Some knowledge can be transferred using information technology system. However there is some knowledge that cannot be written down, only can be transferred using give-and-take process by which participants develop over time, an understanding of complexities involved in a situation. Tacit knowledge used enables firm to apply important knowledge in operational activities, which results in improve efficiency, value creation and better financial performance. A key factor to successful tacit knowledge transfer is the development and use of social network.
The importance of tacit knowledge can be seen in various contexts in marketing strategies. It can be observe from personal selling context and social network as well as marketing success context.
First, tacit knowledge can be examined in personal selling context and social network. Salespeople must develop an ability to embed themselves both within the broader social structure of their own organizations and within the social structure made up of their customers. Company needs to focus more on maintaining their relationship with current customer. Salespeople usually are responsible with the customer since they are the one who interact directly with the customer. Lack of training programs dealing with relational issues internal to the organization lead to salespeople never understand the need to develop the internal social networks or may not have sufficient training in the skill necessary to develop and maintain such relationship.
The exchange of tacit knowledge requires frequent, personal interactions between people involved. Many researchers emphasized that communication between sales and marketing provides unique opportunities to reap sizeable benefits. Tacit knowledge exchange i...
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...he relationship between tacit knowledge exchange and marketing success, it is said that tacit knowledge exchange influence the marketing success. The tacit knowledge shared by salespeople brings a deeper understanding of the market place and the customer to the decision-makers in marketing, which allows them to make better informed decisions.
Management must build a culture in which co-worker are trusted, quality interfunctional communication is a norm, social network between marketing is common and tacit knowledge exchange between sales and marketing is valued. To create this environment, two mechanisms are suggested. First, managers should increase the opportunities that sales and marketing personnel have to develop social connection. Second, managers, especially top management’s managers, must provide support for the development and maintenance of such culture.
The marketing concept is personified in Peters and Waterman's example of Joe Girard who consistently sells twice as many cars in a year than his nearest competitor. His success is put down to the fact that he makes the customer feel that the relationship is not over once the sale has been made. Joe sends Christmas cards, Easter cards and friendly letters, reminding the customer that he cares for them, not only for their money. Whether this is true or not, Joe leaves the customer feeling as if they have made the right choice. And this is, in turn is good for Joe Girard's long term prosperity. (Peters & Waterman 1982)
Tacit knowledge comes from people, the team member within an organisation, while explicit knowledge is generated from various information repositories such as databases, documents, and intranet. Botha et al (2008) point out that tacit and explicit should be seen as a spectrum rather than a definitive point, meaning that all knowledge is a mixture of tacit and explicit elements rather than one being on its own. Managing knowledge means dealing with tacit knowledge and explicit knowledge, and one of the challenges presented to business is deciding how best share tacit knowledge, how and what to convert to explicit knowledge so that it can be easily transferable. The work of Nonaka & Takeuchi (1996) answer this challenge, they introduced a SECI model that soon became a cornerstone of knowledge creation and transfer
Marketing involves making consumers aware of the value of a product or service offering with the aim of increasing sales for the product or services, developing brand loyalty, and promoting the good or service. There are several techniques used by companies in marketing. These techniques are aimed at ensuring consumers are aware of how the new offering by the company satisfies their needs. Further, application of sound marketing techniques ensures that marketing is an exchange process that results in the long-term relationship. Transactional marketing and Relationship market are two of the common types of marketing applied by organizations who seek to develop their long-term relations with consumers or increase immediate sales for a product
Mudge, A. (1999, April-May). Knowledge Management: Do we know that we know? Communication World, (16)5, Retrieved on September 17, 1999 from EBSCO Business Search: http://mariner.galileo.gsu.edu
With today’s rate of development in technology, there has also been an immense increase in global information sharing. Innovations in technology and design seem to be emerging in the market almost every month. One of the key aspects of any business is to gather, organize and efficiently apply this information. According to Antonic (2005), economic assets are fast becoming of secondary importance in the market as companies ascribe more importance to intellectual capital. With the right application of Knowledge Management methods, companies can achieve a competitive advantage through managing the immense amount of information available (Balanced Scorecard Institute, 2002).
Gaining customers’ trust is important to the crucial of an organization’s success and to be successful salespeople must demonstrate the five trust building characteristics which includes; customer orientation, expertise, dependability, candor and compatibility. It is important to know that trust is a combination of these characteristics and measured on a continuum. A customer orientation refers to determining the buyer’s unique needs before recommending a purchase and placing as much emphasis on the customer’s interest as their own. Expertise refers to the ability, knowledge and resources to meet customer expectations.
