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Customer retention and satisfaction research proposal
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The Montana Mountain Biking Case
Montana Mountain Biking Company has been in business for 16 years providing guided mountain biking trips at four locations in Montana. The success of the company is linked to retaining its customers. Eighty percent of the customers who sign up for the one week guided mountain biking expedition are repeat customers (University Of Phoenix, 2007). An important part of any marketing plan is to understand the customer relationship because ultimately, all profits come from the customers. The challenges facing the Montana Mountain Biking company is not only retaining customers but to attract new customers. The advances in e-marketing have given Montana Mountain Biking some alternatives to traditional marketing plans.
The Five Stages of Customer Loyalty
Customer loyalty comes from the personal relationship that is developed between the customer and the business. One method used to understand the customer relationship is called customer relationship intensity and Life-cycle segmentation (UOP, 2007). This process includes classifying all the customer relationships into one of five groups.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
CIMA Mountaineering, Inc. is a company manufacturing in hiking and mountaineering boots for beginner to experience hikers. CIMA sales and profit had grown steadily within the last several years. However, CIMA growth is beginning to slow down as a result of foreign market and changing market. The company is under consideration of two marketing proposals, these two marketing proposals will discuss about marketing strategies for increasing sales and profits of the company. CIMA Mountaineering, Inc. has to decide whether they should enter the "weekend" segment of the hiking boot market or extend the existing lines of boots for mountaineers and hikers to achieve their objective.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
Mr. Singleton and Montana Mountain Biking (MMB) could extend its marketing power through market affiliates. This report will outline the potential competitive advantage to MMB for partnering with industry sector affiliates.
Professor Jerome McCarthy introduced in the early 1960s a marketing mix which consists of the 4 Ps: product, price, place and promotion (Kotler, 1999, p. 94). Traditionally, efficient product, price, place and promotion strategies would lead to a successful business but in today’s society, due to such technological advancements, the internet is changing the way we sell our products and services, and therefore organisations now need online strategies to attract and retain customers. The e-marketing mix considers how the 4 Ps can be presented online in order to give that firm a competitive advantage through digital marketing (Learn Marketing, 2014).
For purposes of clarity, the analysis on whether or not BMW’s e-marketing strategies have been successful, we will utilize information from the case study of one of BMW’s subsidiaries, BMW Brisbane, located in Australia. Aside from tis, we will also narrow down the analysis to reflect only two strategies as follows; online advertising and E-mail marketing and messaging. Brisbane BMW has successfully integrated e-marketing communications tools by utilizing it in the following manner; for news alerts, events, new car launches, and customer appreciation through brochures (Vision6, 2005). Through the use of e-mail marketing, the Brisbane BMW subsidiary has been able to drive traffic to their individual website, where customers are treated to a registration form. This registration form then assists the company to capture relevant metadata associated wi...
Currently Leisure World has no online presence. Most successful businesses current use of multichannel advertising helps them reach their targeted markets. By implementing a company website or using social media the company will be able reach a variety of people all at once; therefore, creating an opportunity for expansion and growth. As consumers, we can all appreciate the possibilities that come to life with a higher level of personalization. The data from our online profiles, shopping preferences and browsing habits, as well as other personal data we choose to share, makes way for a future where advertisers anticipate our needs before we even realize them. (Anderson,
For bicycle tours, there are a few direct competitors offering bicycle tours in Ashland. Therefore, major competitors of bicycle tours will be businesses competing for tourists’ time. In order to overcome this, the company will create partnerships with local businesses that would be competitors on time for the independent tours and advertising purposes. There is an abundance of bicycle rental businesses in the same geographic region. The strategy to combat this will be to offer extended time frames for rentals mainly appealing to students. There are not many other companies within Ashland that are offering weekly rentals and this way the business will not have to attempt to compete on pri...
Armstrong G. & Kotler P. (2007) Marketing: An Introduction 8E Upper Saddle River, NJ Pearson Prentice Hall Publishers
As the customer is the subject of relationship marketing, marketing should emphasize on customer needs, while customer value may “one-dimensionally in term of need satisfaction” (Hackley, 2009, p.64). From the “one-dimension” concept, marketing can regard as an integrated process, which utilizes techniques to develop and produce products to meet customer requirement, including market analysis and market targeting (Arndt, 1980, p.390). For example, it is effective to use relationship management software to track and analyze costumers’ preference to attract and satisfy more customers in relationship marketing. However, the “one-dimension problems-solving discipline” just completes the part of selling in transactional marketing, it may also ignore the customer demand of which is not included in the target market. What’s more, relationship marketing not only focuses on the short-term commodity trading, but also long-term service quality and forward-looking strategies. The significance of relationship marketing is far more than the exchange, because the exchange will be of common occurrence once the mutual trust mechanism has been established. Moreover, marketing would not end at the completion of the transaction, but following a series of after-sale service and the stabilization of
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
To help these businesses, a more appropriate or better marketing plan needs to be designed. Small business internet marketing services can help businesses develop and thrive in a highly competitive market. For the highest quality internet marketing services, hiring an online marketing company to design a customized internet marketing campaign may be advantageous for some businesses (EStartup business blog and contributors, 2010). Identifying the role that marketing plays in a successful business is demonstrated by the use of two examples, the importance of developing a marketing plan, and ethical and legal issues that surround marketing practices (EStartup business blog, 2010). To be a successful business, the owner of the business should use the marketing mix and the results of market research; having identified its key audience a company has to ensure a marketing mix is created that is targeted specifically to those people.
Ryals, L. (2005). Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of Marketing, 69(4), 252-261. doi:10.1509/jmkg.2005.69.4.252
Customer Relationships is about building a relationship of trust and convenience. A customer wants the company they are working with to be intuitive. To know their needs before they do. They want to feel respected, they need to believe you are honest and have integrity. This relationship breeds comfort and familiarity and causes the consumer to continue to do business with your company. This relationship that is built develops a personal relationship, like a friendship and it is one that the consumer cannot get from the store down the road and it is that personal touch of sincerity, of knowing their needs, of servitude that will turn them into lifelong branded customers.
There are many description and theory of customer loyalty. We should research and compare which theory is suitable for our business.