Holistic Marketing

CHAPTER 1 INTRODUCTION

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1.1

COMPANY PROFILE

Aggarsain Fibers Ltd, state of art spinning mill came into operation in the year 2007.We are based in Punjab, one of the major cotton producing province in India. Our proximity to cotton producing area helps us in keeping a constant vigil on cotton quality and consistent supply of quality cotton. WE are a public limited company. In a shot span of 4 years since its inception and backed by robust quality systems and modern manufacturing technology, Aggarsain Fibers Ltd. has earned the reputation of reliable supplier of quality yarns all over the globe. Highly contended and wide spread customer base of ours is a testimony to our quality and service commitements. Business Type Year Established Products Exporter,

Supplier

Manufacturer

Exporter / Manufacturer / Supplier 2007 and Cotton yarn, spin yarn, spinning mills, dhagga mill

CONTACT INFORMATION

Company Name

AGGARSAIN FIBERS LTD.

Address

BHAWANIGARH ROAD, Samana - 147101, Punjab, India

Phone No

91-1764-225642/91-1672-272015

Fax

91-1764-225642

Contact Person

Mr. RAJESH BANSAL (DIRECTOR)

Mobile

+919888861044

1.2 INTRODUCTION 2

Holistic marketing is a simple way of describing all the ways your company communicates. It means a business needs to consider everything from the signage on the company’s door to the homepage of their web site as well as the type of message that needs to be sent across to the customer and how to do that same. The more touch-points a company effectively uses to reach potential customers, the more likely they are to earn their respect and receive their business. Few of these touch-points are mentioned below: •

Brand strategy and develo3pment

•

Image building

•

Logos and identity

•

Advertising

•

Newsletters

•

Direct mail

•

Brochures and collateral

•

Web-site

•

Event marketing and trade shows

•

Word of mouth tactics

•

Public relations

“The aim of marketing is to make selling unnecessary.” By: - Peter F. Drucker "We know that in three years you will lose half your customers who are satisfied. Being just satisfied

though

doesn't

hold

on

to

customers,"

Mr.

Philip

Kotler

explains.

"So maybe, the companies need to think about their marketing more holistically. There is no hard evidence that consumers will choose more ethical, social responsible companies over others that for example offer a low price. However, holistic marketing approach can be a differentiator in a market where companies are similar in price, quality, utility, etc.”

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Since the web is a relatively new media, we need to know what a holistic marketing plan is all about. Holistic plans integrate the best of traditional marketing strategies and media buys with the more recent and fast growing e-marketing components. In order to deliver a comprehensive marketing plan, one needs to know not only the traditional marketing metrics and criteria for visual aid testing, focus groups, demographic spreads, direct mail programs, etc., but it is equally and perhaps more important to understand that each of these elements is mirrored on the web but with important differences that are •

The web is a different culture than traditional media; it is fluid i.e. it is always changing and fast. It is an interactive environment in which consumers have very different expectations than with traditional media. While it is true that conceptually there are similarities in marketing strategies in the two worlds, the execution, measurement and verification in the e-marketing world requires a different set of understandings. This perspective provides the first step toward delivering a clear, well-executed holistic marketing plan.

Holistic marketing is a combination of selling with integrity, using your heart, mind, intuition and soul experience to promote your business. It sounds like another buzzword but the principle is an important one for any business.Holistic marketing simply means a whole marketing process. That's everything from initial image to after-sales materials. It requires the company to stop and think about how existing and potential customers view its brand, identity, staff, presentation, stationery, products, packaging and support? Successful companies make sure the overall image is seamless, to reinforce the brand and keep the customer involved. Holistic is one of those words that means considering a whole thing or being more than a collection of parts. Holism (from Holon, Greek for entity) is the idea that the properties of a system cannot be determined or explained by the sum of its components alone. The word, along with the adjective holistic, was coined in the early 1920s by Jan Smuts who defined holism as "The tendency in nature to form wholes that are greater than the sum of the parts through creative evolution."

