CIM Assessment - Assignment Example

 Table of Contents Table of Contents 1 Task 1 - Developing Relationships in Time of Changing Customer Needs 2 Task 2 -Using Technology to Enhance Customer Relationships 6 Word count: 699 8 Task 3 - Using Communication to Enhance Customer Relationships 9 Word count: 11 Part 4 - Reviewing Personal Performance 12 References 13 Bibliography 16 Appendix ………………………………………………………………………………………...22 Task 1 - Developing Relationships in Time of Changing Customer Needs There has been a continuous shift in the definition of marketing especially in the present era. Marketing is no longer product centric but has become customer centric. The whole concept of marketing revolves around the consumers, their needs and their satisfaction level. The needs of the consumers are going through a continuous shift and it has actually become a challenge for the sellers and service providers to meet the needs of their customers. Therefore, the sellers and service providers has to adapt to flexible methodology in their work process to be more customer friendly and come out with newer and better techniques to attract more customers. American Express is basically a company engaged with business in the sector of financial services. It is mostly known for its charge, credit cards and traveler’s cheque. Though the company is engaged in lot of diversified businesses, it is the financial services that have won wide reputation for the company. It has a worldwide presence and its cards are accepted primarily in each and every nation of the world. The growth of the business in the recent past has been high spirited and from the trends, it can be figured out that the business will be doing well in the future too. But as it is widely known that business always operates in a situation of uncertainty, thus the organisation has to regularly redefine itself and its services with a more customer friendly approach. Oxfam and American Express have widely varied business adaptabilities and modules in place, but in the present business scenario there are no hard and fast rules of undertaking a particular business decision and thus the American Express can immensely benefit by the approach of Oxfam in the recent challenging phase which has brought them greater success. Customer groups can be segregated under many criteria but one of the major criteria is of the income level. It has been generally seen that those customer groups with lower income generally indulge less in charities and donation whereas the customer group with a higher level of income generally gives away more in charities and donation. The reason behind it is simple; generally, the charities and the donations are being made from the savings of an individual. In the case of the lower income group, they find it hard to meet their ends and have no or less savings at their disposal whereas in the case of the high income groups, they have greater income as well as greater savings with which they undertake the charities. In the case of American Express too, it is the higher income group who possesses the services of the charge and the credit cards basically in the developing and the third world countries than the people falling under the lower income group (Czepiel, n.d.). Addition of the tangibility factor and close association with other organisations such as Marks and Spencer in case of Oxfam has helped a great deal in increasing the amount of charity and donation works. In case of any service organisation, it is very important to have a tangibility factor in the operation process to have a greater connection with its customers. American Express has its business revolved around financial services, thus it is very basic for the company to build trust and confidence in the minds of its customers. And the trust and confidence can be created through better value added services provided by American Express to its customers. Forming close associations with other organisations to synergize from an opportunity is a very wise decision made by any organisation. In the case of American Express it can be widely viewed that the success they have attained in the past few years have been because of their global presence and it was only achieved by them, forming business relations with major banks and financial institutes all over the world. This has actually helped both the banks of different parts of the world and the American Express in gaining more customers because of the additional services offered by them. Business in present scenario is based on relationships. The onus lies on the organisation to create long term relationships with the customers. With the rapid change in the business environment increased number of competitors floods the market. Therefore, to have a fixed customer base and avail more customers, they have to develop a friendly relationship with its customers by providing better and faster services. Even the value added services play a major part in the development of the relationships. Developing high public awareness and communicating with its customers have been of greater advantage in creating relationships with its customers. Customers are one of the prime stakeholders of an organisation, greater the involvement of customers in the organisation, better would be image and the reputation of the organisation. Even in the business of American Express, customer relationships do play a great role in securing the fate of the organisation. The organisation has to regularly update and come up with various schemes for its existing customers to make them feel special