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Contemporary Issues in Travel Tourism Assignment
Contemporary Issues in Travel Tourism Assignment is related with the role of knowledge management and its significance for relationship marketing. Similarly, the ways in which customer relationship management process can be spotted by ICT has also been evaluated. For this purpose, the benefits that are provided by CRM to a particular organization have also been discussed. At the same time, recommendations have been made regarding the way in organization can improve its CRM. With a view to explain the role of CRM in non-conventional settings, a PowerPoint presentation has also been made. In this way, the importance of the application of marketing mix in service sector organizations has also been explained. It has been considered for the purpose of present assignment how the application of product or service mix can help in enhancing the value for the organization and also for its clients (Ashley and Haysom, 2006).
LO1. Describe and explain the importance of relationship marketing in a contemporary business context
1.1 The concept of Knowledge Management and its role in relationship marketing
The concept of knowledge management received much prominence during the 1990s. This concept is related with the way information and knowledge needs to be organized holistically but this explanation does not provide the complete picture (Kotler and Armstrong, 2004). An example in this regard can be given of the widely used definition of knowledge management according to which "knowledge management involves the process of capturing, distributing and using the knowledge efficiently and effectively". Earlier, it was considered by the experts that relationship management and the concept of knowledge management are totally different fields and there was very little common between them except the possibility of a similar data warehouse hardware. At the same time, it was also vaguely believed that both these concepts were related with increasing the efficiency of business and also increasing customer satisfaction (Lauterborn, 1990). But nowadays, most of the experts believe that the aim of both these disciplines is the same which is to provide incessant development to the organization and to the customers.
1.2 explain the ways that ICT can support the customer relationship management process in a particular organization
The focus in case of knowledge management (KM) is mainly on exploring the appropriate solution for the problems in which detailed insight is required. But it is not difficult to see why KM capabilities are significantly important for the strategists related with relationship management. A shift is taking place in the market in favour of a customer centric approach and as a result, several corporations are investing in the implementation of CRM systems within the organization. However, such systems can be adopted by the organization only by using information technology and also with the help of the capabilities that are provided by KM. An example in this regard can be given of the British Red Cross that uses the new CRM system with the help of which, the organization is capable of having a single view of all the donors of the international aid charity. Similarly, this system also allows the organization to segment and target the group of supporters by dividing them on the basis of their interests and habits (Stevens and Fleckenstein, 1999). Has the advantage of the new system is that it has allowed the replacement of various systems that have to be used by different divisions of the Red Cross. Therefore, as compared to the past, with the help of the new system, all the departments of the organization can use the same system and at the same time, it can also be used by major donors like community and corporate teams and trust fund raisers. The new system has the capability to handle all the activities related with direct marketing. Similarly, it can also process the transactions related with gift aid and direct debit. The new system also allows the organization to take help of the professionals who can help the organization and the process of evaluation and selection and also in devising the specifications (Balmer, Fukukawa and Gray, 2007).
1.3 describe the benefits of customer relationship management in a selected organization
The selected organization for this part of the assignment is Red Cross UK. The process of customer relationship management can help the organization in creating a partnership with the corporate world and such partnership can help the Red Cross in marketing its products and services for the joint advantage of both. Such collaboration can be in the form of trade promotions, on pack promotions or in-store merchandising (Choi and Parsa, 2006). The Red Cross is a brand that is widely known among the customers and it has resulted in many highly effective CRMs. An example in this regard can be given of the fact that Red Cross was selected among the top 10 potential partners of the Third Sector out of total 120 organizations that can have a significant influence on purchase decision-making by the customers (Wong and Chan, 2010).
Therefore, it is well-established that by taking part in cause related marketing, the organizations can achieve several benefits like an increase in sales, increased in the loyalty among the clients and also an increase in the coveted by the media. At the same time, with the rising popularity of CRM, the empirical studies that have been conducted in this regard have shown in this regard that in UK, most of the organizations have acknowledged the fact that an increasing number of consumers are becoming attracted towards purchasing products and services that are offered by a cause related brand (Hartman, Rubin and Dhanda, 2007).
1.4 Recommendations for the improvement in customer relationship management for the selected organization
It is necessary that a CRM system should be able to view, manipulate and analyse all the interactions taking place within the organization and also all the contacts so that such a system can provide very high quality products and services to the contacts that are required for the benefit of both. Similarly, it is also a fact that most of the charity organizations like the Red Cross are involved in selling things even if these things are magazines, T-shirts or simply mugs that they give to the people without charging anything. Therefore, it is important that even the not for profit organizations should also have all the functionalities related with a commercial CRM system need to be applied. However, with a view to handle different types of contracts being created in service sector, it is also required that there should be additional functionality. This additional functionality is not confined to but includes fundraising, project management, fund management, publications and subscriptions, examinations and education, community management, membership management, ballots and elections, financial transactions, alumni tracking, grant-making and sponsorship (Henderson, 2007).
The marketplace in the 21st century has seen significant technological advancements and globalization as well as a relationship between profitability and customer retention. The achievement of a sustainable competitive advantage is considered as necessary for achieving success by an organization, which includes the not-for-profit organizations (Jones, Comfort and Hillier, 2006). Therefore, for achieving success, the customers should be placed at the centre of all the activities of the organization and at the same time, value should be created consistently for the customers. In the same way, it is also important that long lasting relations are created with the customers. Such steps can be immensely helpful for the Red Cross in achieving a significant improvement in its CRM processes.
