Marketing Coursework : Relationship Marketing
Sunday, November 30, 2008
Introduction Relationships are essential in the various aspects of life, whether in romance, family, or in business, for this becomes the foundation of good interrelations with one another. Making good relationships benefit many individuals, including many business organizations. This also becomes one of the good foundations of companies and organizations to attain growth and profit in the market, for their relationships with their customers, shareholders, and employees become strong and established, if each individual would strive to make good interrelationships. With the fast-changing world today, many gadgets and technologies have become a means for many individuals to enhance their relationships with the use of the Internet and the World Wide Web. With the innovation and evolution of technology, many business organizations are able to identify and focus on the needs of their customers, which enhance customer value in terms of marketing. In addition to this is the use of other factors in marketing, such as traditional marketing, selling, and database marketing, which are responsible for enhancing and developing good relationships with customers. In this paper, the factors concerning customer value within relationship marketing will be evaluated. Customer value will be discussed to how the customer perceives potential benefits in their relationship with the business organization. Customer Value and Relationship Marketing McKenna (1991) reports that positioning begins with the customer, for customer thinks about products and companies in relation to other products and companies, and what really matters is how existing and potential customers think about a company in relation to its competitors. Customers set up a hierarchy of values, wants and needs based on empirical data, opinions, word-of-mouth references, and previous experiences with products and services, and use this information to make purchasing decisions (McKenna 1991). Today, the importance of market positioning depends on not only the products, services, and needs of the customers, but on the company's competitive strategy, pricing, packaging, distribution, service, support and communications, such as the use of advanced technologies. This is why, traditional positioning strategies are inadequate because they do not consider technology and change to be significant factors, and because building and sustaining customer relationships is never their central aim. They believe that a static, impersonal customer and marketplace exist, where technologies, products and customer perceptions change very slowly (McKenna 1991). In contrast, dynamic positioning strategies are very different, for it is based on manipulation of the customer's mind, on using a bag of marketing tricks to entice the customer into awareness of a company's desired position, which is company centered than customer centered. This strategy is applicable in a complex, fast-changing industry, where radical changes are occurring everyday. These changes become a response to the fact that products evolve, markets change, competitions change, and new technologies emerge. This is why new and established companies are constantly trying to innovate and improve their products and services (McKenna 1991). In addition to this, are the company's continuous strategies of improvement in terms of customer value, for these are important in sustaining relationship marketing. It has been reported that relationship marketing is a form of marketing, in which emphasis is placed on building longer term relationships with customers rather than on individual transactions, involves understanding the customer's needs, and emphasizes in providing a range of products and services to existing customers as they need them ('Relationship Marketing' 2006). Relationship marketing is important for it enables many companies to become permanently established in the market and provide longer-term service and products to new and existing customers. With relationship marketing, the company not only can serve their customers, but also generate profit and company gain for a longer period. The application of relationship marketing also provides the consumers with great value to their money, which gives the company a good reputation in the market, for the company relies on building a strong and long-lasting personal relationship with their customers. However, the concept of relationship marketing will not be complete without the existence and influence of customer value. John (2003) provided several definitions of customer value. First, customer value is what the customer believes that a product or service provides in a certain use situation. Second, it is an implicit comparison between what the customer receives from the provider and what the customer provides in time, effort, and money, where the frame of reference is not just the price tag on the product, but also the ease and convenience in the acquisition and use of the product and the entire interactive experience the customer has with the firm. Third, is that customer value can be shaped by attitudes, opinions, and behaviors of others, such as friends, family, media, the providing firm, and other competitors in the industry as well as in substitute industries. Lastly, is that customer value determines customer satisfaction and the likelihood of brand or firm loyalty, where the cause-effect relationship could be affected by comparisons with competitors and other substitutes (John 2003). Moreover, many firms focus on the product rather than on the customer, but when the focus is on the customer, the business is defined in terms of customer value, not in terms of product, for the product is viewed as a customer solution and experience, which is the most fundamental definition of any business firm. If firms are focused on the customer, they ought to see themselves in the role of providing solutions, not products, which leads to giving importance for customer value (John 2003). By focusing on customer value and customer's perspectives, business organizations can identify their mission and values, and can better