Customer Relationship Marketing: ESSENTIAL PHONES - Case Study Example

RELATIONSHIP MARKETING In order to have a successful business focusing is one of the important things. Generally focusing on what actually makes all the customers need and want about certain services and also about certain products is the main idea behind the success of any business. The absence of the satisfaction for any need or for any want is the main thing what actually drives the customers in order to buy. (Regis, 1993, pp. 200-256) In order to determine the customer needs and wants, ESSENTIAL PHONES always tries to first understand that what the needs and wants are, and then later on try to assess that what the services and products it can profitably and easily provide. All the environmental factors along with the target market must be properly analyzed in order to determine the strategic plans so that the company can reach every customer easily. When wants and needs are very clearly understood, a company can therefore find the spot which is also known as the sweet spot and thus can easily address it on the particular target. The ESSENTIAL PHONES basically defines a market by clearly focusing on the services and also on the products that are currently meeting the customer needs and wants. (Hennig, 2000, pp. 459-500) In order to pinpoint the customers wants and needs, ESSENTIAL PHONES is trying to look at the bigger picture and is trying to obtain the key data such as geographic, population, cost of living, and languages which are spoken in the particular areas that may help in driving the wants and needs of the customers. ESSENTIAL PHONES is obtaining this information by doing simple observation and by the local knowledge. When people buy different things, they are therefore engage in a special kind of process known as the decision making process. Same is the case with the ESSENTIAL PHONES. People when try to buy the goods or the products of this company, they first pass the decision making process that whether to buy or not. (Paul, 2003, pp. 300-382) The decision-making process The decision making process or also known as the consumer decision making process is the process through which the consumers go through when they decide to purchase or to buy something. The very first step in this process when consumers are trying to buy the cell phones from the ESSENTIAL PHONES is to recognize that they actually need a new and a branded cell phone. Though they may have an idea that which cell phone they would like to buy or to purchase, therefore they probably want to do some kind of research in order to know and also to narrow down a few alternatives. A decision making process is described well by the following diagram: Depending on all the consequences of the making any kind of the wrong decision, the complex situation of this process can range from the careful analysis towards the pure impulse. While doing an impulse buy, for e.g. buying chewing gum, can no doubt take place at instance, moreover the complex purchases generally stretch for a long period of time. This process termed as the buying process is also termed as an iterative process, where all the people can collect information from the different sources and can also return in order to re-evaluate and then to compare the information which they have found. Once the manufacturer or the producers of the ESSENTIAL PHONES feel much confident about their customers concerns, demands and needs, their next challenge is to decide that how to present the particular information to their customers in such a way that they supports the decision making process. (Paul, 2003, pp. 300-382) Different Effects of Quantity on the Decision Making Process: Many decision makers have also the tendency in order to seek more authentic and valuable information than required in order to make good decisions. Whenever too much information is obtained and sought, different kinds of problems can also arise which are mentioned as under: (1) Delays in the decision can occur because of the time which is required in order to obtain and also to process the additional information (2) Overloaded information will occur. As there is so much information available that the ability of the decision making actually declines. (3) The selective use of the information will also occur. (4) Cause mental fatigue which also results in the slower or poor quality of work. (5) Decision fatigue also occurs. Another one of the main and common misconceptions related to the decision making is that the decisions are made in the form of isolation from every other person i.e. one gathers the information, explore the alternatives, and then make a choice, without even regarding to any particular thing that has gone before. Apart from this actually decisions are made in a particular context of other different decisions. There is a typical method which is used in order to explain the whole process of the decision making. Decisions are basically made according to the needs and demands of the customers. On the other hand it can also be said that most of the decisions (1) Follows from the previous decisions, (2) Enables many different kinds of the future decisions, and (3) Also prevents other different future decisions. People who basically face trouble and problems while making decisions are sometimes even trapped by the constraining and different nature of the decision making. Every decision one make also precludes the other decisions, and therefore it might be said to create a great loss of freedom. (Jakki, 2004) Therefore it is much important to realize that every decision which you make do affects the stream of the decisions and the collections of all the possible alternatives which are available to you are somehow important for you and also for your organization. Various kinds of activities can be put in place in order to motivate the customers to have a stronger relationship. To maintain a strong relationship, it is the foremost duty of every company to first understand that what actually the customers want from them. If the customers’ needs and wants are fulfilled then for sure the customers can be motivated towards any company in order to make the stronger relationship. ESSENTIAL PHONES is also trying hard in order to make a strong relationship with their customers. One of the most sensible alternatives which ESSENTIAL PHONES has taken is to retain their customers. By making their customers more loyal and also by getting them to become the repeat customers, in order to do this they lessen the need in order to advertise and also to promote their website. By harnessing the technology in order to resell to their existing customers, they are rewarded by the higher margins and can also convert their present customers into the "advocates" who will do their advertising for them through the best way known as the word of mouth advertising. (Michael, 2003) The Customer Lifetime Value The Relationship Marketing, in addition to emphasizing and to keeping the current customers rather than getting the new ones, also reminds to the manufacturer of the ESSENTIAL PHONES that customers are much important long-term assets that must be always valued, not harvested. 