Case Study 6 Chapter 10 COS310 E-Marketing Steve Young

Case Study 6 – Introduction The Authors of e-business.marketing (Terri C. Albert and William B. Sannders selected company 6 for 3 reasons. Company 6: 1. Is a supplier in the consumer packaged goods industry 2. Operates in an extremely competitive pure competition environment (very similar products offered by others) 3. Will be developing customized online services in order to move from a pure competition environment nto a monopoly.

Case Study 6 – Company Overview 1) Company 6 Overview: Company 6 is: a. A supplier in the packaged goods industry b. Currently at the top of the industry c. A company which has distinct marketing (advertising, marketing, design) and manufacturing components d. Has two main competitors

Case Study 6 – Marketing Challenges 2) Marketing Challenges faced by Company 6 a. The two main competitors recently completed massive upgrades in design and manufacturing technologies. Company 6 was concerned that they might lose customers who may try the competitors new technologies then switch. b. The Marketing model – Company 6 decided to develop surveys to determine customer needs and wants in order to develop and/or refine offerings, AND improve customer satisfaction

Case Study 6 – Marketing Challenges 2) Marketing Challenges faced by company (continued) c. Customer satisfaction and customer loyalty was lower with Company 6 than its competitors

Case Study 6 – Response to Market Challenges 3) Response to market challenges a. Use of survey to determine customer needs and wants, then incorporate these into an online customer portal. Use of self service technologies (SST) to link company, employee, and customer. b. Focused marketing techniques utilized including: Internal marketing – utilizing a group of employees to co-develop the materinals for both employees and customers – this motivated employees External marketing – aimed at the customer, focusing on the marketing mix - product, price, promotion, place, and the extra 3 p’s found in service industries - people, process (service delivery), and physical evidence (logo)) Interactive Marketing “delivering the promise” between the employees and customers. Development of services identified in surveys as valuable to customers including:  Online, real-time design tools  Real-time project status  Online research applicable to business such as marketplace trends and research results)

Case Study 6 – Service-Profit Chain Services marketing strategy focuses on employees and customers following the service-profit chain introduced in 1994 by Heskett, Jones, Loveman, Sasser, and Schlesinger. The service-profit chain quantifies satisfaction and loyalties, relying on customers and employees interacting in a mutually beneficial relationship, which has 8 causal links as follows: 1. Customer loyalty drives profit and growth 2. Customer satisfaction drives customer loyalty 3. Value drive customer satisfaction 4. Employee productivity drives value 5. Employee loyalty drives productivity 6. Employee satisfaction drives employee loyalty 7. Internal quality processes drive employee satisfaction 8. Top management leadership underlies the chain’s success.

Case Study 6 – The Value Bubble 4) 4 stages of the value bubble will be employed for the customer stakeholder group a. The major stages of the Value Bubble are:  Attracting - (meta tags, animated GIF’s)  Engaging - (establishing feedback forums)  Retaining - (offering well-organized information base)  Learning - (track customer behavior through log files and clickstream to assess and refine site  Relating – use the database to personalize interaction w/opt out option

Case Study 6 – Wrap up Questions?