LO3: Explain the importance of applying the extended marketing mix in the service sector using diagrams/pictures to illustrate
3.1 Describe the use of the extended marketing mix in a selected service sector business
British airways, a global airline service industry plays an important part in the application of extended marketing mix. In their strategy they have included the 4P’s, which has eventually got extended to 7P’s strategy.
- Physical layout
Whereas Processes, people and physical layout are included in extended marketing mix, it maps the needs of a customer as the product is in the market.
First is the Physical layout which is very important and has a crucial role in these days of competition. Nowadays environment and the people come to the direct touch of retailer services, so, British airways can take this as their key point and serve their customers by adding services that are recreational and attracting them with their very welcoming services too such as eye catching waiting rooms with clean washrooms, well filled refreshment centers, proper signage’s etc provided in the lounges. Thus physical layout is very important in every business sectors.
- People: These days business organizations are too much customer oriented that they are always ready to serve the customer satisfaction all the time. Due to that they can get loyal and grateful customers who can come back again and again to avail their services. In BA, passengers are welcomed with warm greetings and smile, provided with delicious refreshments and being asked to buy their handbags while travelling in their airlines.
- Processes: This is one of the vital stage in the marketing mix process which makes the marketing efficient and effective enough that complaints of customers can be handled with seriousness and dedicated efforts, answering to all the queries of the passengers and trying the best to solve them in a very compassionate approach, queries related to tickets and booking by BA’s staffs are really effective and appraisable. (Gosnay & Richardson, 2010)
3.2 Explain how the product/service mix can be used to enhance value for the customer and organization.
The value of an organization is extended by their meeting of customer’s needs for which service/product mix is a very efficient tool. It is being chosen in the market and designed on the bases of width, depth and positions on the specific characteristics of products. (Reidenbach, 2007)
- Width: Concerned with the various products provided by the business firm as each product includes several lines of products, though different from each other. Example personal care products like body wash, body oil and toothpastes etc has been improvised by the marketers only by attaching width to these product lines, like they have introduced hair serums for unmanageable hairs. In case of British Airways, width can be added to their airline booking services by enabling special reservations for passengers with special needs such as disabled people.
- Depth: It is also attached to several product lines example fruit juices specifically, like mango, pineapple, orange with some added flavors. Customers are very much attached to these depths as the company’s are providing it with numerous tastes adding with their other individual products in the market. In case of BA, depth can be enabled by adding hotel booking or taxi services with their regular flight booking services.
- Positioning: Is very important for fixing and enhancing the prices of the products for the company’s consisting of narrow product lines in the market just to survive the economy of the country by introducing specialized products which have been already having a position in the market. As, for Cup noodles have made its position as the makers have included some new flavors instead of only masala’s, like Chinese, seafood and other non veg flavors too. In case of British Airways, airline services can be positioned more strongly by allowing air ambulance or private jet services in addition to their existing services.
- Products characteristics:The values and attractiveness added to the products can be added into this category like the style, quality and the functional quality, textures and colors’ and the durability is based on the brand name. In case of BA, product characteristics can be enhanced by their specialized customer support services and in-flight excellence.
3.3 Explain how difficulties peculiar to the marketing of services can be overcome with reference to a particular organization.
As for British airlines they are facing some external environmental complications. Apparently they have to extend their services for their end customers or fliers causing flight delays for bad weather, too much air traffic jams, or complaints of problems made which is totally systematic. (Maurice & Thomas, 2010)
These problems can be solved by these aids,
- In maintaining valued customers
- In mapping the performances data creation by the organisation, this helps in adding value for their end customers who brings success into the Business Environment.
- Absolute recognition and identifications of valued customers who can actually verify the experience of the particular company.
- BA has appointed the customer advocate system for the branding of the management which will be responsible for the data collections in various departments of customer relationships.
- Culture of the brand has been flourished in the organisation which is providing all these services, not just the comfort but by the acute experience that has been gained by the company itself.
- Providing exceptional services are not the only goals and targets of BA. They also give importance to the products they serve to their customers in flight which are mostly from good brands. So the customers can think and realize that their money has been paid off to a worthy place.
3.4. Explain the role of IT in services marketing management in a selected organization.
IT plays very crucial role in the service industries now days. As it is updating so fast the company’s are supposed to adapt to it accordingly. As for BA this technology is nourished by their requirements of its customers and to provide their customers with decent experiences as the customers fly with BA to have a very pleasant and decent experience and to have those memories with them, so by this advanced technology, flight timings and arriving times can be reduced apparently and with this more economical travelling can be possible at times and so people will be more attached buying flying tickets from British airways. Through all this competitive advantages can be gained smoothly. (Lovelock, 2010).
In the Contemporary Issues in Travel Tourism Assignment, the role played by knowledge management in case of relationship marketing has been discussed and at the same time, it has also been discussed how ICT can be used for supporting CRM. Similarly, the social and ethical issues that are being faced by the marketers at present have also been discussed. Similarly the concept of CSR has been discussed in the context of the selected organization that is Hilton Hotels and Resorts.
Ashley, C. & Haysom, G. (2006) From philanthropy to a different way of doing business: Strategies and challenges in integrating pro-poor approaches into tourism business. Development Southern Africa, 23(2), 265-280.
Balmer, M. T., Fukukawa, K., & Gray, E. R. (2007) The nature and management of ethical corporate identity: A commentary on corporate identity, corporate social responsibility and ethics. Journal of Business Ethics, 76, 7-15
Choi, G. & Parsa, H.G. (2006) Green practices II: Measuring restaurant managers’ psychological attributes and their willingness to charge for the “green practices,” Journal of Foodservice Business Research, 9(4), 41-63.
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