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SUB: Marketing Management
Case study 1
Case Study on Segmentation, Targeting & Positioning
Profiles Group is a
leading interior decorator and designer in the country. Mr. Neerav Gupta, one
of the partners in the group has invested a good amount of money in the
business. The other two partners namely Mr. Pratham Gupta who is a distant
cousin of Neerav and Mr. Dev Suri are mainly into managing the firm’s country wide
operations. Mr. Stanley Pereira, who is more of a sleeping partner, looks after
the administrative and financial aspects of the firm.
Profiles Group has
around 44 service centers in the country including state capitals and several
developing cities. Since the firm’s inception in 1998, its progress has been unstoppable. The clients
include many reputed companies, hotel chains, popular celebrities and even
hospitals and commercial banks.
A brief background
of the Partners:
Neerav Gupta had a
family owned business that was into manufacturing wooden furniture but Neerav‟s interest was more
into decorating. So, after completing a Master’s course in interior designing from a reputed college abroad, he decided
to start his own interior design services. Meanwhile, the furniture
manufacturing business was handed over to Pratham Gupta due to property and
family settlement issues. But, Pratham decided to join Neerav and they both
started a partnership firm.
Dev Suri, a friend
of Neerav who had been living abroad, sold out his real estate business and had
decided to settle on the Indian soil itself. He offered help by providing
additional capital and his knowledge of real estates did help the firm although
in a small way. Stanley Pereira, an experienced teacher and consultant, had
worked previously in leading interior designing colleges and was instrumental
in making required changes in syllabus structure and interior designing
courses. He has also written many books and articles on the topic. He had
retired early due to family commitments but landed up in Profiles Group as a
Partner through mutual contacts.
The conversation:
All the four
partners are comfortably sitting face to face on a peach colored cushioned sofa
which is situated near the window corner inside Neerav’s well-structured
office.
Pratham Gupta feels
that since their firm has invested large funds, they must enter into more
market segments especially the smaller ones. And, regarding this issue, a
professional conversation takes place among the partners. The talks are as
follows:
Pratham: “So, what
do you think about expanding our market segments to smaller more ordinary
markets?”
Stanley: “What are
you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen
guys, right now, we have 44 centers and competent people to work under us, but
when we see our customer base, it looks small and limited. What I mean to say
is that we also need to have those individual household customers who are
looking for service expertise in this field. Most household customers don’t get the necessary
information as to how to go about the interiors or how to decorate their
home/offices etc.”
Neerav: “I agree
with your points Pratham, but don‟t you think if we have to reach the smaller segments of the market, we
need a different approach to cater to their needs. We would have to advertise
and communicate to these segments in a customised way. This will increase the
promotion budget and our focus on the existing customers may be compromised.”
Dev: “I think we need to get a balance here. Pratham‟s points are valid
enough and it will make Profiles group more productive. If need be, we may have
to take help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay...
so, even if we allocate these segments, we need to target them in a way where
we will know the immediate impact of these segments. We have to position in
such manner that we get this customer base to keep moving towards us...
however, the problem lies in the demand for our product in these segments!”
Pratham: “What is
that problem you are talking about, Stanley?”
Stanley: “I will
tell the problem, we know our product... but these individual customer segments
will see our product as a one time purchase... Interiors and designing is done
by a household customer at one point... very rarely, he will seek for a change
or improvement. So, is it acceptable that we cater to their one time need and
then let go?”
Neerav: “I do
understand that point... But, that’s always the case in our business. Interior decorations and designs are
usually considered one-time expenditure by household customers.... and as a
matter of fact, that has not affected the way we do our business or on our
returns.”
Pratham: “See, even
otherwise it should not affect our firm because individual customer segments
are willing to pay or spend on interiors. If they need a good, comfortable home
along with a neat set of furniture then why don’t we cater to that need, even if it’s a one time demand from a particular customer? This is exactly what I
meant earlier when I said, given the expertise we have, why don’t we use it to
expand our customer base? Of course, we may have to develop suitable pricing
strategies, promotion strategies for these market segments which is according
to me, not a big thing to do.”
Dev: “Let’s first consult
with our marketing hero and ask their opinion or suggestions as well”
Dev takes out his
cell phone to dial Mr. Sunil’s number and he immediately gets the connection. Sunil is the head of
the marketing section and he is very efficient in his job. He also has an
acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.
Sunil enters the
office:
Sunil: “What’s up, Bosses?”
Dev gives a brief
explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign
actually... we have the necessary resources and we are available to any
customer at any given point... So, I think it‟s a good idea that we update our customer profiles also... Only thing is
we have to make sure we are targeting and positioning our customer segment in
the way they feel comfortable to approach us...”
