Posted at 02.10.2018
Companies and organizations running a business work hard to achieve their goals and aims. The main goal of all business organizations is to reduce costs and improve on the profit that is made. For the organizations to realize their aims, they use various market strategies. The marketplace strategies that are employed are either market focused or non market oriented. The marketplace strategies that the companies make use of are usually competitive in dynamics. The non market strategies that are employed by firms include the use of political lobbying and the use of mass media. This newspaper analyzes the use of non- market strategies by the business enterprise organizations in attaining their set in place goals (Batch, 2010).
Non market strategy
These are strategies that companies utilize in competition that aren't market strategies. Many businesses take part in non market strategies so that they can out do their rival on the market or to secure monopoly of the market. Some of the common non market strategies that companies use are the media and the use of politics to lobby for the market influence. Political lobbying is a strategy where a company runs on the lobby group that is politically focused to get access to decision producers especially from the government. The lobby communities lobby for the company by heading to the advertising (TV and radio stations) to lobby for the company. Thus the lobby communities use politicians and the mass media to thrust for the plans of the business by accessing decision producers and also using the mass media to drum support for the business enterprise practices of the organization (Batch, 2010).
A good exemplory case of such companies that use politics lobbying and the advertising to get market support and admittance are located in the U. S. they include companies like the AIG, Exelon and DynCorp, among numerous others. According to Sebastian, (2010), the Exelon Company was using the former governor of Pennsylvania Tom Ridge to get support for the countrys major nuclear company in Dec 2009. He visited the media motivating the government to improve the nuclear power plants in order to create more jobs since the recession had increased the levels of unemployment instead of the government offering compensation packages to businesses. Had the state of hawaii yielded to his call, then the company to profit was Exelon. This is because he previously received a settlement package deal in 2005 since he dished up on the table of the company and for that reason, he was still lobbying for the company (Sebastian, 2010).
Political lobbying has been on the upsurge in the recent years. There are various lobby organizations and PR groups which may have been founded. The lobby communities work hand in hand with the multimedia. They go to TV stations biding to market their clients (business organizations) and the interest of these clients. Many lobby organizations and the PR teams went on air especially at the start of the recession fighting because of their clients. Bernard Whitman who's also the leader of Whiteman strategies was one of the lobby representatives that campaigned for his clients. He lobbied for companies like the BGR group and marketing and AIG (Sebastian, 2010).
Another lobby group that AIG uses is that of Christie Ron. Ron reviewed the response of the government to AIGs days and nights of implosion. He lobbied for the bailout of AIG during the tough economy by praising the chief executive for having a brilliant treasury secretary who helped to bail out AIG. The bail out proved helpful for AIG to the extent of selecting other lobby categories like PR mega-firm. The organization, though it lost, it did not lose much due to bailout (Sebastian, 2010).
The marketing usually become an advertising agent for the business. There has been and increase on the number of adverts that are shown on TV channels. The effect of adverts is that they advertise the merchandise of businesses as well as developing the trustworthiness of the company. They are able to also enable a firm to grasp the marketplace. More so, they can also help a firm enter and permeate a market (Batch, 2010).
Another company which used non market strategy is Toyota Engine Corporation. It were able to successfully lobby for the inclusion of its flagship Prius Crossbreed in a program that grants or loans vehicles that emit low emissions to the areas car pool in California. The lobby provided the companys car a competitive edge over other competitors hence being included (Batch, 2010).
Many sometimes, the political lobbying and the marketing interact. This happens when the lobby teams go to the media praising politicians while safeguarding the interests of their consumer companies. With this, the business enterprise organizations gain. Lobbying and the utilization of the marketing is more prevalent with large business organizations. They use the money to hire lobby organizations to improve them in order to fain more. But small company organizations use purely market focused business strategies like differentiating products and the use oligopoly capacity to effectively compete in the market (Sebastian, 2010).
Benefits of lobby groups
Lobby organizations work by heading to multimedia companies and Tv set stations. Their client that they signify usually profits by improving brand through development, testing, introducing and the development of the make of the business. The Whiteman strategies have helped AIG to be able to be in a posture to react to the market developments that continual develop and change.
Many companies engage in politics lobbying using the multimedia because it permits the company to gain a far more competitive market benefit over other opponents. This is more prevalent found in areas where international trade is concerned. The international trade requires that goods are exchanged between countries. Politics lobbying helps a local company to impose some constraints for a overseas company (Batch, 2010).
Brand image: lobby group communities are like promoters who support the brand of the company. Each goes to the multimedia assessing the brands with those of other companies while they sell the make of a company. They are able to derail the reputation of the product of the counterpart running a business. The grown trustworthiness of the company and its products translates into increased demand for the companys products hence increased income for the business.
Market: many lobby groupings fight for the marketplace of the company. The lobbies they make on Television set and r / c help them gain access to the respected politician or federal official responsible for their specific needs. Along with the praise, the federal government official influences the monopoly of the particular company they represent in the particular market area. That is achieved through the denial of licenses to the other business organizations running a business for quite a while over petty concern in addition to other regulatory methods. This leaves the business monopolizing the marketplace (Sebastian, 2010).
Also, with the effect, they can encourage the sensible politician to grant the business important federal government tenders that will assist the business gain a whole lot of revenue. An example is the influence that Barry McCaffrey do on behalf of DynCorp. Through his lobbying efforts, the company anchored a 5-12 months tender to aid the government forces that were struggling in Afghanistan. This is a profitable project for the company which it gained through lobbying.
Harmful goods: politics lobbying for a company is good for the company that partcipates in international trade. The lobbying can help the government identify damaging good that are gaining access to the neighborhood market of a country. The goods could be substandard or they may be unwanted goods in other countries. Where in fact the goods are taken to be dumped in a country, politics lobby organizations and the PR categories help eliminate dumping and save the marketplace from substandard goods (Sebastian, 2010).
Help in need: lobbying is essential since it helps a company turn out strong in need. A good example is during the tough economy. AIG used Ron Christie to push for the bailing out of AIG. He achieved it by praising the worried politician while in real sense he was drumming up support for the AIG Company. It ended up getting bailed out with a higher amount of cash than others.
Market strategy is the strategy that the company uses to be competitive on the market. The marketplace strategy a company uses is important since it enables the organization to meet its targets. There has a rise in the utilization of non market strategies with many big organizations opting for media and politics lobby groups. It has led the upsurge in the subscription of the lobby groupings in the U. S. lobbying and media go hand in hand. Many political lobby groupings pretend to praise a given politician who is influential in the federal government to earn the business organization the benefit that it needs, this they are doing through the media.
There are many benefits because of this. Many organizations gain access to monopolize the market area. In addition to that, they may get an advantage over their competitors through popular brand and the nice reputation of the business. Firms also are helped in time of need for example through the economic recession, businesses that lobbied most are those that received much sum of money in conditions of bail out. Therefore, mass medial and politics lobbying are essential in competitive business plus they should not be ignored.