Description
There are five competing concepts under which organizations can choose to operate their business; the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept.
Close up wanted to compete with Colgate. Close up was introduced in the year 1975. It could only get a share of 4.5% as the toothpaste came in a gel form. At those times they had salman khan and a young girl but in those times that intimacy was not accepted. Hence the product did not succeed. During 1988 the company decided to try again. The appeal was that the paste not even killed the harmful bacteria but also provide fresh breath. As a result the share went up to 16% In India we have a habit of dipping our biscuits in tea hence Britannia made Marie biscuits using such a production process so that even after dipping our biscuits in tea it would not become soggy and sink in the cup. The opposite case of Nestle (makers of Nescafe) introduced a coffee called Dolca for the youth (i.e in the age group of 20-27) the brand did not succeed because the youth never felt the need for a separate coffee brand. Rasna identified the need of inexpensive drink that could be prepared at home. Ford developed the model called IKON to compete with Maruti an existing model of Japanese Suzuki Nirma decided to offer its detergent at the 1/3rd price of Surf. Only sony TV has a Trinitron picture tubes and only dove claims to have moisturizer in the soap Kinetic Honda had the image of being a women’s scooter since it has an electronic ignition and no kick start. Dettol soap (75 gms) is available at Rs. 13.50 per piece. To compete with it Savlon soaps are being introduced by Hindustan lever in the market at the same price. Managing Profitable Customer Relationships The National Association for Stock Car Auto Racing (NASCAR) The second highest rated regular season sport on TV – Only the NFL draws more viewers NASCAR’s incredible success results from single minded focus – creating lasting customer relationships. The relationship develops through careful blend of live racing events, abundant media coverage and compelling websites At these events NASCAR holds parties, camp and cook out, watch the cars roar around the track, meet the drivers, and swap stories with other NASCAR enthusiasts. Also rather that fleecing the customers with overpriced food and beer NASCAR tracks encourages fans to bring their own. This way NASCAR might lose a sale today but will keep the customer tomorrow. In the media – Can make it to the track – NO Problem. An average NASCAR event reaches 18 million TV viewers. When the network gets it right my surround sound bothers my neighbors but makes my ears happy, says a 35 year old human resource professional
Websites: Information and entertainment : in depth news, drivers bios, background information and online games, community discussions. Biggest part of the NASCAR Experience is the feeling that the sport itself is personally accessible. Anyone who knows how to drive can also be a champion NASCAR driver. Marketing studies show that NASCAR fans are more loyal to sport sponsorers than fans of any other sport. Because of such loyal fans NASCAR has been able to attract more than 250 big name sponsors from Walmart, Home Depot, Coca Cola and the U.S. Army. A leading sports marketing executive at NASCAR says that NASCAR listens to its fans and gives what they want. In turn fans reward NASCAR with deep loyalty and the promise of lasting profits.
Customer Delight Green Gear Cycling (Known as Bike Friday) The delighted customers WOM is more powerful than any other expensive advertising campaign. Bikes Fridays bikes fold in seconds and can get packed in a airline suitcase and ride like full performance bike. BF’s website, newsletters and catalog are filled with pictures of happy owners. BF’s has cultivated community wherein the bike riders are provided with a social outlet and the same helps to generate referrals. The website invites the customers to send photos and share travel stories. Besides creating chat the discussion list provides great feedback. Customers are rewarded with bonus points for the referrals made. The bonus points can be used for the next purchase Mr. Chiang the chief of Bike Friday says customer delight has paid handsomely. Also delighted customers are far more persuasive than ad’s and other marketing communications.
Case Study Chairman of India Car Company is a man of conventions. He tells his staff that the modern marketing concepts are useless. Agreed that customer is the king but don’t depend on him to generate new ideas.