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THE HOLISTIC MARKETING CONCEPT

A whole set of forces that appeared in the last decade call for new marketing and business practices. Companies have new capabilities that can transform the way they have been doing marketing; they also need a more complete, cohesive approach that goes beyond traditional applications of the marketing concept. The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing—and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and social responsibility marketing (see Figure 1.2). Holistic marketing is thus an approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities.

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RELATIONSHIP MARKETING

Relationship marketing has the aim of building mutually satisfying long-term relationships with key parties—customers, suppliers, distributors, and other marketing partners—in order to earn and retain their business. Relationship marketing builds strong economic, technical, and social ties among the parties. This involves cultivating the right kind of relationships with the right constituent groups. For marketing, key constituents are customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts). The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network. A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationships. Increasingly, competition is not between companies but between marketing networks, with the prize going to the company that has built the better network. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow. The development of strong relationships requires an understanding of the capabilities and resources of different groups, as well as their needs, goals, and desires. A growing number of today’s companies are now shaping separate offers, services, and messages to individual customers. These companies collect information on each customer’s past transactions, demographics, psychographics, and media and distribution preferences. They hope to achieve profitable growth through capturing a larger share of each customer’s expenditures by building high loyalty and customer lifetime value. Now that BMW, for example, allows buyers to design their own vehicles from 350 variations, 500 options, 90 exterior colors, and 170 trims, up to 30 percent of its U.S. customers and up to 80 percent of its European customers are doing so. Such rich, multifaceted relationships with key constituents create the foundation for a mutually beneficial arrangement for both parties.

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INTEGRATED MARKETING

With integrated marketing, the marketer’s task is to devise marketing activities and assemble marketing programs that maximize the ability to create, communicate, and deliver value for consumers. Marketing activities come in all forms. One traditional depiction of marketing activities is in terms of the marketing mix, which has been defined as the set of marketing tools the firm uses to pursue its marketing objectives. McCarthy classified these tools into four broad groups, which he called the four Ps of marketing: product, price, place, and promotion (see Figure 1.3). Marketing-mix decisions must be made for influencing the trade channels as well as the final consumers. Figure 1.4 shows the company preparing an offering mix of products, services, and prices, and utilizing a communications mix of advertising, sales promotion, events and experiences, public relations, direct marketing, and personal selling to reach the trade channels and the target customers. The firm can change its price, sales force size, and advertising expenditures in the short run. However, it can develop new products and modify its distribution channels only in the long run. Thus the firm typically makes fewer period-to-period marketingmix changes in the short run than the number of marketing-mix decision variables might suggest. The four Ps represent the sellers’ view of the marketing tools available for influencing buyers. From a buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers’ four Ps correspond to the customers’ four Cs.

Four Ps

Four Cs

Product

Customer solution

Price

Customer cost

Place

Convenience

Promotion

Communication

Winning companies will be those that can meet customer needs economically and conveniently and with effective communication.

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Two key themes of integrated marketing are that (1) many different marketing activities are employed to communicate and deliver value and (2) all marketing activities are coordinated to maximize their joint effects. In other words, the design and implementation of any one marketing activity is done with all other activities in mind. Businesses must integrate their systems for demand management, resource management, and network management.

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INTERNAL MARKETING Holistic marketing incorporates internal marketing, ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management. Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Smart marketers recognize that marketing activities within the company can be as important as, or even more so than, marketing activities directed outside the company. It makes no sense to promise excellent service before the company’s staff is ready to provide it. Internal marketing must take place on two levels. At one level, the various marketing functions —sales force, advertising, customer service, product management, marketing research—must work together and be coordinated from the customer’s point of view. At another level, marketing must be embraced by the other departments, who must also “think customer.” In fact, marketing thinking must be pervasive throughout the company. Xerox goes so far as to include in every job description an explanation of how that job affects the customer. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. Xerox accountants know that customer attitudes are affected by Xerox’s billing accuracy and promptness in returning calls. One of the most valuable skills marketers can have is the ability to select, educate, and rally people inside the organization so all employees enthusiastically help to build satisfying and profitable long-term relationships with customers. Internal marketing starts with the selection of managers and employees who have a positive attitude toward the company, its products, and its customers. The next step is to train, motivate, and empower the entire staff so they have the knowledge, tools, and authority to play their roles in delivering value to the customer base. After establishing standards for employee performance, the final step is to monitor employee actions and reward good performance—then continue the cycle of internal marketing through ongoing communication, motivation, and feedback. Developing internal marketing skills takes planning, time, and perseverance. Not every communication or motivation attempt will successfully influence every employee, just as not every advertisement or sales call will successfully influence every customer. Nor is internal