understand their strengths and sources of competitive advantage, for business firms are better positioned and more effective in allocating resources and efforts both strategically and operationally, if they are better situated to understand what would be considered superior customer value (John 2003). Factors concerning Customer Value In line with the advantages in determining customer value are several factors, which are important to identify in response to providing value-added and high-quality products and services to the consumers. Important factors include perceived value, service quality and value, and social and emotional value in terms of brand loyalty. These factors are related to marketing and technological means, which also determine the effectiveness and success of the company in the market. It has been reported that customer perceived value could be related to a single purchase of a good or a service, or to a relationship between a supplier and a customer, or even to a net or network of such relationships (Komulainen, Mainela, Tahtinen and Ulkuniemi 2004). Professional services are always customized, which creates a need for the parties to interact intensively in every phase of their joint value creation, thus, are often bought within relationships. In business relationships, two exchange partners coordinate a number of activities in a way that it increases their interdependence, thus, raising their joint productivity and creating value (Komulainen, Mainela, Tahtinen and Ulkuniemi 2004). If the customer has a positive or pleasant perceived value towards a product or service, then most likely, consumers purchase that specific product regularly. However, if the customer has a negative perceived value towards a product or service, then consumers will be patronizing other brands from other industries. The role of communication and technology somehow determines the building up of the consumer's perceived value, as more consumers today rely on what different media can say about a specific product or service. A good venue for developing perceived value is through the Internet, representing a state of pure competition, where there exist many buyers and sellers and a lot of market information on which to base decisions in purchasing or patronizing a product or service (Christ 2004). In addition to the influence of the Internet and the World Wide Web is the influence brought about by other means of communication, such as the television, radio, and printed media. Moreover, the perceived value factor of consumers determines relationship marketing, for with this perceived value, the company can base the innovation and features of their products to satisfy their customers and attain customer loyalty. This is a way of responding to the needs of their customers, for taking note of their perceived value regarding a product or service would mean listening and paying attention to their needs. The second factor is service quality and value. In understanding customer value, improving service quality and value is important, being an element of customer focus and service orientation. In order for the company to deliver customer value, it must strive to aim at customer satisfaction, to achieve customer loyalty. Firms design a product concept based on their understanding of the customer's expectations, and then configure their value-creating assets accordingly in an operations design, which determines the customer experience. Thus, customer value must be closely aligned with customer expectations, and this can be achieved by continuously improving, developing and innovating a company's products and services (John 2003). Through the influence and role of communication means, the service quality and value of a product or service can be altered. This includes the assessment of the media on the reliability and quality of the product or service, which determines its success in the market. In relation to relationship marketing, the improvement in service quality and value of a product or service would enable the company and customers create a good and lasting relationship, for the customers provide solutions to the problems of the consumers, and in turn, the consumers provide the company profit through continuous loyalty and patronage. In line with this, a study done by Lee, Park, Park, Kyung, and Kwon (2005), which aims to examine the relative impact of service quality on service value, customer satisfaction, and customer loyalty, including positive word-of-mouth communication, proves the positive impact of good service quality and value to relationship marketing. The first implication of their study is that the greater the tangibles, assurance, and sensory dimensions of service quality, the greater are the perceived service values by the customers. The second result is that the greater the empathy dimension of service quality, the greater is the customer satisfaction. Third, the greater the service value, the greater are the customer satisfaction, the positive word-of-mouth communication, and continuous patronage of the customers. Lastly, the greater the customer satisfaction leads to greater positive word-of-mouth communication and patronage of the customers (Lee, Park, Park, Kyung, and Kwon 2005). This study proves that with good service quality and value, consumers have positive response regarding a product or service. The third factor is the social influence in terms of brand loyalty. Brand loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually, and occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price ('Brand Loyalty's Influence on Consumer Behavior' 2002). The different aspects present in society, such as media, advertising and communications, influence brand loyalty. With the advancement of technology, advertising brands is not anymore a hard task, so many companies invest on making advertisements to introduce their brands in the market. Because most consumers are exposed to the different means of communication media, many consumers base their judgments and decisions in purchasing and patronizing a specific product or service. In relation to relationship marketing, companies can easily introduce their products