and enjoy their faith and confidence on the organisation. Therefore, retention has become very important for any organisation to secure their place in the competitive environment (Grace, 2005). There are a lot of things to be kept in mind before going into alliance with any organisation. It is to be clearly understood by the organisation that the alliance so formed is capable of adding value and complement the services of the organisation. Even both the organisations should have a sense of values and beliefs so that there are no frequent disputes between them. Thus, it has to be clearly seen that no organisation interferes in the operation of the other and even there should be clarity in mutually inclusive operations. Moreover, other factors such as transparency, accountability, commitment and flexibility are much needed in the operations of all the firms in partnership or alliance. Oxfam generally going in for any strategic alliance checks all such important aspects so that it can communicate well with the donors and customers. Alliance is generally done with quite a few and one of the prime motives is to synergize from the alliance. So, an organisation has to rightly assess the advantage and even the disadvantage that the strategic alliance can lead to (Ivy Thesis, 2008). Task 2 -Using Technology to Enhance Customer Relationships Technology has taken a great leap forward which has actually helped the business organisations a lot in the fast changing and competitive business environment. It is true that technology is one of the biggest contributing factors in the success of any organisation. It is required in each and every step of the business process. Not only has it helped an organisation in acquiring newer customers but also retaining its existing customers. It is only because of the technology that business can be undertaken as a global perspective without much of hassle. Oxfam has significantly increased its operation over the internet in the form of donations and online sales. This is basically due to the reason that internet has a wider appeal than any other media. It can break geographical barriers and help people to donate and shop online. E-commerce has been a revolution in the business scenario in the last decade. Oxfam too has capitalized on it and increased its customer base. Even such transactions can help valuable information regarding the customers and their orientations. There are several customers who have the knack of joining a cause and serving the society but rather stay out of it for several reasons. It is electronic media that increased number of people in joining such cause. Such transactions help the organisation to attain detailed information related to the customers. Oxfam, through the online sales, obtain information, regarding its donors and customers on their orientation towards any particular cause, their mode of spending, income level and other related aspects. A successful organisation uses the information to its advantage. In case of American Express, customer information plays a greater role in the business because knowing them better means development of customer relationships which will help in spreading their business. For Oxfam's donors and customers, information is quite essential as it helps in building of trust. The more information the organization collects about them, the better will be the response from the donors and customers end (Chen & Ching, n.d.). Customer information helps the organisation to create a strong bond with its customers and understand their likings and disliking. Even it can help the organisation in carving out a segment where it can effectively target. From the information, the organisation can clearly segregate its customers on various aspects such as income groups or their preferences of donations. Thus, this information actually helps Oxfam by showing them the future course need to be taken. Promotional campaigns that fit to the preference of the customers receive greater reception than other vague campaigns. American express is a multinational company and therefore there is no doubt that the information regarding the customers is numerous. As the organisation is operating in the financial service sector, so it is likely that the organisation need to have full access towards its customer’s financial data and status. It is very important for the organisation to know about its customer’s financial liquidity so that the organisation is secured from any chance of default. Other personal information such as the occupation and credit history also does play a greater role for them but it is the financial information obtained about the client that is more useful for the organisation in the long run. But it can be majorly viewed that it still faces cases of default and this is because of the information gaps present in the system. This information gaps can be effectively removed by consolidating the customer finance information and the credit history of its customers. Even it can issue certain additional benefits to its favorable and loyal clients (Compaine, 1992). Promotion is an important aspect for American Express. Long term relation severely depends upon the promotional tactics adopted by the organisation. One of the promotional activities that surely achieve long lasting customer relationship is providing offers such as cash back schemes and membership to such clients who have been with the business for a while. Again the organisation can increase the credit limit of potential customers to obtain greater loyalty. For all such promotions the