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marketing going to be effective if it is treated as a slogan or passing fad. When internal marketing really works, however, it can help propel a company to the top of its industry. For example, internal marketing is a key strength at Southwest Airlines, where top management pays close attention to recruitment and training, internal communication, and workforce motivation. The CEO and president constantly visit different Southwest facilities, thank employees for their efforts, send birthday cards to employees, and share customer comments with employees. Southwest’s employees deliver superior service with a smile, and they are so dedicated that some have worked without pay to keep the airline’s costs down during difficult periods. Clearly, Southwest’s managers are good role models for learning to apply the critical skill of internal marketing.

SOCIAL RESPONSIBILITY MARKETING

Holistic marketing incorporates social responsibility marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. The causes and effects of marketing clearly extend beyond the company and the consumer to society as a whole. Social responsibility also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society? Fast-food chains, for instance, have been criticized for offering tasty but unhealthy meals. Recognizing these criticisms, companies like McDonald’s have added healthier items, such as salads, to their menus and have introduced environmental initiatives, replacing polystyrene foam sandwich clamshells with paper wraps and recycled materials. McDonald’s has even ordered its meat suppliers to eliminate the use of antibiotics that are also given to humans, specifically when those drugs are used to make animals grow faster. “We saw lots of evidence that showed the declining rate of effectiveness of antibiotics in human medicine,” says McDonald’s senior director of social responsibility. “We started to look at what we could do.” Situations like this one call for a new term that enlarges the marketing concept. We propose calling it the societal marketing concept, which holds that the organization’s task is to determine 10

the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the well-being of both consumer and society. The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest. Yet a number of companies, including Ben & Jerry’s, have achieved notable sales and profit gains by adopting and practicing a form of the societal marketing concept called cause-related marketing. Pringle and Thompson define this as activity by which a company with an image, product, or service to market builds a relationship or partnership with a “cause,” or a number of “causes,” for mutual benefit.”28 Companies see cause-related marketing as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase media coverage. They believe that customers will increasingly look for signs of good corporate citizenship that go beyond supplying rational and emotional benefits. Avon, for instance, is the largest corporate supporter of the drive to find a cure for breast cancer, having generated more than $350 million since its first program in 1992.

THE HOLISTIC MARKETING TEAM IS REPRESENTED BELOW:

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As a result of the changes in media environment, the successful marketing team is no longer the same. E-marketing is technology driven, and market based technologies are the wave of the present and the future. A holistic marketing team is now required to address the complex issues of marketing on the web in conjunction with conventional media. This team consists of real time interaction between media developers, web masters, marketers, project managers, Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) intra-organizational systems, and the management team. Each of these individuals brings a piece of a necessary interactive discussion to the table. The holistic marketing team is thus consisting of members from the marketing team, marketing research team, copywriter team and the designing team. Holistic marketing approach has led many organizations from barely surviving to thriving. Marketing is a widely misused term in the world of business. Sometimes it connotes little more than glib salespeople, fancy brochures, and catchy slogans. Other times, it describes plans to sell more memberships or publications. Rarely is it used in its fullest sense - as a pervasive strategy that colors everything an association does. This approach is what can be termed as the concept of holistic

marketing.