The article “Ending the War Between Sales and Marketing” by Philip Kotler, Neil Rackham and Suj Krishnaswamy opened my eyes to the way companies see their marketing and sales teams. Many senior managers describe the way sales and marketing work together is disappointing, they also say that they don’t communicate efficiently enough or sometimes not at all, the two functions don’t perform as well and they also complain too much. On the other hand though, when sales and marketing work together the companies see a great change for the better in the performance of a business. The main problems that were found when a study was conducted to see what kind of differences to make to have the two functions work better together are that the two main sources of conflict were economic and cultural, the marketing function has different forms at different product life cycle changes and lastly assessing the quality of the two functions performing well together is not hard.
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
It is a common notion that only the sales person helps in improving sales. It is interesting to note that every individual in your organization contributes to the brand value of your business, hence intoxicate your employees, especially those who interact directly with the customer that they are the ambassadors of yo...
Marketing. “It is the management process through which goods and services move from concept to the customer” (What is Marketing, 2010). In choosing this topic for my senior seminar paper, I hope to discover the material I need to create a stronger knowledge about marketing in order to help me create a product that will help the community. This paper will dive deep into the past, present and future of marketing and elaborate on specific points that help businesses apply correct marketing strategies to everyday life.
Relationship marketing has been constantly considered as successful business practice worldwide. Over the past twenty years, relationship marketing has characterized a revitalization in marketing (Bonnemaiz et al., 2007) and it signifies international, industrial and services marketing and is also overruling traditional marketing theory (Davis, 2008). The term ‘relationship marketing’ was introduced by Berry in the services marketing literature in 1983 (Barnes, 1994; Gronroos, 1994). Berry defined relationship marketing as “attracting, maintaining and in multi-service organizations- enhancing customer relationship” (Berry, 1983, p. 25). A business implementing relationship marketing orientation enhances its performance, which has been supported by both marketing academicians and practitioners for about three decades (Berry, 1983; Fuhrman, 1991). Further, Fox and Stead (2001) asserted that successful customer relationship marketing focus on understanding the needs and desires of the customers by placing those needs at the heart of the business by integrating them with the organization strategy, people, technology and business processes. Relationship marketing also increases customer satisfaction and enhances business performance of the organization. Further, it helps an organization in creating, developing and maintaining profitable exchanges with selected customers over
...ue-oriented relationships between businesses and the society that they serve. Marketing should be an exhilarating and worthwhile part of running a business. In order for businesses to get its full potential, leaders must spend time working on the business rather than working in the business. I feel that the connections should be entwined. Businesses should have a close relationship. An exemplary leader must create a culture that allows healthy relationships to thrive. Relationships form the basis of a network of trust among others. This trust fosters critical thinking, high expectations of everyone involved and a focus on improvement. Allowing stakeholders and the society to feel that they contribute to the achievement of organizational goals and participation in the decision making process to a degree provide desired commitment and trust to businesses.
Knowledge is a currency meant to be transferred as frequently as possible in order to buy and sell ideas, information, and tools. Seeing knowledge as a currency allows us to invest in our structures and organizations so as not to cap the potential of not only the businesses, but also the work force behind those businesses. Mr. Si-Chi Chin excellently details why knowledge transfer is important. He wrote, “The goal of knowledge transfer is to train a system to recognize and apply knowledge acquired from previous tasks to new tasks or new domains” (Chin, 2013 p.3).
So the McDonald’s is the good example in this regard. Therefore the McDonald’s always try to deliver the best products to the target customer by finding out the undefined desires and needs according to the target market’s requirements. As well as the McDonald’s gets various kinds of benefits and advantages from market orientation. Strong customer relationship can be an example in this regard. For gathering information and customer feedback, they maintain communication with customer. From the aspects of the concept of integrated marketing which creates customer satisfaction by the good customer relationship, quality products and the experiences of customer. Therefore the services of McDonald’s satisfy their customers. (Burns and Bush,
Effective communication skills are beneficial to the daily operations of a business. Communication can be utilized as a tool to influence how someone learns. Managers use the tools and resources that are available to them so they can teach other employees the expectations of the organization. In the communication process it provides steps that can be taken in order to attain an effective communication. The process contains several components to fulfill the steps needed to execute the communication process. A few components are the sender, encoding, message transmittal, decoding, channel, receiver and feedback. The communication process can be used to convey messages in all different forms of communication. In many situations, communicating can help an individual have a better understanding, identify and solve problems, and gain new information. Every organization has their own preferences, but the majority of businesses seeks for employees that can execute the communication process effectively. The features of having communication competences will be an advantage to a business internally and externally. “The role of communication in business is undoubtedly pivotal; however, the competent communication is the key that opens the doors of solidarity and successes for business. Business processes include various communicative actions for meeting the needs of business” (Singh, A. K., & Mishra, N., 2013). The communication process is utilized in a business to achieve success and provide a structure for the relationships in a