When Service Means Survival - Assignment Example

Various marketing concepts such as the 4 P’s i.e. pricing, products, place, and promotion shall be discussed in this report: It shall focus on how these concepts are presented in the article and how other external sources dwell on this issue.

Consequently, the analysis shall focus on the provision of a conclusion that describes the writer’s understanding of the lessons learned from the article as well as other external sources that delve into issues ascribed to the information indicated in the article. Additionally, the conclusion section will explicate various recommendations; specifically indicating the way forward on challenges faced in marketing activities.

ANALYSIS
The article begins by describing a scenario of a certain client, Mr. Richard Garber relates to the car hire company, Hertz Car Hire Company. He is described as a loyal customer of the company for a long period. However, he is currently rethinking whether to divert his loyalty to another company owing to the current challenges he is facing with Hertz.

In addition, the article provides various reasons why the company is currently experiencing challenges with its clients. It asserts that many companies are currently facing operational challenges due to the economic recession that has affected many large business enterprises; hence reducing their overall level of profitability.
It is apparent that the article is an economic situational analysis; providing various issues that may affect the overall performance of companies for instance: In the article, the economic recession that has affected the success of many companies is identified as the reason that has affected the relationship between Hertz Company and Mr. Garber. The article attributes this issue to the fact that the Hertz Company has laid off many of its workers even those who facilitate organization-clientele relationships (Bloomberg Business Week 2009).

Moreover, it gives readers information ascribed to clients' expectations and asserts that every client usually expects a high level of treatment from any company they relate with. The issues raised in this article seem to be related to the concept of the 4 P’s; price, promotion, place, and product. In this regard, the price entails the costs of service provided to clients; while the place indicates the strategic place where the goods should be made available to the clients. Moreover, product promotion regarding the article alludes to the extra services that Mr. Garber was provided with initially at the airports i.e. reception by some of the employees of the Hertz Company (Bloomberg Business Week 2009).

The major lesson learned from this article is that in poor economic situations, companies may make decisions that negatively affect their relationship with their clients for instance: The Hertz Company laid off some of its workers who provided promotional services to its clients thus compelling Garber to consider shifting his loyalty to other companies. Another lesson learned is that consumers usually expect high levels of treatment from companies that offer them goods and services.

Recommendations

Companies must prioritize the manners through, which they relate with their clients to facilitate their retention. This should be carefully and properly managed even in times of economic challenges to ensure that companies do not continue making losses due to a shift in clientele loyalty. Read More