Holistic marketing recognizes that the organization's sales and revenues are inextricably tied to the quality of each of its products, services, and modes of delivery and to its image and reputation among its constituencies. The organization markets itself through everything it does, its substance as well as its style. It is that all-encompassing package that the organization then sells.

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EMERGENCE OF HOLISTIC MARKETING

Traditional Advertising is not dead, but its role has to be revisited and situated appropriately in a comprehensive and holistic marketing mix. Even companies and their agencies that redeploy the traditional advertising 'broadcast mentality' and think they should give people 'brand' experiences will get also tripped up. People are savvy. No one wants a 'brand' experience. The Unilever Institute of Marketing points out those two thirds of all economic activity are sparked by the influence of others. It's a clarion call to marketers to deepen their understanding and lift their efforts to identify, actively engage and empower people.

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The above graphic is a representation of what we mean by traditional marketing. It used to consist of: •

Understanding value

•

Creating value

•

Delivering value

The old days were simple, when and where there used to be a need or a requirement creation, companies used to look for methods to fulfill that requirement. It basically initiated from need analysis and hence was based on customer’s utility. Once the onsumer base was decided the product was conceived and developed The above graphic is representative of the changing face of the need of marketing in businesses today. Initially marketing used to have quarter of the share along with Human Resources, Operations and Finance. Later on, the quarter share increased and marketing’s importance came to the forefront. At the third stage of marketing’s need and development, it became the central focus amongst the other business dimensions.

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Then came the time when the consumer became king and all the dimensions of business started being based around the consumer. Today, the consumer still retains it KING position and marketing shares the major share of the business importance pie. The changes in the organizations orientation towards the market can be shown follows:

What started as a production concept and concentrated on low cost mass production then shifted gears and changed o the product concept that focused on the product features and utilities. Then came - the time of selling concept - that focused on profits through high volume sales. The marketing concept preceded the selling concept and was based on earning profits through customer’s needs satisfactions. Many marketing executives probably think that the success of companies such as Dell has everything to do with their enviable ability to innovate because they are selling technologically innovative products in this technological age.

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Business has relied on innovation to corner the market with new products and services for decades. Now, with a definite intensification in global competition, marketing executives are learning that bringing a stream of innovative products to market does not enable them to uniquely position and differentiate their companies from their competitors. There are myriad examples of knock-offs out there. Think of a category such as cell phones. How many have similar, if not identical, features? Basing corporate brand positioning and differentiation on innovation is no longer an effective strategy. While companies like Dell are extremely adept at building innovation into new products, there must be something deeper that drives these brands. For example, Apple consistently demonstrates that its customers have an absolute passion for the brand. In international business circles, marketing experts have long admired the kind of brand passion that Apple commands from its customers, who are truly devotees. The following diagram represents the change is focus from the selling concept to the marketing concept.

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The changes from selling concept to marketing concept later on led to the emergence of various new marketing strategies. Amongst these marketing strategies, Holistic Marketing came to the forefront because it encompassed all that there was to create and fulfill the needs of the consumers to the fullest. Holistic Marketing is thus a combination of selling with integrity, using your heart, mind, intuition and experience to promote one’s business. It is a principle, which is an important one for any business. Thus, the emergence of Holistic Marketing started from the evolution of new and varied marketing strategies.

HOLISTIC MARKETING FRAMEWORK The holistic marketing framework enables management to answer the following questions. •

How can a company identify new value opportunities?

•

How can a company efficiently create more promising new value offerings?

•

How can a company use its capabilities and infrastructure to deliver the new value offerings efficiently?

Because markets are dynamic and competitive, management needs a well-defined strategy for value exploration. Developing such a strategy requires understanding the connections and interactions among three spaces: the customer's space, the company's competency space, and the company’s resource space. To exploit a value opportunity, the company needs value creation skills. Marketers need to identify new customer benefits from the customer's cognitive space, utilize core competencies from its business domain, and select and manage business partners from its collaborative network. To be able to deliver value requires substantial investment in infrastructure and capabilities. The company must become proficient at customer relationship management, internal resource management, and business partnership management. Customer relationship management allows the company to discover who its customers are, how they behave, and what they need or want. It

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also enables it to respond appropriately. To respond effectively, the company requires internal resource management.

