Content

LO1............................................................................................................................................. 2

Introduction ................................................................................................................................ 2

1.1 ............................................................................................................................................... 3

1.2 ............................................................................................................................................... 4

1.3 ............................................................................................................................................... 5

1.4 ............................................................................................................................................... 6

Conclusion .................................................................................................................................. 7

3.1 ............................................................................................................................................... 8

3.2 ............................................................................................................................................. 10

3.3 ............................................................................................................................................. 12

3.4 ............................................................................................................................................. 13

LO4........................................................................................................................................... 14

Introduction .............................................................................................................................. 14

4.1 ............................................................................................................................................. 15

4.2 ............................................................................................................................................. 17

4.3 ............................................................................................................................................. 18

Conclusion ................................................................................................................................ 19

Reference .................................................................................................................................. 20

1
LO1

Introduction
According to essay.uk.com (2014) in Relationship Marketing - The essence of
relationship marketing

The era in which marketers have increasingly acknowledged the importance of customer
retention has seen an evolution of related models and frameworks. Increasingly, customer
retention has needed greater emphasis in company strategies due to the environmental changes
occurring in many markets.

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1.1 Explain the concept of knowledge management and its role in relationship marketing
In simple terms, we can say that knowledge is information, facts or data.

According to H.Gebert (2003) in Journal of Knowledge Management- Knowledge Management

is the key in an organization that leads a positive effect in its business. It helps in creating,
exploring, distributing and retaining of knowledge that can create better value to the
organization in comparison to its competitors. Knowledge Management practice aims at
gathering information from its customers, competitors, distributors and the predictors of
successful KM plan. It helps the company to retain its position in the market and therefore stay
ahead of its competitors. It not only helps in reducing cost but also promises better and improved
services.

According to H.Gebert (2003) in Journal of Knowledge Management- Knowledge

management and its role in relationship marketing- Both approaches focus on allocating
resources to supportive business activities in order to gain competitive advantages. Although
these concepts are currently mostly regarded as separate research areas, we see high synergy
potential in an integrated approach.

3
1.2 Explain the ways that ICT can support the customer relationship management
process in a particular organization.

According to http://bmsrockstar.tumblr.com (2014) in Define Customer Relationship

Management (CRM)Customer Relationship Management (CRM) is a co-ordinate approach to
the selling process allowing the various operational, customer contact and sales promotional
functions of an organization to function as a whole.

BRIEF ABOUT COMPANY

According to http://santafemods.com (2014) in History of Hyundai The Hyundai Motor

Company is one if not the most dynamic automobile producer in any developing country. This
is remarkable considering that the company is closing in on 40 years of existence. To outline
its history one must also look into the life and times of its founder Chung Ju-Yung.

CRM software:

Sales management shares customer information between sales, service and parts departments

Vehicle management gives complete vehicle data along with sales, service and financial
history, as well as dealer and license information and owner and contact information

Activity and e-mail management systems link e-mails with associated contacts, leads and
opportunities

Service management increases customer loyalty by enabling consistent, personalized

interaction across all customer touch points including, telephone, e-mail, Web, wireless devices
and in-person meetings.

Information Technology must be up-to-date. It should be efficient, speedy and focus upon the
needs of customers. Whilst IT and/or software are not the entire story for CRM, it is vital to its
success. CRM software collects data on consumers and their transactions. Huge databases store
data on individuals and groups of individuals. In some ways, CRM means that an organization
is dealing with a segment of one person, since every consumer displays different purchasing
habits and preferences. Organizations will track individuals, and try to market products and
services to them based upon similar buyer behaviour seen in other individuals (e.g. When
Amazon tells you that customer that viewed/bought the same product as you, also bought
another product)

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 1.3 Describe the benefits of customer relationship management in a selected
organization

According to humblehyundai.com (2014) in Hyundai Benefits-

Hyundai Motors provides very good after sale services to its customers. It is in the
economy segment that the affordability of spares is most competitive as compared
to others.
It also provides its long-term customers either with stable prices or lower price
increases as compared to the new customers.
HYUNDAI motors provides financial incentives and rewards to the customers who
bring more business to their service station by recommending and spreading good
word of mouth to others about their services.
HYUNDAI Motors provides free of cost servicing to customers having Tata cars
within a two-
year warranty time period. HYUNDAImotors also offers an extended paid-
warranty program marketed under the brand, Forever Yours for the third and fou
rth year after purchase. The extended warranty program helps in strengthening con
tact with the customer and increase the revenue generated from sale of spares, acce
ssories and automobilerelated services.

