Case Study ‘Marketing Communication’

Prepare a report, and an oral and visual presentation to your group, on the marketing communications used by two contrasting organisations – for example, a small, local firm serving a niche market, and a large organisation selling mass-produced goods to a national market:

1. Gather information on the marketing communications the organisations use to promote themselves and their products. For example, watch TV advertisements, survey national and local newspapers and magazines, examine products for money-off coupons and competitions, etc.

2. Group the methods used by each organisation under the following general headings:

• Advertising media

• Public Relations and Publicity

• Sales promotions

• Direct marketing

Identify the target audiences at which the products and promotional methods of each organisation are aimed.

Examine the effectiveness of the promotional methods used in terms of product performance. For example, are consumers more aware of the availability of the product? What is the impact on sales?

Suggest other promotional methods the organisations could use to good effect. For example, could they make better use of Information Technology? Give reasons for your recommendations.

Discuss how guidelines and controls on marketing communications can affect the way in which your chosen organisations are able to promote information about their products.

Unit 10. Customer Service and Sales Methods

Key words: distribution, distribution channel, intermediaries, commission, direct distribution, selling, pyramid selling, sales communication

10.1. ‘The Customer Is Always Right’

The aims of organisations

Production refers to any activity that satisfies a consumer want. It follows that the process of production is not complete until the good or service reaches the consumer. Even then, it may not be complete if after sales care is required.

Consumers will have many desires to satisfy when making a purchase:

• They will want information about the good or service before they buy.

• They will want to receive the good or service they have bought as quickly as possible.

• They will want to know that, if anything goes wrong, they can replace the product or get a refund with the minimum of fuss.

An organisation that is unable to satisfy these desires will not achieve its aims of expanding market share and increasing profits. There will be no repeat sales or customer loyalty from a dissatisfied customer.

Meeting the needs of customers

If a shop or business is to secure a purchase by a customer, and make them happy enough to want to come back and purchase the same product again, they will need to provide the following functions:

Providing information: product information must be accurate and available on demand. If, for example, a customer phones a supplier of computers, s/he will want to know their latest prices, technical details about product performance, and earliest delivery dates. The person who answers the phone should be able to supply these details verbally or be ready to fax or post them promptly. If they are not quick to respond, the customer may go elsewhere.

Exchanging goods. There is nothing more annoying than having the wrong items delivered, or, worse still, finding that a product you have bought does not work properly when you take it home. Making an exchange should be a simple matter of returning the goods to the shop or supplier from which they were purchased. If it is not a simple matter, either because alternatives are unavailable, or because the sales staff are suspicious or uncooperative, then the chances are that the customer will want their money back instead, and the sale will be lost.

Giving refunds. This again should be a simple matter involving no more than some quick paperwork and a signature to verify that money has been refunded. If the honest customer is refused a refund, or has to wait for a long time for a refund, then the organisation is unlikely to obtain repeat trade from the customer and may even face a legal action to claim the money back.

Dealing with complaints. Customers who believe they have received poor service should be able to complain on the phone or in writing to someone with enough authority to investigate the complaint and rectify it. Complaints can range from faulty product and inefficient service, to misleading or inaccurate information – for example, the holiday brochure that fails to mention the building site next-door to the hotel. Problems will arise, and organisations need to deal with them tactfully and quickly or repeat business will be lost and corporate image may suffer.

Catering for special needs. Although many large firms mass-produce a limited range of products, there are many ways in which products and customer services can be personalised. For example, customers buying new cars may be able to choose different combinations of hi-fi units, upholstery fabrics, exterior paintwork, and colours from a wide range on offer. Cars with chosen features can often be made available within a relatively short period of time. Similarly, following a personal visit from sales staff to take measurements, double-glazing windows can be produced and fitted to meet customer requirements.

An organisation should also not forget that some customers may be disabled. The provision of wheelchair ramps, Braille lettering on lift buttons in shops and offices, and home visits for physically handicapped or housebound customers, are just some ways that these groups can be catered for to secure their purchases and improve the image of the business.

Evaluating customer service

There are a number of ways to judge the success of a business organisation in meeting the needs of consumers:

The improved image of the business. Good customer relations will improve the image of an organisation and will generate repeat trade and customer loyalty.

The impression left with customer. If refunds are dealt with quickly and without fuss; if complaints are followed up immediately; if information is accurate and freely available, and products and customer services reliable, then the customer will form a favourable impression of the organisation and is more likely to deal with them again in future.

Market research and monitoring customer complaints are two ways an organisation might observe changes in customer perceptions of products and image.

Business performance. Improved image and customer relations can be measured in terms of increased cash flow from sales. This ultimately will feed into higher profits.