning of their development of a negative attitude towards the organization. Some organizations also develop some short videos that can be released as commercials. These commercials can then be made available through You Tube for customers to view.

The marketing team ensures that these commercials are entertaining to the target audience (Zimmerman 1996, p.51). They consider displaying the adverts to target markets, giving the firm and its products its best features. The features can include the buildings, the interior designs of the processing rooms, and clients being served within the state-of-the art facilities, the transport facilities and other infrastructural components of the organization that will make the viewer appreciate that the organization and its products are of a different calibre to other organization in the industry (Warren 2005, p. 47). Basing on these information, clients are able to appreciate that products offered by the firm are the best alternative of the competitors available.

Twitter

Twitter, just like Facebook, has a large following. It allows the user to design message and send to the target audience, just like the Facebook. The marketing team may consider joining this community as a member by creating their wall. On this wall, it can post messages that are intended to attract viewers. Thomases (2010, p. 14) argues that most of the viewers of this site are youths who are in need to communicate with friends mainly for fun.

The marketing team must understand this and pose as a friend to the individual in this vast community. This will enable him/her to be viewed by the community as a member who deserves to be listened to. This will make it a lot easier for it to pass persuasive information to the members and convince them to purchase the products of the firm (Xenos and Moy 2007, p.10). An organization should be posted on the media as one that not only understands the youthful nature of these individuals, but also appreciates this nature and accommodates it comfortably. This will make the members develop some personal attachment with the company.

The Company’s Website

An organization could establish a website that can act as another site through which prospective customers can access information about the company and its products. The marketing team must be in a position to design a website that is responsive and very clear.

The website should be simple to understand and with the right information that a customer may need. In the website, there should be the organization’s vision and mission statement, the strategic objectives and other guiding principles. The company’s management team should also appear in the website. Information about firm’s location, facilities should also be provided in addition to the services that the company offers. The website should be easy to navigate with features that are appealing to the eye. The pictures and colour combination should also reflect that of the organization.

IMC Strategies

The initial step for IMC strategies is to develop awareness of an organization’s products to the target market. The objective is to make the potential market aware of the products and services of the organization. For instance, marketing of tourism services could include increased awareness of the availability of beautiful beaches, a wonderful climate, sanctuaries, creek glow-worm, gliding bay and adventure PARC among many other attractive features available in the tourist destination.

The creation of awareness among the target population concerning the potential of an organization in solving customers’ issues would begin by advertising the services provided to the public through the print media such as newspapers, company magazines and newsletters for the specific industry operation among many others. Billboards and bulletin boards would also be created and situated in strategic locations throughout the geographic market segment.

According to Kotler & Armstrong (2004), the audio media should also not be left out as an advertising channel because it is more effective than the print media. The other is the broadcast media that includes television broadcasts. According to Wedel & Kamakura (2000), all adverts must have a given message to the customers. Consequently, all adverts and promotions of the tourism activities in Gold Coast City would have a specific message that is appealing to the public in Australia (Collins, et al, 2007).

After creating awareness, it is necessary to develop interest in the target market of an organization. Developing interest would involve holding of several concerts of various services and other products offered by the firm. This would also include being present in shows, state fairs spring and summer break festivities among other events. Events would garner interest with colourful signs and banners including announcements by various artists.

After creation of interest, the market needs to evaluate whether the goals and objectives of the firm have been accomplished. Evaluation could be conducted by the ability of the target population to access the services of the firm. The marketing mix would incorporate many concerts that would ensure that some locals participate in some events. At the rate of 30% for instance, the marketer could evaluate the interest of the target market to the products and services being offered. Evaluation would be facilitated at the various promotion events providing some products to all participants (Mills, 2002).

After evaluation, the IMC director encourages the target market to try out the activities being offered by the company. The IMC director could achieve this objective by providing locals with rebates such as 20% off the price of the activities being offered in by an organization. Price rebates could encourage consumers to believe that they are being given a bargain thereby ending up trying out the services of the firm.

Trade discounts in terms of the number of domestic tourists would also encourage locals to tour the city. After the establishment of products that link locals to their culture, the IMC director should have the goal of making the locals adopt domestic the services at hand. This could include provision of coupons for second or further visits to the city. The firm at hand should offer various deals and packages for new and existing clients.