Pratham: “Nicely
said Sunil... You are our man in this task.... We rely on you to make our
markets bigger and customer segments broader...”
Sunil: “Always
thinking in the interests of Profiles Group, Mr. Gupta... Not to worry... You
tell me the confirmed plans and leave the execution on me...”
Neerav: “Well, what
can I say? If we are sure about managing the newer segments which is existing
out there, then our work is just to target them and position our product as per
the given requirements”
Dev: “There is one
important suggestion I would like to present here.... We need to ensure that we
properly differentiate our existing customers from the newer ones so that we
are not overriding one another or our customers don’t feel compromised
at any point.”
Stanley: “That’s a really valuable
suggestion, Dev... I completely agree with this point”
Sunil: “Me too...
Mr. Suri has stated an absolute theory... But, it’s not that we can’t take the benefits from the two and use it for our purpose...
Somewhere, we can link the newer segments with the existing ones and gradually
Profiles Group will mean the same to every one. That is however applicable in
the long term... For now, we need to attend our customer base on a one-to-one
basis... So, we do it slow and steady”
Neerav: “Sunil, I
don’t understand, but
whenever you speak you visualize the big picture as well... I admire your
quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr.
Gupta, I am at your service....Just give the command and it will be done”
All of them laugh
at that comment and decide to have an official meeting regarding the
Segmenting, Targeting and Positioning strategies for the potential market.
Within a month, the scheduled meeting is done with the involvement of key
people and various points are noted down for implementation.
The marketing team
after a brainstorming session also comes up with a collective idea about
introducing Re-decorating and re-designing to be offered as a
part of Profile’s group’s services. This meant that clients or customers can think about
re-designing or re-decorating their homes/offices with the already available
possessions and existing furniture. This also meant less cost to the clients.
This idea was taken up seriously and plans to implement such services were
already underway.
The Progress:
The next six months
in the Profiles Group has made everyone busy with different tasks and agendas
to be accomplished. Sunil is the busiest person around and he is actively
engaged in marketing activities related to the targeting and positioning of
their product to the new customer base.
Very soon, the
results are noticeable in the Profiles Group. After a considerable amount of
planning and hard work, the subsequent months showed positive results as given
below:
Ø
The markets are segmented based on the income level of the household
customers
Ø
Their needs, wants and demands are analyzed
Ø
These markets are targeted based on their desire, willingness and
capabilities to attain the required interiors and furnishings.
Ø
Sunil headed a separate section namely Re-designing and Re-decorating
Services at the firm’s main office. Sunil was immediately involved in making special centers
for Re-designing and re-decorating services in different parts of the country.
Ø
Marketing section was taken over by a competent person - Ms. Sneha
Agarwal who has over 8 years of experience in interior designing. She was
chosen on the recommendation of Stanley Pereira as Sneha had been a merit
student previously and Stanley had been her teacher.
Ø
Neerav had even managed to get some MNC‟s as the firm’s clients.
Ø
Positioning of Profiles Group’s product and services was done in three ways –
o For the already
existing customer base which include the corporate and business houses, film
industry and celebrities and other big units who spend huge amounts on the
interior decorations.
o For the newer
segments also termed as the individual household segments who have limited
spending abilities but have a desire for elegant interiors at reasonable rates.
o For the collective
market – re-design and re-decor services were offered.
Ø
The structure of the firm’s web-site was made more user-friendly and included several videos
showing how proper layout and interiors increased efficiency, easy movement,
allowed more lighting and ventilation and created a feeling of well-being and
comfort.
Ø A CD was also
launched which included these videos and the necessary information of the
Profile’s firm with the
contact addresses and numbers. The CD also included interview with certain
well-known clients who were highly satisfied with the firm’s services. This
established trust and good communication in the market.
Ø
Soon enough, the firm launches into environmental friendly interiors and
develops „Go Green‟ initiatives that uses more re-cycled and renewable substances.
Ø There was a plan to
begin annual contests and games which involved household customer segments to
give their ideas or suggestions for a well laid out interiors using
eco-friendly materials and “Go-Green‟ initiatives.
The Partners and
the interview:
It’s been two years
now since Profile’s Group had moved into individual household segments.
All four partners
are seated on the sofa inside Neerav‟s office except this time the sofa is of cream shade and a press
reporter namely Namitha Goel is sitting on a single sofa across them. Namitha
Goel had scheduled this interview and later will be published in the “Living Designs”, a new monthly magazine
that deals with interiors. She begins with a direct question to Neerav –
Namitha: “Mr.
