Delivery in day(s): 5
Customers in today’s business environment are considered as the most important assets by the firm. Therefore business strategies are being transformed from their earlier definitions of product centric to the new ones of being customer-centric. The focus by organizations nowadays is to acquire and maintain a share of their customers rather than maintaining a share of their markets. Through adaption of strategies that are customer centric, they have thus demonstrated their insights on customer relationship management (Khalilabad, Mazandarani, Sentosa and Piaralal, 2006). Organizations are found to recognize knowledge about customers as a major source of their value. With the arrival of economy that is based on knowledge, the organizations that succeed would be those that are able to successfully build, recognize and enhance their capabilities of knowledge. In the following pages the importance that relationship marketing has in business context is explained numerous related areas.
Knowledge management can be defined as any process or practice leading to the creation, acquiring, sharing, capturing and the process of using customer knowledge so as to enhance performance and learning of the organization. The KM tries to ensure that the organization acts in an intelligent manner so that the overall success and validity of an organization can be secured. It also tries to ensure that the organization can realize the best value of the knowledge assets (Yaghoubi, Khaksar, Banihashemi, Jahanshahi and Nawaser, 2011). The process that an organization uses so as to acquire, document, create and transfer knowledge so as to achieve the goals of an organization is referred to as knowledge management. In line which the shift of the market to an approach that is customer-oriented; corporations have been found to be heavy investors in customer relationship management. The success in the implementation of these systems depends on the successful use of information technology in addition to the use of capabilities related to knowledge management by the organization. The knowledge about customers is today taken as a sign of the policy of organization and is used for directing the strategic orientation of the organization. Thus implementing customer relationship management involves acquiring, documenting, transferring and then using the same knowledge both on the inside and outside of the organization. Researchers have shown that there is effectiveness of knowledge management on Customer relationship management and it is also seen that the relationship has an impact on increase in profitability and satisfaction of customers. In this regards the knowledge about customers forms an integral part of the relationship that exists between knowledge management on one hand and customer relationship management on the other (Khalilabad, Mazandarani, Sentosa and Piaralal, 2006).
Figure 1 A model on the effect that knowledge management has on customer relationship management (Khalilabad, Mazandarani, Sentosa and Piaralal, 2006)
Few major areas in which technology can extend its help and can provide key advantages to the business so as endanger loyalty of the customers through improvement in customer service are as follows:
Websites: The organizations can provide sections in the website where the questions that the customers have about products can be answered by professionals from the company or by other customers.
Software: The customer relationship can be managed in a better manner through the use of sophisticated tools of data gathering like the customer relationship management software.
Communications: Technology helps the company to combine multiple communication channels for more effective communication with the customers (INC, N.D). It also helps the company to know that the same customer who has just left a voice mail had also sent an email few days back.
Email: Customer service can be improved through the use of e-mail as email provides with a service which can be used to communicate to the customers and respond to their requests for help with a much quicker response time.
According to Accenture which is a leading technology consultancy firm businesses who wish to raise the quality of customer service through the use of technology should focus on the following technologies:
Insight driven marketing:Analyzing the customer data so as to gain business insights which can help in more effective use of target marketing (INC, N.D).
Management of data and data analytics:The data that is collected from the customers is analyzed so as to understand the preferences of the customers.
Automation of marketing: Streamlining and automation of the business process so that efficiency of the business process can be improved and the costs can be kept at a low level.
Effectiveness of workforce: Staffs should be encouraged so that they can embrace newer ways. Treatment of customers should be improved through the use of tools and training so that it results in the delivery of better service.
Optimizing self service: It refers to the finding ways so that customers are able to interact with the business and let the business know about their wants.
Tesco is another retailer like D&D and operates in England. Tesco has ruled the retail landscape of England since the mid 1990s due to the customer relationship initiatives that it has taken up since its foundation. The phenomenal growth of the company and its number one position in the retail landscape of England is attributed to the customer relationship initiatives taken up by the company at various times. The success of Tesco as a retailer is closely associated with its launch of loyalty card scheme in 1995. The company has used the data that is generated through the loyalty card scheme to reward the customers and generate detailed statistics about the purchasing habits of the customer. The data generated through this scheme has been used for modification of marketing efforts of the company. This marketing strategy has played a definite role in launching and establishing the position of Tesco as a market leader (ICMR, 2003). Not only the loyalty card but there are other schemes too that have been by adopted by Tesco over the years. These schemes have helped Tesco provide the best possible service to the customers by knowing the customers of the company more closely than ever. Tesco defines in essence the modern organization in which the marketing efforts are customer oriented rather than being market oriented.