Creative Strategies for Communication in Marketing

The activities of an organization could be promoted to using direct marketing that would be accompanied by action orientation. Direct marketing of the activities and products of services companies could include a call to immediate action and an easy step to use response devices in order to sell or make a step towards selling of tourism activities in Australia. The IMC director would make specific offers to the public towards holding an open day for the firm in which the company reveals its products and services to the public.

This may include telling locals the available offers for the target market and the requirements to obtain the offers such as the prices. The information provided is to the targeted market. The information provided must be measurable, personal, testable and flexible to allow all locals to make their varying offers.

Media Strategies

According to Kitchen & De Pelsmacker (2004), IMC strategies encompass general advertising, marketing directly to consumers in the target market, sales promotions and public relations. No strategy is superior to the other because all strategies have an equal goal in an integrated marketing communication initiative.

Promotion of services for service firms involves the utilization of various media channels in order to convey the message on the benefits of the services and the ability of the services to fulfil customers’ needs. The first form of media that is very effective is the print media. Under this mode, the IMC director in the tourism service industry could market the attractive features of the industry such as beautiful beaches, climatic conditions and creek among other attractions through newspapers, magazines and brochures among other forms of print media.

Pictures and videos containing the necessary attractive features would be conveyed. The broadcast media could also be used to convey the same message. TVs and radio could be used. In addition, public relations strategy could be used with public relations representative informing the locals on the benefits of services while doing away with the bad perception of the firm to the public (Kotler & Armstrong, 2004).

Other forms of promoting products and services for firms in the service industry could be through use of billboards and posters. By having a marketing representative visiting various organizations in the target market occasionally to educate the public on the services and their importance the firm would be able to increase its customer base, market share and dominance in the industry.

Impact of Marketing Innovation on Firms

Marketing is an important sector within a service organization as it plays a vital role for the sale of the products and services of service companies to its clients. With the increase in industry competitiveness, many organizations are finding it necessary to increase creativity in their marketing activities and strategies in order to become unique and increase their competitiveness while maximizing the profits at the same time.

In a study conducted by Rao and Klein (1994, p. 32) on the importance of strategies of marketing to organizations, it was established that many organization are increasing their investments in marketing strategies and assets to supplement legal mechanisms and increase the profitability of the firm. The findings are similar to the findings who also indicated that many organizations are developing marketing strategies and focusing on establishing alliances and diversification in order to increase the organization’s market share and dominance. These strategies are necessary many firms that are operating at a global level through internationalization and diversification.

Yin-Yang (2009, p. 1) established the evidence of the benefits of marketing innovation by bringing the customer into play. By using the increasing certainty funnel metaphor, he established that marketing innovation helps increase the awareness of the products and services of an organization. The funnel narrows down from large number of customer unaware of the services offered by an organization forming the wide end to the few loyal clients that are loyal to the services being offered by the company. Basing on the outcome of the survey, Yin-Yang established that marketing innovation helps an organization create loyal customers that are vital for sustainable competition in the dynamic business environment.

Marketing innovation approaches such as use of the internet and other online approaches such as social sites, company sites and bogs help an organization increase the awareness of its services to a large potential population that eventually lead many customers to try out the services being advertised.

Use of creativity in marketing involves the use of many approaches. Some approaches such as discount days or loyalty cards help an organization increase its customer base and market share and dominance. In a study conducted by Greenley (2005, p. 39) on the relevance of marketing innovation approaches, it was established that use of innovation in approaches in marketing is vital for service firms as many people turn up on the occasion and if the strategy is well executed, the potential customer end purchasing and even becoming loyal to the firm. Therefore, an organization could increase its competitiveness in the industry with the use of marketing innovation approaches.

Similar to these findings are the findings of Greenley (2005, p. 39) who established that communication is an important aspect in marketing. Effective marketing could be used by an organization to sell its products and services to the market. However, a poorly communicated message may not get the necessary attention from the potential customers in the target market. However, creativity in communication with service firm using effective communication and integrated strategies with proper choice of words, graphics and images could spur interest from the targeted market.

Media and other creative strategies could generate the required interest and eventual purchase from the niche market. Consequently, the changing media landscape has positively contributed to the relevance of innovation in marketing of service and any other firm. The mainstream media is a cold form of advertisement and communication. Niche media is fresh while ‘My media,’ which is characterised by personal media, is warm. However, organizations that have used the social media with integration of other strategies is a hot form of media and communication for selling and marketing the products of an organization.