and services to the public through the different advertising media. Companies can express their aim of targeting the needs of their customers by properly and effectively advertising their products and services. This is why, companies should always strive to improve and develop their products and services, because the society can easily detect the qualities and characteristics of products through the advertising media. Through good customer value, companies can attain brand loyalty from their consumers, as a consequence of implementing an effective relationship marketing strategy with the consumers. The last factor is the emotional value of consumers in terms of brand loyalty. It has been reported that emotional loyalty occurs on one of two pathways, each with its own threshold (Rozanski, Baum and Wolfsen 1999). The first pathway suggests that emotional loyalty is born out of a consumer's personal relationship with a brand, and this relationship may very well start through the satisfaction of a functional need or an expressiveness need. Consumers cross the threshold from a mere brand relationship into emotional loyalty when they "animate" the brand, and relating to it in the same way they relate to human beings (Rozanski, Baum and Wolfsen 1999). The second pathway is the formation of a strong user community around the brand, where the consumer crosses the threshold to emotional loyalty when membership in the brand's user community becomes an end in itself. In essence, the emotional value of consumers toward a product or service depends on certain circumstances when they have found attachment to the product or service. This attachment well depends on customer value, which in turn creates good interrelationships between the producers and the consumers. In addition, the key to creating value from emotionally loyal consumers is to manage simultaneously their purchase behavior and their influence on others, for the halo effect created by this small consumer segment can be used to expand the value of the brand, create line extensions, or build a beachhead into other categories (Rozanski, Baum and Wolfsen 1999). The company must make sure to maintain the good and high quality of their brand to ensure the public of their perceived value and in turn, the brand loyalty and continuous patronage of their consumers. Conclusion Relationship marketing is important in the aim of many business organizations to identify customer needs and provide answers or solutions to their problems. In having a good relationship with customers, the company can continue innovating solutions to serve consumers and establish the company in the market. In line with relationship marketing, is the concept of customer value, which is important to determine and evaluate to successfully and efficiently provide the needs of the consumers. Customer value can be influenced by several factors, namely, perceived value, service quality and value, and social and emotional value in terms of brand loyalty. Perceived value determines the success of a product or service, because with a positive perceived value of consumers creates a positive effect in the value of a product or service. Similarly, a good service quality and value helps generate a good profit for the company. In addition, the society has a big influence on brand loyalty, with the role played by the different advertising media. Likewise, emotional loyalty affects relationship marketing, for with the continuous patronage of consumers on specific products or services, the company can cater to their needs. With relationship marketing, customer value can always be determined by the company, which is essential in their aim to efficiently providing their consumers with good and high quality products and services. |
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Marketing Communication Plan for Online Advertising of Sunny Cottage Holidays
Executive Summary In this age of globalization and information technology, deciding which brand to choose can be a problem. Competition is evident and intense, and the marketing and management divisions of corporations are surely giving everything they can to establish their brands. Competition forces certain brand names to become stronger than others because of product loyalty and name recognition. As such, all types of communication became more involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication (Goldberg & McCalley, 1992). As an agent in the local holiday cottage rental industry, Sunny Cottage Holidays decided to initiate its online advertising campaign in order to create more effective and more efficient marketing strategies to gain not just increased market share but also greater customer loyalty and satisfaction in the market. In line with this, the company considered the benefits of developing and launching its own Website taking into account strategies to induce traffic in the online portal to best serve its clients and customers along with the sustainability of the online marketing communication project and the details of the advertising plan to achieve its business goals and objectives. I. Introduction Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. The consumers of mass communication messages today are active and critical in the simple choices they make. As such, the mere purchase of everyday necessities has proved to be crucial in analyzing the consumer market at present. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. The changing world has then placed much emphasis on the importance of communication for effective marketing. