Omnico, Inc. : - Case Study Example

During the course of his job as a sales manager, he came across a market research report that indicated industry averages for customer retention. From the report, Buddy identified that Omnico’s position was very low when compared to other industries. It indicated that firm’s sales people had not been maintaining long-term relationship with their customers. Based on recent financial reports, Buddy concluded that acquisition of new potential customers would be more expensive. Hence, realizing the significance of customer retention, he tried to convince his sales people about this matter.

However, some of the subordinates opposed to his opinion and argued that intense follow up activities would negatively affect the sustainability of the business. In addition, they added that customers would re-buy from Omnico only when they were satisfied with company’s products and services; hence Omnico’s product lines would be the main factor that affects the sales volume. Analysis Buddy’s concepts seem outdated for it does not have much significance in modern industrial sectors. He conceptualizes business strategies on the ground of his 35 years’ experience.

In the words of Fifield (1998, p. . In contrast; subsequent to the growth of high-tech communication facilities like internet, nowadays customers are well aware of the products and services offered by modern marketers. Similarly, online shopping is the emerging modern market trend which enables consumers to distinguish between different products without the help of an efficient sales man. In addition, television advertisements also contribute to customer’s product knowledge. Hence, as Spiro (2006, p.84) states, modern customers give more priority to product quality and improved service offers as they get chance to choose from a larger group.

At this juncture, Laura’s concept seems more reasonable. Although marketing concepts have largely varied for recent days, buddy-buddy relationships are crucial for the success of sales people in certain kinds of industries. Obviously, people would purchase necessary items even if customers are not properly encouraged by marketers. Therefore, marketers of such industries can lead the market with out forming personal relationships with customers. On the other hand, industries like insurance sector cannot vie with the market changes without making strong bonds with their customers.

The goods or services delivered by such industries are not necessarily purchased by people. It is said that “insurance is not purchased but sold”. Hence, the potential of sales persons determine the scope of such industries. In other words, ‘buddy-buddy relationship’ plays a vital role in certain kinds of industries even in the modern marketing era. Recommendations In order to improve customer retention activities, Omnico Inc must give more emphasis on Laura’s point of view. It is suggestible for Omnico to