Customer Service and Marketing at MM

Many different alternatives exist to face the customer retention problem. One good alternative would be to use and develop a strong customer relation management strategy. With the information collected from the customer loyalty system, the company needs to develop a customer relation service. To improve the perceived value of the brand, the company should create a very developed customer service with a dedicated customer service number and an easy way to order cars. In the airports and main retail places, the company should develop a specific office/desk dedicated to the premium customers and those who have loyalty cards. So that, the consumers don’t lose time and can enjoy of a best quality service.

In making the marketing decisions, the strategies considered were: to cut down the cost incurred in production. To improve the value to the customers, more expenditure was scheduled to be used in producing the thermal resistance motors (Koo & Kim,2016).

The fundamental principle upon which relationship marketing is founded is that the greater the level of customer satisfaction with the relationship – not just the product or service – then the greater the likelihood that the customer will stay with us. The importance of retaining customers is that there is strong evidence that customer retention and

There has never been a time where product or service marketing is geared to target a specific segment or niche than today. This is a period in history where the most successful companies are those that have identified a specific group of people in the marketplace and designed their products and services to satisfy their particular needs and tastes.

Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management, 7 (4), p. 27-42.

Toyota’s customer driven marketing strategy is largely responsible for its success in the hybrid car market. Forward thinking and focus on the societal and marketing concepts allowed for the company to deliver superior customer value to its customers. Management’s focus on the world’s dependence on gasoline and perceived customer value proved to be useful

and that defines retention as the measurement of success. In this article, we will explore the meaning of a retention strategy, showing how it can be set up, and how lifetime value can be used to measure it. You have often heard it said that "It is five times more profitable to spend your marketing dollars to retain the customers that you have than to use the dollars to beat the bushes for new customers." Most people would agree with this statement, even though they have no way of proving it. Indeed, the majority of large

Overall, my strategy entering into the company was to focus more narrowly on specific market segments because it is important for a CEO to understand that a company cannot be all things to all customer. Consequently, I focused the company’s attention on two main market segments, segments A and C, which tended to purchase motors in larger volumes. The customers within segment A believed power-to-size ratio and the support from our sales department were the most important aspect for purchasing decisions. Then, segment C customers were willing to pay a higher price point as long as the motors provided the needed thermal resistance and power-to-size ratio. As you can tell both segments placed significant importance on the power-to-size ratio, which allowed the company to easily place this as a necessary budget item. Another important aspect to make the strategy work was to invest in employee training and thermal resistance since these were important factors to the targeted customers. Lastly, the strategy focused heavily on the existing customers within the targeted markets since it is important to develop positive relationships with customers to ensure they increase their purchases and keep coming back for more motors.

The relationship between customer satisfaction and customer retention is intuitively easy to discern. Different competitive conditions, however, modify this relationship. Business with no or limited competition have high levels of customer retention despite any low level of customer satisfaction. In highly competitive markets, even high levels of customer satisfaction may not ensure against customer defection.

From the above definitions of customer loyalty, I can say that it is related to attitude or behaviour of the customers over a product or service resulting in repeat purchasing or patronizing. It is also said that loyalty is also closely related to commitment but is different from its reciprocity because it is usually applied for customer-seller relationship (Pritchard, 1999). In addition, customer loyalty consists of not only building but maintaining a relationship with one’s customer (Chow & Holden, 1997). According to Mitchell & Sanders (1995), that customer loyalty has been described as a connection and commitment to seller’s offering over the long term. Furthermore, Jones and Sasser (1995) discovered that one of the key element of securing customer loyalty is through customer satisfaction.

What did we learn from BMW? The automobile market is divided into a number of “groups” or “segments.” Sub-Compact; Compact; Full-Size; Luxury, etc. These divisions are however, product based, not customer based. However, customers have, over time, “adopted” this segmentation scheme BMW in the luxury / performance segment. But wants to segment further based on “usage experience.” The Better Driver. Not product based, but customer / market based. Usage experience + “Value pricing” for the segment key to differentiating the product offering from Mercedes, Lexus & Infiniti Along with appropriate product and

At its core, any sound business strategy should be based on a sound understanding of the needs and wants of its customers and striving to not only meet, but exceed those expectations. In order to meet those needs, potential customers need to know who you are. This is where marketing, or more specifically, segmentation and target marketing, take their role in an overall corporate strategy. As all markets are heterogeneous (Baker & Hart, 2008, p. 222), attempts to please all of the people all of the time are doomed to fail. In order to effectively use marketing resources to meet a company’s goals, it is often in their best interests to develop a marketing strategy with a basis in segmentation.

M3: Develop a coherent marketing mix that is targeted at a defined group of potential customers.

Customer acquisition is an offensive marketing initiative which requires a well thought strategy and a budget to support the efforts. Customer retention has been associated with product branding and other marketing initiatives with no deliberate move to have a funded and organised customer retention process. Customer retention has been successful in situations where product delivery is successful by providing solutions to customer’s problem and creating trust with the customer.

Examination Paper: Customer Relationship Management IIBM Institute of Business Management Examination Paper Customer Relationship Management Section A: Objective Type (30 marks) • • • This section consists of Multiple Choice questions & Short notes type questions. Answer all the questions. Part One questions carry 1 mark each & Part Two questions carry 4 marks each. MM.100