Neerav Gupta, do you think the reason for the substantial increase in your
customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a
considerable extent, I believe it is so. Re-design is not about my taste or
your taste. It’s about working with what the client owns and making them happy. Most
people are good in re-arranging their stuff but they don’t have time or
energy to do it. So, we offer them this assistance.”
Namitha: “How come
you got this thought about making these household segments as your customers? I
mean, your firm is associated with the influential clientele base and
considering that, why did you feel that these household segments would prove to
be a lucrative market for you?”
Neerav: “The entire
credit for making individual household segments as our customers goes to my
business partners here, my workforce and their efforts. Around two and a half
years back, we had just got into a conversation in this very same office and
Pratham suggested about tapping these markets with our available resources. Let
me clarify that we decided to target this segment not for profits but we felt
they too would benefit from our expertise in this field.”
Namitha: “According
to the market survey, it seems that there is no close competitor for you in
this business. So, your firm stands at the top like it’s been from a long
time. What do you say in this matter?”
Neerav is about to
answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me,
Ms. Namitha.., I have urgent business call that can’t wait..., Carry on
with your questions and my team mates will answer. I have to go now.” He
addresses his partners and leaves the office in a hurry.
The interview
proceeds and remaining partners contribute their views. The interview takes
another 45 minutes and Namitha Goel is satisfied with her work as a press
reporter. She leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the
cover story of the Profiles Group with the partners‟ exclusive
interview placed in the shaded column of the magazine pages.
Questions: 1
Examine the progress of Profile’s Group as a leading interior designer and
decorator.
Answer : Contexts
and Definitions: Professional/Domestic/Amateur/Feminine ‘Professionalizing
Interior Design 1870–1970’ goes beyond analysis of designers, whether
professional or amateur, and their work; it holds up for examination the
processes of professionalization in order better to understand design, its
objects, processes and histories. A number of factors make interiors
particularly difficult to analyse. They are rarely designed by one person for
one person. They are composed of a wide variety of objects. Both interiors and
the objects they contain are subject to continual use and modification (with a
few exceptions). Historical records for interiors are difficult to retrieve,
especially for the period
Questions: 2
What kind of change was observed in the STP strategy of the firm and how was it
useful?
Answer : Today, Segmentation, Targeting and Positioning (STP) is a familiar
strategic approach in Modern Marketing. It is one of the most commonly applied
marketing models in practice. In our poll asking about the most
popular marketing model it is the second
most popular, only beaten by the venerable SWOT / TOWs
Questions: 3 Evaluate
the working of Profile’s group with respect to the Segmenting, Targeting and
Positioning of markets. Do you have any suggestions for the firm?
Answer : So, she
brainstorms several ideas with her team, and they come up with an exciting new
product which has the potential to be a real success for the company.
Sofia has identified a profitable segment of the market, but how
has she done it? How can her team members develop a perfect product for these
people? And how should they communicate its benefits?
In this article, we'll look at the Segmentation, Targeting and
Positioning (STP) Model*, an approach that you can use to identify your most
valuable
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Case study 2
Determining the Marketing 4 P’s
Any business
organization in order to be successful needs to have a clear picture about the
4 P’s of marketing. This forms the basis on which business functioning takes
place. What are these 4 P’s and why are they important? Let’s assume that we
are interested to start up a small business enterprise and for that we have the
necessary capital, skills and people. And now, since we are in the initial
stage of enterprise formation, we need to answer the previous question.
Marketing mix
comprises of the four basic elements or components which are termed together as
4 P’s of marketing. They are:
Product: what is it
that we have to offer to the market? What can it include? In what ways can it
be modified, changed, expanded, diversified etc.? Will our products be accepted
in the market? If not, how do we create a market for our products?
Price: at what
value should the products be offered in the market? What should be the returns?
Will it be worth to the buyers? What variations, differences and strategies can
we adopt in order to earn a fair margin and also gain customer satisfaction?
Place: where must
be our products available? How soon it’s demanded in the market? How quick we
can deliver it to the consumption points? Who do we need to involve in the
distribution of our products? How much will they charge for their services?
Promotion: why do
we need to promote our products? Will people be aware of our products if we
don’t do any promotion? If we need to promote our products, what kind of
message we should convey to the market? In what ways and methods we can carry
out the promotion?
Unless we know the
answers to the above questions, we cannot make our business function.
Therefore, after considering the strengths and weakness of our likely
enterprise and studying the market opportunities, we decide to manufacture wax
crayons.