5
1.4 Make justified recommendations for the improvement in customer relationship
management for the selected organization
According to scribd.com (2014) in Hyundai Motors Private Limited - Many organizations
operating in automobile market still do not differentiate their CRM activities at the segment
level. They contact each prospect with the same Frequency instead of applying a level of effort
consistent with the cost of acquisition and profit potential. Their unrefined use of resources not
only leads to wasted investment but can cause annoyance among customers who are either being
oversupplied or undersupplied with attention.

Companies keep the name of financing company as the owner of the vehicle and in many
cases does not have the record of effective owner of vehicle who was responsible for the
purchase decision.

Automobile industry must learn much from other service industries such as airline industry.
Each time a customer approaches a service agent, his entire history was flashed on screen.

Customer knowledge can be used to give customer specific offer on purchase of second
vehicle in family.

Services such as pick and drop, on-road service, should be provided at HYUNDAI service
station, which are common in other companies.

6
Conclusion
According to Christian Grnroos (1996) in Relationship marketing: strategic and
tactical implications- The definition of the relationship marketing is to identify and establish,
maintain and enhance and, when necessary, terminate relationships with customers and other
stakeholders, at a profit so that the objectives of all parties involved are met; and this is done
by mutual exchange and fulfilment of promises. These goals are properly in most of the
marketers agenda in such a rapidly changing market today. Not like the period of 1950s,
consumers are now exposing in overflowed information through Internet, instant
communication channels and uncountable media. Traditional marketing strategy is no longer
sufficient to couple with consumers need so that the relationship marketing could be one of the
possible ways to fill this up by well managing of relationships.

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3.1 Describe the use of the extended marketing mix in a selected service sector business
Hampton

Marketing mix

Product

Hampton offers accommodation facilities. It provides a variety of complimentary services such

as hot breakfast, Wi-Fi facilities, free parking at some hotels, bathroom amenities, free local
calls, free in-room movie channels and other amenities such as irons/ironing boards, coffee
makers, microwaves etc. For breakfast, it offers a complete buffet with various food options.
The Hampton Inn and Suites also offer Jacuzzis and pools at all their hotels. The product levels
can be identified as follows:

Core product - providing accommodation

Actual product - Providing comfortable, and convenient accommodation at an affordable price

Potential product - Convenient check in, Hilton Honours reward points, complimentary hot
breakfast, WI-FI access and in room movies

Price

Hampton offers the amenities and services of a four star hotel at half the price. It offers early
bird discounts and special rates for Hilton Honour customers in gratitude for loyalty. The hotels
price their offerings to appeal to the mass market whilst maintaining the image of their parent
company: Hilton.

Place

All Hampton hotels are located in convenient places or near points of interest like airports. Most
Hampton hotels are located in the vicinity of bars, restaurants and cafes for the convenience of
customers. The hotels also offer shuttle services to close by places to help guests to get about.

Promotions

Hampton mainly uses TV advertisements and online advertisements to promote its services.
The famous waffle advertisement has won the hearts of many audiences. In order to manage
occupancy levels, it uses the Hilton Honours programme and offers good deals based on reward
points.

Process
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Hampton Inn and Suites has made all their processes simple. They add value to the customer
by providing quick check in, late check in and simple methods which are easy to understand
and follow. They provide a clause in there bookings which allows customers to refuse payment
if they are not 100% satisfied. This clause not only communicates the confidence that Hampton
has on itself, but it also communicates the service standards that customers can expect.

People

Most of the Hampton Inn and Suite hotels are equipped only with a very small employee base.
However, they make sure that their entire staff is trained on both soft and hard skills. They are
given extensive training on doing their job as well as on being courteous, polite and helpful to
guests. They are taught and motivated to customise their services to each and every guest.
Hampton Inn and Suites offer complimentary breakfast to their guests. In any of their average
hotels, the entire kitchen is staffed by only 2 well trained people who provide an exceptionally
good, hot breakfast.

Physical evidence

Hampton Inn and Suites aims to offer more than what is expected from a hotel or an Inn of its
class. Most of its hotels are new and furnished lavishly with modern fixtures and fittings. The
hotels do not limit its services to providing accommodation; instead, they provide comfort,
convenience and quality service. Hampton Inn and Suites makes cleanliness a priority. They
guarantee that all bed linen is changed after each guest and even during a stay, if requested.