5 essential stages of the CLC Customer Life Cycle: Awareness: Awareness should be there in order to makes one brand successful. The ESSENTIAL PHONES use different ways and techniques in order to be in touch with their customers. It is important that one should obtain the visitors e-mail address. Most of the companies don’t do this. ESSENTIAL PHONES do practice this technique, which helps a lot in finding an incentive that will easily motivate the company to provide them with the customer’s e-mail address. With the help of this purpose one can easily let their customers know that what is new in the company and what is old. (Helen, 1999) Comparison: ESSENTIAL PHONES strongly believes that before a person can consider any kind of buying from them, they have to compare their service or product with the competitors. Credibility and meaningful context are the important keys towards the success at the stage of comparison. The more information one can provide, the higher the chances of making the sales. Transaction: The transaction stage is the stage where the money usually changes hands. The transaction stage should be always viewed as the beginning process, not the end of the relationship or of the process. The transaction stage also sets the stage for the most highly profitable stages that is usually followed. (Oilivia, 2001) Reinforcement: Reinforcement is the stage where you add more value to ones customers purchases by showing them different ways that how to maximize the pleasure and the value their purchases can ever provide. The reinforcement stage also presents you with a great and a different opportunity to position yourself apart and aside from your different competitions by thanking your valued customers for their purchase which has been made and paving different way for the future purchases. Advocacy: Advocacy is the final and one of the important stages of the Customer Development Life Cycle. Advocacy also takes place when one provides their customers along with the tools, or also with the feeling of community, which they actually need in order to become their promoters. It also helps a lot in motivating the customers in order to make a strong relationship. ESSENTIAL PHONES believes that if they maintain strong customer relationships, then they will; Make more money and will gain more business share. People will refer them and they will be respected. Will enjoy their personal and professional life. Building the strong customer relations is easy. First, the company should need to have a high and a strong level of the self-esteem and also the company should have some goals and techniques with the help of which they can satisfy their customers. ESSENTIAL PHONES also follows the V.I.A.G.R.A. steps in order to make long lasting customer relationships. (Oilivia, 2001) V- VALUE THE CUSTOMERS: The Company very sincerely values their customers and also their business. One of the most important things is to show your customers the care about them and also about their business. Whenever any worker of the company sees their customer, they always offer a good handshake. They always try their best to use their name and also show genuine interest in them. I- INTEGRITY IS THE KEY PARAMOUNT: ESSENTIAL PHONES always do what they commit to do. They always try to follow through with their commitments and if they cannot deliver, then they let their customers know. If something goes wrong with their order, they make sure that they hear it from them. (Edward, 2000) A- ASSESS NEEDS: ESSENTIAL PHONES also try to ask plenty of questions. Their main aim is to cater their customers with all the facilities so that they can be very easily motivated towards the strong relationship. G- GIVE MORE- One of the biggest complaints which most of the customers site as to why they ever left any supplier is that because they did not get what they actually expected. ESSENTIAL PHONES is one of the best examples of exceeding and for explaining the customer expectations. This company always tries to delight their customers by giving them what they actually want and desires for. (Edward, 2000) R- RELATE TO THEM: One of the best and different ways in order to sustain the great customer relationships is to know them on the personal basis too. ESSENTIAL PHONES always tries to practice this technique by remembering their customer’s birth date and they do send them a birthday card or they give them a phone call in order to wish them. Whenever they transact with them, they always lighten things up with some of a little humor. They also try to recognize the important accomplishments which they have ever made. A- AMELIORATE THEIR LIVES: Last but not the least ESSENTIAL PHONES, in order to improve or to foster better relationships with their customers do different and unique thongs in order to motivate them. Everything which they do for their customer always helps in improving their personal or business life. This is one of the biggest reasons behind the success of the ESSENTIAL PHONES. REFERENCES Foss, Bryan 2001, Successful Customer Relationship Marketing, Kogan Page Publishers, pp. 500-522. Stone, Merlin 2000, Customer Relationship Marketing, page 200-228, Kogan Page Publishers. McKenna, Regis 1993, Relationship Marketing, Addison-Wesley Publishers, pp. 200-256. Hennig, Thorsten 2000, Relationship Marketing, Springer, pp. 459-500. Paul, R. 2003, Up-close and Personal, Kogan Page Publishers, pp. 300-382. Egan, John 2008, Relationship Marketing: Exploring Relational Strategies in Marketing, 3rd edition, Prentice Hall. Jakki J. 2004, Marketing of High Technology Products, Jakki Mohr Peck, Helen 1999, Relationship Marketing: Strategy and Implementation, Butterworth-Heinemaan. Prahalad, C. K. 2001, Customer Relationship Management, Harvard Business Press. Baker, Michael John 2003, The Marketing Book, Butterworth-Heinemaan. Dacko, Scott G. 2008, The Advanced Dictionary of Marketing: Putting Theory to Use, Oxford University. Solomon, Michael R. 2003, Marketing Strategies for a Branded World, AMACOM Div American Mgmt Assn, pp. 200-276. Robert F, 2006, The Service-Dominant Logic of Marketing, M.E Sharpe. 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