Head of Product design section believes that great product ideas are born in the lab only. Ignore the ignorant customer. In this organization only sales function was considered important. You are appointed as Marketing Manager Write a note to the chairman explaining and justifying the new set up for marketing department you have in mind.. Marketing of Airlines Jet Blue : Amenities such as satellite TV but with individual head phones for every flyer, comfortable leather seats, and more leg room Sahara India: Discounts between 600 – 1000 on all routes in 1999 Indian Airlines: 50% off for government employees in evening flights Jet Airways: entered with an agreement with hotels and announced 20 to 50% discount on room rates for business and economy class Customer Satisfaction – HPCL way In a bid to take on Reliance and Essar, HPCL has introduced a new way of reaching out to its customers and enhancing their experiences. Reworked the retail strategy focusing on dealers Holding detailed discussion, setting higher targets, identifying complete action plan to realize potential /target and launch a system of measuring customer satisfaction index. Launched nationwide training program for dealers and employees who interact with customers constantly Training is based on the research done by HPCL – more sensitivity is required on the part of workers (better communication, eye contact, personalized service) (8 centers for trg dealers and 20 to train employees) HPCL provides good fuel, driveway, dealer staff uniform and back up for standardization of services at the retail outlet Dealer advisory group was allowed to enter the supply locations of the corporation at any point of time and check quality control procedures for themselves Offers list of incentives to the dealers like sales competitions, accident insurance, assistance for their children education Tied up with Hughes Escort to organize day long teleconferences connecting all the centers at which dealers exchange experiences
Coke bought Parle’s Thum’s up and other relatively small but successful brands of soft drinks in 1993 Eureka Forbes shows a sales executive giving a demo at customer’s residence and giving a dial free number. Eno’s antacid advertisement makes a comparison between company product and digestion aiding tablets like Dabur Pudin hara to highlight the effectiveness of the product Sometimes companies are found to integrate direct marketing specifically telemarketing into personal selling operation thus making sales more effective. Functions like generating leads, short listing potential buyers which result on higher sales closing E.g. Housing loan and personal loan offered by most banks follow this integration While a car cannot be sold through mail, direct mailers could be used to get prospectors to go to the car dealer and test drive a car before deciding to buy it. Hyundai the Korean car maker did this for their Sonata car. The list of mailers possessing a similar class of older model car was got from the ad-agency. A test drive along with a financial tie up and a free gift was offered to those who visited the dealers
doc_888766078.docx
There are five competing concepts under which organizations can choose to operate their business; the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept.
Close up wanted to compete with Colgate. Close up was introduced in the year 1975. It could only get a share of 4.5% as the toothpaste came in a gel form. At those times they had salman khan and a young girl but in those times that intimacy was not accepted. Hence the product did not succeed. During 1988 the company decided to try again. The appeal was that the paste not even killed the harmful bacteria but also provide fresh breath. As a result the share went up to 16% In India we have a habit of dipping our biscuits in tea hence Britannia made Marie biscuits using such a production process so that even after dipping our biscuits in tea it would not become soggy and sink in the cup. The opposite case of Nestle (makers of Nescafe) introduced a coffee called Dolca for the youth (i.e in the age group of 20-27) the brand did not succeed because the youth never felt the need for a separate coffee brand. Rasna identified the need of inexpensive drink that could be prepared at home. Ford developed the model called IKON to compete with Maruti an existing model of Japanese Suzuki Nirma decided to offer its detergent at the 1/3rd price of Surf. Only sony TV has a Trinitron picture tubes and only dove claims to have moisturizer in the soap Kinetic Honda had the image of being a women’s scooter since it has an electronic ignition and no kick start. Dettol soap (75 gms) is available at Rs. 13.50 per piece. To compete with it Savlon soaps are being introduced by Hindustan lever in the market at the same price. Managing Profitable Customer Relationships The National Association for Stock Car Auto Racing (NASCAR) The second highest rated regular season sport on TV – Only the NFL draws more viewers NASCAR’s incredible success results from single minded focus – creating lasting customer relationships. The relationship develops through careful blend of live racing events, abundant media coverage and compelling websites At these events NASCAR holds parties, camp and cook out, watch the cars roar around the track, meet the drivers, and swap stories with other NASCAR enthusiasts. Also rather that fleecing the customers with overpriced food and beer NASCAR tracks encourages fans to bring their own. This way NASCAR might lose a sale today but will keep the customer tomorrow. In the media – Can make it to the track – NO Problem. An average NASCAR event reaches 18 million TV viewers. When the network gets it right my surround sound bothers my neighbors but makes my ears happy, says a 35 year old human resource professional
Websites: Information and entertainment : in depth news, drivers bios, background information and online games, community discussions. Biggest part of the NASCAR Experience is the feeling that the sport itself is personally accessible. Anyone who knows how to drive can also be a champion NASCAR driver. Marketing studies show that NASCAR fans are more loyal to sport sponsorers than fans of any other sport. Because of such loyal fans NASCAR has been able to attract more than 250 big name sponsors from Walmart, Home Depot, Coca Cola and the U.S. Army. A leading sports marketing executive at NASCAR says that NASCAR listens to its fans and gives what they want. In turn fans reward NASCAR with deep loyalty and the promise of lasting profits.