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3.2 Explain how the product/service mix can be used to enhance value for the customer
and organisation
According to Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the
Value of a Customer Organization -An organization's value can be enhanced by continually
improving how it meets the needs and wants of its customers. Its product mix is a key tool in
this effort. Consisting of the full array of a firm's marketplace offerings, the mix is designed in
terms of width, depth, positioning and product characteristics.

According to Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the
Value of a Customer Organization -Adding Width- The width, or breadth, of a product mix is
a measure of how many different types of products the organization offers. Each type is called
a product line, and every line is distinct from the others in terms of its use by customers and
what benefits people seek from it. For example, a fruit-processing company might sell lines of
jam, juice and pie fillings. To enhance the firm's overall value to its customers, marketers could
add width to its product mix with a new line of fruit-based sauces.

According to Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the
Value of a Customer Organization -Adding Depth- The depth of a product mix refers to the
number of distinct items in a product line. For example, the fruit-processing firm's line of pie
fillings might include apple, cherry and strawberry; it could be deepened further with sugar-
free varieties. Adding depth to a line is a common means of attracting customers with different
tastes and better satisfying existing customers' desires for variety. This strategy can also help
the firm take advantage of economies of scale in production, distribution and marketing.

According to Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the
Value of a Customer Organization -Positioning- Positioning refers to people's perceptions of a
brand, an individual product or a product mix. A company with a wide product mix is generally
perceived as more of an expert in the industry than a competitor with only one line. On the other
hand, a firm with a narrow product mix could be positioned as a boutique marketer of highly
specialized goods. Sometimes the firm can enhance its value by repositioning its product mix.
For example, a maker of dry soup mixes could reposition its array of offerings as flavourings
for casseroles and stews.

According to Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the
Value of a Customer Organization -Product Characteristics- The value of an organization's
product mix to its customers is often centred on three product characteristics: quality,

10
functionality and style. Quality refers to the brand's dependability or durability. A product's
functionality is a measure of how effectively, safely and conveniently it performs and delivers
promised benefits. Style is based on cosmetics and aesthetics, like colour, texture or smell.
Improvements on any or all of these dimensions can better satisfy value-conscious buyers and
significantly enhance the firm's competitive strength.

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3.3 Explain how difficulties peculiar to the marketing of services can be overcome with
reference to a particular organisation

In my opinion difficulties in marketing can be solved by applying strategy - one of them

is SWOT Analysis and the company is Nokia. The method is a way to better explore the
strengths, weakness, opportunities and threats for Nokia.

Strengths- One of Nokias main strengths is in its brand. Before the mobile phone
market was side-lined due to changing market trends, Nokia has been one of the most
respected and well-known companies in the mobile phone market
Weaknesses - Nokia is having difficulties catching up with the changing customer
trends; it is lagging with introducing innovative products.
Opportunities- The main opportunity for Nokia is in its partnership with Microsoft.
Threats- Nokia is facing a huge competition in the Smartphone market from Samsung,
HTC and Motorola. In the high end, costly mobile segment the company is facing
Apples IPhone and RIMs Blackberry. Nokia has played the role of a market follower
and has lost time in the Smartphone market with developing and repairing its strategy.
Nokia has switched from Symbian software to Windows phone, which confused
customers and made it hard for the company to deliver its message and build awareness
in the market.

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3.4 Explain the role of IT in services marketing management in a selected organization

According to slideshare.net (2014) in ROLE OF INFORMATIONTECHNOLOGY IN

MARKETING: There is a significant role of information technology in todays business world
and in marketing management in improved productivity and major cost saving.
Better customer relationship management.
Helped to solve major problems related to customer services like customer loyalty and
customer satisfaction
ROLE OF INFORMATIONTECHNOLOGY IN MARKETING

CRM- (Customer Relationship Management) is an information industry term for

methodologies, software, and usually Interne capabilities that help an enterprise manage
customer relationships in an organized way. Providing customer information to
employees to help them build effective relationships between the company, its customer
base and its distribution partners.
DIGITAL MARKETING- is the practice of promoting products and services using
digital distribution channels to reach consumers in a timely, relevant personal and cost-
effective manner
INTERNET MARKETING- is the process of growing and promoting an organization
using online media. Internet marketing does not simply mean building a website or
promoting a website. Somewhere behind that website is areal organization with real
goals. e.g. Amazon.com., Dell.com
MOBILE MARKETING- The ability to reach a specific target audience. Information
about how the user responded to a marketing message. Proof that a message has been
received by the users handset.

