...employee morale along with consumer confidence as result of the examination. The execution of a marketing concept will help Classic Airlines in transforming their impression to draw back their loyal customer base, mesh employees and interest new customers (Classic Airlines, 2010). Classic Airlines would achieve the utmost benefits using the holistic marketing concept. The Holistic marketing concept is centered on the development, design and implementation of marketing a program, processing and activities their breadth and interdependencies (Kotler & Keller, 2006). In plain expressions, holistic marketing is alert to the fact that “everything matters” in respect to marketing and the perspective that you must have an inclusive. Classic Airlines has applied marketing concepts by implementing their customer loyalty program and their frequent surveying from customers would allow them to utilize the holistic marketing method. Classic Airlines customer loyalty program has suffered a 19 percent loss in membership and a 21 percent loss in their flights per residual member. The customer loyalty program poses incentives for frequent flyers. The data specified in the failure to the program are displays that these customers are possibly flying with other carriers. Surveying Classic Airlines customers will allow specific information to be analyzed. The surveys will help to identify the...
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...1. How do information projects systems get started in organizations? 2. How are organizational information systems related to company strategy? How does strategy affect the information systems a company develops and uses? 3. Research customer loyalty programs in retail firms. How common are they? What are their primary features? 4. What do you think Jim’s next step would be? Why? 5. Why would a systems analyst new to a company be a good choice to lead an important systems development effort? 1. We think Information systems projects get started by management to identify problems and analyze solutions. Usually, to start information systems projects, manager would gather data from employee’s survey about the current system of what components could be improve or eliminate, then utilize such information to create the first step in the project. Then, systems analysis can use several options to start, in house, you have information technology firms, outsourcing, or maybe buy some off-the-shelf software. Then you would use what most organization use as standard steps, system development methodology(SDLC). 2. Organization information systems are related to company strategy by working toward the same goal. A strategy is the direction that the company try long term planning. Company would use its resources to overcome challenges or risks to meet the needs of markets and its statement. Organizational information systems help company achieve its plan, and help...
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...In a retailing industry, department store’s target market always considers in different age groups. Myer is belong traditional department store group. In that, they merchandise quality range from average to quite good. Pricing is moderate to above average. Customer service ranges from medium levels of sales help, credit, delivery, and so forth to high levels of each. Therefore, their target market tends to middle-class shoppers. (Berman and Evans 2010, 138)Myer is one of Australian department store group which stayed at the top in customer satisfaction for department stores. According to the Roy Morgan Retail Satisfaction Report for September 2011, Myer remained top in customer satisfaction for Department stores with 89% of their customers either ‘very’ or ‘fairly satisfied’. (David Jones and Myer narrowly lead Department and Discount stores in satisfaction, 2011) At present, Myer have been issued different types of Myer cards as their customer loyalty programs. For example, Myer Visa Card is a part of customer loyalty program. The features are people can reward yourself with Myer Visa Card by spending on the things you need. People can earn Myer one Shopping Credits when they fill up their cars, buy groceries or pay bills. Shopping Credits can then be turned into Myer one Gift Cards for use at any Myer store. (Myer Visa Card Contract Documents and Credit Guide, 2011) Earn 3 Myer one shopping Credits for every dollar spent at Myer and up to 3 MYER one Shopping Credits with...
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...interviews would have been with key stakeholders in the company. * It also says they collected information from loyal customers identified by the marketing departmentl; ie. focus group * Finally, Jim and his team collected information about existing systems. * Research competing companies, vendors, trade journals 2. Examine Table 5-1. Are there any requirements or constraints that you can think of that were overlooked? List them. Requirements: [2 points] * Another requirement might be that the overall program would be highly attractive and motivating to customers. * Another requirement might be that the client version of the system runs easily on a mobile phone. * Should allow Petrie Electronics to analyze data and easily present fundamental stats * Security of customer data; prevent customers cheating * Should facilitate promotion of program Constraints: [2 points] * Constraints might include needs for storage of transactions (millions of customers would generate millions of transactions over a few months) * Need to avoid complexity in both the loyalty program and the software system. * Students might want to look at the requirements for the program separately from the requirements for the system. * Response time 3. If you were looking for alternative approaches for Petrie’s customer loyalty program, where would you look for information? [3 points] They could have gotten that information from several sources...