It is apparent that the reason behind the struggle that is faced by D& D enterprise in the current changing business environment is due to the fact that it has lost connection with the customer. Developing and maintaining good connection with the customers is an important aspect of the business, one that helps the company to survive in the long run. This aspect has always been important and is all the more relevant in the current marketing environment that has become customer oriented. In this regards D& D also needs to become customer oriented and develop good knowledge of the customers (Ahmad and Shahid, 2015). In order to help the company in this regards, it should at first implement a data collection system that helps it collect detailed statistics about the customers. There should also be a system to analyze the customer data and generate insights that can be used for shaping the marketing efforts of the company. In this regards the company can take help of technologies that would assist it in this direction.
The above pages illustrate the point that knowledge management is an important wing customer relationship management. As the customers have ever more options from whom they can purchase the relevant goods to their liking, companies are making it a point to increase their relationship with the customers. The marketing effort these days have changed their orientation to become more and more customer oriented. In this regards the companies are making use of technology to build relationships with customers and this step can also be taken by D& D enterprise to increase its connection with customers.
The nontraditional organizations are also required to undertake marketing activities. But the marketing activities that are undertaken by the nontraditional organizations are remarkably different from traditional or for profit organizations. This is due to the simple fact that the objectives of the goals of these organizations are different from for profit organizations. The following pages analyze the role that marketing plays in these organizations by analyzing several related topics.
The stakeholders that can impact and in turn impacted by the workings of a voluntary organizations or a NGO are described below in the following figure
Figure 2 Stakeholders of a voluntary organization (Post, Preston and Sachs, 2002)
The innermost circle of the above figure refers to the decision making bodies of the NGO. These are the primary stakeholders and are found to have economic and contractual ties with the chosen organization. These organizations contribute important resources to the NGO which take the form of member fees and voluntary based work. These stakeholders primarily operate with an identity and strategic goals that is similar. In the industry base that forms the next tire of stakeholders there are two different groups of stakeholders and these are similar organizations and companies. In this case it is seen that the companies share contractual ties with the NGO and identity based traits are shared by similar organization with the voluntary organization or NGO in question. These are both important actors in business ethics field. The NGO influences the companies and the similar organizations referred are independent actors operating in the same field and are competitors to the NGO in question. Other stakeholders who are not significant for the case organization or the NGO are grouped in socio political arena. Operating environment of the NGO is provided by organizations that are mentioned in this tire.
Stakeholders are of particular importance in case of both public and not-profit organizations. Both of these two types of organizations are seen to have a more diverse group of stakeholders as compared to the private for profit organizations. This makes it more difficult to identify strategic issues in case of a not for profit or a public sector organization. There are number of stakeholders in case of a public sector organization. Some of these stakeholders in case of public sector health care organization are:
Director of public health
Director of procurement
Head of health intelligence and communication
Communication (Hunter, 2007)
Director of nursing
Public health manager
Public health management analyst
Board committee members
Health visitors/school nurses
Council/ local authority
NPOs are found to operating on purposes and grounds that are different from that of a for profit organization. In this regards the key stakeholders of a not for profit organization are different from the key stakeholders in case of a for profit organization. Thus where as in the classification of stakeholders in a for-profit organization includes local communities, financers, customers and employees; in case of the not-for profit organization implication of the stakeholder theory is left to the identification of a few key stakeholders (Freeman, Harrison, Wicks, Parmar and De Colle, 2010). These stakeholders are related to the funders or clients of the organization. For instance one of the researchers in this regards identified the key stakeholder groups in case of a not-for profit organization as financers or clients like the funders or sponsors and does not further describe the relationship (LeRoux, 2009).
For instance one of the NGOs, European Business Ethics Network in which there are more than 1000 members who originate from more than 40 countries across Europe the customers can be referred to as members of the organization. Amongst the members of the organizations there are students, individuals, institutions and corporate.
