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Unit 41 CIMM Knowledge Management Assignment
this Knowledge management Assignmnet is describe the effective process that focused over marketing orientation, techniques and methods within the business organisation. Relationship marketing effectively enhance the performance of the organisation as in report different aspects of relationship marketing will discussed such as CRM and ICT. Marketing plays a vital role in the development of the business organisation as there are various stakeholders get the information related to the products with the effect of marketing. In service sector marketing mix and extended marketing mix plays an effective role as with the help of it they become efficient enough in order to capture their market share.
Task – 1
AC 1.1 Explain the concept of Knowledge Management and its role in Relationship Marketing?
Knowledge management refers to a systematic procedure to provide and inculcate knowledge to personnel within an organization. Success of D&D Enterprise largely depends upon the strong foundation of knowledge base. Thereby D&D Enterprise follows knowledge management techniques in their processes.
Knowledge Management requires managing various factors such as acquiring & learning relevant knowledge, distribution of knowledge from time to time, promoting an atmosphere of knowledge creation, encouraging personnel to indulge in knowledge promotion etc.
In today’s competitive scenario, for D&D Enterprise it is essentially required to build up long and trustworthy relations with customers for long term growth & survival. Since retaining old relations are far much easier than building new relations (Zhang, et. al., 2016).
- Knowledge Management emphasizes on creating and retaining immense knowledge regarding customers which ultimately helps them in building strong relations with customers.
- Since through knowledge management, every department of D&D Enterprise is well informed about the customer’s pattern and choices, they tend to work in a more systematic method and in accordance with the customers preferences (Zhang, et. al., 2016).
- Satisfaction level of customers increases multiple when D&D Enterprise uses Knowledge management, since Knowledge Management tends to improve coordination and cooperation level of D&D Enterprise.
- Knowledge sharing with current customers also improves relationships status and they also tend to feel more committed towards D&D Enterprise (Raggio, et. al., 2014).
- Knowledge management helps D&D Enterprise to understand the needs and problems of customers and to mould their short term & long term goals accordingly. Since customer satisfaction comes first, D&D Enterprise hugely benefits themselves by retaining and increasing its customers (Raggio, et. al., 2014).
AC 1.2 Explain the ways that ICT can support the customer relationship management process in a particular organization?
ICT i.e. “Information and communication technologies” basically means number of communication devices and applications such as radio, television, cellular phones, computer, software etc. required to disbursed information to large number from one platform.
Immense benefits of ICT has made it popular in business world. Very easily large information’s can be shared with large number of individuals from a single platform. This usage has brought a very big success in the “Information and communication technologies” sector. Developed as well as developing countries are largely depended upon the ICT’s sector for their economic and social development (Hollensen, 2010).
Since CRM has emerged as one of the most important tool in the business world, ICT has helped CRM a lot in its implementation in the business world. In today’s technological environment, organisations are largely depended on ICT for collection of data of their customers. There are numerous ways through which ICT supports Customer relationship management such as web, mobile phones and other transmission mediums (Hollensen, 2010). D&D Enterprise use these methods to build up and maintain their customer relationships. For instance- they call back their customers after every purchase to know their feedback, keep a constant touch with them, they provide online feedback form, and also send query & rating form. By using these methods, D&D Enterprise pools immense knowledge regarding their customers which, in turn, helps them to strengthen their relationships, improve their data and lastly improve long term customer lifetime value. Usage of ICT reduces cost, saves time and improves their productivity level (Hollensen, 2010).
AC 1.3 Describe the benefits of customer relationship management in a selected organization?
Customer Relationship management (CRM) has emerged as a vital term in today’s scenario. The significance of CRM has largely increased due to immense competitive environment as well as due to increase in Customer’s specifications. CRM techniques provide an overview of customer’s current market trend and demand and in return helps D&D Enterprise to mould its product or services as per current trend. D&D Enterprise have understood the importance of their customers and thereby are making full utilization of CRM techniques to retain them as well as to strengthen their relations with them (Echchakoui, 2014).
Through CRM, D&D Enterprise combine its various departments such as sales, marketing and customer satisfaction which helps them to provide a fair view of the customer’s relationship, sales trend and information related to current & prospective customers (Echchakoui, 2014). Through various CRM software’s, D&D Enterprise keep close eyes over the changing trend of customers preferences & likings. And making themselves flexible as per the changing market trend.