CRAFTING THE COMPETITIVE PLATFORMS The four building blocks in the holistic marketing framework constitute a strategic foundation for crafting four key competitive platforms for establishing corporate and business strategies. 1. Market offerings platform: The first set of basic building blocks - cognitive space, competency space, customer benefits and business domain - gives management strategic insight for developing market offerings. 2. Business architecture platform: The next set of basic building blocks - competency space, resource space, business domain and business partners - guides management in reconfiguring the business architecture, which is made up of several value chains. 3. Marketing activities platform: The next set of basic building blocks - customer benefits, business domain, customer relationship management and internal resource management - helps management formulate its marketing activities to support the market offerings.

DESIGNING HOLISTIC MARKETING ACTIVITIES Brands are not built by advertising alone. Customer comes to a brand through a range of contacts and touch points: personal observation and use, word of mouth, interactions with company personnel, online or telephone experiences, and payment transactions. A brand contact can be defined as any information bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer’s product or service. Any of these experiences can be positive or negative. The company must effort into managing these experiences as it does in producing its ads. The strategy and tactics behind marketing programs have changed dramatically in recent years. Marketers are creating brand contacts and building brand equity through many avenues, such as 18

clubs and consumer communities, trade shows, even marketing, sponsorship, factory visits, public relations and press releases, and social cause marketing. To market its cereals, General Mills supplemented traditional advertising and promotion with, among other things, a family themed entertainment-based retail destination, Cereal Adventure, inside Minneapolis’s Mall of America, the world’s largest shopping mall. Regardless of the particular tools or approaches they choose, holistic marketers emphasize three important new themes in designing brand-building marketing programs: personalization, integration, and internalization.

JONES SODA Peter van Stolk founded Soda on the premise that Gen Y consumers would be more accepting of a new soft-drink brand if they felt discovered it themselves. Jones Soda initially was sold only in shops that sell surfboards, snowboards, and skateboards. The Jones Soda Web site encourages fans to send in personal photos for possible use on Jones Soda labels. Although only may be 40 or so are picked annually from the tens of thousands of entries, the approach helps to create relevance and an emotional connection.

INTEGRATION One implication of these new marketing approaches is that the traditional “marketing-mix‿ concept and the notion of the 4 Ps”, may not adequately describe modern marketing programs. Integrating marketing is about mixing and matching marketing activities to maximize their individual and collective effects. As part of integrated marketing, marketers need a variety of different marketing activities that reinforce the brand promise. The Olive Garden has become the second-largest casual dining restaurant chain in the United States, with $2 billion in sales and over 500 restaurants, in part

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through a fully integrated marketing program. Strategies that really work, according to Mr. Philip Kotler: 1. Cost reduction - be the company, which finds a way to make something more affordable and good value. Examples: Knockdown furniture business Ikea. Southwest Airlines, WalMart, Rent-a-Car 2. Improved customer experience – More and more emphasis at creating a better experience for customers. Examples: Starbucks, Harley Davidson (who have also gone into apparel, pens, restaurants, clubs.) 3. Highest product quality – The best way to create more and more customers is by keeping improving and being high on quality too. Examples: P&G, Toyota 4. Innovative business model - Examples: Barnes & Noble, Charles Schwab discount brokerage, FedEx Barnes & Noble were one of the first bookstores to provide tables and chairs, to have lectures from authors at night - a new business model. 5. Product Innovation – Products today need to be based on technological breakthroughs and advanced customer needs. Examples: Apple iPod, Swatch watches. 6. Design - Brands which have added aesthetics for differentiation, style along with looks, and their 'themes' have been thought through from the users point-of-view, are the ones that do extremely well. Examples: Bang & Olufsen, Samsung.

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DOES HOLISTIC MARKETING EXIST TODAY?

