Notesale: Turn your study into money

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P1, P2, M1 & D1
Relationship marketing development
1
...
The general goals of relationship
marketing are to encourage loyalty to the brand, generate repeat sales and to
gather customer information
...

Businesses can use things like loyalty cards or loyalty schemes which reward
customers with discounts or special offers, this helps the business create a
relationship with customers, but also encourages customers to be shop more
regularly at the store
...

2
...
River Island have had many marketing
campaigns, their most recent and most popular campaign was the ‘Rihanna for
River Island’ campaign
...
As this line is created by a celebrity
River Island could have also used Rihanna’s social media sites for marketing
purposes
...
The ad
also featured on in demand channels and in the cinema
...
’ River Island
also use social media to interact with customers and make them aware of new
product ranges as well as using magazines, billboards and the internet
...

Quality is defined in the business by the price of their products
...
Also, by looking at the
price of River Island’s products customers automatically expect their products to be
of good quality as they are more expensive than products from other high street
retailers
...

River Island use several different methods of customer service all of which make it
easier for customers to get in contact with the business if they have any problems
that need to be dealt with
...
For example if a

customer wishes to return a product they can do this by entering their local store
and speaking directly to an employee
...

3
...
It’s hard for
businesses to lose customers as a loss of customers means a loss of profit, relationship
marketing helps avoid this loss and allows businesses to create a relationship with
consumers which means that the person is more likely to shop at the store regularly
...
Also working on customers relationships with
the business can lead to lifelong loyalty and fundamentally the success of the
business
...
For
example Tesco could analyse their customer’s loyalty cards and view the products
they main buy
...

Also relationship marketing can help a business fulfil their mission statement and their
core values
...
From Tesco’s mission statement and their
core values I can tell that they care about making sure their customers stay loyal to
them and don’t use their competitor’s stores
...

B2B marketing is the technique of one business selling goods to another business
whereas B2C marketing is the technique of a business selling goods straight to their
customers
...
Also when a customer is familiar with a brand that brand is more
likely to be at the front of their mind when thinking about where to shop for
something
...
com
...
However this is not
the only method boohoo use to maintain a customer relationship, they also send out
birthday emails offering the customer a special one off discount or promotion that is
only available to them
...
By using these methods of relationship
marketing boohoo are likely to obtain regular customers who will shop at the store
more often as they are aware of the deals that they are being given, they will also
feel special as the site uses email ( which is a quite a personal method of

communication) to interact with them
...
Businesses with loyal
customers also have to worry less about competitors
...
One way that businesses can attract new customers is to use social
media
...
An example of a business that uses this would
be New look
...


P2

Farley’s Irish Dream – The Loyalty Ladder
Advocate

An advocate for a business is a customer
who insists on shopping from the brand
and uses the store as a first port of call for
everything they need
...

Even though advocates already have a
strong relationship with the business
Farley’s should make sure they don’t
forget about them
...

Farley’s could offer advocates money of
their products after they have purchased
a certain number of times
...

Another way that Farley’s can ensure that
advocates stay within the business is to
make sure they offer a great customer
service policy to customers
...

Supporter

A supporter is someone who regularly
shops from a business and purchases
repeatedly but does not use it all of the
time
...

Farley’s needs to communicate with its
supporters as much as possible in order
for them to become advocates
...
This way they are
communicating with the supporter so that
they feel like Farley’s cares about them
but also they are finding out important
information about what the supporter
would like to improve within the business
...

Farley’s could offer clients money off
vouchers when they make a purchase
this could help the client think of Farley’s
as their initial choice as they are made to
feel special when offered a discount
...


Customer

Customers are one time buyers, they will
usually use a business as their last port of
call when they cannot find the product
they are looking for from any other store
...
By doing this
the customer will feel inclined to buy the
product as they have been made aware
of the promotion
...

One way Farley’s can turn prospects into
advocates would be to offer testing
sessions in supermarkets, pubs and winter
sports clubs in the areas they plan to sell
the drink
...
Taster sessions
also help with brand awareness and
create a buzz around the brand which
could lead to purchases and could also
help with moving prospects further up the
loyalty ladder
...
Tesco are the one
of the largest retailers in the world operating in 12 countries with over 500,000
colleagues
...
’ By
choosing this as their core value Tesco wanted to demonstrate that they have a
purpose beyond profit, they want their brand to be about the way they work and
the values they live by
...