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered (Lowenstein, 1997). The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities may result to favorable outcomes. This paper presents the internal and the external considerations that should be taken into account by Sunny Cottage Holidays as an agent in the holiday cottage market in initiating the company Website to better market its services and increase client and customer satisfaction in its aim to gain competitive advantage from competitors as well as sustainable development for the organization's long-term goals. As such, the report outlines the (1) contextual analysis of the business organization, (2) its promotional objectives and business positioning, (3) the organization's promotional strategies, (4) the promotional mix of the business, (5) the implementation plan, and (6) the evaluation and control of the its online marketing project. II. Contextual Analysis Today's market is characterized by highly competitive organizations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. Today most companies find that it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage. A. Business Context Competition is an important factor to consider before entering a business. Companies should have successful competitive strategies to be able attract, retain and grow customers. However, before the company can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image (Kotler & Armstrong, 2001). Moreover, consumers tend to buy what is already familiar to them (Mittelhauser, 1997). A fine and well-advertised brand might have a competitive edge from a lesser exposed brand name. But then, a lesser known brand can also have an edge over price, given that they cost less than known brands (Kim et al, 2002). Sunny Cottage Holidays serves as agent to cottage owners who wish to outsource their booking services whose business transactions and contracts involve sole responsibility for the marketing needs and booking management of cottage owners as clients. Aside from the need to market itself to cottage owners, Sunny Cottage Holidays is likewise concerned with gaining market visibility among tourists and local vacationers as the basic customers of the business in which the company earns 20% commission for every successful booking it closes. At present, Sunny Cottage Holidays use the traditional communication channels in marketing its services to both cottage owners and tourist/vacationers. The communication media utilized by Sunny Cottage Holidays include local press advertising to travel magazines, tourist authority guides and Tourist Information Centers (TICS) as well as positive word-of-mouth and participation at local exhibitions (Avlonitis & Karayanni, 2000). B. Customer Context Customer satisfaction refers to the consumer's positive subjective evaluation of the outcomes and experiences associated with using or consuming the product or service. It refers to either a discrete, time-limited event or the entire time the service or product is experienced (Duffy & Kechand, 1998). Satisfaction occurs when the product has been able to meet or exceed the conceived expectations that the customer has (Padilla, 1996). Furthermore, customer satisfaction may also be considered as the measure of the high degree of quality of the product (Jacobs et al., 1998). Crosby and colleagues (2003) deemed that once a product or service has been delivered or sold, its quality is believed to have been established. Normally, customers avail of the services of Sunny Cottage Holidays agency through mailed color-brochures in which prospective customers check the accommodation offers of cottage owners. These color-brochures serve as portfolios that illustrate all the cottages that the agency provides booking services for. The featured accommodations are categorized according to location or the geographical area and based on the size of the offered accommodations. However, this marketing channel (color-brochures) posts limitations which include limited photographs of the exteriors of the cottages as well as space-tight caption or descriptive texts of the cottages. Interior photos of the cottages are usually for the vacation packages that are characterized with relatively more expensive and more desirable accommodations (Avlonitis & Karayanni, 2000). A coding system is used to direct the customers to the price offers of the cottages from which they can compare the quality as well as the content of the available accommodations. The coding system determines the price of rent as correlated with the different weeks of the year. Sunny Cottage Holidays can be then contacted by interested parties if they wish to avail some of the accommodations through phone calls. This enables customers to verify and reserve if the preferred accommodations are available along with other amenities offered by the cottages or resort (Avlonitis & Karayanni, 2000). C. Internal Context An organization that offers products as well as services also depends on suppliers that deliver the company's raw materials. This condition leads to the buyer-supplier relationships within different industries. Such relationship is directly influence by the changes in the supply and demand variables based on the existing needs of the consumer population (Lee & Billinton, 1995; Katsikeas, Schlegelmilch & Skarmeas, 2002). The influence of the supplier is defined by its ability to dictate price and influence availability of materials. Other strengths of the supplier include their ability to (a) increase prices without suffering from a decrease in volume, (b) reduce the quantity supplied, (c) organize in a formal or informal manner, (d) compete in an environment with relatively few substitutes, (e) provide a product/material that is a critical part of the end product or service, (f) impose switching costs on their customers when they depart, and (g) integrate downstream by purchasing or controlling the distribution channels (Berry et al, 1998; Degraeve & Roodhooft, 1999; Anderson & Katz, 1998). According to Avlonitis and Karayanni (2000) 58% of the demand for rented holiday cottages caters to customers belonging to the A, B, and C1 socio-economic groups. Demands for independent family vacation packages are relatively higher compared to group outing packages. During the lean seasons, the notion of escaping from busy urban life to the countryside for a short and relaxing break is common among customers. On the other hand, the peak season during the summer months caters to the ideal family vacation which includes perks and activities that interest all ages apart from the picturesque scenery that the resorts and other accommodations offer. Approximately 94% of the bookings during the peak seasons extend to four or more night stay in the months of June to