...Relationship Retailing in the Modern World Submitted to: Engr. Roy Pelias, MBA Submitted by: Karl Lyle Echiverri Paul Rene Osalla Jun Kanehara Francis Paypa Manuel Montesclaros Entrep 35 TTh 9:00-10:30 Abstract Nowadays it is unavoidable for companies to create customer and brand satisfaction. The economic crisis and decreasing purchase potential enforced companies to develop new marketing strategies. In this context, the concept of relationship retailing comes to the fore. Thanks to fast developments in technology, companies can follow customers shopping intervals and their shopping list and by this means, they make different applications to form loyal customer. In this study, relationship retailing approach has been analyzed to constitute customer and brand loyalty and interrelations among those concepts have been explained theoretically. Corporate Mutualism: Relationship Retailing in the Modern World Companies today often find it hard to stand out amongst their competitors. With the continuous bombardment of advertisements that a consumer is exposed to everyday, a predicament arises that every company must address: Customer Loyalty. How can they ensure their customers’ devotion to their product/company? What can they do to gain the upper hand in today’s globally competitive industries? One strategy that’s recently come to rise is Relationship Marketing. Towards the late 1980s and early 1990s, marketing research began to highlight the importance of developing...
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...a business. Marketers must understand the impact ethics have on marketing communications and develop Integrated Marketing Communication (IMC) strategies accordingly. This paper will discuss various ethical challenges facing marketers today, identify internal and external factors on IMC, and formulate two ethical questions based upon the analysis. Ethics in Marketing The practice of ethics within an organization is an important but difficult concept to understand and practice. The reason ethics are difficult to manage is that the concept is so subjective (Duncan 2002, pp. 671). Ethical values differ between societies and individual relationships, therefore a company must decide on an ethical communication strategy and portray it as consistently as possible. Duncan (2002) describes three ethical considerations companies must understand when developing marketing communications and relationships with customers. Stereotyping Stereotyping plays a significant role in developing marketing strategies that are both effective and ethical. "The challenge for brands is to develop messages that strike a chord with targeted audiences without reinforcing negative stereotypes" (pp. 672). Companies must ensure that their marketing tactics are not alienating certain individuals or groups while reaching the appropriate target market. In order to build and maintain profitable customer relationships, a company's marketing strategy should reflect the values of a diverse culture without...
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...Online Brand Communities Used As Part of Relationship Marketing: A Case Study of Blizzard BA-Thesis - Morten Hedegaard Nielsen 2010 Abstract Purpose During the last few decades competition in consumer markets has increase dramatically and fragmented the markets. Consequently, the discipline of marketing has changed radically from transactional marketing into relational marketing. Today, the entertainment industry is one of the most rapidly growing industries, where competition intensifies year by year and hence the focus on building relationships with customers has become a central element for survival. The thesis has its focus on one of the most successful companies in this industry, Blizzard Entertainment®. More specifically it will explore how they utilise their online brand community „Battle.net®‟ in order to build relationships with its customers. Based on a theoretical discussion of relationship marketing and online brand communities, together with an investigation of Blizzard Entertainment‟s online brand community „Battle.net‟, this thesis will explore: How and to what degree does Blizzard Entertainment’s online brand community ‘Battle.net’ contribute to build successful relationships with its customers in a fragmented market? In order to answer the problem statement the thesis is divided into three parts; a contextual description, a theoretical discussion, and a case study of Blizzard‟s online brand community Battle.net. The contextual description...
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...the Northern Indian market. The northern sector has potential and growing demand for café retails; and through this report it would be clear as to how café coffee day should capitalize on their strengths and exploit the opportunities that lay. The general idea for the first year of extension is to build awareness and create the thrill and the excitement towards Café Coffee Day in North India; this is done with a long term view towards the venture as the first year would focus on building brand loyalty and image for the company to be able to reap the rewards from the second year onwards. The target market of the company is the age group of 15-29, consequently the medium and channels selected to market the products are those that appeal to them and is often within their reach. The other strategies, including the price, services, marketing message, and positioning is also created around the likings of this particular age group. The report would provide the details of the extension and other areas that require the attention via the action plan. And to further examine the details of the extension, the budgeting section would enlist the finances required to support the venture, and state the expected income sufficient for breaking even in the first year. From the report it is discovered that each outlet should target a minimum of 100 customers per day. And failure to do so would result in the Area Manager to be of assistance to the particular branch and help find ways in which the performances...
