Case Study 6Case Study 6

Relationship MarketingRelationship Marketing

Company OverviewCompany Overview Operates in the Consumer Packaged Operates in the Consumer Packaged

Goods industryGoods industry Dominantly B2B industryDominantly B2B industry There a large competition in this area due There a large competition in this area due

to:to:• Product being the sameProduct being the same• CostCost• Small number of customers but large profits Small number of customers but large profits

possiblepossible• Two large competition companiesTwo large competition companies

Both have had large upgrades recently to their Both have had large upgrades recently to their design and manufacturing technologiesdesign and manufacturing technologies

How they get by:How they get by:• Cutting manufacturing costsCutting manufacturing costs• Investing in technology that creates efficient Investing in technology that creates efficient

manufacturingmanufacturing Company 6 is concerned that their loyal Company 6 is concerned that their loyal

customers might want to try their customers might want to try their competitors new technology and want to competitors new technology and want to switch.switch.

Visible opportunityVisible opportunity• Customers do have specialized needs for their Customers do have specialized needs for their

product depending on brandproduct depending on brand

Current positionCurrent position

• Survey results suggest that customers are Survey results suggest that customers are more satisfied with the competition rather than more satisfied with the competition rather than company 6.company 6.

• The results also suggest that the customers The results also suggest that the customers are more loyal to their competition than they are more loyal to their competition than they are to company 6.are to company 6.

• If they continue what they are doing they will If they continue what they are doing they will either get the same results or more than likely, either get the same results or more than likely, they will be going down hill.they will be going down hill.

The problem:The problem:• They are lacking loyal existing customers with They are lacking loyal existing customers with

no switchingno switching

Company 6 solution to the problemCompany 6 solution to the problem• They want to provide an array of They want to provide an array of

customized design services more than customized design services more than the competition.the competition.

• These design services are at no cost to These design services are at no cost to the customerthe customer

• Relationship marketingRelationship marketing

E-Business Marketing Goal or E-Business Marketing Goal or StrategyStrategy

Develop an online portalDevelop an online portal• Contains the top three services Contains the top three services

preferred by the customerpreferred by the customer Online, real-time collaborative design toolsOnline, real-time collaborative design tools Real-time project status including delivery Real-time project status including delivery

schedulesschedules Online research applicable to its businessOnline research applicable to its business

• Seven more features will be added in Seven more features will be added in the future for the employees requeststhe future for the employees requests

• This leads us to the pyramid model:This leads us to the pyramid model:

Pyramid ModelPyramid Model

InternalMarketing

Employees Customers

Company

External Marketing

InteractiveMarketing

technology

Pyramid ExplanationPyramid Explanation

Internal Marketing Internal Marketing (enabling promise)(enabling promise)• Employees have Employees have

information about information about the company that’s the company that’s relevant to them.relevant to them.

• Employees helped Employees helped design the design the Webpage so that it Webpage so that it was efficientwas efficient

External Marketing External Marketing

(setting promise)(setting promise)• Customers have Customers have

information about the information about the company that’s relevant company that’s relevant to them.to them.

• Marketing mix of: Product Marketing mix of: Product and customer solution, and customer solution, price and cost, promotion price and cost, promotion and communication, and communication, place and convenience, place and convenience, people, process, and people, process, and physical evidence.physical evidence.

Interactive Marketing Interactive Marketing (delivering promise)(delivering promise)• Employees have information Employees have information

about the customer to better about the customer to better serve themserve them

• Customers have good service Customers have good service provided to themprovided to them

• Technical: The webpage Technical: The webpage content, navigation, ease of content, navigation, ease of use, quick loading time, and use, quick loading time, and delivering the service delivering the service promised.promised.

• Functional: pop-up surveys on Functional: pop-up surveys on the website for employees and the website for employees and customers. Database will customers. Database will compile the data and increase compile the data and increase service accordingly. service accordingly.

Primary StakeholdersPrimary Stakeholders

Service-profit chainService-profit chain

Service-profit Service-profit chain relies chain relies on the on the employees employees and and customers customers interacting in interacting in a mutually a mutually beneficial beneficial relationship.relationship.

RelationshipsRelationships

• customer loyalty drives profit and growthcustomer loyalty drives profit and growth• customer satisfaction drives customer loyaltycustomer satisfaction drives customer loyalty• value drives customer satisfactionvalue drives customer satisfaction• employee productivity drives valueemployee productivity drives value• employee loyalty drives productivityemployee loyalty drives productivity• employee satisfaction drives loyaltyemployee satisfaction drives loyalty• internal quality drives employee satisfactioninternal quality drives employee satisfaction• top management leadership underlies the top management leadership underlies the

chain’s successchain’s success

Value BubbleValue Bubble

Four stages of the value bubble that Four stages of the value bubble that will be used:will be used:• EngagingEngaging• RetainingRetaining• LearningLearning• RelatingRelating

Value Bubble TechnologiesValue Bubble Technologies The webpage was using very simple technologies The webpage was using very simple technologies

(bad)(bad)• Gif’sGif’s• HTMLHTML• JavaScriptJavaScript• Embedded e-mailEmbedded e-mail• Image mappingImage mapping• Frame sets in HTMLFrame sets in HTML

Three links were hidden in a collage picture that Three links were hidden in a collage picture that was put in the page (oops)was put in the page (oops)• ProductsProducts• PackagingPackaging• 100 percent Recycled Paperboard100 percent Recycled Paperboard

Attracting Attracting

No attracting was intentionally done No attracting was intentionally done to complete the goalto complete the goal

They did however use standard They did however use standard HTML metatags to attract customersHTML metatags to attract customers

Description should include misspelled Description should include misspelled words and terms not just the words and terms not just the products soldproducts sold

EngagingEngaging

They included inline linksThey included inline links• This allows anyone reading the page to click on This allows anyone reading the page to click on

a word to bring them to a definition or a page a word to bring them to a definition or a page that sells that product.that sells that product.

• The problem with this is that there is no back The problem with this is that there is no back button when you click the inline link.button when you click the inline link.

Location mapLocation map• This allows anyone to click on a portion of the This allows anyone to click on a portion of the

map to see the locations of all of company 6 map to see the locations of all of company 6 manufacturing locationsmanufacturing locations

RetainingRetaining

It has a well organized base of It has a well organized base of information.information.

With the frames it makes it fairly With the frames it makes it fairly easy to get around.easy to get around.• Problem is that frames are deadProblem is that frames are dead

Has an up-to-date news linkHas an up-to-date news link• Problem is that it requires you to call or Problem is that it requires you to call or

e-mail someone to get more information e-mail someone to get more information on the new product.on the new product.

LearningLearning

The company failed to implement the The company failed to implement the survey on the web site and never survey on the web site and never collected any data from the collected any data from the customers.customers.

Dynamic site configuration was Dynamic site configuration was wanted, but never implementedwanted, but never implemented

RelatingRelating

Without knowing your individual Without knowing your individual customers there is no way to relate customers there is no way to relate to the customers individually.to the customers individually.

Everyone that goes to the page sees Everyone that goes to the page sees the same thing every time.the same thing every time.