September. Moreover, the purchase decisions of target customers are based on the offered services and amenities that will entertain them during the stay as well the customers trust to cottage owners and service providers due to high satisfaction level. D. External Context Customer satisfaction is the primary aim of marketing. Most enterprises ensure the best possible chance of attaining long-term stability and competitive standing through comptehensive customer analysis and implementation of marketing communication plans. Marketing makes the basic assumption that customer satisfaction should be the primary aim of the business. Such satisfaction can be achieved and sustained through the provision of competitive products or services, at competitive prices (Spreng, MacKenzie & Olshavsky, 1996). It should focus on every aspect of marketing, not only on promotion and sales techniques, to persuade customers to buy but also on target market, marketing mix and the effective marketing strategy (Kotler & Armstrong, 2001) because successful marketing results in stronger products, happier customers, and bigger profits. Moreover, customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. Wong (2000) argued that a customer evaluates a product or a service. Such action is based on the customer's reaction from the using the product or service, which means that the product or service should leave a good perception to the customer's contentment. Frederick and Salter (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image. Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them ( The Regional Tourist Board (RTB) is highly related to the operations of Sunny Cottage Holidays as a non-partisan organization that inspects tourist accommodations. The Board is usually requested by cottage owners themselves and managers of accommodation facilities in the locale in order to verify that their businesses are operating under the standards that prioritize the interest of the customers. The verification procedures of RTB involves the owners and managers adherence to rules and regulations that protect consumer interests, the notion that the cottages and accommodations are endorsed by a non-profit third party along with suggestions and recommendations for the development and improvement of the facilities and amenities offered to the customers (Avlonitis & Karayanni, 2000). Furthermore, RTB likewise encourages people to visit and take holidays in the locale by providing financial assistance to tourism projects, investing in promotional activities and through advisory and information services. The TICs and the Tourist Information Points (TIPs) facilitate the function of the RTB. TIPS are information campaigns and posts that can help vacationers during their transactions while TICs are attended by personnel that help tourists in going about their holiday breaks. The publications of RTB includes the verified cottages and accommodation facilities and amenities that can help customers in deciding for their needs during the stay in the area (Avlonitis & Karayanni, 2000). III. Promotional Objectives and Positioning Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Lindenmann, 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (Chow & Holden, 1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. The discussion that follows enumerates the (1) corporate objectives, (2) marketing objectives, (3) marketing communications objectives, and (4) positioning of Sunny Cottage Holidays agency in initiating the business organization's drive towards the electronic transformation of its booking services to be able to market and advertise the offers of the company not just to client cottage owners but also to the basic individuals or groups of customers that the agency attends to. A. Corporate Objectives 1. To match the organizational structure to the needs of the clients and customers by anticipating and meeting the demands and expectations of the market; 2. To extend service designs and innovation leadership by being sensitive to the dictates of and trends in the consumer demand or business behavior of the clientele; 3. To develop leading positions in the local booking and accommodation markets by adapting competitive stance that is committed to the aim of the company to excel and best other agencies; 4. To achieve excellence in service execution through consistent and on-time commitment to client and customer needs that ensure service quality and best-practice social standards; and 5. To focus on financial performance through effective management of working capital and generation of free cash flow to optimize financial leverage; and B. Marketing Objectives 1. To increase the market share of the agency in terms of contract cottage owners through greater bookings of customers; 2. To provide satisfying contract agreements to cottage owners that reflect the interest of both parties; 3. To provide highly satisfying booking services to the customers by exhausting the available resources of the agency; 4. To accelerate revenue growth by focusing on selected consumer group and expanding the customer-base; and 5. To initiate continuous optimization of marketing communication channels and activities to best showcase the services of the agency. C. Marketing Communications Objectives 1. To increase consumer awareness of the services offered by the agency more effectively by launching a company Website; 2. To exhibit the facilities and amenities offered by contract cottage owners to subsequently increase market share; 3. To penetrate other lucrative customer-base through the broad reach of the Internet as facilitated by the online portal; 4. To facilitate online transaction and booking services to the customers; 5. To encourage open communication between the agency and the customers using the Website as a feedback system that caters to the needs, suggestions as well as complaints of the clientele; and 6. To exhaust means of spontaneous and flexible developments and improvements of the online services that is reflective of the market trends in the industry. D. Positioning The changing world has then placed much emphasis on the importance of communication for effective marketing. All types of communication are involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication. Among the channel members, even follow-up on complaints as well as customer billing may be included within the communication loop. In order to effectively serve the marketing channel, correct timing and accuracy in communications is essential. Moreover, it is important for the company to recognize that all members of the channel have an obligation or important role in maintaining the efficacy of marketing communications. Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Channel communications works in a two-way system wherein information transfers to the user and bounces all the way back to the producer (Goldberg & McCalley, 1992). In other words, marketing communications works like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors. In this light, the electronic transformation of the services offered by Sunny Cottage Holidays agency will result to better and more efficient and effective customer service system to the clientele. Moreover, the functionality of the online portal for the marketing and advertising needs of the agency will most possibly result to increase customer reach, satisfaction level and return of investment. Furthermore, if consumers somehow become better customers -- that is, more knowledgeable, participative, or productive -- the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin & Luker, 1990). Finally, some of the ways that companies acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership. IV. Promotional Strategies Cultivating customer loyalty is about establishing a relationship between the company and its consumers (Chow & Holden, 1997). This is emphasized by Michael Lowenstein (1997) who considers that gaining consumer loyalty is a business's most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. However, customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers' satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. Moreover, Hessan & Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself (p. 14). According to David (2003), there are at least four types of resources which the company can use to achieve its objectives: financial, tangible, human and technological resources. In this light, to make the regular customers avail more of the services offered by Sunny Cottage Holidays, the agency could initiate the following promotional strategies: 1. Advertising contract to other broadcast mass communication channels such as television and radio; 2. Advertising placements among local and regional publications such as well circulated newspapers, magazines, and travel journals; 3. Continuous direct distribution of printed marketing materials and brochures; 4. Tie-ups with other companies that offer products and non-competing services that meet the needs of the target market; 5. Discount coupons, packages, and club cards to loyal customers; and 6. Price-offs during the lean months. Discount coupons and club cards will serve as a marketing strategy to developed similar loyalty schemes in order to identify and stimulate awareness. These database marketing and loyalty programs are the ultimate promotional strategies for the Sunny Cottage Holidays agency are effective and cater to highly segmented customer and client oriented that can encourage customer retention and purchase activation. Finally, the company's social responsibilities should be taken seriously by supporting local charities, funding educational scholarships, and contributing to the socially relevant causes and projects that get publicity. Sustainable development efforts of the organization through environment-friendly social drives along with other cause-oriented social activities in the communities where there is market for Sunny Cottage Holidays could be likewise considered. V. The Promotional Mix When considering channels for any campaign, including new product or service launches, integration across different channels can have a substantial impact upon response, compare to channels working in isolation. The typical example cited is often direct mail followed by telemarketing, where the mail pack serves to put the brand or product in the mind of the recipient, 'warming them up' to the telemarketing. There are also natural partners - as digital becomes a more accepted part of the marketing mix, it is unusual to find any communications strategy particularly product launches, which ignore the use of email and websites. A combination of email and website work can give high impact, high relevance, and high reach, must form a key part of any communication strategy (Boylaud, 2000). In this light, recommendations as to how Sunny Cottage Holidays will conduct its marketing communications plans is governed by the assumptions that using the right mix of advertising tools which include television, Internet, print and radio along with the traditional marketing efforts to support the contemporary means of advertising will allow the company to get the best of online and offline advertising. As such, direct marketing has never been as precise, powerful and popular as it is today. With its new applications to database marketing, global commerce and the internet, it is no longer an option for company officers and marketing executives; it is a necessity. Direct marketing has grown beyond its roots in traditional mail order to embrace a host of new technologies, customer relationship building techniques and performance measures set the bar for the future of marketing communications. It has become a powerful tool that every business should consider as part of an overall integrated marketing strategy. Imagine how much profit a business organization can gain from combining these two powerful tools together. The Internet, as one of the most popular form of new mass communication technology, has long been of full use and advantage to all sorts of businesses especially those who are in need of efficient and wide market reach on which to channel their promotional messages. Business, information and entertainment have been communicated with ease through such technological revolutions. The Internet is changing the way we do