Other benefits include better coordination, increase in sales, less cost of marketing and overall increase in the Net profit of the organization. CRM also helps D&D Enterprise in making reports and analyzing them and thereby saving cost and time. It gives the complete report of current scenario of the customer preferences towards D&D Enterprise. All the drawbacks and benefits of our marketing strategies and of sales are prepared by the Customer relationship management (Echchakoui, 2014). Overall CRM, has contributed immensely in improving the customer relationship and also in increasing the number of prospective customers as well as helps D&D Enterprise to grow in a better way (Echchakoui, 2014).
AC 1.4 Make justified recommendations for the improvement in customer relationship management for a selected organization?
Nowadays for an organization CRM is indeed an important part of their workings. Looking at the numerous benefits of the CRM, it cannot be denied that an organization can work without CRM. Therefore constant review and updating of CRM is very important. Therefore we can say that improving CRM from time to time is also as much necessary as implementing & maintaining it (Khan, 2014).
As our recommendations, the following points can be taken care of while analyzing CRM-
- CRM mainly works for knowing customer satisfaction, therefore any grievances or complaints recorded and registered, must be carefully analyzed and solved it as soon as possible. It obviously gives a positive impact over the customers and satisfaction level of customers gets doubled.
- Solving customers queries within time limits, it will always amaze customers. Customers tend to buy those products more whose purchase after services are better than the others. Also relevant solutions must be provided to customers queries, which in turn will maintain customer’s faith in the organization’s workings (Khan, 2014).
- Usage of Social media tools can also prove to be very useful in improving customers relationships. As we all know that social net workings has emerged immensely throughout the globe, every person on this earth is connected to it. Thereby either it be solving queries, providing information or mere liaison these social sites tends to be very useful.
- Follow-ups are indeed an important for customer relationships. Every follow up provide you with an insight into the mind of customers. The more you get into it, the more you get to know about your organization’s true picture (Khan, 2014).
AC 2.1 Carry out a stakeholder analysis for a voluntary sector and a public sector organization?
Stakeholders basically refers to those persons who individually or collectively have some sort of interest in the organization. They have a direct effect of organization’s actions, decisions, short term & long term objectives, policies, procedures of the organizations (Buning & Walker, 2016).
There are various Stakeholders namely creditors, directors, employees, government and its agencies, owners or shareholders, suppliers, unions and most importantly society in which a business grows.
Stakeholder Analysis refers to analysis of effect on different persons related to an organization due to any project (Buning & Walker, 2016).
Stakeholder Analysis for a voluntary sector
- Mainly in a voluntary sector, stakeholders involved are mostly governmental institutions and its various agencies, corporate donors, individual donors and organizations and a particular group of beneficiaries etc.
- For a voluntary sector, we need to analysis two points mainly firstly which stakeholders will be benefitted through your actions and which stakeholders will have to bear loss due to certain actions and secondly whose involvement is of much important to the one’s organization (Soontiens, et. al., 2016).
- Analyzing if your project is actually beneficial for the society as a whole, since it is a voluntary or Non-profit organization, its sole purpose must be to benefit maximum to the society.
Stakeholder Analysis for a public sector organization
- Stakeholders involved in public sector organization are mainly shareholders or owners, Central or state government and its various agencies, directors, suppliers, creditors, debtors and society as a whole.
- All the investments in the public sector organization are mostly by the public and the government authorities so, thereby, public sector organization are accountable to them on a priority basis (Soontiens, et. al., 2016).
AC 2.2 Describe the nature of the relationships with customer within two selected not-for-profit organizations?
Relationships with customers is one of the most sensitive relationships. Any misunderstanding can put a bad impact over it. Therefore one organization needs to always give priority to satisfaction level of customers and constantly anticipating their changing needs and preferences-
Let us understand with help of two following examples of not-for-profit organizations-
- SLH Group-This group works for tackling anti social behaviour and creating job opportunities and they also work for refurbishing and building homes in neighbourhoods (Engels-Schwarzpaul & Peters, 2013).
Their nature of enhancing relationship with customers is by stressing on treating nicely with personnel, since if personnel are happy and satisfied then automatically they will treat nicely with customers, ultimately, leading for better customer relations. They make sure that their customers receive top class services. Their main purpose is to satisfy customers.