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...with key stakeholders inside the company. He also worked with the marketing group made up of loyal customers, to get some good ideas about what they would value in a customer loyalty program. The team came up with requirements and constraints for the customer loyalty project also alternatives were made to show different scenarios. The team did a great job on listing core functions the system has to perform and data flow diagrams. This project has come a long way while accomplishing many things. Now the project has to come to an end. The pilot implementation has been put into place, now it’s time to see what final changes need to be made and closeout this project. Sanjay did a great job on researching the alternatives, data flow diagrams, and making updates. It would benefit him to uses those strengths for another project helping out the IT department. Sally could have done better in the marketing department. She constantly needed caffeine but she wasn’t performing to the best of her abilities. Sam provided some much needed ideas to the interface design. Head of marketing kept submitting request for changes to the loyalty program while the deadline was approaching, but keeping everything electronic saving cost of printing and mailing coupons was a great idea. But marketing felt like giving the customer a choice to have it mailed or print it out online would benefit the customer more. This project could have staff added but it would delay the process even more opening up more...
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...The company announced that its new system, which will start in April, will reward customers based on how much they spend, rather than just the frequency of their purchases, which seems to be frustrating the daily-coffee set. Customers in the new system will be able to earn two stars for every dollar spent, whereas in the past, customers earned one star per transaction. Starbucks has laid out the changes on a website that explains the two systems. In the current system, customers earn one star per visit, need 30 stars to reach the “Gold” level and need 12 stars to receive their free reward. In the new system, it will take 300 stars to get to Gold level, and they’ll need 125 stars for a free reward. Although they will earn two stars for each dollar, those who make smaller orders have expressed that they feel ripped off. Starbucks said that gaining more “stars” for higher dollar amounts spent instead of for number of transactions has been the number-one request on My Starbucks Idea, a site the company has for customer feedback. And it said that the transaction-based loyalty program, which led to customers making purchases separately, meant customers had to wait in lines longer. Since the backlash, Starbucks has been responding to complaints and now says that in stores, there will be “Double-Star Days,” meaning once a month, Starbucks “Gold” members will earn four stars for every dollar they spend, regardless of how often they come in. Starbucks will “surprise”...
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...Chaptur 1 Nike What are the pros, cons, and risks associated with Nike’s core marketing strategy? 2. If you were Adidas, how would you compete with Nike? Google 1. With a portfolio as diverse as Google’s, what are the company’s core brand values? 2. What’s next for Google? Is it doing the right thing taking on Microsoft with the concept of cloud computing, and Apple in the fight for smart phones? Chapter 5 Nordstrom 1. How else can Nordstrom continue to provide exceptional customer service and increase brand loyalty? 2. What are Nordstrom’s greatest risks, and who are its biggest competitors? TESCO What’s next for Tesco? Where and how can it grow? Who will it target? 2. How can Tesco take its customer loyalty programs to the next level? Chapture 8 HSBC . What are the risks and benefits of HSBC’s positioning itself as the “World’s Local Bank”? 2. Does HSBC’s most recent campaign resonate with its target audience? Why or why not? BMW Questions 1. What are the pros and cons to BMW’s selective target marketing? What has the firm done well over the years and where could it improve? 2. BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not? Chapture 12 Caterpillar Questions 1. What were some of the key steps that led to Caterpillar’s becoming the industry leader in earthmoving machinery? 2. Discuss Caterpillar’s future. What should it do next with its product line...