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...the Northern Indian market. The northern sector has potential and growing demand for café retails; and through this report it would be clear as to how café coffee day should capitalize on their strengths and exploit the opportunities that lay. The general idea for the first year of extension is to build awareness and create the thrill and the excitement towards Café Coffee Day in North India; this is done with a long term view towards the venture as the first year would focus on building brand loyalty and image for the company to be able to reap the rewards from the second year onwards. The target market of the company is the age group of 15-29, consequently the medium and channels selected to market the products are those that appeal to them and is often within their reach. The other strategies, including the price, services, marketing message, and positioning is also created around the likings of this particular age group. The report would provide the details of the extension and other areas that require the attention via the action plan. And to further examine the details of the extension, the budgeting section would enlist the finances required to support the venture, and state the expected income sufficient for breaking even in the first year. From the report it is discovered that each outlet should target a minimum of 100 customers per day. And failure to do so would result in the Area Manager to be of assistance to the particular branch and help find ways in which the performances...
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...Marketing managers are often faced with many decisions on how to best develop a brand. Branding is a focal part of marketing which helps companies distinguish themselves from one another. Today’s marketers are faced with challenges on selecting the best branding strategies; should branding be done using functional marketing and or using physic(emotional) marketing? Marketing is an ever-evolving dynamic process that doesn’t seem to have a one simple cut solution. It’s important for a company to convey their brand in a powerful manner while embodying the true essence of what the company stands for. Today’s marketplace is more challenging than ever and it’s important to have a strong marketing message that resonates well with consumers. In the post-recession era, consumers are far more meticulous and price-conscious on purchasing quality goods at the best value. Marketers need to be aggressive more than ever to develop good branding messages to chase after scarce discretionary dollars. Branding Strategies Creating a brand strategy is an intricate process while considering a company’s target market, value opportunity gap, and competitive opportunities to establish the brand’s concept. Companies place great focus on the brand concept, because this is how their product is desired to be perceived by consumers. In developing a brand marketing strategy, marketers must create a viable strategy for the long-term to create and sustain notable distinctions of a product over its competitors...
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... Summary: The year 2005 is not good for General Motors. The company face loss $286 million in the second quarter and over $1billion in the first quarter. GM losses are largely tied to be North American operation and rising supply, fuel, healthcare, and pension costs. GM makes money not on auto sales auto financing.GM is overly dependent on the U.S automobile market; more than two thirds of its sales are made in the United States. In addition it is overly dependent on its financing division. GM facing economic threats at home and abroad and stiff competition from more differentiated and lower priced products, GM manager must decide how it will produce and market its vehicles in the future. EXECUTIVE SUMMARY: This paper will explain GM’s most pressing challenges. Overcapacity is negatively impacted their financial results, brutal international competition is causing GM to react with target costing strategies, rising fuel prices directly impacts their cash flows and complicates capital budgeting strategies and tactics and their ongoing health care and pension costs continue to color their future earning potential. These challenges will be addressed by using performance assessment measures. The financial assessment measures include net income and their market share value, liabilities of health care and pension benefits, revenues, target costing and capital budgeting. Non-financial measures include customer satisfaction and branding effects on sales volume....