From the foregoing discussion, it is evident that creative strategies used in marketing affect the organization positively as they could lead to an increase in awareness, purchase and loyalty of customers to an organization. An increase in the customer base does not only mean an increase in the market share, but also the sales revenue and profitability of an organization. A survey conducted by Greenley (2005) on UK firms confirms that an increase in the customer base leads to better performance of an organization. Moreover, it leads to increased market dominance, uniqueness and competitiveness.

Chapter Summary

This chapter has discussed the important creative and innovative strategies that are applied by different firms especially in the services industry to increase their product and service awareness. Companies in the industry use strategies such as electronic marketing mix strategies and integrated marketing communication strategies. Some of the creativity in marketing involves the use of social media and the internet to increase the awareness of the services offered by an organization. The impact of creative strategies to organizations is positive as organizations are able to increase their product awareness, increase their customer base, unique customer approach thereby creating competitiveness and improving performance.

Methodology

Approach

This research will take a deductive approach that will entail the researcher working from a known hypothesis that marketing innovation affects positively the performance of service firms in UK. Thus, the study takes a top down approach as compared to the inductive approach that takes an up down strategy.

To realize the use deductive approach, quantitative tools of collective and analyzing data like questionnaires and interviews were used. Quantitative tools were preferred as compared to qualitative tools because they enable the researcher to come up with facts like a hypothesis that marketing innovation can improve the performance of service firms operating in the UK market and thereafter testing and confirming or rejecting the hypothesis. This is unlike qualitative tools that first come up with an abstract idea that is followed by creation of theories and concepts about the idea. Lastly, data in quantitative research is hard and reliable as compared with qualitative research where data that is just rich and deep (Quinn, 2002).

In addition to the above, this study takes a positivism kind of philosophy towards the impact of marketing innovation on the performance of service corporations in UK. A positivism approach will make us understand more the impacts of marketing innovation on not only service firms but also on other organizations.

Research methods

Quantitative approach vs. qualitative approach

There are two ways to approach any study, either, qualitative or quantitative. However, a study can combine the two approaches by employing both qualitative and quantitative methods. The distinction between these two methods arises in how data is collected, treated, and analyzed.

A study that is quantitative usually makes an emphasis on transforming the data quantities and the models of statistics for purposes of measuring and analyzing data. The research topics in which researchers use this method have clear idea of what they look or search for and tools like questionnaires are used to collect data. Quantitative approach has its focus on the preciseness of data that is seen in terms of measuring data. Quantitative approach to a research involves using statistical data analyses to obtain information about the study simply because the approach is based on measuring the quantity or amount.

On the contrary, a qualitative approach to research makes the researcher to switch his focus to gaining a better understanding of the problem of the research by giving detailed information about the main theme of the study topic. The major goal of a qualitative study is to have a complete and detailed description of the study phenomenon by applying reasoning. Qualitative research involves the use of interviews and observations to collect data and there are no formal measurements involved. Qualitative approach makes the researcher understand the phenomenon under study and be in a position to describe the whole situation as it is. The approach consists of descriptions, quotes, observations, and excerpts from books and other documents (Quinn, p. 2002, p. 308).

This study would like the researcher and the reader to gain a better understanding of the adoption of marketing innovation as a marketing strategy in the service sector in UK. The study will provide a detailed explanation of marketing innovation approaches, its use, and application service firms in UK. In order to measure the impacts and importance of creativity in marketing the performance service companies, a quantitative approach to research will be applied by the study.

This will involve gathering information about creativity and innovativeness in marketing of services and other products of service firms and the impact of the specific actions on the performance of the firm in terms of sales revenue and overall financial performance. This approach allows the researcher to use statistical data to analyze the impact of marketing innovation on the sales revenue of service firms in the financial and insurance sectors in UK.

Strategy of research

This study would get to the deeper understanding and knowledge of the impacts of marketing innovation on the revenue earned by service corporations in UK. The study also involves investigating the creativity in marketing as a strategy for the marketing department.

A case study is a strategy for the research that involves the researcher collecting and making an analysis of data from a given case (Yin, 2003). In this study, the researcher will use service firms operating in the financial and insurance sectors in UK as the case study for marketing innovation and revenue performance. A case study is relevant as well as useful to the study in all situations that will give rise to different but relevant interpretations to the topic of study.