HOLISTIC RELATIONSHIP MARKETING FRAMEWORK

1) Who is involved? CUSTOMERS

MARKET SPACE

POTENTIAL OPPORTUNITIES

BUSINESS INVESTMENT

CORPORATION

COLLABORATORS

2) How can we define relevant market space?

3) What are the potential opportunities emerging from the market space?

4) What business capabilities and infrastructure required? CUSTOMER CORE FOCUS COMPETENCIES Printed on CANON

COLLABORATIVE NETWORK

Based on all the evidence we can safely state that holistic marketing have more relevance today than in the earlier days. This marketing strategy involves the customers, the organization as well as the employees in the organization. The 4-point structure of today’s holistic marketing approach can be stated as follows: 1. Who is involved? 2. What are the relevant market spaces? 3. What are the potential emerging opportunities? 4. What are the business capabilities and infrastructure required?

FACTORS CAUSING EMERGENCE OF HOLISTIC MARKETING Integrated Marketing or Multi-channel Marketing is growing trend in the Advertising Industry. This strategy plans marketing campaigns that use multiple mediums (i.e. Internet, TV, direct mail, etc.) with similar messages. The idea is for the target audience to see a consistent message 21

through a multiple of vehicles. The Holistic Marketing Approach takes this concept a step further by planning how each of these mediums will interact as well as build upon each other. Holistic Marketing grew from the basic marketing principles of business - each action by a company should contribute to the business goals. By approaching marketing, not as an isolated entity but as a synergic member of the company, marketing initiatives are more efficient and cost effective

allowing

for

the

highest

return

on

investment.

The days of a single campaign or medium standing alone is gone. A business cannot rely strictly on print, company collateral, or other media campaigns to successfully attract the target audience or prospective customers. In order to have a successful campaign, marketing professionals need to think from the top down, instead of the bottom up. At the highest level, marketing professionals need to strategize based on the business goals and tailor strategies and campaigns to use whatever medium that can best meet those goals with the highest return on investment at the lowest cost to the company.

COMMANDMENTS OF HOLISTIC MARKETING

The "Commandments" illustrate the difference between traditional concepts of brand awareness and the holistic concept that a brand or a product needs to express in order to become preferred. 1. From Consumers To People - Consumers buy, people live. In communication circles the consumer is often approached as the "enemy" who must be attacked. Terminology like "breaking down their defenses, decoding their language, and strategizing to win the battle" is still commonly used. 2. From Product To Experience - Products fulfill needs, experiences fulfill desires. Buying just for need is driven by price and convenience. A product or shopping experience, such as REI stores' rock climbing walls or the Discovery Channel stores' myriad of "sound zones" has added value and will remain in the consumer's emotional memory as a connection made on a level far beyond need. For established products to attract and retain consumer interest, it is critical that innovative retailing, advertising, and new product launches capture their imagination. 22

3. From Honesty To Trust - Trust is something else altogether. It is one of the most important values of a brand and it requires real effort from corporations. One of the most powerful moves toward building consumer trust was retailers' implementation of the "no questions asked" return policy some years ago in US. 4. From Quality To Preference - Quality for the right price is a given today. Preference creates the sale. Quality is a necessary offering if you want to stay in business; it is expected and had better be delivered. 5. From Function To Feel - The functionality of a product is about practical or superficial qualities only. Sensorial design is about experiences. Functionality can become trite if its appearance and usage are not also designed for the senses. Many marketers design for maximum function or visibility and not for the real experience of the consumer. 6. From Ubiquity To Presence - Ubiquity is seen. Emotional presence is felt. Brand presence can have quite an impact on the consumer. It can forge a sound and permanent connection with people, especially if it is strategize as a lifestyle program. There is hardly a stadium, a player uniform, a concert hall around the world that has not been used to promote a brand. And then, of course, there are the T-shirts, caps, mugs, and so on. 7. From Communication to Dialogue - Communication is telling. Dialogue is sharing. Communication, as conducted by many companies, is primarily about information-and information is generally a one-way proposition. Take it and like it-hopefully. The bulk of most budgets are still spent on advertising efforts that approach consumers with the B1 bomber approach: a massive, all-encompassing blanket advance at the target audience. From Service To Relationship - Service is selling. Relationship is acknowledgment. Service involves a basic level of efficiency in a commercial exchange. It is what allows or prevents a sale from taking place. But relationship means that the brand representatives really seek to understand and appreciate who their customers are. It is what you feel when you walk into a store and find that the music, the decor, and the salespeople all speak the same language-the customer's! So how are meaningful brand experiences created for the customer? They begin with the actual design of its products or services, and then extend to an overall design strategy, encompassing all of the corporate-to-customer