The main reason
behind this decision is –
1. We can come up with an effective 4 P’s either by
marketing the crayons ourselves and if not, we can take orders by being the
suppliers to our clients.
2. We know that our market mainly comprises of
educational institutions, drawing and painting classes/centers, artistes, even
big companies use crayons extensively.
3. We realize the potential of wax crayons as we
can offer variety in sizes, quality, colors, price ranges, wholesale and retail
prices etc. We can even venture into related areas such as wax artic rafts, wax
candles, oil colors, paint etc.
4. We can have direct contact with our clients and
in the long term we can even engage an agency to market the crayons.
5. We know that
promotion strategies can be based on the type of our customer segment and we
could easily do it through advertising on Television, newspapers, children’s
comics, notebooks, school notice boards, etc. We can even sponsor or conduct
drawing competitions, art exhibitions or we can have contractual agreements
with the stationery outlets, art schools etc. However, we are still
apprehensive about our marketing mix. We are yet to confirm about our marketing
mix and until then we are unable to finalize on our decisions or start with the
implementation process.
Question 1.How will
you determine the marketing mix for our enterprise?
Answer : The concept of “marketing mix” was introduced over 60 years ago.
In 1953, Neil Borden mentioned it in his presidential address to the American Marketing Association(AMA).
In general terms, marketing mix is a variety of different factors
that can influence a consumer’s decision to purchase a product or use a
service. It most commonly refers to the 4Ps of marketing─product, price,
promotion and place.
These four factors can be controlled by a business to a certain
extent. When “mixed” or blended strategically, they can produce desired
behaviors from your target audiences (i.e. signing up as a subscriber or making
a purchase).
It can also help businesses further understand their product and
service offerings and the best ways to plan for a successful launch and
marketing strategy.
The 4Ps were created by marketing professor E.
Jerome McCarthy in 1960, seven
years after Borden’s speech. They are a framework
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Question 2.Do you
have any ideas to make our enterprise successful particularly by enhancing or
improving the marketing mix?
Answer : When you first launched your business, you likely focused most of
your energy on reaching new target markets, establishing your clientele, and
building market share.
As your business grows, however, you’ll find that you’ll need to
shift your focus from just acquiring new customers, to retaining your existing
customers.
If you’re looking to grow your business revenue year after year,
selling more to existing customers is a cost-effective way to go. Getting
repeat business costs less than getting new business; consider the costs of
advertising, networking, offering a “free consult”, or other incentives to new
markets. And, there’s the risk new leads won’t buy. Align the “Four P’s” for
Customer Retention
Have you added
new products or services? How do they fit
in your original product or service offering? Do they meet the needs of your
current customers, or open new markets?
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Question 3.What do
you think will be the challenges in making an effective marketing mix since our
enterprise is a new one?
Answer : How to Increase the Value of Your Products and Services
Bundle your
goods. Depending on the type of product or
services, you might benefit from seasonal promotions and volume pricing, or by
bundling your products with other services.
Create alliances. You can partner with other businesses to provide complementary
products or value-added services to your customers
The power of content marketing might be why, according to Marketing
Charts, 72% of B2C marketers and 73% of B2B
marketers plan to produce more content next year.
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Case study 3
Good Publicity vs. Bad Publicity
Roger Twain walked
as usual with a pleasant aura and at a leisurely pace to his office. Roger is a
PR Manager in one of the top FMCG companies of the world. His office along with
the PR staff was recently shifted from sixth floor to the second floor of the
building. The reason was simple enough. Top management did not want external
parties to wander around the whole building in the excuse of meeting PR staff
or the PR manager. Roger Twain in fact, welcomed this shift and was glad that he
didn’t have to wait for the lift as he could now very well use the staircase.
Roger has around 15 years of experience in PR and handling Publicity related
issues. He had worked with several companies as well as non-business
organisations and institutes.
Roger currently in
his 53rd year has achieved lot of success in his career as a professional
expert in the field of PR and Publicity handling. Although his plans to start
his own PR Consultancy firm didn’t work out the way he wanted, he was actively
involved in several worldwide workshops, seminars and presentations. He even
wrote articles on PR strategies and published some books on PR. Roger’s
ideologies as a PR professional was –
4 “No News is not good news… You have to be in
the news – good or bad. And, the objective should
be to convert bad news
into good news.”
4 “You cannot create bad news about your
company. At the same time, you cannot create a good one. You can only
communicate it in good or bad way.”
4 “PR is about being in the news – time and date
don’t matter much.”
4 “It’s not about being right or wrong – it’s
about being clear and sticking to the truth and using it positively.”
