New media technology, the umbrella philosophy and relationship marketing - Essay Example

? New media technology, the umbrella philosophy and relationship marketing BY YOU YOUR SCHOOL INFO HERE HERE New media technology, the umbrella philosophy and relationship marketing Background In order to fully understand whether relationship marketing can be successfully considered an umbrella philosophy that encompasses more than just marketing strategy, it is necessary to identify the different CRM and relationship marketing efforts in real-life business environments. The research data seems to identify with the notion that relationship marketing is a strategic and short-term series of communications with clients and internal staff which takes into consideration costs, labour, productivity, human relations and human resources as part of the marketing focus and brand identification within desired consumer segments. Issues of customer relationship management, internal politics and customer-centric strategies will be identified. New media technology The most significant outcome of relationship marketing is the connection between marketer and the customer that is based on understanding the long-term motivations, desires and values of customers to provide them with a trusted and valuable proposition (Cameron, Miller & Frew, 2010). This requires segregating the tangible benefits of the product with the attitudes and behaviours of potential or loyal customers by providing extended non-product offerings that fit their psychological, sociological or cultural principles. For example, ISS Facility Services’ Healthcare, a cleaning organisation for medical environments, identifies the importance of giving employees an image that is not perceived subordinate by design. The company therefore only employs what are referred to as healthcare cleaning assistants when working with hospital staff in a critical role that involves complex cleaning dimensions (hefma.org.uk, 2010). If the employees are given a reputation as cleaning crew or other subordinate labels, the staff in the hospital will respond to employees under this perception and thus impact long-term relationship or cooperative strategies. Now that the elements of relationship marketing and understanding customer attitudes and perceptions have been identified, it is important to isolate the different new media technology tools that are utilised to improve sales revenues and meet with customer demands and lifestyle. British Airways and other large-scale airline companies utilise the Internet as a means of incentives marketing that assists in building more loyalty and brand preference as a long-term outcome. One current reward methodology that takes advantage of interactive self-service website provision is an airline reward strategy from British Airways where e-ticketing, priority check-in and transferrable points can be redeemed or structured online (Whyte, 2003). Some customer segments require a rapid transaction in order to be satisfied based on lifestyle or their personalized preferences regarding interaction with online or physical support tools. The Internet provides this quality interactive forum that maintains the ability to house significantly different, yet related services to meet multi-market demands. New media technology can include secondary links to benefits redemption sites hosted by the company in a forum with interactive videos such as YouTube. Any web-based media source or outlet that provides extended value, negating the costs associated with set-up and monitoring, give companies an opportunity to build more brand loyalty if they first understand what drives customers to choose one airline (or other industry brand) over another. As customer relationship management (CRM), tools to support this effort are necessary in order to efficiently sell and promote product. New media technologies to support electronic CRM are an inbound and outbound chat strategy that allows for personalized service. “With outbound chat, you can see that someone is trying to make contact and can send out a message before the customer even begins to draft a message” (Martinez, 2010, p.27). This is a methodology to improve response rate by having real-time support staff monitoring the interactive chat forum and providing rapid service provision. It builds a form of trust in the organisation that real-time customer service will be provided and that the business is willing to adopt tools to directly cater to their individual needs (Martinez). Using a web-based tracking strategy to gain CRM data regarding demographics or attitudes, such as providing chat service support with customer survey templates, improves efficiency of these sites and the service provided for long-term value whilst still maintaining quality relationship marketing. There are new forms of CRM software that provide extended value to the business and to the customer. Avidian, one new technology, is built on Microsoft Outlook that requires little interoffice training to learn and adjust (McKay, 2008). It is necessary to house a database of customer information for use in future promotions and this type of CRM software can be linked with other Internet-based customer-focused websites and still provide cost value to the firm in relation to human resources or line management-delivered training packages to learn the CRM software. Its ability to link with external web-based media technologies make CRM software imperative if only for a database to understand buyer dimensions and their demographic backgrounds. This e-CRM function helps organisations to measure “repeat purchases, money spent and website longevity to build knowledge on price sensitivity and needs” (Kriemadis & Kotsovos 2009, p.230). So long as it provides interactive value to the customer, relationship management needs are being served whilst still sustaining cost goals and labour inputs. The comparative differences between new media technology approaches and traditional marketing strategy are significant. First, some businesses established organisational cultures that are high in employee satisfaction and highly decentralised to provide more motivation to contribute to customer service objectives. A recent study using 479 participants in the hospitality industry identified