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Case Study 6. Relationship Marketing. Company Overview. Operates in the Consumer Packaged Goods industry Dominantly B2B industry There a large competition in this area due to: Product being the same Cost Small number of customers but large profits possible Two large competition companies
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Case Study 6 Relationship Marketing
Company Overview • Operates in the Consumer Packaged Goods industry • Dominantly B2B industry • There a large competition in this area due to: • Product being the same • Cost • Small number of customers but large profits possible • Two large competition companies • Both have had large upgrades recently to their design and manufacturing technologies
How they get by: • Cutting manufacturing costs • Investing in technology that creates efficient manufacturing • Company 6 is concerned that their loyal customers might want to try their competitors new technology and want to switch. • Visible opportunity • Customers do have specialized needs for their product depending on brand
Current position • Survey results suggest that customers are more satisfied with the competition rather than company 6. • The results also suggest that the customers are more loyal to their competition than they are to company 6. • If they continue what they are doing they will either get the same results or more than likely, they will be going down hill. • The problem: • They are lacking loyal existing customers with no switching
Company 6 solution to the problem • They want to provide an array of customized design services more than the competition. • These design services are at no cost to the customer • Relationship marketing
E-Business Marketing Goal or Strategy • Develop an online portal • Contains the top three services preferred by the customer • Online, real-time collaborative design tools • Real-time project status including delivery schedules • Online research applicable to its business • Seven more features will be added in the future for the employees requests • This leads us to the pyramid model:
Company Internal Marketing External Marketing Employees Customers Interactive Marketing Pyramid Model technology
Pyramid Explanation • Internal Marketing (enabling promise) • Employees have information about the company that’s relevant to them. • Employees helped design the Webpage so that it was efficient
External Marketing (setting promise) • Customers have information about the company that’s relevant to them. • Marketing mix of: Product and customer solution, price and cost, promotion and communication, place and convenience, people, process, and physical evidence.
Interactive Marketing (delivering promise) • Employees have information about the customer to better serve them • Customers have good service provided to them • Technical: The webpage content, navigation, ease of use, quick loading time, and delivering the service promised. • Functional: pop-up surveys on the website for employees and customers. Database will compile the data and increase service accordingly.
Primary Stakeholders • Service-profit chain
Service-profit chain relies on the employees and customers interacting in a mutually beneficial relationship.
Relationships • customer loyalty drives profit and growth • customer satisfaction drives customer loyalty • value drives customer satisfaction • employee productivity drives value • employee loyalty drives productivity • employee satisfaction drives loyalty • internal quality drives employee satisfaction • top management leadership underlies the chain’s success
Value Bubble • Four stages of the value bubble that will be used: • Engaging • Retaining • Learning • Relating
Value Bubble Technologies • The webpage was using very simple technologies (bad) • Gif’s • HTML • JavaScript • Embedded e-mail • Image mapping • Frame sets in HTML • Three links were hidden in a collage picture that was put in the page (oops) • Products • Packaging • 100 percent Recycled Paperboard
Attracting • No attracting was intentionally done to complete the goal • They did however use standard HTML metatags to attract customers • Description should include misspelled words and terms not just the products sold
Engaging • They included inline links • This allows anyone reading the page to click on a word to bring them to a definition or a page that sells that product. • The problem with this is that there is no back button when you click the inline link. • Location map • This allows anyone to click on a portion of the map to see the locations of all of company 6 manufacturing locations
Retaining • It has a well organized base of information. • With the frames it makes it fairly easy to get around. • Problem is that frames are dead • Has an up-to-date news link • Problem is that it requires you to call or e-mail someone to get more information on the new product.
Learning • The company failed to implement the survey on the web site and never collected any data from the customers. • Dynamic site configuration was wanted, but never implemented
Relating • Without knowing your individual customers there is no way to relate to the customers individually. • Everyone that goes to the page sees the same thing every time.