4 “Everyone has a right to express… But, a PR
person should consider it as a righteous Duty”
4 “Your Company can show
only performance. PR has to talk about it.”
A few of his career
achievements in the different organizations that he worked for are as follows:
Problem Situation
1: Some of the cosmetic products of Jasper Ltd. were
selling in the market beyond its expiry date. A media report exposed and
presented this story to the public that Jasper Ltd. was desperate to increase
its sales and did not consider consumers’ interests or their well-being. This
led to decrease in sales volume even in the other product categories of the
company. Due to incorrect operations of some channel members and retail
outlets, old stock was sold to the consumers after the expiry dates. The
outcome was Jasper Ltd.’s low profit margins.
Challenge: Roger’s challenge
was to make consumers more aware and responsible while purchasing the company’s
products without ruining the distribution channel relations and at the same
time making the company socially responsible.
Solution: Roger suggested to
the advertising department to create a public awareness ad regarding the
importance of checking product expiry dates before buying. He advised the
management to take back old stock from the retail outlets and distributors by
offering a reasonable price and also prescribing the time limit within which
those products should reach the company. Roger’s view was that distributors
will mostly see their benefit and continue to sell the old stock. If they sell
it back to the company itself for a price, they would definitely make an effort
to get the new stock and sell those to the consumers. Roger’s logic was “it is better to spend some money on getting
back the old
stock than let it sell in the market at the risk of company’s
reputation.” Meanwhile, consumers will also be aware about expiry dates of cosmetics
when they buy it.
Problem situation
2: Acorn Seeds Company’s assistant finance manager was involved in some
fraudulent activity and was accused of misappropriation of funds. This news
became public and soon enough, company’s investors and stakeholders began to
question the integrity and trustworthiness of the company. Company found it
difficult to convince people that one person’s immoral intentions does not mean
that everyone in the company is beyond trust and moral obligations.
Furthermore, company’s products and services got severely affected and
consumers started opting for competing products. There was bad publicity all
around. Sales declined and situation got worse when finance manager unable to
handle pressure resigned. Even though finance manager was not involved with his
assistant, he was linked with him and given a bad treatment from outsiders even
including some of the employees. Media accelerated this issue and created more
hype than was necessary.
Challenge: Roger’s challenges
in this situation was handling bad press, dealing with media people with
patience and uplift the company’s integrity with good reputation. He also
needed to make the financial department integrated with other departments and
boost the employee morale. At the same time he had to take care that company’s
products do not suffer in the situation.
Solution: Roger suggested to
the top management to issue a public message in the newspapers/magazines and
also at the end of the Company’s product ads on TV. The message was - “We value your trust in us as you value our
commitment towards you.” Roger’s view was that once the fraud was
committed and was out in the open, there was nothing much to be done but to
move on accepting that such incident occurred and will not happen again. Roger
also advised for just one press conference regarding this issue to put an end
to this matter. The assistant finance manager had confessed and was told to
resign instead of being fired. Soon enough, people forgave and forgot this
issue, sales improved and company was on the track once again.
Problem Situation
3: One of the women’s facial creams produced by Jasper Ltd. was
severely criticised by media and women. The belief was that the product
contained acidic substance causing harmful chemical reactions on the skin. This
belief was created when some women claimed that their skin discoloured/scalded
after using this facial cream. Media reports provided some facts related to the
product that made women who were using this cream more alert. As a result sales
dropped drastically.
Challenge: First of all, Roger
had to study the product and know its constituents. Secondly, he discussed with
product research team as to why such claims could be targeted towards the
product. Next, he had to face the media and women consumers addressing the
claims and product’s safety.
Solution: Roger collected
those facts provided in the media reports and sent them for verification with
the skin specialists, research team and for laboratory testing. It was verified
and proved that facts provided were immaterial in causing damaged skin. It was
also proved that the cream contained no acidic substance or any sort of harmful
chemical. Secondly, those women who claimed skin damage were questioned about
their application of the skin cream. Two women confessed that they combined
several other beauty products along with cream’s application. Others confessed
that they were interested in making some quick money if company provided any
compensation. Roger arranged a special press meet and provided all the relevant
facts and information regarding this issue.
Problem Situation
4: Homely Anchor, a charitable organisation that mainly looked after elderly people in
several old age homes was having a problem with its donations. There were anonymous
donations coming
from several places that it was difficult to track the funds and its
allocation. The members of the organisation were themselves confused with the
amount collected and amount spent since proper records were not maintained.