Customer Delight Green Gear Cycling (Known as Bike Friday) The delighted customers WOM is more powerful than any other expensive advertising campaign. Bikes Fridays bikes fold in seconds and can get packed in a airline suitcase and ride like full performance bike. BF’s website, newsletters and catalog are filled with pictures of happy owners. BF’s has cultivated community wherein the bike riders are provided with a social outlet and the same helps to generate referrals. The website invites the customers to send photos and share travel stories. Besides creating chat the discussion list provides great feedback. Customers are rewarded with bonus points for the referrals made. The bonus points can be used for the next purchase Mr. Chiang the chief of Bike Friday says customer delight has paid handsomely. Also delighted customers are far more persuasive than ad’s and other marketing communications.
Case Study Chairman of India Car Company is a man of conventions. He tells his staff that the modern marketing concepts are useless. Agreed that customer is the king but don’t depend on him to generate new ideas.
Head of Product design section believes that great product ideas are born in the lab only. Ignore the ignorant customer. In this organization only sales function was considered important. You are appointed as Marketing Manager Write a note to the chairman explaining and justifying the new set up for marketing department you have in mind.. Marketing of Airlines Jet Blue : Amenities such as satellite TV but with individual head phones for every flyer, comfortable leather seats, and more leg room Sahara India: Discounts between 600 – 1000 on all routes in 1999 Indian Airlines: 50% off for government employees in evening flights Jet Airways: entered with an agreement with hotels and announced 20 to 50% discount on room rates for business and economy class Customer Satisfaction – HPCL way In a bid to take on Reliance and Essar, HPCL has introduced a new way of reaching out to its customers and enhancing their experiences. Reworked the retail strategy focusing on dealers Holding detailed discussion, setting higher targets, identifying complete action plan to realize potential /target and launch a system of measuring customer satisfaction index. Launched nationwide training program for dealers and employees who interact with customers constantly Training is based on the research done by HPCL – more sensitivity is required on the part of workers (better communication, eye contact, personalized service) (8 centers for trg dealers and 20 to train employees) HPCL provides good fuel, driveway, dealer staff uniform and back up for standardization of services at the retail outlet Dealer advisory group was allowed to enter the supply locations of the corporation at any point of time and check quality control procedures for themselves Offers list of incentives to the dealers like sales competitions, accident insurance, assistance for their children education Tied up with Hughes Escort to organize day long teleconferences connecting all the centers at which dealers exchange experiences
Coke bought Parle’s Thum’s up and other relatively small but successful brands of soft drinks in 1993 Eureka Forbes shows a sales executive giving a demo at customer’s residence and giving a dial free number. Eno’s antacid advertisement makes a comparison between company product and digestion aiding tablets like Dabur Pudin hara to highlight the effectiveness of the product Sometimes companies are found to integrate direct marketing specifically telemarketing into personal selling operation thus making sales more effective. Functions like generating leads, short listing potential buyers which result on higher sales closing E.g. Housing loan and personal loan offered by most banks follow this integration While a car cannot be sold through mail, direct mailers could be used to get prospectors to go to the car dealer and test drive a car before deciding to buy it. Hyundai the Korean car maker did this for their Sonata car. The list of mailers possessing a similar class of older model car was got from the ad-agency. A test drive along with a financial tie up and a free gift was offered to those who visited the dealers
doc_888766078.docx