Service Companies upholding social responsibility and ethics normally grow tremendously. Stakeholders including investors, employees, communities, government, and vendors view the success of companies from two perspectives: ethical conduct and profitability of the operation. Therefore, managers draw performance strategies for companies having the society in mind. Though companies strive to reduce cost of operation, increase efficiency, and improve performance, they also aim at creating mutual benefit for the society. IBM Service Company recognizes the importance of social responsibility, thus making it reputable in the countries of where it operates.
IBM ICT company operates in many countries across the globe: China, Canada, USA, and Poland and others. It has obtained numerous awards due to the service aimed at benefiting communities. In China the company earned the Industry Innovation Award for corporate social responsibility (Jain, 1999). In Poland the company received IT and Telecommunications Sector Award. The company got awards for environmental excellence in resource conservation and pollution prevention, and Energy Efficiency Award in the United States and Canada respectively. The successful performance of IBM may be attributed to the application of 4ps marketing mix as the core marketing strategy. The marketing mix guarantees the company success while indulging in non-profit activities.
The 4Ps marketing mix stands for price, place/distribution, promotion, and product. They enable the company to remain inclined to the customer’s angle as a major objective. Product in the company means the service or goods it offers consumers. The product strategy hence becomes vital for the organization of the company (MarketingNews, 2008). The management considers the abilities of the company in terms of sales, production, and engineering. The company thoroughly analyzes the consumer needs before delivering goods. IBM considers the nature of competition expected in the market. It also recognizes the needs for technological development in operation and the need to use the latest technologies. IBM’s success comes from consideration of the nature of its products, applicability, characteristics, and advantages for consumers.
Price makes an essential part of the marketing mix in IBM. It is charges for services and products. There exist a strong relationship between pricing, product positioning, and targeting, hence pricing strategy has significance for IBM. Pricing also affects other three marketing mix strategies (Anderson, 2009). Demand, nature of the market, and cost affect pricing. The company offers its products and services at a favorable price attracting many customers. Promotion forms the third marketing mix strategy in IBM. Customers keep abreast of the company’s progress. Promotion occurs in two forms above and below the line method. Above the line type of advertising includes TV, radio, newspapers, the Internet, and mobile phones advertisements. Promotion strategy forms a crucial communication strategy in IBM eliminating the risk of losing potential buyers and increasing the number of customers.
Place strategy forms the distribution aspect in IBM. The company applies distribution channel at a low cost and employs experts who assist it to ascertain the right time to reach its customers in time. This strategy enables the company to make timely supply of the products, and eliminate inconveniences. IBM mainly conduct foreign businesses, hence creates targets to efficiently operate abroad (Beamish & Ashford, 2007). Foreign market means global market, thus all strategies must overcome the competition in the market. IBM has a flexible business model, that is why the company easily changes strategies from one nation to another. Promotion, product, price, and distribution vary depending on the countries’ technological level.
IBM recognizes the need for ethics and social responsibility. The company ensures that all operations are ethical, applying the 4Ps to be sure that it functions efficiently. The company has a global operation and that is why flexibility in application of marketing strategies is crucial for its success. Ability to use the 4Ps has enabled the company to conduct mass marketing without exploiting its customers.