There were gaps in the accuracy of the information and its updates. Somehow, a
magazine columnist/writer got to know about this state of affairs and without
much investigation published a small article in the magazine. The article
stated how Homely Anchor was unable to manage funds and money received through
anonymous donations remained anonymous. Although the article was not accusing
of fraud, it hinted the readers in that direction. Within a few months of the
article publication, some social activist groups and media started questioning
Homely Anchor. There were questions raised on who were the anonymous fund
raisers, amount of donations and what and how much was being spent where.
Challenge: Since Roger was
working as a part-time Public Relations officer in Homely Anchor, he had to
face the social activists and media on behalf of the organisation. He had to
protect the privacy of anonymous donation givers and assure them as well as old
age homes that funds are raised, managed and used for good intentions.
Solution: He merely gave open
statements telling that a proper system will soon be in place that would ensure
the accuracy and safety of records related to donations and fund raising.
Shortly, he arranged for a small conference consisting of prominent social activists,
charitable workers and media representatives to discuss and debate on the
implementation of proper systems in charitable organisations. This conference
gained lot of popularity and free publicity for Homely Anchor which resulted in
more donations. An appropriate system was also implemented to record the
transactions.
Problem Situation
5: The research and production team at Sparkly Company had
designed a new and innovative technology of purifying water in their product –
“Sparkler water purifiers”. This system was tested and proved that it was safe
and that it purified water without destroying its minerals. Once it was
approved, production plants were ready to manufacture water purifiers in the
newly designed way. But, information had leaked to the rival competitor “Visor”
Ltd. who immediately took advantage of the opportunity. Visor Ltd. issued
statements in the press about this new technology of purifying water and that
soon they will be marketing these products. There was a commotion in Sparkly
Company due to this. Research and production teams began to accuse each other
on the information leakage. Somehow, management was not able to control the
situation. News spread about the rivalry issues and information leakage. Media
was too interested in finding out which company would come out with the product
first.
Challenge: Roger too found
this situation difficult to handle. There was definitely an information leakage
regarding the new method implemented in water purifiers. Roger’s immediate tasks
were to find how information was leaked out and who would have done it. He knew
the commitment levels of the company’s employees were not questionable. Second,
he had to ensure that Sparkling Company was the first to introduce this
technique and at the same time he could not accuse Visor Ltd. openly in public.
Solution: Since acquiring
patents (exclusive rights) to the new technique in water purifiers was in
process, Roger decided not to talk about it. He then released a statement in
the press as “Sparkly Company’s
dedicated effort towards manufacturing Sparkler Water purifiers with new
technology was a long time process. It involved continuous research and lab
experiments by the team. This technology shows our expertise and we will never
compromise on our products.” After an internal investigation, Roger
found that company’s certain e-mails were hacked and through that, information
had leaked to Visor Ltd. So, systems and networks were made more secure. Roger
made it clear in his public appearance in the media that crucial information
did leak out due to the insecure network and computer systems. But, he was
careful not to mention names or make any accusations. Media turned their
attention to Visor Ltd. questioning its integrity, ethical and business values.
Questions:
1) Identify the
qualities of Roger as a PR professional and analyse his role in the companies
that he worked for.
Answer : Public
relations is among those industries that have undergone
major shifts in recent years. Thanks to modern gadgets, improved connectivity, and social
media, working in PR is now as fashionable as ever.
That said, although many
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2) In the above
problem situations, was there any other approach that Roger could have adopted?
If yes, suggest some approaches. If no, why do you agree with Roger’s approach?
Answer : In contrast to both the often dark,
subconscious emphasis of the psychodynamic theorists and the somewhat cold,
calculated perspectives of behavioral/cognitive theorists, the humanistic psychologists
focus on each individual’s potential for personal growth and
self-actualization. Carl Rogers was influenced by strong religious experiences
(both in America and in China) and his early clinical career in a children’s
hospital. Consequently, he developed his therapeutic techniques and the
accompanying theory in accordance with a positive and hopeful perspective.
Rogers also focused on the unique characteristics and viewpoint of individuals.
3) List the PR
tools and strategies that were adopted by Roger in dealing with the problem
situations.
Answer : Public relations tools and activities
By using proven public relations (PR) tools and activities, you
can promote positive attitudes and behaviours towards your business that will
help convert interested consumers into customers.
PR tools are very cost-effective, and often give you a greater
degree of control than more broadly targeted advertising campaigns. Consider
using these PR tools to build your business's reputation.