most important fact is the use of the information. Therefore, American Express should use the available information effectively and to the maximum extent (Frank & Borman, n.d.). Word count: 699 Task 3 - Using Communication to Enhance Customer Relationships Enhancement of customer relationship as already stated can be achieved by several methods and techniques and the most influential methods are of using promotional messages. The promotional message is actually a persuasive strategy adopted by the organisations to make their products attractive to the customers than their competitors. The organisation adopts such practices to attain newer customers and converting the existing ones into loyal ones. The organisation can use several attributes for the message such as emotional, cultural or physiological. The main idea behind it is just to increase and retain the number of new and existing customers respectively. Recently, the commercial aired by the Intel Corporation featuring a robot in a lunch gathering has received major accolades. It is to be noted that promotional message can be in any form and can be projected in any medium. The commercial takes a humorous approach in bringing out the sophistication in the Intel Pentium processors. The message that the corporation has tried to focus is that Intel processors are much advanced and developed on a platform which can easily be compared with robotic technology. This actually helps the potential customers longing for more from a reputed brand (Cabrillo College, n.d.). Intel Corporation has been the leading producers of computer processors in the world. With time, the change of computer usage has also experienced major transformations. From a luxury, it has become a necessity, and people are more obsessed towards speed and capabilities. Therefore, the Intel Corporation caters to the whole world as a market. Though the market can be segregated on the purpose of usage it is really very hard to identify them. Generally, the messages given by the organisation in the particular ad is to highlight the sophistication and the utilities of the processors that can even be compared with the advanced and sophisticated mechanism of robotics. Though the concept is general and targeted towards the general public at large, it has a great potential in creating out a niche for the newer customers. This commercial does not only highlight the utility of the processor, but also uses and strengthens its brand image as it always does. Even the commercial has a touch of innovation that can appeal to a wide range of audiences. The message can only be effectively communicated if the right medium is used for the spread. Both electronic and print media have a great role to play in the spread of the message as it has a wider appeal. Recent trends also show that internet and e-mails too contribute a lot in the spread of the message. Reputed brands generally opt in for electronic media as it has a worldwide coverage. A commercial can be aired in all parts of the world and even internet can help in reaching to all parts of the world. Thus, for an international corporation it is very useful in using the medium of commercials and internet to reach its audience. But in several cases an organisation can use the e-mails at its advantage when the organisation has an information database of its customers and their preferences. Such promotions can be tailor made for a particular group who are closely related on certain attributes. The commercial aired by Intel is no doubt one of the most popular commercials of recent time and have a high appeal too. But there are certain aspects which are lacking in the commercial and thus the message fails to be conveyed. It is the idea behind the commercial that has helped receive several accolades internationally. Though the commercial tries to highlight the performance of the Intel processors but the ideas are vague and ambiguous. Consideration to a particular point has not been made which has actually hindered the customer buying behavior. Another aspect to the commercial or which has been a highlight in all the commercials of the corporation is their focus to the human aspects. Human aspects do play a greater role in the development of technology but it is actually the technology that should be the prime focus. Thus, it would be better for the organisation as well as the customers if the specifications and the capabilities of the processors are highlighted rather than the human elements. But still the commercial establishes the relationship of technological innovation with that of human aspects of Intel strongly (East Carolina University, n.d.). Word count: Part 4 - Reviewing Personal Performance Continuous re-evaluation of own performance is very essential to understand own strengths and weaknesses in relation to the organisation. It also helps in analysing the clear picture of the standing of own self in the organisation and even is the barometer for promotions. Thus, reviewing personal performance will help in eliminating the problems and increase the competency level of an individual. Individuals need to note down their strengths and weaknesses, their achievements and other information that may help the company in operation of its business. Even the failures need to be mentioned as the interviewer has complete information of the individual if it is the case of promotional interview. It is also very important for the individual to be adaptable in each and every situation. There are basically two types of vitae that can be well adapted in promotional