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LO4

Introduction
According to Kalpeshkumar L Gupta and Sujo Thomas (2014) in Legal and Ethical
Issues in the ever-changing marketing environment-. In a rapidly evolving marketing
environment, the demarcation of legal and ethical issues have a thin line at the base that
ultimately turns out be ambiguous to a marketer since he is more interested in the functional
side of the mundane activities of the business. The legal and ethical issues turn to be very
important for any marketer due to abundant choices, while facing fierce competition in the
existing business environment and therefore it becomes crucial for a marketer to adhere to the
corporate values solidly based on a moral judgment. Ethical and legal matters for a marketer
are always both simple and complex because it always has a bearing on the way one approachs
towards a frame of reference.

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4.1 Explain some of the current issues of ethical and social concern to marketers in a
particular industry
Cultural Issues

According to Carlson, P. Blodgett, M. (1997) in International Ethics Standards for

Business- The word culture is perceived in different ways. At the level of ordinary
consciousness, as a set of manners and customs, and among cultural studies and sociology, in
accordance with the definition of culture as a specific way of organization and development of
human life, represented in the product's material and spiritual work in the system social norms
and institutions, spiritual values, in the aggregate people's attitudes to nature and each other and
to ourselves. Understanding the culture is possible only through the human activities, the
peoples living on the planet. It was originally connected with a person and is generated by the
fact that he constantly strives to find meaning in their life and work and, conversely, no society
or social group, or a person without culture, without culture. This same culture acts as a measure
of implementation and development of human nature in its social activities as the measure of
man. The international business and economics for all consequent benefits become a global
problem. Companies are increasingly becoming international, and business schools are
increasingly emphasized the requirement to internationalize the views of managers. From the
point of existing organizations, this means the need to consider differences in national cultures.
Business goes beyond national boundaries, drawing into its orbit more and more people from
different cultural viewpoint. As a result of cultural differences begin to play an increasing role
in organizations and stronger influence on the marginal efficiency of business activities
(Maddox, 1993). The contradictions at work in the new social and cultural conditions occur
because of differences in thinking patterns between groups of people.

Ethics in International Business

According to Carlson, P. Blodgett, M. (1997) in International Ethics Standards for

Business Business ethics often appears in the news about financial and accounting scandals,
frauds; industrial and environmental disasters, and abuses by companies and their executives,
or workers. This is responsible for direct damage to consumers, workers, savers, investors,
government, environment, etc. Business ethics is the attempt to subdue criticism of these
institutions ubiquitous, whose owners, managers or governing bodies wield immense power of
dubious legitimacy. Currently, business ethics has been partially accepted between science and
management techniques or business administration internationally. The approach based on
personal ethics of managers and their moral dilemmas, dominant in the seventies and eighties

15
has given way to an approach based on the organization and its challenges as a legitimate
member of society. Thus, the term "corporate social responsibility" or "entrepreneur" is a
reference for ethical reflection on what can an organization do for its profits and how to relate
to society. Indirectly, this idea may suggest what moral obligations are for managers,
employees, customers and consumers, governments and other actors involved or associated
with international business. In the discussion of business ethics, we often hear about corporate
responsibility in connection with the environment of the country where the business is
established and operates. For example, chemical and manufacturing companies are usually
under pressure to pay attention to social responsibilities. It should be noted, among other things,
the selective pressures that are generally targeted at business when all people and all activities
actually have moral responsibility. The responsibility should be placed in evidence whenever
there is an injury to rights in any area concerned.

16
4.2 Explain the concept of CSR with reference to a particular organization
According to Samsung (2013) in All about Samsung - The company that I have chosen
to analyse is Samsung Electronics (Samsung) in particular. Samsung, established in 1969, is a
South Korean Multinational Company (MNC) headquartered in Suwon and is the flagship
company of the Samsung Group. The company is a global giant operating in over 61 countries
(190,000 employees) with products including computers, digital televisions, liquid crystal
displays, mobile phones and more.

According to Carroll, A.B., (1979) A Three Dimensional Conceptual Model of

Corporate Performance. The Academy of Management Review- A number of frameworks can
be found regarding what makes an effective CSR audit. Carroll (1979) categorized four motives
embodied behind business actions: economic, legal, ethical, or discretionary/philanthropic.
This four-part framework can be used to identify the reasons behind corporate actions. He
later advanced his Four-Part categorization into The Pyramid of Corporate Social
Responsibility, which assists managers to gain a better understanding of what society expects
from the business. This framework has been widely used to define and explore the concept of
CSR.

