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Chapter Ten Case Study Six Relationship Marketing Company Overview • Supplier to CPG industry • Few competitors – – – – fierce competition highly specialized expertise timing is critical small # of customers but very profitable • Value-laden exchanges within the marketing definition • Company’s current position – based on survey results • Higher than expected dissatisfaction • Higher than expected switching • Customers had above average technology readiness scores – description of the construct • Customers’ preferences for services Three Types of Marketing Company Internal Marketing Employees technology Interactive Marketing External Marketing Customers Service Culture… “a culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone” Christian Gronroos “Managing Internal Marketing-a Prerequisite for Successful External Marketing” Service Profit Chain Success • 8 causal links (Service Mgmt Trinity) – customer loyalty drives profit and growth – customer satisfaction drives customer loyalty – value drives customer satisfaction – employee productivity drives value – employee loyalty drives productivity – employee satisfaction drives loyalty – internal quality drives employee satisfaction – top management leadership underlies the chain’s success Underlying Logic of Relationship Customer Satisfaction Customer retention & increased profits Quality Services Employee Satisfaction & Loyalty Why Focus on Employees? • They are the service • They are the organization in the customer’s eyes • They are the marketers • This is the same for the web site E-Business Marketing Goals • E-Commerce – providing quality online services – payment may not be electronic but service delivery is • CRM – meeting and exceeding customers’ needs • ERP – Lower cost of doing business (!) • BI – continual input from CSRs and customers Value Bubble • Site needs work – Strategies and implementation differences • Attract – none--why? • Engage – customized services • Retain – research library updates with email notification • Relating – dynamic site configuration • Prototype • www.buzzsaw.com – evolution of site – where it is now…unfortunately