business, whether it's finding new streams of revenue, acquiring new customers, or managing a business supply chain. E-commerce removes the geographical separation between regions, and made dealing with foreign trade a snap. As such, the arrival of broadband internet means that more and more people will shop online - suggesting there is plenty of room in the market for the convenience store and its competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. Moreover, e-marketing is a powerful tool that could be exhausted by the Group in achieving marketing its objectives through the use of available and up-to-date electronic communications technologies (Smith & Chaffey, 2001). VI. The Schedule The art of planning for the future has always been a human trait as humans are thinking individuals. In essence a project can simply be captured on paper with a few simple elements: a start date, an end date, the tasks that have to be carried out and when they should be finished, and some idea of the resources (people, machines etc) that will be needed during the course of the project. The implementation plan of the Website project below details the activities that Sunny Cottage Holidays agency need to undertake in order to logically and systematically facilitate the electronic transformation of its marketing as well as advertising strategies to best serve the purpose of the business organization. Following is the six-month communications plan for the launching of the company. A. 1st Two Months. This is when initial collaboration with prospective advertising partners should be done. They should be selected by virtue of their reputation and performance in handling advertising tasks. The company will contact partners that will cater to its need to be publicized online and offline. Specifically, the company will employ extensive new media, TV, radio, and print campaign. Each would-be partner will be given the chance to present their marketing plans for the company. There will intensive negotiations between suppliers, assessment of artworks, and evaluation whether such marketing strategies are designed following the company's objective. The activities will include the following: · Complete a detailed situation analysis to examine the context of the environment and to determine the need for the project. · Involve the stakeholders of the project so as to consider their needs and preferences. · Identify alternative options of the organization so as to exhaust the available alternatives. · Set the assumptions and objectives of the project to distinguish the direction as well as the standards for project assessment. B. 3rd and 4th Months. Once the right mix and budget communications were decided, it is expected that at this time of the year, all the advertising outputs will be ready for their launching nationwide. The advertising efforts will be completed by criteria to measure its effectiveness. Intensive researches will be implemented to determine the success of each campaign tool. Advertising media could be in the form of brochure, newsletter, printed materials, the Internet, newspapers, radio, and television. The communications department of the company will be directly responsible on monitoring the content design, layout, dissemination, and communication training and development for employees and executives. Furthermore, the department is also expected to supervise all the market and attitudinal research. The activities will include the following: · Determine project size in order to limit the concerns of the project, identify the necessary resources, and evaluate its feasibility. · Examine the available resources whether material or human that should be acquired to meet the goals of the project. · Analyze the risks, benefits, and costs of the project so as to ascertain the project's financial return that will assist to the long-term goals of the organization. · Develop a master plan that details the focus and concerns of the project's goals. C. 5th and 6th Months. The last period of advertising campaign will focus on the maintenance and management of media relationships. Research findings must guide the company on appraising its marketing approaches. All the steps that will be taken must be geared towards the determination, development, and design of the organization image, presence, and reputation. The activities will include the following: · Document all the development and changes of undertaking the project at all its stages. · Coordinate planning and project efforts between all of the project participants. · Effectively and efficiently manage information, technology and people. VII. Control and Evaluation When the plan involves different things happening at various times, some of which are interconnected on each other, plus resources needed at varying times and in different quantities and perhaps working at different rates; monitoring and control of the project is required for its successful and timely completion. The following activities will be initiated during the entire monitoring and control of the online marketing and advertising campaign launched by Sunny Cottage Holidays: 1. Detail the activities undertaken to close the project. 2. Outline outstanding issues, risks, operational matters and recommendations. 3. Determine if the objectives of the projects were met. 4. Deliver all the outputs generated by the project. 5. Enumerate the significance and benefits to justify the cause and rationale of undertaking the project. 6. Prepare a report or presentation that will detail the accomplishment of the project. 7. Monitor and regularly evaluate the development to ensure the timely completion of the project. 8. Ensure a logical intervention strategy to minimize the unnecessary impact of undertaking the project. 9. Identify cross-cutting objectives to be able to work on the project based on the assumptions considered. 10. Prepare back-up plans to supply assist for the possibility of unforeseen difficulty during the course of the project. 11. Plan for capacity development and sustainability to ensure the continuous implementation, control, and evaluation of the project. |
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