According to Yin (2003, p. 78), a case is a study that is empirical in nature and seeks to investigate the unclear phenomenon. This study will employ an embedded single case study that gives an attention to a single case study for analysis. There could be more chances of comparing several cases but due to time constraints, the researcher will study the impact of marketing creativity on the sales revenue of the firm and the overall performance in strategic marketing in service firms in UK (Jankowicz, 2005, p. 234).

A survey is another design that the research uses. A survey is good for this study because it can be administered from any location and large sample are feasible with many questions being asked about the impact of marketing innovation on the performance of sales revenue of service companies in the insurance and financial sector in UK. In addition to that, the use of surveys makes the researcher employ standard questions that result in uniform definitions and responses from the respondents.

Data collection methods

It is important for the researcher to choose relevant data collection methods for the study because they will help him in successful completion of the study. The method that is selected by the researcher will determine how data is collected in the course of research. The various methods of collecting data will vary depending on the approach that the study is using. This study will employ interviews and questionnaires to collects data (Miles & Hurberman, 1994).

There are also primary and secondary methods of collecting data. Primary are the methods that collect data for the first time while secondary methods are those where the researcher uses data collected by other people. According to Quinn (2002, p. 10), secondary data collection methods refer to the ability of the researcher to carry out an analysis of the data that has already been prepared by other researchers. This research will use both primary and secondary methods to collect data for the study. The primary sources of data will come from the questionnaires and interviews conducted by the researcher.

The secondary sources will include review of both published and unpublished literature that is related to the suitability of innovation marketing approaches for improvement of sales revenue and performance of service firms in UK Primary sources will include the review of the findings from the interviews and responses from respondents who are from the marketing department in service firms operating in UK.

Population and sample Selection

The population of the study will comprise of the various people in charge of marketing services offered by insurance and financial companies in UK. It is important that all members of the study population be studied to ascertain the findings of the study.

However, due to constraints experienced by the researcher during the study, only 30% of the study population will be studied. Mcneill, and Chapman, (2005, p. 226) argues that the process of sampling involves selecting elements from the study population so that by carrying a study of the sample and having an understanding of the properties of the characteristics of the subjects of the sample, it will be possible to generalize the properties to specific elements in the population.

Sampling techniques that can be used in any research are many and the researcher can choose depending on the goals and objectives of the study. The use of these sampling techniques allows a researcher to choose the sample population from a subset of a large population rather than the whole population reducing the cost of the study. Concerning this study, Stratified random sampling was chosen because it is a probability method that gives every member of the population equal chance of being selected as a sample. A sample of 150 marketing personnel was selected using stratified random sampling in order to participate in this study. Only 10 interviews were conducted with the rest of 140 respondents filling in questionnaires.

Design of questionnaire

The questions that are commonly used in surveys and questionnaires are usually open ended, closed-ended questions and likert scales. Open ended questions do not always give answers that a respondent can choose from but allow participants to answer freely. On the other hand, closed ended questions provide answers for the respondent to choose from. Likert scale questions requests respondents to respond to the question along a given continuum from the given responses. The questionnaire and questions for interviews that were used in this study, contained question that had the above three structures. The development of the questionnaire considered questions that will give rise to information that is relevant to the importance of marketing innovation on the performance of service firms in UK.

Data Analysis

Responses to the interviews and questionnaires will be analyzed both quantitatively and qualitatively. Qualitatively, the data will be analyzed using thematic analysis. This tool is considered to be highly inductive, as themes are not imposed on data by the researcher but rather emerge from the data itself. In this method, data from different people is compared and contrasted, similarities and differences identified in a process that continues until the researcher is satisfied that no more new issues or themes are arising (Flick, et al. 2004).

Thematic analysis was chosen because it allows rich, in-depth, and detailed meaning to be derived from the collected data. It involves coding of data according to the emerging themes (Miles & Huberman, 1994).

Thematic analysis analyses the descriptions line by line, allowing rich in-depth data to be derived from the responses (Russell & Gery, 2009). This tool categorizes the findings and conclusions from various sources according to the emerging themes, making it possible to identify similarities in the meanings and explanations from the various respondents. The researcher is also able to highlight the main issues emerging from the responses. Line by line analysis allows the researcher to highlight matching patterns in the text from the different responses allowing quantification of data (Salkind, 2008).