- Teach first-It is primarily established with a view to encourage and hire graduates, job seekers and qualified teachers to provide teaching services to underprivileged areas. It has marked a good growth in less time and is constantly working for increasing their workforce. Their customers are basically the underprivileged students & teenagers who due to lack of economic resources unable to fulfil their social & educational aspirations (Engels-Schwarzpaul & Peters, 2013).
They strengthen their relations with their customers by encouraging and motivating more and more students to become part of it and thus reducing inequalities in the education system (Engels-Schwarzpaul & Peters, 2013).
AC 2.3 Compare methods used in marketing within the public, private and voluntary sectors?
Marketing is a broader term which consists not only just advertising and selling a product but also anticipating customer’s needs and fulfilling their requirements. Though marketing is somewhat same nevertheless which sector but certain difference does exist (Wirtz, et. al., 2014).
Marketing Strategies for a public sector -
- Public sectors are mainly instituted with the purpose of social betterment and development and for an overall growth of a nation.
- Therefore there marketing strategies mainly involves to justify huge investment.
Marketing Strategies for a private sector –
- Private sectors are mainly formed with a objective to maximize profit and thereby its marketing strategies also work towards enhancing profits (Wirtz, et. al., 2014).
Marketing Strategies for a voluntary sector –
- Voluntary sector basically needs to specify their goals or services and to put in their resources to achieve their goals.
- They need to make an analysis for specifying their beneficiaries and to make an effort to fulfil their need & making them satisfaction (Wirtz, et. al., 2014).
AC 2.4 Explain the key issues involved in marketing in a selected virtual organization?
Virtual organization is basically an organization where separate individuals from , across the globe, works together by electronic means and remains connected with each other by using computers therefore it is also known as digital organization or network organization. It is a boundary less organization thereby making it easy for personnel to work from anywhere throughout the world (Kozlenkova, et. al., 2015). Issues in Marketing of such organizations are as follows-
- Technology issues- Since these companies completely depends on the working of technology and electronic means, any discrepancies or barrier in technology affects working of organization. Since unlike human, technology, needs constant up gradation and electric or other means to work properly.
- Hard- core competition- In today’s time, competition is inevitable. In every sector or department we find cut-throat competition same is the case in the virtual organization. There is so much chaos to prove oneself better than other thereby leading to a tough competition (Kozlenkova, et. al., 2015).
- High maintenance costs- Every organization requires certain maintenance costs for its working and survival, same as in a virtual organization also requires lot of maintenance costs involved in a virtual organization such as cost of computers, telecommunication devices, up gradation cost etc. altogether making it much more expensive than others.
- Lack of proper communication channels- Since most of the work involved is completed through the means of one or other electronic device, there lacks proper communication channels which ultimately hinders smooth functioning of workings (Kozlenkova, et. al., 2015).
- Cultural issues- Since employees who work together for a virtual organization ,shares different cultures, hence leading to cultural hindrances.
AC 3.1 Describe the use of the extended marketing mix in selected service sector businesses?
Extended Marketing mix as in a case of Service sector refers to 7 P’s which includes Price, Product, Promotion, Place, People, Process and lastly Physical environment. These seven factors or tools mainly help an organization in achieving their marketing objectives from specific target market. Service sector include various sectors for instance educational, banking, training , medical facilities etc.
Let us take an example to clearly understands the effect of marketing mix in service sector-
Standard Chartered bank is a multinational and financial services banking company situated in London. It has more than 1200 branches situated in more than 70 countries across the globe. With reference to 7 P’s they prepare they marketing objective such as
- Though unlike manufacturing, there is no hard core costing but the amount of charges depends on the difficulty in providing the service.
- Their products generally includes current/savings accounts, providing mortgages and auto finance etc but besides these they constantly launches new products useful for the different sections of the society (Mukherjee & Shivani, 2016).
- Making product is not enough unless customers are well aware about it. Promotions can done either by organizing conferences, media interactions or through advertisements etc.
- Place refers to the location where such services are provided, thereby, Standard Chartered generally stresses on having good infrastructure facilities.
- People focuses group of persons who are the main personnel for systems, in our case economist; accountants are the main people in our example.
- Process refers the ways adapted to provide your services.
- Physical environment tells about the vibes coming from the location of workings (Brooks & Simkin, 2012).
AC3.2 Explain how the product/service mix can be used to enhance value for the customer and organization?