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...may arise in the business structure. Successful factors must be considered that are geared towards how the market and consumers response to the strategies of a companies products and services. Classic Airlines continued efforts to ensure that consumer satisfaction remains effective by applying ways to identify its problems and finding effective solutions will help build confidence in the company growth. The following paper will present a 9-step model for problem solving on the main issues of Classic Airlines. Being able to state the problem, redefine the problem, and apply a robust problem-solving process that would present the best alternative solution will help Classic Airlines achieve their sale goals. Challenges for Classic Airlines: Case Scenario The notion that customer satisfaction brings awareness as business has decreased for Classic Airlines set the company at its highest deception for a strait forward marketing goal. Increasing customer relations is the far most challenge, amongst other challenges for the company without lowering cost. Providing a positive marketing strategy that targets the consumers needs strictly identifies the company’s issues. These issues identified have an effect on how Classic Airlines fluctuates within the market, whether technology is being enforced, if the operations of the company are efficient, and how customers perceive the companies business strategies. Classic Airlines has received a 10% decrease in share prices in the past year...
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...2013 Strategy from the Outside In: Profiting from Customer Value Write-Up - Part II I. Introduction In Strategy from the Outside In: Profiting from Customer Value, George S. Day and Christine Moorman use research to determine business strategies that separate successful from unsuccessful firms. This write-up shall have a section, titled § II. Brief Summary, which outlines each chapter in Chapters 7 through 13, including the conclusion. This write-up shall also have a section, titled III. Application, which shall apply the material from § II. Brief Summary to a firm (hereinafter "Firm A") with which I worked as a business consultant. Firm A is a multi-national holding company that specializes in acquiring, supporting, and growing its subsidiary companies through accelerated organic growth as well as through acquisitions and/or strategic joint ventures and divestitures. II. Brief Summary Chapter 7. The Third Imperative: Capitalize on the Customer as an Asset For a firm, the profitability of the customer asset - the sum of the discounted long-term profits associated with the customer's purchases and referrals - is based on three principles. First, that a firm must distinguish between behavioral loyalty – the frequency of customer purchases from a firm when a need arises – and attitudinal loyalty – an attachment to the firm and/or its specific products or services. Second, that a firm must manage customers to engage in behaviors that directly result in increased...
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...TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty IMPORTANCE OF BRANDING IN RELATION TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high in value and of value to the consumer. This has helped build a high loyal customer base that will always pick an IPhone over any other product any time. Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high in value and of value to the consumer. This has helped build a high loyal customer base that will always pick an IPhone over any other...
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...Group 5 Table of Contents 1. Consumer Analysis 1.1 Consumer Insights 1.2 Inferences 2. Company Analysis 3. Competitor Analysis 4. Channel 5. Context References Marketing Management Report Deliverable 2 3 3 7 9 11 12 13 15 Category : Smartphones Market: India Submitted By Ganesh R Preethi Venkataraman Sarat Bose Rajendra Mohan Talele Mahavir Prasad Kumawat S. Madhuvanthi Table of Contents Content 1. Consumer Analysis 1.1 Consumer Insights 1.2 Inferences 2. Company Analysis 3. Competitor Analysis 4. Channel 5. Context 6. References 7. Annexure Page No. 3 3 7 9 11 13 14 15 16 I. Consumer Analysis A sample of 8 consumers was taken for an exploratory research, the objective of which was to identify needs, desired attributes, relative importance of attributes and how different competitors are rated on the attributes. The consumers were chosen in the following manner: • 4 existing smart phone users (1 Nokia, 1 Samsung, 2 Micromax) • 1 intending buyer of smart phone • 3 switchers – 2 from Nokia to Samsung; 1 from HTC to Nokia 1.1 Consumer Insights Consumers, belonging to the age group of 21 – 25 years, who were students from an urban background, were chosen. The following details the research done amongst this sample population. Consumer 1 (Existing Samsung User) Age 21 years Student Occupation Urban User Category Samsung Galaxy S Current Model of Phone Nokia Xpress (Feature Phone) Switched from? Touch Screen, Android, Applications, Need Processor Touch Screen, Android...