Most of Tesco’s values are orientated around customers this makes me believe that
they want their customers to know that it isn’t all about profit for the business and
they want their customers to feel like they are special
...
Tesco realised
that loyalty cards were not just about getting customers to spend more money by
offering them incentives but they are also about collecting information on what
customers did in store
...
By doing this Tesco can offer different promotions to the different categories
...
This means that the customer is then more
likely to shop at Tesco again as they have a discount on the baby wipes
...
For example if a customer has simply changed their mind or
if the product is damaged or faulty they have a 28 day period to return the product
and either swap it or get their money back
...
It is important that Tesco offers its customer a great customer service policy
as 91% of unhappy customers will go on to tell between 8 and 10 people of their
bad experience with the brand, this could destroy their reputation if the issue is not
dealt with, which means long term customers could be put off buying from the store
...
By offering customers the chance to shop online Tesco is
expanding their market but at the same time catering for the customers they
already have
...
Online shopping is
helping to make customers lives easier and therefore customers are going to be
thankful for the opportunity to online shop and therefore will stay loyal to the brand
...
One of the
7P’s is product, Tesco’s products have to be of good quality and appropriate for the
target audience, this links in with Tesco’s customer service policy
...
Tesco’s customer service policy also links in with people from the 7P’s
...
If the customer is not happy with how they
have been treated they can use Tesco’s customer service department to complain
...


Another of the 7P’s that links in with Tesco’s schemes to build a relationship with
customers is promotion
...
One way that Tesco advertise the club card is by
using their webpage
...
Tesco also uses direct marketing to interact with customers and to
make them aware of various offers they could receive by using their club card
...

Tesco’s approach clearly generates sales as they are one of the UK’s leading
retailers
...
Tesco’s club card scheme is one of the main factors in Tesco’s reign
as the UK’s largest retailer
...

This is the main point of Tesco’s success as it means they have the ability to give
customers exactly what they want
...
Tesco’s do not use direct marketing, therefore do not
ever have direct contact with the customers
...
For example Tesco’s could hold taster
sessions on their own brand products, this could help create a relationship between
the brand and their customers
...
They have over 2,500
stores and sell beauty and health products
...
The Boots
Advantage Card gives customers the chance to collect four advantage points for
every £1 they spend in store or online, once the customer has started collecting
points they can spend them on almost anything within the store
...
The card allows Boots to collect data on the customers and it gives
them an insight into how their customers shop, how often they shop, where they
shop, the products they buy, the promotions and benefits they are attracted to, their
average transaction value, the products they spend their points on and their
personal details, e
...
name, age, gender
...
By treating customers as individuals it
means the information that is being collected can be used smartly and the rewards
can be catered to every individual customer meaning the customer will be more
likely to buy them
...
Rather than finding a
customer for a product Boots focus on finding a product for a customer this will

make customers feel very special as products and offers are being handpicked for
them
...
The Boots advantage card is also customer
friendly and it’s very easy for customers to redeem the points they have saved,
without the use of coupons or vouchers
...

Boots do currently use emailing to interact directly with their customers
...
This method of interaction can be very useful for businesses as it
allows them to contact particular groups of people with particular offers
...
Emailing also links in with The Boots
Advantage Card scheme as members of the advantage card scheme can be
contacted separately from other customers and they can be made aware of any
offers with the advantage card such as double points
...
For example if the customer
has recently purchased from Boots then on their email they can be sent information
through email that includes the details of their latest purchase, this information could
then be followed by new items that are similar to their latest purchase
...

Boots currently uses direct marketing by emailing their customers, this is a good way
to communicate with customers as the information that boots wants to give out is
sent straight to the customer
...
For example if Boots wanted to reach its
younger target audience they should consider using SMS messaging to interact with
customers, another way of interacting with their younger generation of customers
would be to use social media effectively
...
However Boots should make
sure they are only sending emails and messages to customers who have agreed to
be contacted by the business as some customers may find this method of
communication from businesses annoying
...
Design specifications are an interpretation of what the
customer needs these specifications are determined by the designer of a
product
...
One way they can make sure they do
this is to ask customers what they want before actually making the product to
make sure they can include all of the customers wants before actually
designing the product
...

John Lewis makes sure to please customers and always aims to go higher than
what is expected from them
...




Quality dimensions 

Reliability – Reliability of a service signifies how a company are performing
and completing their promised service and whether or not they are
conforming to the set requirements of the service
...




Responsiveness – Responsiveness of a service refers to the businesses ability
and willingness to provide its customers with a fast good quality service
...