Media relations
Media strategies focus on
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Case study 4
Personal Selling – Professional approach
Background Information:
“Keep Fit” is a medium-sized
outlet exclusively dealing in exercising equipments/machines and fitness
accessories and sometimes in sports equipments also. It has 27 sales persons
employed under it. Owners of the outlet – an active middle-aged couple have
several contacts abroad through which they place orders for the necessary and
required equipments. Once an order is placed for particular equipment, it takes
atleast 2 weeks for the equipment to reach the outlet. Secondly, the sales
force is involved in cold calls, constantly checking upon new orders from the
existing customers and getting new customers to place orders for these
equipments from in and around the city. Sometimes, they travel to other nearby
cities seeking orders and new customers.
Some of the
equipments that Keep Fit sells are –
Ø Cardio equipments
such as Treadmills, Stair climbers, Steppers, Bikes, Ellipticals, Rowers, so
on.
Ø Strength
equipments such as Weight benches, Power racks and varieties, different kinds
of Weight machines which is supplied as per customer’s requirements, lifting
accessories, home gym systems, and other machines.
Ø Fitness
accessories such as pedometers, ankle and wrist weights, jump ropes, stretch
mats, hand grips, exercise balls, pull and push up bars, so on.
Ø Sports accessories
such as soccer balls, volleyballs, basketballs, poles, boxing gloves, track
pants and such other stuff if at all there is customer demand or they have
placed such orders.
The owners have
already realized the growth potential of these equipments/machines after
analyzing the following:
a) Since most people are becoming health and
fitness conscious, there is lot of demand but supply is comparatively low.
b) Due to heavy work pressures and IT related jobs
that require people to sit in front of their computer systems for long, it has
resulted into high demand for creating and maintenance of gyms in the companies
and at the workplaces.
c) The affluent class or groups especially
celebrities and sports stars don’t mind purchasing and owning these equipments
in their homes, the objective being creation of a personal gym at home.
d) Fitness centers, gymnasiums and sports clubs are
increasing in number and so is the demand for the exercising equipments and
machines.
e) Encouragement
given to different sports requires the sports men and women to use such
equipments and therefore, they have to be provided with such resources so as to
participate in national or international sports events like Olympics.
Two more
salespersons were recently recruited and selected by the owners. After the
training and several exposures to the sales practices adopted by experienced
salespersons, these two salespersons were ready for the actual job.
The first
salesperson namely Mr. Jagan Das is hard-working and efficient in his work. It
was observed in the training programme that he was alert to the situations and
environment around him. But, at the same time he had a weakness of listening a
lot to other people’s opinions and not contributing his thoughts or ideas.
However, he was enrolled in a short-term communication course to improve his
language skills and expressing his thoughts. The second salesperson namely Mr. Tarun
Mehra is an enthusiastic and determined chap. He likes to share ideas and given
the time, he would talk his way out. In the training programme, he asked lot of
questions and after receiving answers would again question about why and how of
things. His only weakness was his tendency to get over-enthusiastic about
things and situations that he would forget about existing situation or problem.
In the first few
months, Jagan and Tarun were getting along fine as they were assigned the same
sales territory. Sometimes, they would go together to collect orders and even
dispatch orders to the customers. Together, they were able to deal with
complicated clients and achieve higher sales targets than what was assigned to
them.
Lately, the owners
observed small fights happening between Jagan and Tarun. They were not sure as
to what caused the disagreements that led to fights but eventually, the couple
decided that the salesmen needed to sort it out by themselves. On Jagan’s
request, their sales territories were separated and now, Jagan and Tarun had to
deal with different customers at different locations.
After Reading the
Background Information, analyse the following two situations and answer the
questions given at the end:-
Situation 1:
Jagan is at the
outlet’s veranda listening to how another sales person handled a customer’s
complaint. He receives a call from one of the old customers of the outlet. The
telephonic conversation goes as follows:
Customer: “From
“Shape-up” Gym, I am Raghav speaking... Two months back, I purchased this
treadmill from you for our gymnasium located at the city’s east and now it is
causing some problem... till now whatever gym equipments we purchased from you
had no problems of any kind”
Jagan: “Please tell
me your problem Sir...”
Customer: “See,
actually I can fix the problem... I know some people who can do it very
easily... but that’s not my point... I need to know why the machine caused
problem.”
Jagan: “You tell me
your problem Sir, and then we will fix it for free...”
Customer: “I am not
having a problem; your machine has a problem”
Jagan: “I will come
at your place Sir, tell me your exact problem so I can note it down and solve
it as soon as possible”
Customer: “I can
solve the problem... I need to know whether the treadmill comes with a
guarantee period and why a brand new machine is causing this problem”
Jagan: “I will come
over there Sir and if it’s possible, I will bring a technical member from my
team along with me...”