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...acknowledging and fixing mistakes when made. The culture also encourages employees to take responsibility for customers’ satisfaction. Shangri-La Philosophy was to develop local talent to world class expectation. The company launched its culture training program. * Care Module 1: Shangri-La Hospitality from caring people. * Care Module 2: Delighting Customer * Care Module 3: Recover to Gain Loyalty * Care Module 4: Take Ownership The three-tier compensation structure was designed to support organizational goals at various levels. At the first level, compensation included a salary and a bonus. The bonus was tied to financial results to help hotels reach goals. Compensation for the second tier, level two and three employees, was linked to financial results and, more specifically, to customer satisfaction and customer loyalty scores, which were key indicators of how well Shangri-La executed its strategy. In the third tier, level four and five employees, there was a common bonus pool that linked compensation not to individual performance, but to an overall company performance. Shangri-La’s five-level organizational structure was also supportive of its strategy execution as it allowed them, within limits, to directly address guests concerns. At each level in the organization employees had a specific dollar amount that could be used to address customer requests that might fall outside of normal operations. The front-line managers and employees were introduced...
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...yourself furniture has taken the company from a catalog based company to a multimillion dollar company. The company has grown to over 253 outlet stores in 37 countries and making itself known as a global brand of do it yourself furnishings at a lower cost than most furniture retailers Marketing strategies IKEA’s success is based on principal marketing strategies that remain the same throughout the world, which include a catalogue that is printed in 52 editions in 27 languages and has a worldwide circulation of 200 million copies, and the use of the colors of the Swedish flag blue and yellow in the IKEA logo. This is combined with an emphasis on customer freedom and choice with regard to buying and taking home products, and low prices intended to create a “sale” mentality amongst customers. This aggressive price strategy coupled, with a wide product range catering for every potential lifestyle and life stage of a consumer, can best summarize the company’s recipe for success. The fact that IKEA targets all age groups and households makes it an attractive proposition to a wide spectrum of most countries’ consumers, especially amongst depressed retail markets, such as Europe at the moment. Problem: How can IKEA balance global standardization and local adaptation? Alternatives Keep its contemporary and simplistic look and focus on product placement Expand product lines by including a higher quality line targeted at wealthier consumers Focus on customer service Analysis 1. Keep...
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...Security: 7 Making business decision II 7 Making business decisions I 8 Sources: 9 Competitive advantage: Business dilemma: As a Coffee shop with almost 60 years of company history, I would like to make that fact our unique selling proposition (USP) and use the tools and techniques of modern information system to make my coffee shop updated to the norms of modern business. One of the employees have raised a concern about how a Starbucks is about to open nearby. This will pose a threat to my business, but if I stick to the above strategy proposed, and retain our old customer base, improving our management and supply chain system in the process, we will be able to retain our old customers. Environmental scanning: is the acquisition and analysis of events and trends in the environment external to an organisation. Using information technology, we can access valuable information and data about star bucks, as well our target market. As a public company, Starbucks has detailed information published publicly about its financial situation as well as how good or bad it is doing in the coffee shop industry. Competitive advantage: the competitive advantage of Broadway coffee shop over Starbucks would be its traditional and home-made style baked goods. Also using modern technology, Broadway will offer its customer unique access to eBooks and wireless internet connectivity, which other coffee shops do not offer yet. First mover advantage: As a completely new business idea for a coffee...
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...How Costa Coffee would benefit and create additional value for their coffee store clients by using elements of Starbucks marketing strategy? Contents Introduction 3 Coffee Market in the UK 3 Market Leading Coffee Shops in the UK 4 Costa Coffee 4 Identifying competition 6 Starbucks 6 Conclusions 8 Recommendations 9 References 11 Appendix 1 13 Appendix 2 14 Appendix 3 15 Introduction Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which positions company against competition giving it the strongest possible strategic advantage. I have chosen Costa Coffee as it currently is the market leader in terms of most coffee retail outlets in the United Kingdom as demonstrated on appendix 1. Kotler and Armstrong (2012) point out that competitor analysis includes assessing competitions objectives, strategies, strengths and weaknesses, reaction patterns and selecting which competitors to attack or avoid. For he purposes of this assignment, I have identified competition based on the market share and customer view. Competitive marketing strategy is selected on the basis of it creating further value for the customer. Blythe (2009) concludes that competitive advantage is the outcome of effective...
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