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...at Harrah consisted of two elements Total Reward program (previously called Total Gold). The focal point of Harrah‟s CRM was customer loyalty program called total reward. Previously the Harrah was not able to leverage the cross-market visitation which was high Customers earned different reward points at different properties of Harrah. Plus there was no differentiation with the competition. Total Reward leveraged the IT and effectively tracked customers preference, betting preference, etc. And with the Data on hand Harrah effectively customised incentives and program for the customers. It not only encouraged Cross-Market visitation (Significant growth from 13% in 1997 to 23% in 2000) but also boosted of an integrated IT network that was patented. The customers were further divided into 3 distinct segment Gold, Platinum & Diamond. DATABASE MARKETING The use of decision science tool by Harrah to predict Customers Worth over a period of time changed completely the way Harrah invested in customers. Harrah’s approach was customer centric and Harrah used right marketing instrument for right customers. As per the DBM the 3 key phases that determine customer relationship are; New Business – focussed on establishing relationship with new to business of property customers Loyalty – Focussed on strengthening relationship with customers who patronise Harrah for atleast 6 months or 3...
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...many different ways to look at whether or not the national chain should change their IT applications to help support the customer loyalty program. First the consultant needs to look at all the pros and cons of both changing the applications and the pros and cons of not changing the applications. First we can look at the pros of changing the IT applications to include a customer loyalty program. A good thing that may come out of changing the IT applications would be that the national chain would hope to keep the customers that the regional chain already has. This would help them to make more money and hopefully make the merger a success. This could also attract new customers that are looking to save money when shopping for their regular groceries. By promoting the customer loyalty program and telling potential customers that if they sign up for the program that they will be saving “x” amount on certain marked products, this will more than likely start to bring in more customers to the national chain because most people are always looking for a way to save money. This will also make the national chain more money because they will have more customers coming in and out of their doors, but they will still be making money off the products that they are selling, but they may not be making as much. A con to changing the IT applications to have a customer loyalty program is that it will cost the national chain a lot of money up front. This might mean that they have to cut funds from...
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...Case Questions 1. What do you think are the sources of the information Jim and his team collected? How do you think they collected all of that information? Conducted interviews with key stakeholders inside the company, He had also worked with the marketing group to put together some focus groups made up of loyal customers, to get some ideas about what they would value in a customer loyalty program. Jim had also spent some time studying customer loyalty programs at other big retail chains and those in other industries as well, such as the airlines, known for their extensive customer loyalty programs. 2. If you were looking for alternative approaches for Petrie’s customer loyalty program, where would you look for information? Where would you start? How would you know when you were done? An alternative approach would be by Business Process Reengineering. It is the search for, and implementation of, radical change in business processes to achieve breakthrough improvements in products and services. The first step would be to identify key business processes which are the structured set of measurable activities designed to produce a specific output for a particular customer or market. 3. Why shouldn’t Petrie’s staff build their own unique system in-house? From the list of requirements, it was clear that Petrie’s staff should seek outside IT consulting to build their system. It would be too expensive and time consuming, not to mention, building a system like this in-house is an antiquated...
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...2012 Trends in Loyalty Marketing 2 2 0 1 2 T R E N D S I N L O YA LT Y M A R K E T I N G TABLE OF CONTENTS 1 GAME MECHANICS ................................................................... 3 2 SOCIAL MEDIA ........................................................................... 4 3 TIME-BASED POSTING ................................................................5 4 PRIVACY .......................................................................................6 5 REAL-TIME MARKETING .............................................................7 6 MOBILE ........................................................................................7 7 STAYING AHEAD OF THE CURVE ..............................................8 3 2 0 1 2 T R E N D S I N L O YA LT Y M A R K E T I N G Today’s standards for measuring the strength of customer engagement – frequency, recency, monetary value, and advocacy – are really no different than those in the hit American television show Mad Men, set more than fty years ago. While the measures of success remain the same, the marketing landscape has changed beyond recognition, with enormous challenges to establishing any customer relationship at all, much less advocacy. Marketers can’t simply tack on the internet to the TV, print, radio, and outdoor options available in the Mad Men era. The internet itself is fragmented into social media, search, games, the blogosphere, entertainment channels, and conventional ...
