Marketing research RRL Essay Example

Although not explicitly referred to by name, the concept of lifetime value of customers suggests that firms have knowledge about four aspects of a customer.

The total revenue from all work in any given year, the costs of service to those customers, including proposal and prospecting costs, the anticipated duration of the relationship of the customers to the firm, the profit in any given year, and the total profit. Service Strategy, like all other strategic issues, is important to service companies. The quality of service is so important that an explicit service strategy should be developed. Dublin 2008 - Customer care is an aspect of service businesses that contributes to growth in revenue and reputation.

The strategic implications of it can impact business growth.

Product and Service

Product and service planning involves various activities, such as conducting test marketing for products and brand positioning, creating warranties, determining packaging and product options, features, style, and quality, discontinuing old products, and ensuring customer service. Test marketing is especially beneficial in product and service planning as it enables organizations to evaluate different marketing strategies and estimate future sales for new products.

The article by Paul Licker (1997) discusses the environment and modern management imperatives, focusing on seven key factors. These imperatives include Reach, which acknowledges the increasing global competition in businesses. Customers are becoming more demanding and vocal about their opinions and expectations, and businesses must be responsive to their needs. The process of turning an idea into a marketable product or service must be done efficiently, as global reach increases the likelihood of competitors offering similar products. Refinement is necessary to meet the growing customer sophistication

and specificity, allowing them to differentiate between products and compare them according to their own needs and desires. Additionally, reconfiguration may be required to adapt to changing customer preferences, which can involve re-engineering work patterns and altering organizational structures.

The Importance of service Quality

The significance of customer care and service quality cannot be overstated. A key reason is that service quality directly impacts the purchasing behavior of customers. If they have a positive experience, they are more likely to make repeat purchases; whereas, a negative experience may discourage future purchases. Some experts even argue that customer reactions to service quality can foster loyalty towards the supplier, which can be both measured and managed. The concept of service quality and customer care has seen notable developments in recent history. It was previously believed that a focus on customer care was not necessary before the 20th century and only emerged in response to the growth of consumerism. However, this is not entirely accurate. For example, renowned British potter Josiah.

The text discusses the challenges faced by distribution chains and marketing in the mid-20th century. According to Competitive Strategies Thomson 2008, Porter suggests that companies can adopt one of three strategies to gain a competitive edge. The first strategy is differentiation, which involves distinguishing the firm's product from others in the industry. This strategy requires strong marketing abilities, creativity, and a reputation for leadership to build customer loyalty that new entrants would struggle to overcome. The second strategy is cost leadership, where the organization focuses on efficient facilities.

The low-cost producer is shielded from influential customers and suppliers as they cannot find lower prices where other

buyers have less room for price negotiation with suppliers. One on One Marketing Ford 2009- One on One marketing focuses on individual products and customers, taking differentiated or niche marketing to the extreme. Successful one on one marketing necessitates thorough understanding of customers. The production and marketing orientations are complementary perspectives on business.

Transactional View

One perspective on exchange is that each interaction is a distinct and separate occurrence. Transactional Selling can be seen as both adversarial and cooperative.

Both the salesperson and customers prioritize price in their decision-making process. Neither party is interested in anything beyond the immediate transaction. It is more expensive to attract new customers compared to reselling to existing ones.

Customer Loyalty

Loyal customers are valuable assets as their purchases generate future revenue. Customer loyalty consists of two components, with the second component being intangible and emotion-based. Customer commitment is the bond that strengthens over time through rewarding sales exchanges with a supplier. Assessing the Value of Customers.