Use of product/service mix surely enhances value of the customers and the organizations itself. Through marketing mix, one can prepare its marketing strategy and can achieve its marketing objectives. A well prepared marketing plan, which contains all 7 P’s, helps an organization to focus on its achieving marketing objectives within time limits (Wasan & Tripathi, 2014).
Since with these 7 P’s i.e. Price, Product, Promotion, Place, People, Process and Physical environment any organization –
- Once a company know very well about their target group, and then it can strategize its promotion plans (using the Promotion factor) and act accordingly. It excludes persons who are not connected with your specific product. And thus, helps company to earn multiples by just focusing on target group.
- Once target group is cleared then pricing products or services becomes much easier. It obviously is related as per the target group for instance pricing for business events persons will vary with the pricing of the students or teenagers (Wasan & Tripathi, 2014).
- Through marketing mix, an organization understands how to sell its product and satisfy customers both in terms of money and product/service quality and thus, enhancing their value.
- Through Process, an organization understands in which way/process products/services needs to be sold in the market which in turn increases sales of an organization (Wasan & Tripathi, 2014).
AC 3.3 Explain how difficulties peculiar to the marketing of services can be overcome with reference to a particular organization?
Marketing of services in a Service sector is very important as the sole purpose here is to win more and more customers and to retain them for as long as possible. Citing with a reference, we will look into the various difficulties which come in the way of a Standard Chartered Bank which is banking sector, and to how overcome these barriers-
Major barriers which come in the way of marketing services of SCB are increasing cut throat competition, providing numerous other services apart from normal banking which includes internet banking, mobile app banking, creating effective communication channel, training& developing human resource etc (Chikweche & Fletcher, 2012).
All these barriers can be overcome by providing –
- Increasing efficiency and effectiveness in the workings of banking sector so that SCB can not only sustain in the competition but can also emerge as a leading bank.
- With the advancement in technology, services are preferred in a more convenient, secure and easy way, thereby; services through internet and mobile banking have become more popular. Therefore, SCB should urge in developing their services through electronic means.
- Any organization requires an effective communication channel for its smooth working so as a banking sector also do. Thereby, SCB must work hard to improvise its communication channel which ultimately leads to timely decision making, effective working and less misunderstanding (Chikweche & Fletcher, 2012).
- Human resource must also be tired and developed every now and then, in order to update them with the new updated systems and technologies.
AC 3.4 Explain the role of IT (Information Technology) in services marketing management in a selected organization?
IT (Information Technology) undoubtedly plays an important role in the marketing management of a service sector. With the advancement in technology, nearly every sector is making best probable use of the IT sector for making their working simple and convenient. Taking an instance of banking sector, today there are numerous techniques and tools which are making banking system simple and more reliable.
- The first and foremost use of IT sector in banking is evident from the Automated teller machines (ATM’s), these machines allow to perform various different transactions ranging from withdrawals to fund transfer etc. Making convenient for persons to do banking without going in a bank.
- Through the mobile banking apps, customers with using mobiles and internet can access their accounts or any financial transactions at just one click.
- With the use of various smart cards, individuals can perform numerous functions such as withdrawing cash, paying bills, employee clocking in etc (Greve, et. al., 2016).
- Electronic funds transfer at point of sale (EFTPOS) is a system which automatically debits bank account of a person when he purchases and makes payment by swiping card i.e. by Debit card.
- With the advancement in technology, now entire data of customers are maintained in computer systems which make banking systems faster and simpler.
Thus, we can say that Information technology (IT) sector has immensely contributed in the banking sector for making it better and more trustworthy (Greve, et. al., 2016).
Notes: - Now-a-days Ethics & Corporate Social Responsibility in retail industry has became an important aspect. These terms helps organizations for achieving long term growth & for survival. With the effect of this they get included in marketing management.
Notes: - CSR or Corporate Social Responsibilities. CSR’s are those business practices whose end purpose is to benefit society. Every organization exploits resources of society ,thereby in lieu, it has to compensate society back. Companies generally follows various ways for following CSR’s policies such as donating proceeds, planting trees, etc. With the help of these activities they effectively plays their corporate roles in the development of the society. By performing these activities they effectively contribute in the development of respective society (Nicholls, et. al., 2013).