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...dependable then the general public. With this way of thinking Geico was able to cut out the middle man “agents” saving money the company money. So they were able to pass these saving onto the customers, employees, and advertising. Geico total rewards program aligns with the basic total rewards program that is Compensation, Benefits, Work-Life, Performance & Recognition, and Development & Career Opportunities. This set up was designed and implemented to mirror how the government was operating. The way Geico was structure it developed and promoted internally. They used this technique at Geico to develop well knowledgeable employees as well as maintaining a low employee turnover ratio. These principles help develop the company that people see today. Determine which facets of the Geico total rewards program align with the five (5) top advantages to a total rewards outlined in Chapter 2 of the textbook and discuss your reasoning. The first facet when reviewing Geico compensation scale and comparing it to its competitors. Geico salaries are competitive to its competition like State Farm and All State. For the most part Geico salaries exceed the industry. When reviewing the salaries that was posted by position it compensated all positions well from entry level customer services representatives all the way up to their senior executives. Geico pays their employees based off of their skill level and experience. Geico takes the time to place a...
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...implementing this program. The frequent shopper program is a customer point system that allows customers to cash in their accumulated points for incentives which will increase product sales and customer satisfaction. Introduction Kudler Fine Foods is an upscale specialty food store located in the San Diego metropolitan area. They specialize in traveling the world and purchasing the finest epicurean delights to sell to their customers. In an effort to increase revenue and customer satisfaction Kudler Fine Foods has begun development of a frequent shopper program. This program will track the purchase behavior of their individual customers and provide incentives through a partnership with a loyalty points program. This program will help identify a customer’s purchase behavior to allow Kudler to better satisfy their customers. According to Kudler Fine Food’s sales and marketing website, price is not the primary differentiation factor for Kudler consumers; these consumers are focused on quality and finding specialized items. Therefore rather than providing everyday discounts to the customers for their purchase frequency like lower end markets, Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline tickets, or other specialty foods. This program is anticipated to increase revenue due to larger customer satisfaction and an increase in sales from customers hoping to gain incentives from the points...
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...Petrie's Electronics Case, Chapter 5, Questions 1, 3, and 5 (page 151) 1. What do you think are the sources of the information Jim and his team collected? Conducted interviews with key stakeholders inside the company, He had also worked with the marketing group to put together some focus groups made up of loyal customers, to get some ideas about what they would value in a customer loyalty program. Jim had also spent some time studying customer loyalty programs at other big retail chains and those in other industries as well, such as the airlines, known for their extensive customer loyalty programs. 3. If you were looking for alternative approaches for Petrie’s customer loyalty program, where would you look for information? Where would you start? How would you know when you were done? An alternative approach would be by Business Process Reengineering. It is the search for, and implementation of, radical change in business processes to achieve breakthrough improvements in products and services. The first step would be to identify key business processes which are the structured set of measurable activities designed to produce a specific output for a particular customer or market. 5. Why shouldn’t Petrie’s staff build their own unique system in-house? From the list of requirements, it was clear that Petrie’s staff should seek outside IT consulting to build their system. It would be too expensive and time consuming, not to mention, building a system like this in-house is...
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...There are many customer loyalty programs that I am familiar with, the first one being the “My Place Rewards,” which is sponsored by Children’s Place. Because I am an avid shopper at Children’s Place, I have found that my rewards can really add up. In order for a shopper to benefit or receive a “My Place” reward, the shopper must spend a certain amount of money in store or online but you must first activate your “My Place” reward account in order to start receiving the benefits. The benefits change with the amount of the purchase that a person makes. The higher the person, the more points that you acquire, which will eventually give you access to a coupon, an amount off, not a percent off coupon. An example of this is that I just made an in-store purchase recently to buy clothing for my son for summer and I spent around $225. With this amount spent, I received access to a $20 off coupon that was on my “My Place” rewards page. Also from past purchases, I had a $5 off coupon that was available on my account. The negatives that I found with this loyalty program was that it was difficult to use. When I was in the store, they could tell on the computer that I had a $20 off coupon but when I requested to use the coupon, they told me that I had to figure out a way to activate my account or I had to go home and print it and use it later. I was unhappy about this and thought that there should be a better way. I believe that Children’s Place benefits from their loyalty program because...
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