Case Study 6 Case Study 6

Chapter 10Chapter 10

COS310 E-MarketingCOS310 E-Marketing

Steve YoungSteve Young

Case Study 6 – IntroductionCase Study 6 – Introduction

The Authors of e-business.marketing (Terri C. The Authors of e-business.marketing (Terri C. Albert and William B. Sannders selected Albert and William B. Sannders selected company 6 for 3 reasons. Company 6:company 6 for 3 reasons. Company 6:

1.1. Is a supplier in the consumer packaged Is a supplier in the consumer packaged goods industrygoods industry

2.2. Operates in an extremely competitive Operates in an extremely competitive pure competition environment (very pure competition environment (very similar products offered by others) similar products offered by others)

3.3. Will be developing customized online Will be developing customized online services in order to move from a pure services in order to move from a pure competition environment nto a monopoly.competition environment nto a monopoly.

Case Study 6 – Company Case Study 6 – Company OverviewOverview

1)      Company 6 Overview:1)      Company 6 Overview:Company 6 is:Company 6 is:a. A supplier in the packaged goods a. A supplier in the packaged goods

industryindustryb. Currently at the top of the industryb. Currently at the top of the industryc. A company which has distinct c. A company which has distinct

marketing (advertising, marketing, marketing (advertising, marketing, design) and manufacturing components design) and manufacturing components

d.d.Has two main competitors Has two main competitors

Case Study 6 – Marketing Case Study 6 – Marketing ChallengesChallenges2)      Marketing Challenges faced by Company 62)      Marketing Challenges faced by Company 6a.     The two main competitors recently a.     The two main competitors recently

completed massive upgrades in design and completed massive upgrades in design and manufacturing technologies. Company 6 was manufacturing technologies. Company 6 was concerned that they might lose customers who concerned that they might lose customers who may try the competitors new technologies may try the competitors new technologies then switch.then switch.

b. The Marketing model – Company 6 decided to b. The Marketing model – Company 6 decided to develop surveys to determine customer needs develop surveys to determine customer needs and wants in order to develop and/or refine and wants in order to develop and/or refine offerings, AND improve customer satisfactionofferings, AND improve customer satisfaction

Case Study 6 – Marketing Case Study 6 – Marketing ChallengesChallenges

2)      Marketing Challenges faced by 2)      Marketing Challenges faced by company (continued)company (continued)

c.c. Customer satisfaction and customer Customer satisfaction and customer loyalty was lower with Company 6 than its loyalty was lower with Company 6 than its competitorscompetitors

Case Study 6 – Response to Case Study 6 – Response to Market ChallengesMarket Challenges3)      Response to market challenges3)      Response to market challengesa.       Use of survey to determine customer needs and wants, then incorporate a.       Use of survey to determine customer needs and wants, then incorporate

these into an online customer portal. Use of self service technologies (SST) to these into an online customer portal. Use of self service technologies (SST) to link company, employee, and customer. link company, employee, and customer.

b.     Focused marketing techniques utilized including:b.     Focused marketing techniques utilized including:

Internal marketing – utilizing a group of employees to co-develop the materinals Internal marketing – utilizing a group of employees to co-develop the materinals for both employees and customers – this motivated employeesfor both employees and customers – this motivated employees

External marketing – aimed at the customer, focusing on the marketing mix - External marketing – aimed at the customer, focusing on the marketing mix - product, price, promotion, place, and the extra 3 p’s found in service industries product, price, promotion, place, and the extra 3 p’s found in service industries - people, process (service delivery), and physical evidence (logo))- people, process (service delivery), and physical evidence (logo))

Interactive Marketing “delivering the promise” between the employees and Interactive Marketing “delivering the promise” between the employees and customers.customers.

Development of services identified in surveys as valuable to customers including:Development of services identified in surveys as valuable to customers including: Online, real-time design toolsOnline, real-time design tools Real-time project statusReal-time project status Online research applicable to business such as marketplace trends and Online research applicable to business such as marketplace trends and

research results)research results)           

Case Study 6 – Service-Profit Case Study 6 – Service-Profit ChainChainServices marketing strategy focuses on employees and Services marketing strategy focuses on employees and

customers following the service-profit chain introduced in customers following the service-profit chain introduced in 1994 by Heskett, Jones, Loveman, Sasser, and Schlesinger.1994 by Heskett, Jones, Loveman, Sasser, and Schlesinger.

The service-profit chain quantifies satisfaction and loyalties, The service-profit chain quantifies satisfaction and loyalties, relying on customers and employees interacting in a relying on customers and employees interacting in a mutually beneficial relationship, which has 8 causal links as mutually beneficial relationship, which has 8 causal links as follows:follows:

1.1. Customer loyalty drives profit and growthCustomer loyalty drives profit and growth2.2. Customer satisfaction drives customer loyaltyCustomer satisfaction drives customer loyalty3.3. Value drive customer satisfactionValue drive customer satisfaction4.4. Employee productivity drives valueEmployee productivity drives value5.5. Employee loyalty drives productivityEmployee loyalty drives productivity6.6. Employee satisfaction drives employee loyaltyEmployee satisfaction drives employee loyalty7.7. Internal quality processes drive employee satisfactionInternal quality processes drive employee satisfaction8.8. Top management leadership underlies the chain’s success.Top management leadership underlies the chain’s success.

Case Study 6 – The Value Case Study 6 – The Value BubbleBubble

4)      4 stages of the value bubble will be 4)      4 stages of the value bubble will be employed for the customer stakeholder groupemployed for the customer stakeholder group

a.      The major stages of the Value Bubble are:a.      The major stages of the Value Bubble are: Attracting - (meta tags, animated GIF’s)Attracting - (meta tags, animated GIF’s) Engaging - (establishing feedback forums)Engaging - (establishing feedback forums) Retaining - (offering well-organized information Retaining - (offering well-organized information

base)base) Learning - (track customer behavior through log Learning - (track customer behavior through log

files and clickstream to assess and refine sitefiles and clickstream to assess and refine site Relating – use the database to personalize Relating – use the database to personalize

interaction w/opt out optioninteraction w/opt out option

Case Study 6 – Wrap upCase Study 6 – Wrap up

Questions?Questions?