Customer: “No
Thanks for your help... I will speak to your Boss about the treadmill’s
inefficiency!”
Jagan: “Wait... let
me know what I can do for... ...”
The call is dropped
and Jagan is unclear as to what he must do next. Should he call back the
customer on the same number as appearing on his mobile or should he find out if
he can trace the customer information from the sales records of the last two
months or should his superior know about this incident? The customer appeared
to be in a hurry and didn’t even tell about the problem. Jagan also wondered
about how Tarun would react to this kind of call.
Situation 2:
Tarun is busy
entering some information into the sales records. He is asked to pick up a call
from the superior’s office and following conversation takes place:
Customer: “Is this
Keep Fit?”
Tarun: “Good
evening Sir, yes it is... May I know your name Sir?”
Customer: “Who am I
speaking to? ... I am Jonathan from Lance Sports Club”
Tarun: “Mr.
Jonathan, this is Tarun and I am a sales executive at Keep Fit... you can tell
me your concern Sir,”
Customer: “I had
placed an order for 7 pairs of weight plates, 6 pairs of dumbbells, and 2
exercising bikes – one upright and also 2 treadmills and volleyball”
Tarun: “I am
listening Mr. Jonathan”
Customer: “Yes,
good, now according to price-list, it says 3 treadmills, 3 exercising bikes, 6
pairs or weight plates, 6 pairs of dumbbells.... the thing is number of items
mentioned in the bill are completely wrong”
Tarun: “Just tell
me the Bill Number and I will get back to you Jonathan... But, how many items
have you received in actual numbers?”
Jonathan: “Well,
that’s the problem... I have received the same numbers as I placed in the
order... but, the bill and the list says wrong numbers... and only that
volleyball is not received”
Tarun: “Okay....
Just see on the top left of your list... you will find the Bill Number...
please tell me that...”
Jonathan: “There is
no Bill number in this...”
Tarun: “Please
check it once again... there is a bill number mentioned at the top left or top
right or somewhere at the top... Okay... tell me the date of the bill and your
order placement date atleast”
Jonathan: “No, it’s
alright, there must be a mistake... we will sort it out during the payment”
Tarun: “Mr.
Jonathan... Please co-operate and tell me the bill number or the date so that I
can verify it in the sales records and check the invoices also”
Jonathan: “No,
that’s okay... do not bother about it... we will confirm later...”
Tarun: “Listen Mr.
Jonathan, I can just.... ...” But, before Tarun tells anything more, the
customer has cut off the call. Tarun feels uneasy about the conversation. He
was being so helpful and wanted to clarify the figures but it looked like the
customer was not interested to do so. Should he follow up on the customer after
finding out the necessary details or should he just keep quiet till the
customer raises the issue once again? Should he tell this to his superior? He
tried to imagine Jagan’s way of tackling these types of customers.
Note:
In both the
situations, the salespersons have not met the customers personally. In Situation
1, Jagan is dealing for the first time with one of the old customers of the
outlet. In Situation 2, Tarun had spoken to some other member of
the sports club previously.
Questions:
Question 1:-
Identify the approach (plus points and negative points) of the two salespersons
in the above situations and make a comparative analysis.
Answer : Definition:
Personal selling is also known as face-to-face selling in which one person who
is the salesman tries to convince the customer in buying a product. It is a
promotional method by which the salesperson uses his or her skills and
abilities in an attempt to make a sale.
Description:
Personal selling is a face-to-face selling technique by which a salesperson
uses his or her interpersonal skills to persuade a customer in buying a
particular product. The salesperson tries to highlight various features of the
Question 2:- In
both the situations, were the customers satisfied with how the salespersons
handled their queries? Analyse the sales person’s and customer’s interactions
in the above situations.
Answer : Take
action: Think about the objections you receive in your line of business. Write
down an example for each of the above types of objections. The techniques in
this article will assist you with these and many more that you’re likely to
face. You may not overcome them every time, but at least you didn’t give up
before even trying.
Now that you have
written down the most common objections, here are some of the top tactics for
handling them:
Tactic #1: Gratitude
Say “Thank You!”
Always thank your customer when they put an objection in front of you because
this is an opportunity to address it and move on with your deal. In fact, ask
them about all of their concerns and objections right up front and you’ll
receive even more opportunities to turn the table to your advantage. Don’t
forget, an
Question 3:- If you
were a salesperson, how would you have handled the above two situations? Do you
have any suggestions for Jagan and Tarun?
Answer : Suggestion
for Jagan - Should have identified himself and also understood cus - tomer 's
concern about the treadmill that was supplied two months back . Hence , he
should have asked correct
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