Assurance – The assurance section of quality dimensions denotes to a
company’s employees
...
Employees
should have the capability of gaining a customer’s trust and confidence
...




Empathy – The empathy division of the quality dimensions represents how
the company cares and gives individualized attention to their customers, to
make the customers feeling extra valued and special
...



Tangibles – The tangibles segment of the quality dimensions is about the
physical appearance of the physical facilities and surroundings
...

John Lewis makes sure that all of their stores, big or small are all clean and
allow the customer to view their products easily without feeling the need to
leave
...
A consumer’s perceived
value affects the amount they are willing to pay for the product or service
...
Perceived
value can help with brand building as the higher the customers perceived
value of a business the more likely they are to buy regularly from a store and
tell other people about the business
...


Task 2
Bench marking – Benchmarking is a way that businesses compare their products or
services to their competitors or to their previous products or services
...

John Lewis use benchmarking to compare the quality of their products with
competitors, they also use benchmarking to make sure that they are offering their
customers the best price for their products
...

Quality circles – A quality circle consists of a group of employees who regularly meet
up to discuss any problems the business may have with quality (of products,
customer service etc
...

John Lewis use quality circles because they can be useful for employees who want
to raise any concerns over the quality of customer service that is being given at a
certain store, or they could also discuss the quality of the store itself
...

Value chain – A value chain is the full range of activities, including design,
production, marketing and distribution that businesses go through to bring a product

or service from conception to delivery
...
The
goal of the value chain is to make sure that the product or service a business is
offering can be given to the customers as quickly as possible, however the business
must also make sure that the quality levels are not being compromised so they can
get the product to the customer quicker
...
John Lewis tailor their approach to
value based on a deep understanding of customer needs
...

John Lewis also make
sure they are
providing value for
customers by driving
efficiency throughout
the supply chain by
purchasing local,
ethical and
sustainably-sourced
products
...
By
operating a smart
distribution network
and investing in new
technology to meet
customers demands
and by reducing
CO2e emissions from
transport and
distribution
...
John
Lewis focus on
creating strong
customer loyalty by
providing services
which enhance the
products themselves
...


Task 3
Mystery shoppers – Mystery shoppers are invaluable for companies whose
employees have direct contact with customers
...
Customer
service is extremely important and can determine whether or not a customer will visit
the store again, the way in which staff members interact with customers is one of the
most vital parts of the shopping experience
...
However mystery shoppers can also observe other
aspects of customer service such as the tidiness of the store, the average queueing
time or the time on hold during phone conversations with members of staff
...
John Lewis are well known for
their outstanding customer service within their stores so it is important for them to be
able to examine their employees to establish whether they need to make any
improvements or take appropriate courses to enhance their customer service skills
...
Businesses can
lose customers simply by failing to work on customer relationships
...
Loyalty cards are
another way of retaining customers and making sure they don’t leave for
competitors
...
Also, the John Lewis membership card
gives customers the chance to enjoy rewards such as hot drink and cake, prize
draws and exclusive shopping evenings
...
This is important in retaining customers as it makes them feel
special and individual
...
Therefore if the customer hasn’t
purchased in a while the business can take action to gain the customer again
...

Database marketing can be used to inform customers of offers, promotions or
changes within the company and the way they run etc
...
Database
marketing can be used in conjunction with customer retention management as
once the business has seen that the customer hasn’t shopped with them in while
they can use database marketing to get in contact with the customer and give
them a one of offer or use a similar way to entice them to shop at the store again
...
For example John Lewis send out regular emails asking
customers who have recently purchased from the store for their opinion about how
their last shop with the business went
...
One way of using a suggestion scheme is by placing a
suggestion box within the store and ask customers for their feedback or suggestions
on how the business could improve
...

One way John Lewis uses suggestion schemes to evaluate customer satisfaction is by
using questionnaires asking multiple questions about the customers experience
within the store
...
By asking these types of questions John Lewis can determine
whether or not they need to make changes to the store and the customer service
and they will also have suggestions on how they can do this
...

When a company is faced with a complaint they should react in a way which
causes as little distress for the consumer as possible and in cases where it is possible
the complaint should always be resolved
...
For example if there have been a certain
number of complaints raising the same issue then John Lewis will know that they
need to change something in order to make sure that their customers stay pleased
with the services they are offering them
...
The reason I would advise mystery
shoppers is because I feel that mystery shoppers have the ability to gain a clear
insight into how employees of John Lewis really manage themselves and the stores
...

