Case Study 6 Relationship Marketing

Company Overview Operates in the Consumer Packaged Goods industry Operates in the Consumer Packaged Goods industry Dominantly B2B industry Dominantly B2B industry There a large competition in this area due to: There a large competition in this area due to: Product being the sameProduct being the same CostCost Small number of customers but large profits possibleSmall number of customers but large profits possible Two large competition companiesTwo large competition companies Both have had large upgrades recently to their design and manufacturing technologies Both have had large upgrades recently to their design and manufacturing technologies

How they get by: How they get by: Cutting manufacturing costsCutting manufacturing costs Investing in technology that creates efficient manufacturingInvesting 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. Company 6 is concerned that their loyal customers might want to try their competitors new technology and want to switch. Visible opportunity Visible opportunity Customers do have specialized needs for their product depending on brandCustomers do have specialized needs for their product depending on brand

Current position Current position Survey results suggest that customers are more satisfied with the competition rather than company 6.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.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.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: The problem: They are lacking loyal existing customers with no switchingThey are lacking loyal existing customers with no switching

Company 6 solution to the problem Company 6 solution to the problem They want to provide an array of customized design services more than the competition.They want to provide an array of customized design services more than the competition. These design services are at no cost to the customerThese design services are at no cost to the customer Relationship marketingRelationship marketing

E-Business Marketing Goal or Strategy Develop an online portal Develop an online portal Contains the top three services preferred by the customerContains the top three services preferred by the customer Online, real-time collaborative design tools Online, real-time collaborative design tools Real-time project status including delivery schedules Real-time project status including delivery schedules Online research applicable to its business Online research applicable to its business Seven more features will be added in the future for the employees requestsSeven more features will be added in the future for the employees requests This leads us to the pyramid model:This leads us to the pyramid model:

Pyramid Model Internal Marketing Employees Customers Company External Marketing Interactive Marketing technology

Pyramid Explanation Internal Marketing (enabling promise) Internal Marketing (enabling promise) Employees have information about the company that’s relevant to them.Employees have information about the company that’s relevant to them. Employees helped design the Webpage so that it was efficientEmployees helped design the Webpage so that it was efficient

External Marketing (setting promise) External Marketing (setting promise) Customers have information about the company that’s relevant to them.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.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) Interactive Marketing (delivering promise) Employees have information about the customer to better serve themEmployees have information about the customer to better serve them Customers have good service provided to themCustomers have good service provided to them Technical: The webpage content, navigation, ease of use, quick loading time, and delivering the service promised.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.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

Service-profit chain relies on the employees and customers interacting in a mutually beneficial relationship. Service-profit chain relies on the employees and customers interacting in a mutually beneficial relationship.

Relationships customer loyalty drives profit and growthcustomer loyalty drives profit and growth customer satisfaction drives customer loyaltycustomer satisfaction drives customer loyalty value drives customer satisfactionvalue drives customer satisfaction employee productivity drives valueemployee productivity drives value employee loyalty drives productivityemployee loyalty drives productivity employee satisfaction drives loyaltyemployee satisfaction drives loyalty internal quality drives employee satisfactioninternal quality drives employee satisfaction top management leadership underlies the chain’s successtop management leadership underlies the chain’s success

Value Bubble Four stages of the value bubble that will be used: Four stages of the value bubble that will be used: EngagingEngaging RetainingRetaining LearningLearning RelatingRelating

Value Bubble Technologies The webpage was using very simple technologies (bad) The webpage was using very simple technologies (bad) Gif’sGif’s HTMLHTML JavaScriptJavaScript Embedded Embedded Image mappingImage mapping Frame sets in HTMLFrame sets in HTML Three links were hidden in a collage picture that was put in the page (oops) Three links were hidden in a collage picture that was put in the page (oops) ProductsProducts PackagingPackaging 100 percent Recycled Paperboard100 percent Recycled Paperboard

Attracting No attracting was intentionally done to complete the goal No attracting was intentionally done to complete the goal They did however use standard HTML metatags to attract customers They did however use standard HTML metatags to attract customers Description should include misspelled words and terms not just the products sold Description should include misspelled words and terms not just the products sold

Engaging They included inline links 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.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.The problem with this is that there is no back button when you click the inline link. Location map Location map This allows anyone to click on a portion of the map to see the locations of all of company 6 manufacturing locationsThis 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. It has a well organized base of information. With the frames it makes it fairly easy to get around. With the frames it makes it fairly easy to get around. Problem is that frames are deadProblem is that frames are dead Has an up-to-date news link Has an up-to-date news link Problem is that it requires you to call or someone to get more information on the new product.Problem is that it requires you to call or 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. 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 Dynamic site configuration was wanted, but never implemented

Relating Without knowing your individual customers there is no way to relate to the customers individually. 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. Everyone that goes to the page sees the same thing every time.