Retail Marketing - Assignment Example

Customer service offers competitive advantages of improved customer satisfaction, increased customer loyalty, improved brand image, and increased sales and profitability. The 7P elements are also important in enhancing competitor advantage. The 7Ps are price, product, place, promotion, people, process, and physical environment (Kotler, 2011). In the analysis of Tesco’s F&F brand, the most important element of the 7P is People. People are the main drivers of customer service at F&F. They communicate with customers to enhance effective customer service. They also respond effectively to the requests and complaints of customers. Tesco recruits highly qualified employees with good customer relations skills.

            The leading online retailer in the UK is Amazon while the worst retailer is Ryanair (Integrated Retailer, 2014). Overall, there has been a fall in online customer satisfaction in the UK, falling from 74 to 73 on a 100-point scale (Integrated Retailer, 2014). Amazon, the best online retailer has a score of 84 while Ryanair, the worst performer had 60 points; all in terms of customer satisfaction. Amazon targets buyers of various retail products while Ryanair targets airline companies. Amazon has segmented its customers geographically and in terms of affluence. On the other hand, Ryanair does not seem to have a good segmentation because it targets all airlines without identifying any segment. These examples show how customer satisfaction through customer service is an essential element in achieving a competitive advantage.

            Customer service, social responsibility, and sustainability are closely related concepts that retail companies should consider to improve their customer satisfaction. Customer service entails serving customers through the delivery of goods, listening to their complaints, helping them with their problems, and understanding them. Generally, customer service involves giving customers what they want or meeting their needs to satisfy them and achieve a competitive advantage (Hennig-Thurau, 2000). This concept is associated with social responsibility which entails doing the right or good thing for stakeholders, including customers.

            One recommendation of this paper is that retail organizations should target and segment their market welt to position themselves in a market that they can understand their customers in order them well and achieve customer satisfaction (Hanlon, 2008). Another recommendation is that the quality of service should be the top priority of retail firms in order customer satisfaction and achieve competitive advantage age.

            In conclusion, customer service should be used effectively to achieve a competitive advantage. This is possible through good social responsibility; better targeting, segmentation, and positioning good use of the 7Ps; and proper use of social responsibility and sustainability programs. These factors enhance improved customer service, customer satisfaction,  and competitive advantage.