Reliability and Validity

The performance of any research tool is usually measured in terms of reliability, validity and sensitivity as well as specificity (Giddens, 2009). These concepts will also be applied in this study by the researcher to ascertain the reliability of the study. According to Clarke, reliability is the ability by which a study is able to produce results that are consistent and stable over a given period of time and given similar circumstances (Clarke, 1998). Various types of validities exist that include internal validity and external validity. Internal validity relates to the correlation between items when measured on a scale. Whenever a study provides the same results after the application of two different measures, the outcome is said to be equivalent.

Validity is the extent to which a given instrument is designed to measure. The validity of a study can vary in different samples used. In one situation, a study can be valid while in other scenarios, it may not. The validity of a study is measured by what the study claims to and the availability of logical errors in the conclusions drawn from the study. According to Crotty (2003), internal validity is the extent to which it is possible to make independent reference from the findings of a study especially if the independent variable influences the dependent variable. On the other hand, external validity is the general application of the findings of a study to other settings.

The measurement of the theoretical construct of a study is measured using construct validity while convergent validity makes comparison between the scores that are obtained from different instruments that are used in the study. Unlike convergent validity, divergent validity compares the instruments used in the study that measure concepts that are opposite. Given the above validity and reliability, the study is valid ad reliable for use by any person or strategic department (Clarke, 1998).

Data Analysis and Interpretation

Overview

This part analyzes the responses from the questions that were used in the questionnaires and interviews. Questionnaires and interviews were used by the researcher to gather data about the suitability of marketing innovation strategy that can be employed in service firms to improve the performance of service organization in terms of their sales revenue and overall financial performance. To achieve the objectives of the study, the reliability, and validity of data collected was measured.

By use of stratified sampling, the researcher selected thirty percent of the employees in the marketing department in 14 service firms operating in UK. The fourteen managers leading the departments were interviewed while the employees that market the products of the organizations filled questionnaires on marketing innovation. A lot of care was taken to ensure that there was proper representation to avoid bias. The researcher did the distribution of the questionnaires to his representatives on the ground to ensure that the research is completed in time (Heart, et al., 2001). Therefore, only 14 interviews were conducted with the rest of the 136 respondents filling the questionnaires and returning them to the respondent.

Out of the 136 questionnaires that were distributed to the respondents, only 122 were returned to the researcher. When added to the 14 interviews conducted by the researcher, it sums up to 136 responses, which represent 88% of all respondents. The questionnaires that were used had both open-ended questions and likert scale questions. All questions were analyzed except those questions that were poorly or wrongly answered. All responses from all types of questions will be analyzed beginning with responses from likert scale questions. The eight likert-scale questions were rated using a likert scale of 1-5. The analysis that was done was based on the objectives of the study.

Data Analysis

The Level of Marketing Innovation in the Firm

As indicated above, the researcher inquired the level to which service firms utilize marketing innovation and creativity. From the responses given, it is evident that many firms studied in this study use creativity in marketing their services.

From the above fig. 1, it is evident that 34% of the respondents indicated that they use marketing innovation in marketing their services in UK. Another additional 20% of the respondents indicated that market creativity was high with moderate use of creativity in marketing being reported at 16%. The rest of the respondents indicated that their organization have not engaged creativity in marketing their services.

The respondents that indicted high utilization of marketing creativity argued that marketing creativity approaches in use are many and include the advertisement and promotion of the services the firm offers to the targeted markets. Other approaches used include the use of the internet to promote the services of the companies. This is done using the websites of the company and the other social sites.

The Role of Advertising

Advertising’s central function is to create desires that previously did not exist.” This statement gives the primary role of advertising. The main aim of the advertiser is to convince those who have not been using the product to try it. As noted in fig. 2 below, respondents pointed out that marketing is very important in the marketing strategy of any organization. As a marketing strategy, creativity is required in adverts posted by organizations operating in the service sector. In addition, the respondents indicated that adverts should reveal the true worth of the services provided.

Respondents indicated that other than the need to inform customers about existence of a new product in the market or just the desire to remind them of market availability of such products, the main aim of advertising is to increase sales. The relevance of advertising as noted by the respondents is similar to the outcome of a survey conducted by Drewniany & Jewler (2008) that found out that advertising is vital for revenue increases in services firms.

Degree of Resource Commitment

Innovativeness in marketing requires that an organization allocates enough resources to the marketing department and marketing team. In addition to financial and other resources, there is need for teamwork and autonomy within the marketing department in order to achieve the set targets in terms of creativity and revenue. This question requested respondents to rate teh level of commitment of resources form the firm to creativity.

