Attracting, Retaining Customers, and Enhancing the Relationship with Existing Customers - Assignment Example

Three Businesses Each Wanting Gain A Competitive Advantage Name Institution Course Lecturer Date 1: Assume that each of the 3 businesses is operating from a marketing philosophy. Explain how a marketing philosophy can be applied to achieve the 3 marketing [communication] tasks of attracting customers, retaining customers, and enhancing the relationship with existing customers When an organization goes into business it may choose to adopt a marketing philosophy. Here we note that marketing involves a process of exchanging. This implies that one has to give something and get something in return. Without going far ahead it is important that we define what exactly marketing is. this refers to an iterative or a repetitive process where a given organisation does work with and also adapts to a given market and through procedure of communication ,creation, distribution, promotion and pricing of its commodities endeavours in ensuring that we have an exchange that is profitable in terms of society, the particular customers as well as the channel partners. It is important to point out that the marketing exchange is established upon the conclusion that the two parties involved enter into the exchange voluntarily. Hence the consumers are as well involved in the marketing the moment they make involve themselves in the buyer decision. One of the key goals of the marketing tasks is to attract new customers. Here it is important to understand that customers are only able and willing to purchase a commodity which they have information about. Marketing thus aims at the relaying of such key information concerning a given commodity in question. For example when customers come to your showroom and they are able to see the variety of products in display, if you are able to inform them adequately in regard to the product which you are dealing with then that is an opportunity for you to attract new customers. Another goal of marketing is that of retaining the existing customers. It is real obvious that the task of getting to make a customer for a given product is not easy. Thus, it is really important that once we get a customer all efforts are made to ensure that they remain faithful to the firm. This involves such things as how the customer complaints are handled. Once a given customer has a concern with a product, the business ought to move in haste to make sure that it is handled appropriately and in good time. Maintaining of the already existing customer base will keep under check the cost that is incurred in attraction of new customers. The marketing philosophy may also be applied to make sure that we enhance the relationship with existing customers. This involves making sure that the customers that are already on board feel that value is added to their lives by engaging with the firm. The firm has to be diligent in such things as making timely deliveries and honouring the commitment made to the customers. When the firm engages in such things as the rectification of after warranty concerns, the customers feel esteemed. This ought not to be limited to the relationship with the customers from outside. It is important to note that the people that work within the firm are customers as well in their own sense. The output they give to the firm ought not to be overlooked, otherwise the firm risks losing them. PART B 1: The marketing concept puts forward the view that organisations that best satisfy their customers’ needs are best placed to satisfy their own needs. Discuss how the marketing concept is linked to the circle of satisfaction. Discuss how the marketing concept and the circle of satisfaction can be applied to achieve the three marketing objectives of increasing sales revenue, reducing costs as a percentage of sales, and building the value of the business. The circle of satisfaction looks at how the organisation and the consumer interact. Next, it explores the outcome of this kind of an interaction for both the organisation and the consumer. As the marketing concept clearly puts it, those organisations that satisfy their customers’ needs are best placed to satisfy their own needs. Now, this is how it works out. The business offers a given product. As the customer consumes the product, there are chances that they may or may not be contented with the quality of the product. If the consumer is contented he will continue to use the product for his benefit and, in return for the benefit of the firm. This will first of all lead to an increase in sales revenue because more of the given product is purchased if it meets the expectations of the consumer. The firm hence benefits in that sense. Secondly, there is a reduction in costs as a percentage of sales. This is because a firm that has a product that has met the expectations of the consumer may have to spend less in terms of activities such as advertising. Thirdly, the firm that meets the needs of the consumer will build value of its business. This is because the consumer is able to hold a firm that meets his needs with a high esteem. This is to the benefit of the business in question. 2: There are a number of product considerations that influence marketing strategy. The businesses in the vignette have a number of different product considerations. What are the recognizable differences and explain how the differences would provide challenges for each general manager? One of the businesses deals with fast foods. This is a product that is perishable hence implying that the general manager faces the challenge of making sure that the ingredients that are bought for the use are delivered quickly otherwise they will incur a loss. The other manager deals with sale of products through builders, electrical retailers and departmental stores. He has to ensure that the kind of products sold meet the quality that is expected by the consumers. That implies that if he delivers substandard goods he risks loosing the trust of the consumers. Also, his firm is likely to incur such losses losses as it engages in rectification of any after market warranty concerns. The other manager faces a challenge as well of maintaining the quality of the services. This is because at times his mechanics cannot be relied upon to faithfully deliver the services that the consumers expect especially when they are tired. This has the possibility of ruining the confidence of the consumers and hence a decline in revenue for the firm. 3: Explain the buyer decision process and then detail why an understanding of the buyer decision process is crucial for the 3 general managers [employ the businesses within the vignette to demonstrate your knowledge of the unit material]. The buyer decision process is a depiction of the way that consumers do search then estimate the products, how they experience and assess them then their reflection and evaluation of the product and thereafter the behaviour of the customers having purchased the product. This can be put into three time zones where each has a given behavior or characteristic. First we have the purchase behavior. This majorly involves the process of making a search then an estimate. Next we have the product delivery. This involves experiencing and making an assessment of the product. Finally we have the post purchase behaviour that involves reflection and evaluation by the consumer on the purchase. It is important for each manager to have a good understanding of the decision process. In case of a wholesaler the customer is likely to search for a place where he shall get well priced good. As for the manager who has salesmen an understanding that if the salesmen do not keep their word to the consumers is really dangerous to the business since such consumers loose trust with them. Also the manager that is the franchisor of a fast food chain ought to appreciate that they have a responsibility to meet the quality expected to be delivered to their consumers. 4: Explain the total product concept and then detail why an understanding of the total product concept is crucial for the 3 general managers [employ the businesses within the vignette to demonstrate your knowledge of the unit material]. Total product concept refers to the idea that a given product is the sum of its product components or alternatively it may be viewed as the statement that a product is the total of what is given and what is received to get a product. Considering the fact that total product may be considered as the fullness or totality of that which a given organisation gives to the customer then it makes it such an important concept. It hence is the basis for success or failure in the market place since it evaluates the expectations, that which is delivered and the overall costs to those that consume the product. In case of a general manager of a franchisor of fast food chains they have to be sure that the product that is supplied to the consumer meets the expected standards. George has the responsibility of being certain that the products sold as well as those displayed are truly worth what is shown. Alan too has to be certain that the salespeople only promise what they are able to deliver and indeed do so. Mechanics too have to offer the services worth of their pay. Otherwise they risk a breach of consumer trust. 5: How could a marketing audit, assist the general managers to identify the potential product offering? Marketing audit refers to the process of considering key factors and evaluating them so as to make an informed choice. It involves processes such as, researching the market situation, analysis of the market, analysis of the competitor, analysis of the business itself, analysis of the situation or the environment, considering the ability to compete in the given market and many other factors. Conducting the audit reveals much to the business that it was not clear to it initially. This is crucial in the decision making process. It becomes possible to make strategic and informed decisions having carried out such an audit. George as a manager would benefit from the audit in that he is able to tell which product is likely to sell as opposed to the other. Also he is able to understand the nature of products on offer by the competition. Alan on the other hand is able to benefit from such an audit in that he may be able to know what kind of vehicles to sell, also he may know the rates being offered by the competition to their sales people and hence make an informed choice on the rates to pay. Catherine too is able to know which kind of products to deliver to the consumers. She is also able to tell which products to market most. Read More