that commitment and employee satisfaction was impacted by organisational structure and alignment (Crotts, Ford, Heung & Ngai, 2009). The nature of service provision in a company with a decentralised structure relies on individuals who are committed to achieving goals and motivated to perform to standards or expectations. Traditional human capital development as a means of achieving relationship management is a long-term approach with considerable risk associated to non-regulated employee interactions with customers. New media provides this control if in a regulated Web-based environment. Again, traditional human capital development is just not effective enough for marketing-focused competitive advantage. The link between customer satisfaction, however and employee satisfaction is well-established (Nelson & Bowen, 2000). In the hospitality industry, the nature of their uniforms impacts service delivery due to their own attitudes about image and their role within the organisation that will directly impact service interventions. New media technology can be used more efficiently when developed as a research tool, perhaps a self-service Intranet programme, offering employees self-service surveys and attitude questionnaires to show commitment to their needs at the psychological level. Low-cost and real-time data can be achieved on virtually any subject without necessarily having to restructure the organisation each time turnover is high and employee attitudes begin to affect client relationships. One other cost-based marketing strategy that does not require new media technology and has provided success is the flexible workspace as a means of impressing clients within businesses that do not operate on high budgets, but require marketing presence. Small business owners can lease an office solely for the pursuit of meeting clients and impressing them without thousands of dollars spent on the effort (Ligos, 2005). This is a form of traditional relationship marketing when business perception and prowess require a formalized environment for direct client interactions. Again, the largest negative comparison to this traditional format and new media technology is that they both maintain the ability to conduct real-time discussion, but new media takes into consideration budget restrictions and whether or not the company has already established a positive brand image to the clients they wish to impress. The umbrella philosophy The research conducted into relationship marketing indicates that the notion of a wholly unified concept with numerous relational variations can be justified effectively. The marketing function in the pursuit of more quality customer relationship management must take into consideration costs, support and labour, training and the long-term cost/benefit impact on the business associated with the gains that might be achieved through the effort. Operational and line management situations must be considered in the marketing objective and whether or not it would require restructuring of the business or offering employees more autonomy and therefore reducing marketing control over the customer interaction process. It can successfully be said that relationship marketing is an umbrella philosophy since there are integrated systems of communication and interaction that require development, regardless of whether new media tools or traditional marketing efforts are developed (such as human capital development). Brand management encompasses employee attitude, technology implementation and support, and having an understanding of what drives customer attitudes and then building a system to improve CRM and reputation. This cannot be accomplished with simple advertising methodology or the launch of some form of integrated programme that takes cost and labour into consideration. New media technology when linked with internal software provides rapid response in an environment where there might have been little in terms of immediate customer reward in service. Low-cost web-based technologies already exist, however it is an umbrella strategy that involves senior executive support, IT specialization and end-user know-how that can strip budgets especially in smaller businesses. Brand management and relationship management are complex structures that require multiple activities to gain loyalty and customer value provision. References Cameron, L., Miller, P. & Frew, E. (2010). [internet] Relationship marketing in the recruitment and retention of service industry staff in family owned business: an Australian regional study, Southern Cross University. [accessed 9.3.2011 at http://epubs.scu.edu.au/gcm pubs/87] Crotts, J., Ford, R. Heung, V. & Ngai, E. (2009). Organizational alignment and hospitality firm performance, International Journal of Culture, Tourism and Hospitality Research. 3(1), p.3. Hefma.org.uk. (2010). [internet] Hospital cleaning – how ISS is helping create a step change in cleaning, Health Estates & Facilities Management Association. [accessed 10.3.2011 at http://www.hefma.org.uk/source-article/hospital-cleaning-how-iss-is-helping-create-a-step-change-in-cleaning/492] Kriemadis, T. & Kotsovos, A. (2009). A strategy for managing customer relations on the Internet: evidence from the football sector, Direct Marketing. 3(4), pp.229-243. Ligos, M. (2005). A part-time office puts on a good face for clients, New York Times. September 29, p.C9. Martinez, J. (2010). How can I help you?, Customer Relationship Management. 14(1), pp.26-31. McKay, L. (2008). Eight enterprise strategies that stick, Customer Relationship Management. 12(8), pp.34-39. Nelson, K. & Bowen, J. (2000). The effect of employee uniforms on employee satisfaction, Cornell Hotel and Restaurant Quarterly. 41(2), pp.86-96. Whyte, R. (2003). Loyalty marketing and frequent flyer programmes: attitudes and attributes of corporate travellers, Journal of Vacation Marketing. 19(1), p.18. Bibliography Gummesson, E. (2004). Return on relationships: the value of relationship marketing and CRM in business-to-business contexts, Journal of Business and Industrial Marketing. 19(2), pp.136-148. King, C. & Grace, D. (2006). Exploring the implications of market orientation for hospitality employees: a case study approach, Services Marketing Quarterly. 27(3), p.69. Read More