The findings of the study indicate that only 45% if the respondents indicated moderate to very commitment of resources by their organization to creativity in the marketing department and section. The rest of the respondents appointed out that the allocation of resources was low thereby explaining the low levels of marketing innovation in the firms. In addition, the level of team work in firms whose respondents indicated low marketing innovation did not promote teamwork and employee autonomy.

The relevance of the Company’s Website and Internet

The internet is an important factor in the modern business environment as it enhances globalization. The internet has enabled firms to establish websites and blogs in which they can advertise their services and products offered for specific target markets. While asking this question, the researcher wanted to establish the utilization of modern technology in service marketing creativity and the outcome was as indicated in fig. 4 below.

From the above figure, it is evident that 80% of the respondents pointed that the internet and the website of the firm are vital marketing tools for the modern business environment. The proponents of the internet argued that it promotes awareness of the company’s services and products as clients of the firm are in a position to access their accounts and know new services introduced by the firm. Moreover, the firm could use the website to promote its services to new users.

Discussion

Importance of Marketing innovation and creativity

Marketing innovation is perceived as an important factor for any firm wishing to establish its competitive advantage in this information technology age (Creswell, 2007). This survey sought to establish the relevance and benefits of marketing innovation to service firms in UK. From the survey outcome as in illustrated in figure 5 below, it was established that service firms operating in UK valued marketing innovation highly. 26% of the respondents indicated that creativity in marketing is very important to the organization while 26% and 20% indicated that it was important and averagely important to the company.

The proponents of marketing innovation in service firms as illustrated above argued that marketing innovation involved utilization of many strategies some of which include marketing communication, advertising, electronic marketing mix strategies the internet among other strategies to promote the sales of the firm. Respondents findings are similar to the findings of a survey on the relevance of marketing innovation in companies that was conducted by Drewniany & Jewler (2008), in the study, it was established that creativity in marketing involves the organization using many strategies that eventually lead to increased awareness of the products of the firm together with their accompanying services.

Concerning advertising creative strategies, the statement that “our desires are aroused and shaped by the demands of the system of production, not by the needs of society or the individuals” led to two fronts from the respondents. An individual’s desire is shaped by the current demands of the society. The society has a strong influence on individual’s demand. Fashion is a factor that individual buyers like to take into consideration while purchasing a product. They do not want to appear outdated. This therefore means that the society has a great influence on customers’ desires. This is so especially among the youths. Their dress code or hairdo will always be in line with what the society currently consider classy.

Having determined that the society dictates the desire of the individuals, the next step will be to determine the drivers of the society’s demands. It is a common phenomenon to see individuals having one deign of dress, but after a short while, they assume another, which they accept once again overwhelmingly. Who shapes the societal desires then? The designer, the production units, and the demands of the system of production shape the desires of the society.

It therefore means that our desires are aroused and shaped by the demands of the system of production. The advertiser’s task will now be to persuade rather than to inform the society. The advertiser must understand the fact that individual buyers that make up the entire market depend on the society’s demand to generate their desire. This society relies on the system of production to guide its desires. For this reason, an advertiser for ‘blue jeans’ must persuade the society that the garment is the most classical in the market. The bottom line is that the society must be convinced that this is the best product in the market.

For an advertiser to achieve this, s/he must be in a position to persuade, not just to inform the society. The society may already be informed about the products’ presence, but the most important thing will be to convince them that the product best serves their needs. The society will in turn influence the individuals. A negatively perceived product by the society will receive the same perception by the individuals.

Benefits of innovation and Creativity to Service Firms

The market currently is characterized by a customer who is very knowledgeable. Technology has made the world a global village where information flows freely. The social media, the mass media and other forms of communication has made the customer more knowledgeable about the market offerings. They know what they want and where to get them. The market is also flooded with many firms offering similar products. This makes the marketplace very competitive.

As a marketer, there is need to not only understand the dynamic customers, but also the competitors in terms of their strengths and weaknesses. Charles Darwin once said that survival is always for the fittest, and that the moment one is not fit enough, then he/she will be eliminated from the existence (Garvin 1988, p.69). This is the principality that is there in the marketplace. Firms must be fit enough to face the daunting challenge that is in the market, failure of which, they will automatically be faced out of the market.

Conclusion

From this study, marketing innovation has been revealed as an important aspect to any service firm operating in UK. Globalization has led to increased global integration and operation of firms at a global level rather than at a national level and therefore calling for improved measures of improving performance. Using advanced technology such as the internet and websites, many service firms are finding it vital for enhancing their marketing strategies through innovativeness and creativity.

