Marketing in Jessops Company - Assignment Example

Marketing in Jessops Company Introduction Marketing is mainly concerned with satisfying the needs of the customers profitably. Marketers can apply both direct and consumer relationship marketing in order to build long term relationship with the customers in order to ensure viability of the business in the long run. Against this background, this report seeks to evaluate some of the measures that can be taken to create and implement a revised marketing system which includes direct and consumer relationship marketing at Jessops. The report starts by describing Jessops Company and how they carry out marketing now. An analysis of the DCRM theory will be done then followed by explaining the SOSTAC choice that can be implemented for the chosen organisation. Description of organisation Jessops is the UK’s premier photographic retailer operating from 206 stores and an on-line shop. According to its official website, Jessops has over 25 years expertise in supplying the public sector and commercial markets which enable it to offer its customers dedicated service from a customised solution. It currently uses direct as marketing where the staff will directly interact with customers through personal selling. It also uses on-line marketing to market an assortment of products which are related with photography. The organisation is undergoing a liquidation process hence this report will seek to outline effective measures that can be put in place so as to ensure a long term relationship with the customers. DCRM theory The realisation that customer loyalty is an important consideration in long-term marketing success has been the most recent refinement of the marketing concept. Enlightened marketers have realised that there is need to forge a long term relationship with the customers for the sake of viability and sustainability of the organisation. Relationship marketing as a philosophy emphasises forging long term partnerships with the customers (Lamb et al 2008). Firms often build relationships with customers by offering value and providing satisfaction on a consistent basis. Firms that successfully implement relationship marketing benefit from repeat sales (loyalty) and referrals that lead to increases in sales, market share as well as profits (Strydom 2004). Normally, costs fall because it is less expensive to serve the existing customers than to attract the new customers. On the other hand, the customers also benefit from stable relationships with the organisations that offer different products and services. It is easier for the seller of a particular product to provide a quicker and more efficient, more personalised as well as need satisfying service to the customer (Kotler 1999). Loyalty among the customers is very important during the contemporary period given that the environment in which businesses operate is characterised by competition from the other rival competitors. Many firms acknowledge the importance of long term relationships with their customers and some of them convey this in their marketing strategies such as advertising. A sense of well being occurs when one establishes an ongoing relationship with the firm or service provider such as a retailer like the organisation in question. This social bonding that takes place between the provider and customer ensures personalisation and customisation of the relationship (Lamb 2008). SOSTAC SOSTAC Model was invented by Paul Smith and it is comprised of six elements that contribute to the overall marketing plan for an organisation (Aviv 2008). Basically, SOSTAC is an acronym for situation analysis, objectives, strategy, tactics, action and control. Jessops is currently in liquidation state and it intends to reinvigorate its operations through promoting a customer related based marketing strategy so as to ensure long term sustainability. This will be aimed at identifying distinctive competitive advantages in the market through segmenting it to find the right customers of the photographic products offered. Jessops will specifically utilise the internet as the main communication channel so as to reach a wide number of potential customers. The main objective of the organisation in this case is to appeal to as many people as possible and to be the preferred photographic company of choice. The major marketing objective is to reach all the segments and to appeal to their interests in such a way that the organisation will be able to forge a lasting relationship with the customers. Focus is mainly on the long term future survival of the business given that the organisation has been encountering some viability problems given that there were limited loyalty programmes in place meant to retain the customers. The organisation intends to open more stores in different areas so as to be readily accessible to different clients in different place. The organisation currently operates 206 stores and it is anticipated that the number will grow to about 400 stores within the next two years. Indeed, with all the commitment, it is possible for the organisation to achieve this feat given that the all the resources will be pulled towards the attainment of this objective. Any progress will be measured through a comparative analysis of the number of customers that will be recorded compared to the previous records during the same time. In this particular case, the strategy to be implemented will be mainly based on segmentation of the market. Jessops will try to break the market into smaller segments rather than targeting the public sector and commercial markets only. Indeed, the small markets are often overlooked by big companies hence the needs of people in these areas are left unsatisfied by the larger corporations. Through effective segmentation, the organisation will seek to fulfil the needs of the other consumers who may not be covered by the other big companies. This strategy will attempt to persuade the customers to choose Jessops as the preferred photographic shop. This will be well calculated to establish a long lasting relationship with the customers so that they will be loyal to the organisation which is an advantage to it. Jessops will particularly target both small and big markets as these contribute to the growth of business as well as its long term survival. Positioning of product such as cameras will be done on the basis of scanning the market and establish the level of income of the targeted consumers. Other photographic services such as printing services will be made readily available in all locations given that they are required by different people. The tactical plan for implementing the strategy will rely on the communication tools to be used. In this particular case, the internet is the main channel of communication that will be used to reach the customers. This is the preferred channel in that it can reach a wide range of people instantaneously. The internet will also allow the organisation to have feedback from the customers since it promotes a two way communication which is very ideal for the creation of a relationship with the customers. Establishing a mutual relationship between the organisation and the customers is beneficial in that there will be likely chances of them returning to buy some of the products offered given that loyalty will be created among them. Outdoor advertising such as the use of billboards will be utilised so as to attract many potential customers. The use of colourful billboards is captivating and there are high chances of appealing to a large number of potential customers. These will be persuaded to remain loyal to the organisation. The marketing manager will take a leading role in implementing the new marketing plan that is earmarked to cultivate a long lasting relationship between the customers and Jessops. As soon as the liquidation process is complete, the new organisation will try to implement the strategy meant to revive the organisation as well as to build a long term relationship with the customers. Performance will be measured through a critical analysis of the sales made by the company during the implementation period compared to the past times. An increase in the sales will mean that there is a positive change in the operations of the organisation. Implementing this strategy is not an end in itself but it is a continuous process that needs to be monitored constantly. Controlling the process is the last but very important stage in creating relationship marketing. Progress will always be constantly monitored so as to ensure that there is conformity with the set organisational goals in as far as improvement of performance is concerned. Reviewing the operations of the organisation will allow the responsible authorities to update as well as modify the operations of the organisation where it will be deemed fit so that long term survival of the organisation will be ensured as well as the relationship with the customers in a bid to inculcate loyalty among them. Over and above, it can be seen that careful implementation of this strategy will greatly help in turning around the fortunes of Jessops as well as ensure the creation of a long lasting relationship with its customers. References Alvi S (13 December 2008). SOSTAC model of marketing-a step by step. Available at: http://corporateskills.co.uk/project-management-skills/sostac-model-marketing/ [Accessed 5 December 2010] Berry T. & Wilson D. (2001), On Target: The Book of Marketing plans. How to develop and implement a successful marketing Plan. Palo Alto Software, Inc USA. Burgess S.M. (1998), The New Marketing, Zebra Press, SA. Kotler P. (1999), Kotler on Marketing: How to create, win and dominate Markets, Free Press, London. Jessops official website (ND) Available at: http://www.jessops.com/ [Accessed 5 December 2010] PR smith's marketing planning system - SOSTAC® - situation analysis, objectives, strategy, tactics, action, control (N.D) Available at: http://www.businessballs.com/pr_smiths_sostac_planning_method.htm [Accessed 5 December 2010] Randall G. (1994), Trade Marketing Strategies: The Partnership between manufacturers, brands and retailers, Butterworth-Heinemann, UK. Smith P.R. (1999), Great Answers to Tough Marketing Questions, Kogan Page, UK. Strydom J. (2004), Marketing, 3rd Edition, Juta & Co Ltd, SA. Read More