Summary of Case: Google –An Entrepreneurial Juggernaut:
The birth of Google was in 1998 by two young doctoral students from Stanford University, Sergey Brin and Larry Page. They dropped out of Stanford to start up their business. In the mid-1990s searching on the internet was not efficient and time consuming. Therefore search engines helped with organizing the internet like yahoo and Alta Vista. They still did not perfect searching on the internet, so Page and Brin analyzed Web links, and they developed a ranking system for searching on the internet, that depended on the relevance to the object of the search. They first made this search engine available to students and faculty on Stanford campus, by word of mouth. It was very successful on campus, and required capital to grow their venture. With the help of one of their professor they found an investor who invested $100,000 dollars. They were able to incorporate the company to Google Inc. Many other invested in their company, and finally two venture capital firms invested $25 million, Kleiner Perkins and Sequoia Capital. With the growth of the company the revenues that were expected were not enough for the growing company. Brin and Page decide on using advertising to increase revenue. They were very strict with the standard of the advertisement meaning size and type of ads. The ads that had an association with the search would pop up. They did not run ads unless they had something to do with your search. This was very smart for Google to design this type of advertisement, because it focused on a market that was interested in that type of advertisement. This was called target advertisement. Instead of focusing on a large number of people like TV, Google focuses on a targeted market those who seeked ads with a particular search for the individual user. During the 2000 hardship in the internet, many companies laid off and bankrupted, but Google stood strong, and continued to grow. They also acquired large firm advertisement business, like Wal-Mart and Acura car dealership. In the year of 2001 Brin and Page finally decide to hire a CEO by the name of Eric Schmidt. He led Google to enter pacts with yahoo, AOL, EarthLink and Ask Jeeves. The company was running strong and had huge financial success. They finally went public and Bin and Page became instant millionaires. Apply historical and current theoretical framework:
Using the holistic marking concept is based on 4 types of markets that are interdependent to make a company successful. The four markets are the following: internal, integrated, performance, and relationship. With Google, the company itself was already very successful, but it can be more successful with the usage of this concept. The component that is missing for Google in the holistic marketing concept is relationship market.
Here is an example of holistic marketing dimensions.
The concentration of this concept is that the whole thing matters in marketing. It integrates the new concept with the societal marketing concept. Integrated marketing is used to meet customer needs, and utilizes all resources efficiently and effectively. Relationship marketing is used to acquire permanent relations with customers. Internal marketing is used to make all associates of the company customer-oriented. Performance marketing is able to ensure financial responsibility in revenue terms. Also in the performance marketing social responsibility is practiced to promote consumer and social welfare. With Google, the problem is they are absent in the relationship marketing that is part of the holistic marketing concept. They do not have a customer service department; they deal with their customers by an automatic response. Therefore, they do not have a person to help their customers. Because they lack a service department they lose the relationship with customers, also with their marketing channels (supplier, distributors etc.). The goal a...
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