interviews, namely, achievement-oriented and strength-oriented. In one case, the vitae has major orientation towards what the individual has achieved and the other focuses on what are the strengths and how it can help in growth of the organisation. In both cases, the layout is formal and information should be precise. The objective of the individual in the organisation should be clearly mentioned. There are several ways of presenting a curriculum vitae but the one which focuses the true personality of the individual is the most effective one. Each and every detail that can be beneficial for an individual obtaining the promotion should be included in the curriculum vitae. The curriculum vitae focusing on my strengths and academics would be more beneficial for me as I have less practical experience and achievements to flaunt in the interview. Thus, it would be better for me to focus on the areas of my strength and how it can help in the development of the organisation. Being a marketing assistant in American Express, the core competencies of mine in the field of marketing has to be thoroughly explained to the interview board and the curriculum vitae should properly back my words. Therefore, a curriculum vita is very essential in case of promotional interviews too (Career Consultants, n.d.). References Cabrillo College, No Date. Marketing, Promotion, Advertising and Media Plans. Class Sessions. [Online] Available at: http://www.cabrillo.edu/~dambrosini/50Web/classsessions/session1marketing.htm [Accessed October 10, 2010]. Career Consultants, No Date. The Best CV Strategy. Career Advice. [Online] Available at: http://www.careerconsultants.co.uk/advice/cvs/best-cv.asp [Accessed October 10, 2010]. Chen, J. & Ching, R., No Date. An Investigation of the Effects of Information and Communication Technology on Customer Relationship Management and Customer Lock-In. Abstract. [Online] Available at: http://www.google.co.in/url?sa=t&source=web&cd=5&ved=0CCUQFjAE&url=http%3A%2F%2Fweb.njit.edu%2F~jerry%2FCRM-Monograph%2FCH8.doc&rct=j&q=technology%20to%20enhance%20customer%20relationship%20site%3Aedu&ei=0SyxTK7UE8yecb6WtfME&usg=AFQjCNGf8jPPwXuBV16Lvl1ctMmin9ZyLA [Accessed October 10, 2010]. Compaine, B., 1992. Information Gaps: Myth or Reality. Harvard University. [Online] Available at: http://pirp.harvard.edu/pubs_pdf/compain/compain-i92-2.pdf [Accessed October 10, 2010]. Czepiel, A., No Date. Competitive Marketing Strategy. Duke University. [Online] Available at: http://faculty.fuqua.duke.edu/~moorman/GeneralMills/Section2/Section2Documents/CompetitiveMarketingStrategy-p335-339.pdf [Accessed October 10, 2010]. East Carolina University, No Date. Marketing Plan. Article. [Online] Available at: http://www.ecu.edu/cs-acad/rds/sbtdc/upload/VI.b.%20Market%20Plan%20Feb.%2005.pdf [Accessed October 10, 2010]. Frank, A. & Borman, K., No Date. Social Capital and the Diffusion of Innovations within Organisations: The Case of Computer Technology in Schools. The University of Iowa. [Online] Available at: http://lime.weeg.uiowa.edu/~c07b210/frank.pdf [Accessed October 10, 2010]. Grace, K. S., 2005. Beyond fundraising: new strategies for non-profit innovation and investment. John Wiley & Sons. Ivy Thesis, 2008. Oxfam Taps on Marketing to Obtain Leadership Status Quo. Marketing. [Online] Available at: http://ivythesis.typepad.com/term_paper_topics/2008/02/oxfam-taps-on-m.html [Accessed October 10, 2010]. Jackson, A. & Geckeis, K., 2003. How to prepare your curriculum vitae. McGraw-Hill Professional. Bibliography Barbara, D., 2009. The Poor Should Not Pay the Price for the Crisis. The University of North Carolina. [Online] Available at: http://www.unc.edu/courses/2010spring/econ/560/002/oxfam_straight.pdf [Accessed October 10, 2010]. Luther, W., 2001. The marketing plan: how to prepare and implement it. AMACOM Div American Mgmt Assn. Appendix Appendix 1: Confirmation of my own work ……………………. Pg 22 Appendix 2: Background Information about AMEX ……………… pg 23 Appendix 1 I confirm that in forwarding this assessment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment/project is the result of my own independent work/investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award and is not concurrently submitted in candidature for any other award. Appendix 2 Once upon a time in 1841 in Buffalo, New York, Henry Wells began a shipment service. His shipment service was based on movement of several valuables including cash between Eastern states. At the beginning, he used to deliver the valuables by himself but as business grew, he started using the pony express and stage coaches to ease and fasten the process. By 1850 American Express was established with the aid of William George Fargo. Consequently, Henry Wells was chosen as the first president of the American Express company. The company continued to grow and establish offices throughout Europe. In 1981 the Travelers Cheque was created and that gave the American’s the benefit of traveling around the world. Followed by various accomplishments, the first permanent Middle East office was set up in Bahrain in 1977. The company continued its prosperity until 1981 when the Middle East card product was launched. In January 2000, American Express in the Middle East (AEME) expanded its operation to include North Africa and it now covers nineteen countries. To sum it all, American Express is a significant company that offers diversified worldwide travel, financial and network services. More importantly, its cards are accepted at millions of locations in more than two hundred countries and territories worldwide. Read More