Some of the approaches used include the use of integrated communication strategies in marketing, marketing mix, electronic marketing and creative strategies for marketing services offered by the firm. The study examined service firms in UK and established that marketing plays an important role in helping service firms enhance their sales revenue and overall financial performance.

The use of creativity in marketing enhances awareness of the products through advertising and promotion of services. Some creative strategies such as price rebating are also important creative strategies used by many service firms. Due to the benefits that service firms receive form innovative marketing, it is important that other organizations to increase their performance not only in sales but also their competitiveness and global dominance through social websites and other approaches for creative marketing.

Strategic branding has helped many businesses to improve their profits and marketing programs. This has created interest and motivation in the market for increased competition. Implementation program of a company that has both local and foreign market specifies its objectives, standards of compliance, assignment of responsibilities, measurement of performance, necessary corrective action, and a work structure for coordinating marketing activities in its target markets.

A firm with an established market position can employ various tactics to make it harder for new firms to obtain a trial for their products. It applies trying and exclusive dealing contracts or offers products only for lease rather than for sale to enhance customer retention.

Customer quality in service delivery plays a key role in the organization’s mission and goal statement to help the company modify its relationship with the specific needs of diverse groups of customers. The employees involve in creation of effective marketing programs to enable them understand their roles within the marketing process. It is important that the company embrace control and consistency in their markets to ensure successful programs. The company maintains and improves its technology and innovation to ensure it keeps pace with the changes and demands of its customers.

Recommendations

Firms aiming at increasing the sales of their products should adopt creative strategies in marketing such as increased advertisement and communication using unique strategies like focusing on specific target markets. For adverts, they should be as clear as possible while reflecting the benefits accruing form the services provided by the firm. Mass media should not be assumed. They form a very important means of co promotional campaigns.

Though comparatively expensive and limited in scope, mass media can be appropriate for students within United Kingdom. The marketing department should develop television commercials and radio adverts that will be aired to the populace during prime times. The company will expect that the target audience will be reached by the communication. Newspaper and journals may also be used to reach the target audience.

The marketing department must develop strategic objectives for the firm, that will enable succeed in this process of developing a communication plan. The firm should take into consideration, what it wants to achieve from this communication in the end. The senior management team should allocate proper finance to the marketing department that will see it carry successful promotional campaigns throughout the year. There should be well-defined objectives that the management wants to be achieved after a specified timeline. It should empirically be defined so that after the end of the specified period, it can be measured.

A marketer whose services are already in the market may decide to introduce a compliment, substitute or transfer of its brand name, corporate reputation, and image to its new product to enlarge its company’s market share and brand loyalty. The marketer uses this strategy to target consumers who purchase their products or services consistently and are aware of the characteristics of their product. This makes it easy to influence the customers to pay attention to the variety of products they offer to boost their satisfaction.

This strategy also targets the complex buying behaviour of customers and their decision process as it involves a lot of comparison amongst different brands. The marketer provides a variety of products under the same brand name or image to attract customers due to the satisfaction they derive from the products and prevent their customers from seeking satisfaction from their competitors.

By offering a variety of brands, a dominant firm can pre-empt opportunities for a new firm to come in on a small scale and serve a narrowly focused segment of the market. A strong brand image can encourage customers to remain loyal only to a single supplier. A multi product firm discourages rivals from competing against it in a single market. To offer a variety of products within the dominant brand corresponds to an increase in the penetration in the target market.

However, when a customer buys the new product and does not fully get satisfied, he or she seeks for other alternatives. It happens that the customer associates the perception with all the products under that brand name. This leads to the original product loosing many customers. The product can also stimulate the customer’s attention on the competitor products. For example, Coca-Cola can provide fringes for their customers. The customers in turn use the fringe to store other soft drinks reducing market share for the original product.

Introducing a substitute product that is more preferred than the original brand endangers its target market as customers shift to the new product. It is therefore important for the marketer to understand consumer behaviour when designing products to use the same brand name or image.

The marketers should be in position to face the challenges of ensuring high levels of competitiveness in the foreign markets. This pressure for globalization presents an image of a highly globalized producer. While confronting these challenges, the marketer increases the knowledge and understanding of their target market enabling them to create marketing programs and plans of the local cultural conditions that shape the needs and wants of their customers.

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