17
4.3 Evaluate the role played by a selected pressure group in influencing ethical and
social marketing policies for a selected organization.
According to Kalpeshkumar L Gupta and Sujo Thomas (2014) in Legal and Ethical
Issues in the ever-changing marketing environment, Ethics are regarded as moral guidelines,
which govern decent behaviour. Being moral in business is majorly regarded as the best
business practices. An ethical decision on one hand is both legal and on other hand meets the
shared ethical standards of the community from the broader perspective. Jan Mattsson (2008)
talks about the True Marketing and has explained in his paper as to how unethical practices of
the company damage the companys brand name quoting the example of the Nikes case of
employment of children in the company under bad work conditions.

18
Conclusion
According to Kalpeshkumar L Gupta and Sujo Thomas (2014) in Legal and Ethical
Issues in the ever-changing marketing environment- On one hand, making a right ethical choice
is not that easy in marketing but on other hand, continued compliance of ethics is even far more
difficult. The marketers have to be provided with meticulous tools to assess the legal and ethical
implications of a marketing strategy and the best way to do is outright development of proactive
compliance programmes.

19
Reference
essay.uk.com (2014) in Relationship Marketing [Online] Available from:
http://www.essay.uk.com/free-marketing-essays/relationship-marketing-free-essay.php
[Accessed: 7 January 2014]

H.Gebert (2003) in Journal of Knowledge Management [Online] Available from:

http://scholar.google.com/scholar_url?url=http://www.alexandria.unisg.ch/export/DL/Walter_
Brenner/204905.pdf&hl=bg&sa=X&scisig=AAGBfm3EsoTTfvO2OzvHjMmcsYwhWf5Ddg
&oi=scholarr&ei=j52uVOmFLIirUbfUgfAE&ved=0CB8QgAMoAjAA [Accessed: 7 January
2014]

http://bmsrockstar.tumblr.com (2014) in Define Customer Relationship Management (CRM)

[Online] Available from: http://bmsrockstar.tumblr.com [Accessed: 7 January 2014]

http://santafemods.com (2014) in History of Hyundai [Online] Available from:

http://santafemods.com/History/History%20of%20Hyundai.htm [Accessed: 7 January 2014]

humblehyundai.com (2014) in Hyundai Benefits- [Online] Available from:

http://www.humblehyundai.com/Humble-Hyundai-Benefits.html [Accessed: 7 January 2014]

scribd.com (2014) in Hyundai Motors Private Limited [Online] Available from:

http://www.scribd.com/doc/60270498/Term-Paper-Crm-of-Hyundai-Motors-Private-
Limited#scribd [Accessed: 7 January 2014]

Christian Grnroos (1996) in Relationship marketing: strategic and tactical implications

[Online] Available from: http://scholar.google.com/citations?user=Dv1aQLoAAAAJ&hl=en
[Accessed: 7 January 2014]

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Amy Handlin (2014) in How a Product Mix Can Be Used to Enhance the Value of a Customer
Organization [Online] Available from http://www.ehow.com/info_8467116_product-enhance-
value-customer-organization.html [Accessed: 7 January 2014]

slideshare.net (2014) in ROLE OF INFORMATIONTECHNOLOGY IN MARKETING [Online]

Available from: http://www.slideshare.net/prahladgurjar/role-of-it-in-marketing [Accessed: 7
January 2014]

Kalpeshkumar L Gupta and Sujo Thomas (2014) in Legal and Ethical Issues in the ever-
changing marketing environment [Online] Available from:
https://www.academia.edu/2558278/Legal_and_Ethical_Issues_in_Ever_changing_Marketing
_Environment [Accessed: 7 January 2014]

Carlson, P. Blodgett, M. (1997), International Ethics Standards for Business: NAFTA, CAUX
Principles and Corporate Codes of Ethics; Review of Business, Vol. 18, (pg.89-95)

Samsung, (2013) About Samsung. [Online] Available from

http://www.samsung.com/us/aboutsamsung/sustainability/sustainablemanagement/samsungva
luecodeofconduct/samsungvaluecodeofconduct.html [Accessed: 7 January 2014]

Carroll, A.B., (1979) A Three Dimensional Conceptual Model of Corporate Performance. The
Academy of Management Review, Vol. 4 (4), pp. 497-505

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