M3
Explain the options open to a selected organisation for closing a perceived quality
gap
Morrison’s
Quality gap - Perceived quality is a consumer’s opinion of a brand or a products
ability to fulfil their own expectations
...
Businesses can analyse their perceived quality gap, quality
gap analysis is a strategic management tool that allows managers to assess gaps
that may exist between the desired level of quality and the actual level of quality
...

Quality circles – A quality circle is a device or tool used in businesses to improve
productivity and job performance at work
...
) Once the problems have been
discussed the employees can work together to come up with a solution to the
problems
...
For example Morrison’s could regularly hold
quality circles where the members discuss anything they think could help them close
the perceived quality gap, they could also analyse their competitors to see which
areas they are similar in or behind in
...
A quality circle could have
been the reason behind Morrison’s recent launch of their loyalty card as employees
could have realised that this is what they needed to catch up with Tesco as the
Club Card has proved to be popular with Tesco’s customers
...
to another similar business
...

Morrison’s can use the benchmarking technique to analyse their big competitors like
Tesco and Asda
...

Value chain - A value chain is the full range of activities, including design,
production, marketing and distribution that businesses go through to bring a product
or service from conception to delivery
...
The
goal of the value chain is to make sure that the product or service a business is

offering can be given to the customers as quickly as possible, however the business
must also make sure that the quality levels are not being compromised so they can
get the product to the customer quicker
...

Alignment of Value Chain – Value chain alignment is the way in which a business
reinvents itself and works to extend its value chain
...
This could
help them decide what exactly they would like to change about their current value
chain which could help them close the perceived quality gap
...

Morrison’s can use the fishbone analysis to help determine the root of the problem
behind their perceived quality gap
...
For
example Morrison’s and Tesco by viewing the differences between the two business
Morrison’s can determine what it is that’s causing them to be behind Tesco and then
they may be able to determine what they need to do to close the perceived quality
gap
...

Apple - Apple Inc
...
Apple is
best known for its IPod and IPhone ranges and was founded by Steve Jobs, Steve
Wozniak, and Ronald Wayne on April 1, 1976
...
First impressions are everything and once a
customer has seen the store and it has made a first impression you can’t take that
back which is why Apple should focus on making their store comfortable and
welcoming for customers as well as making sure they have all of their products on
display so that the customer can find the right product for their lifestyle
...
Using social media like Twitter and
Facebook allows Apple to communicate directly with customers which will make
customers feel important to the business and it allows the customers to think that the
business genuinely cares about the customer’s opinion and suggestions
...
One way Apple could
this is by making sure customers can always see their mission statement: “Apple is
committed to bringing the best personal computing experience to students,
educators, creative professionals and consumers around the world through its
innovative hardware, software and Internet offerings
...
This will
make them stick with the business through the ups and the downs of the product as
they can forgive them for the bad aspects of the product as they know how
dedicated Apple are to getting it right
...
By finding out what customers really think Apple have the ability to
make changes to their products which customers are guaranteed to enjoy as Apple
have already asked them their opinions on the matter
...
However I would say that If Apple were to adopt some of the techniques
discussed they would be able to guarantee the loyalty of a higher percentage of
customers
...

Tesco
Customer Relationship Management (CRM) is a strategy for managing all your
company’s relationships and interactions with your customers and potential
customers
...

Every three months Tesco customers receive a free magazine containing various
products, recipes etc
...
However what makes Tesco different
to its competitors is the fact that they personalise their magazines to the previous
purchases of their customers, which they analyse by using their Club card data
...
This will not only make customers of Tesco feel
special and thought about but it will also set them aside from their competitors as no
other company does this on such a large scale
...

Tesco’s club card is not only for one member of the family and Tesco recently
introduced the following cards;





Tesco Kids Club
Tesco Baby and Toddler Club
Tesco Healthy Living Club
World of Wine Club

By introducing these cards Tesco is communicating with targeted groups of people
and therefore broadening their number of consumers
...

Another technique Tesco use to help attract and retain customers is the use of CRM
software in their call centres supporting their electronic division
...
This technique will help Tesco provide consistent responses to
queries from their customers regarding their electronics department
...
This technique will not only be
used in the call centres department of the organisation but also within the main
stores, which means that customers with questions on the electronics in store will be
managed faster and with more precision
...
Tesco CRM techniques are very effective and they
are one of the most successful business with CRM however one thing they could
offer customers to improve their CRM would be direct marketing
...
One way Tesco could introduce direct
marketing into their CRM techniques would be to hold regular taster sessions on their
own brand products
...




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