A stakeholder of a product is any group or an individual who are affected by the activities or goals of the product either directly or indirectly. For the product to achieve its goals/objectives, it must have a good relationship with its stakeholders. This is because their interests to the company influence the achievement of the company’s objectives or success. Therefore weak relationship with its stakeholders will amount to failure of the company in achieving its policy. The product market strong relationship with its stakeholders is measured based on:
Confidence, trust and cooperation
This means that the stakeholders’ interest to the company will be high if there is high trust, respect and good team work. This is majorly primary strategic management. For a company to maintain its competitive advantage and remain relevant, it should clearly identity its stakeholders and other external parties and strengthens its association with them. Stakeholders will include shareholders, employees, customers and providers of finance. Its difficult to clearly identify the other external parties because there is no clear formula to define it. But because of advertisement, different people are becoming stakeholders depending on different factors. This involves global impacts of an industry such as climate change or cultural due to market and advertising.
Consumers and product
In product market consumers are very crucial stakeholders as they are the final recipient of the product in the market that is goods and services. To the organization if it has a higher number of consumers then it implicates good performance since the sales will increase resulting in higher profits hence good reputation of the company. Therefore in marketing the product, the consumers expectation is to receive a wider social responsibilities. Some of this include:
The product or service must be durable and safe to consume. The product in the market must meet the required standards for consumption and should be in good condition. Customers also require products that last for a long period.
Providing good value for money since it’s a scarce resource.
Faster and proper action for any customer complaints and questions.
The mode of trading and advertising should be moderate and fair so as to pass the correct messages to the users.
Properly organized after sales services for the product/services.
Product must bring continuous satisfaction
This means that the product/services should be capable to be adequate in supply, have spare and replacement parts, change with technology so as to retain its goodwill. There are many activities that have promoted highly for these social responsibilities to the consumers. Some of this includes Television and radio programmes that are designed to educate the consumers on certain products services:
Consumers Association to promote the general interest of consumers
In case of government it has formed particular regulatory bodies which are independent and check the products in the market to ensure that they are of good quality and proper standards.
Companies cannot survive without investors. This is because the operations of the company are financed by these investors. Investors’ expectations to the product market are to make high profits so that they can receive returns as payments for risk bearing the use of their capital invested.
In addition the investors should have a chance to act and exercise that responsibility as owners of the company questioning top management on matters of the organization and contributing to decision making in the company.
Furthermore investors should be provided with full information concerning the company which must be presented in a way that is best understood by each investor. The management should also declare their personal interest since its their responsibility to do so.
Investors’ confidence in company is very important as it will influence the value of the shares in the stock market. If they have no confidence it means they will withdraw their investments hence decreasing the value of shares in the stock market, suppliers also stop supplying since they will not receive their payments, employees will not receive their remuneration and consequently the company will collapse.
The government as stakeholders requires that any product market should a bid to all the laws as stipulated. The major interest of the government on product market is to receive tax although there are other operations that it requires the organization to cooperate with as requested. For example practicing controls against exports and import not trading with certain foreign countries which are a disaster to the country, exercising proper measures to control inflation among them.
Employees are very important in any product market as they are managers and in return they receive remuneration as their major interest in the market. Apart from this, employees performance increases if they are well motivated therefore there are a number of expectations including proper communication within the organization, participation in decision making, training in new skills and advancement in technology ,provision of social and leisure facilities in work place, and proper practices and policies of personnel and industrial relations. The company can effectively communicate to its employees through journals, holding meetings letter of appointment, letter of dismissals, holding meetings among the others.
Employees are required to take care of the available resources in the company so as to achieve higher results. This will result in increased sales of the product in the market hence improved reputation and royalty of the product. It will further encourage investors to retain their investments and others will like to invest , as such the value of its stock will increase.
Product development and marketing can be ensured by proper intervention of the governmental agencies for controlling the various activities scientifically that ensure the product reaches the market. While exploring all the opportunities available in the present context of improved product market, special care is required on the part of producer of the product and other business stakeholders to ensure the sustainability of their products and services. When compared to the improved opportunity of product in the market and the financial opportunities that are associated. By adopting the appropriate standards of the product and by effectively implementing them, it will be possible to compete with other products in the market. In the present day world of global economy and computer aided communication technology, the product market is expected to be highly dynamic place; it reaches all parts of the world. The best policy will be to get adapted to the changes by keeping the standard of professionalism and by maintaining the competitive advantage over the rivals in the global market. Strategic goals for the product must be set by the planning team as per the findings of the strategic diagnosis. The accuracy of strategic diagnosis will help to identify the critical aspects and accordingly such aspects can be allotted with well defined goal in line with the goal of the product.
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