Similarly in case of the Red Cross society which is another not-for-profit organizations the customers are the donors of the organization.
The methods that are used for marketing within the public, voluntary and private sector organizations are similar although the objectives of marketing are different.
The marketing efforts of the private sector are directed towards selling of the goods or services in order to make a profit. In this regards there are several marketing tools that are applied by the private sector organization including STP, marketing mix etc. As compared to the private sector the public sector incorporates goods or services that are referred to as public. For instance the marketing effort of NHS is on service rather than being focused on products. In this regards there are several advertising techniques that have been used by NHS so as to improve the awareness or support for the different health programs that are operated by it. As compared to the case of public sector and private sector the marketing efforts of the voluntary or not-for profit organizations are directed towards attraction of funds or of volunteers. There are different marketing channels and efforts that are used by the NGOs in order to attract funds from donors and the trust of people.
In case of the virtual organization the efforts that the companies spend in marketing and customer relationship are more vital as the organizations or their sales representatives are not able to interact with the customers in their physical environment. In this regards, they have to use technology so as to understand and analyze the customer’s mindset. The customer help desk that is there on the site is an important tool as it allows them to connect with the customers and address their problems. For instance in case of Amazon the success of the company starts from the moment a company searches for a product on the Google. The results of the search list products on the Amazon website amongst the top 5 listings. The search in the site of Amazon is also made easy with predictive searches so that the customers can have easy access to their products. The entire website design along with discounts and website layout are made in a way so as to attract the customers can keep them glued to the site.
The above pages describe how marketing is conducted by the non-traditional companies and how the marketing efforts of these companies are significantly different from the for profit companies. In this regards, it has been pointed out that the objectives and goals of the not for profit and public sector organizations are different from the for profit organizations. It is thus found that the lists of stakeholders in case of public sector and not for profit organizations are vaster. Thus the marketing efforts in these cases are different from that of for profit or traditional organizations.
This task is elucidating on the significance to apply the extended marketing mix in the service sector. In this regard, D&D Enterprises is being taken into consideration. The use of the extended marketing mix in D&D Enterprise needs to get described. Then, there is a need to explain the ways by which the product or service mix can be used for enhancing the value in respect of the customer as well as the organization. In addition, it is also required to explain in what ways difficulties peculiar to the marketing of services can be overcome in regard to D&D Enterprise. Last but not the least, there is also the need to explain the role of IT in services marketing management for D&D Enterprises.
The extended marketing mix comprises of the three additional elements that are added to the marketing mix viz. physical evidence, people and process. Let us now briefly summarize the use of the extended marketing mix in D&D Enterprise which is mentioned as under,
The enhancement of the value for D&D Enterprise might occur by continuously developing the ways by which it will be meeting the customer’s needs as well as wants. In this respect, product mix plays a significant role. Let us now discuss the ways by which product mix can be used for enhancement of value which is as under,
The difficulties peculiar to the marketing of services can be overcome at D&D Enterprise in the following ways,
The role of IT in services marketing management in D&D Enterprise are mentioned as under,
This part of the assignment reflected on the aspect of extended marketing mix for D&D Enterprise that delves with the 7Ps which are product, price, place, promotion, physical evidence, process and people. Moreover, the ways by which product mix can do the enhancement of value has been depicted such as adding width, adding depth, positioning as well as characteristics of products. Also, difficulties peculiar to the marketing of services at D&D Enterprise have been discussed that are associated with intangible services, demonstrating empathy, competitive pricing and people. Finally, the role of IT in services marketing management of D&D Enterprise have been discussed that are associated with rationalization of cost, higher level of services as well as new ways for service delivery.
Ahmad, S.F. and Shahid, M.K., 2015. Role of knowledge management in achieving customer relationship and its strategic outcomes. Information and Knowledge Management, 5(1), pp. 79-87.
Freeman, R.E. (2013). Strategic management: A stakeholder approach. Cambridge University Press.
Freeman, R.E., Harrison, J.S., Wicks, A.C., Parmar, B.L. and De Colle, S., 2010. Stakeholder theory: The state of the art. Cambridge University Press.
Hunter, D.J. ed., 2007. Managing for health. Routledge.