Notes: - The term ethic is derived from the Greek word “ethikos” which mean habit or customs. It basically defines about the right or wrong actions or conduct. It guides actions which are morally acceptable. By following ethics Tesco make their activities ethical and effective enough in order to attain the desired objectives (Nicholls, et. al., 2013).
Notes: - In order to implement the CSR and Ethics within the premises Tesco need to follows some steps that make inclusion of below points such as: -
- Establish some set of format and rules.
- Compiling with the identified CSR laws and regulation in determined approach.
- Setting working structure which comply with CSR activities in Tesco (Smith, et. al., 2010).
Notes: - There are various benefits of CSR activates and ethics and these are: -
- Improved Financial performance: - By following ethics financial performance get improved as there is no such activity is performed that results into fraud or miss-representation of the financial statements or miss-match in financial figures. All the transactions get made as well as recorded in ethical manner that results in enhancement in overall financial performance (Smith, et. al., 2010).
- Enhanced Brand Image: - When Tesco is focused over participating in the CSR activities and effectively take care of the ethics then it ultimately results into increase in their Brand Image. CSR and Ethics are essential factors for enhancing brand image as Tesco become ethical and showing that they are aware as well as care about their respective society. With the help of the CSR activities they effectively take care of the development of their society.
- Improved overall Net profit: - With the increase in the brand image and financial performance by following ethics and CSR there is adequate increase in the net profit share as there is effective level of increase in the sales and their market share. Both these factors helps in getting the competitive edge over their respective competitors that helps in getting adequate returns in the form of increase in sales that results into increase in net profit share (Smith, et. al., 2010).
- Increased Customers trust: - When Tesco is successfully and effectively follow the CSR and ethics they effectively increase the trust among the customers. It is because they maintain adequate level of ethical environment within their business organization and with the effect of it they share transparent information about their financial performance. While CSR activities helps in making them satisfied as it shows that they are highly concerned over the development of the society.
- Benefits for long term objectives: - By following CSR and Ethics Tesco effectively attain long term objectives. Their market share as well as profit share get increased that helps in getting their long term objectives (Brei & Böhm, 2011).
Notes: - The key pressure group or person within the marketing management in information industry are as follows such as: -
- CEO: - It is the top position authority that engaged into managing whole organization and took adequate level of decisions.
- Board of directors: - It is group of individuals that get elected or they are representatives of their respective shareholders in order to build up corporate management according to the policies and took effective decisions over major issues of Tesco (Rundle-Thiele & Wymer, 2010).
- Sales team: - The team of individuals that effectively work together in order to promote their product within the market and effectively make supply in order to meet out the demand of their respective customers.
- Promoters: -They are the effective personnel's that effectively engaged into promotional activities in order to promote their respective product within market for the purpose of increasing sales (Rundle-Thiele & Wymer, 2010).
- Person acting in concert: These are effective parties that took active participation within identical investment actions so that they attain same goal. It also requires cooperation of people in order to make the same transactions which is based over previous arrangement.
Notes: - CSR or Corporate Social Responsibility plays an important role in the Market management such as: -
- Creation of brand image: - By taking active participation in the CSR activities Tesco effectively create good brand image within their respective market.
- Increment in turnover: - CSR activities results into increase in their turnover as customers get attracted with the effect of CSR participation (Vitell, 2015).
- Corporate governance compliances: - CSR activities helps in meeting corporate governance compliances as they need to do some development in their respective society. With the help of the CSR activities they effectively tries to make adequate development within their society that help in meeting corporate governance compliances.
- Social benefits: CSR means responsibilities of corporate towards their society. With the effect of CSR they also attain social benefits such as it enhance their brand name as well as brand image (Vitell, 2015).
Notes: In the end it is hence concluded that that CSR & Ethics are very important in the marketing management in retail industry. These policies not only enhance organization’s repute but also helps in social reforms. Through Ethics & CSR, trust and loyalty of customers of increases towards organizations.
In the end it is concluded that relationship marketing is effective enough in getting the success. ICT is the effective tool that get utilised for the purpose of building effective relationship with the respective customers. ICT render different measures in order to build relationship with customers. Marketing plays a vital role in the success of the business organisation as with the help of marketing customers get to know about their respective product and services. Extended marketing mix become effective in the service industry as it helps in focusing over the customer satisfaction and their betterment. Ethics and CSR activities effective enhance the overall performance of the business organisation.
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