Review Question - Marketing - Essay Example

MARKETING Table of Content MARKETING Table of Content 2 Strategies Retention 4 Welcome Stage 4 2.Up selling 4 3.Cross selling 4 4.Renewal 4 5.Lapsed customers 5 6.Inactive customers 5 Product Line & Product Mix of Nike 5 Managing Evidence 6 Shaping first impression: 6 Managing trust: 6 Facilitating quality service: 7 Changing Image: 7 Socializing employees: 7 Pricing factor 7 Extended Product Model (EPM) 8 Belief: 8 Attitude: 8 Values: 9 Reference 10 Strategies of Customer Retention Customer retention strategies can be segmented into various cycles or stages which can be implemented by an organization and these are as follows: 1.

Welcome Stage The stage emphasizes on the loyalty factor by restoring confidence in customers and providing them the preliminary and the best proffers. Carnival Cruise can adopt this strategy to welcome new customers. 2. Up selling This stage supports the idea of offering valued service or product to the customers who have so far been a loyal customer to an organization. Carnival cruise can use this to strengthen the loyalty factor amongst the customers. 3. Cross selling Cross selling involves the process of offering different services or products to the customers apart from the regular ones.

Carnival cruise can also make customers use their different services to add a variety in the customer’s choice. 4. Renewal Renewal stage of customer retention focuses on the inducement for the loyal customers. Carnival cruise can implement this strategy to avoid any drop in customer numbers. 5. Lapsed customers Lapsed strategy emphasizes on the organizations initiation to offer services or products in a new packaging to attract the customers who were ones a part of the organization. Carnival cruise can use this strategy to bring back its lapsed customers who were ones a part of company’s loyal customers group (Shajahan 99-100). 6. Inactive customers This stage focuses on the customers that have recently been inactive in procuring the services or products.

This stage can help Carnival cruise to reinstate the trust and loyalty in customers. Product Line & Product Mix of Nike Product line involves related products with different features to attract customers according to their preferences. Nike’s product line consists of shoes in different style, color, size, etc. Nike’s product mix strategy is based on its product line of shoes along with apparels which offers more options to the customers to buy and company to sell its products. Example for trade up and trade down can be related to Nike’s strategy to add new products both in high priced and low priced section in its product line of shoes and apparels to attract new customers depending on the market scenario.

Nike’s market stretching strategy can be based on the extension of its product line length. Abiding by this practice Nike can involve two ways stretching, i.e. upwards in the high-end product line and downwards in the low-end product line depending which will help the company attain maximum profitability. Market proliferation for Nike can be practiced by adding more features and variations such as size, shape and color to its existing product line in an attempt to inhabit the market space in the related segment of product.

Managing Evidence The many ways of managing evidence through which intangible is converted into tangible are: Shaping first impression: For any organization the first impression is the last impression. The medical procedures in India and spa treatment in Thailand also hold the same rule. The service organization has to deliver the best service in order to remain in the competition. Managing trust: The medical procedure and spa treatment have to keep striving hard to manage the trust and attain large market share.

Facilitating quality service: Quality service means services offered as preferred by consumers to increase the trust and loyalty factor amongst the consumers. The medical procedure for tourist in India and spa treatment in Thailand also has to keep upgrading their service quality levels (Berry & Parasuraman “Roles of Evidence”). Changing Image: The service organizations like medical and spa treatment have to change their image towards being more friendly and satisfactory in terms of services provided.

Socializing employees: In medical and spa treatment facilities the employees are preferred to be friendlier to raise the comfort level for the consumers which in return will benefit the organization immensely. Pricing factor It is believed that more the price betters the quality which may not always hold true. But, since the options are limited this method has become the best way to judge a product and its brand. The consumers who are concerned about brands as a symbol of quality are more likely to use the pricing factor to judge the quality of the product.

Products or services offered by service industry such as hotels, airlines, cruise, etc. are the ones often measured with the price tag. But, the tangible products like apparels and footwear can be exception. The consumers look up at LVMH brands as a status symbol which is affordable by paying high price. So, it can be said that the price-quality relationship holds true for all LVMH brands. Medical facilities for tourists and Spa treatments also fall under the same category of price-quality relationship.

The reason being that both provide intangible services which is assumed to be measured with its price factor as people have this notion that if the services offered are at higher price than it will be of best quality. Extended Product Model (EPM) EPM is theoretical structure based on the idea to support the social alteration by including the disparity in services or products which can be impacted by elements of culture. The elements of culture are: Belief: Belief can be defined as the knowledge related to the service or product, and this understanding is produced from the usage of the product.

Attitude: This element describes the understanding of optimistic and pessimistic response to the service or product and directly affects the preference of the consumers. Values: Values determine the consumer’s friendliness with the product in terms of principles and beliefs (Stephan Dann & Susan Dann “The Extended Product Model”). Reference Berry, Leonard. L & Parasuraman, A. Marketing services: Competing through quality. New York: Simon and Schuster, 1991. Print. Dann, Stephan & Dann, Susan.

E-Marketing: Theory and Application. Hampshire: Palgrave Macmillan, 2011. Print. Shajahan, S. Relationship marketing: text and cases. New Delhi: Tata McGraw-Hill Education, 2006. Print.