touch

points: communication

hierarchy,

packaging

of

23

products/services, the business's Web site, its letters and special offers to customers, call center interactions with customers, advertising, promotions and more. All of this, every part of a harmonious whole, creates a total customer experience. A positive experience at one touch point does not signify what we mean by "experiential" branding. Again, all of the customer touch points, if properly designed, aligned and managed in conjunction with the corporate brand, do.

AN EXAMPLE OF HOLISTIC MARKETING Holistic Marketing is the approach by which an entire marketing strategy is created and deployed keeping in mind all aspects of a business. What this means is that a company realizes that every interaction they have with a client needs to be managed and utilized to constantly lead the client experience. Here is an example of Holistic Marketing Online. This example uses a website that sells furniture. Initially, they write articles about decorating and room design to engage users interested in furniture. Then the site has a good search engine optimization so people find them in search results and then they go to relevant pages of the site. The site is made very usable and clearly navigable allowing users to find the products they want through many paths like room, style, material, type. Now that new visitors are using the site, an email marketing campaign should be focused on getting special deals out to past clients or clients who have requested newsletters or tips. Then one should think about affiliate marketing to grow the site’s reach. The site should be gotten into shopping portals. Once people have purchase products, one should include catalogs or other collateral with every product that ships out.

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The goal of holistic marketing is to support the company through every phase of the sales cycle in a consistent and strong messaging with actions at every step of the process. And so when we market holistically - we are do not just refer to the brand or marketing manager. We also refer to the advertising agency, the media placement agency, the online marketing agency, the sales, finance and HR departments, etc. In other words, all parties that are involved in opening the right doors to get the right lead for a business and then closing the deal. Ultimately it is the closed sale that signifies success. Everyone needs to be part of the plan. It's what we call holistic marketing. An approach that involves all players; a system based on partnerships where everyone has something to gain or lose by a campaign's success or failure. It all starts at the top. Top management (and yes, that includes the CEO and CFO) need to understand the requirements of their clients/customers.

Who all need to be involved in a holistic marketing campaign? •

Marketing - The process must start with the marketing department. These are the people who should know, live, breathe, eat, and smell the company's brand. To be able to do this, one needs to interact with the client. Directly, through focus groups, through desktop research, through e-mail campaigns.

•

Agencies - Are the companies that bring marketing strategies to life. These are advertising agencies, PR, online agencies. They put color to the canvas; use a creative approach that will 'talk' to prospective clients.

•

Sales - These are the people that close the deal directly with the client on a daily basis. They see the nuances and feel the changes in sentiment. These changes need to be fed back to the marketing department regularly. Communication may be a cliché, but it's vital.

•

Finance - Money is a hot topic for many people and if not dealt with sensitively, relationships can be severely hampered. Credit controllers should always be courteous - in all cases.

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•

Operations - Once the sale is made, the product must be installed, delivered, etc. If this is not done timorously, effectively and efficiently, what may have started of as a good experience for the client will quickly change.

•

Product Development - This needs to be a thorough process, developed for a defined audience with a defined need and then tested and retested. A marketer can have the most brilliant strategy and the best campaign, but if that product or service doesn't deliver, it will mean zero.

•

Customer Services - This department makes sure that new clients become valued, long-term clients. That clients' stay with the company by maintaining services levels and delivering on expectations. And service is as basic as returning calls - not three days

later,

but

immediately.

Following-up

and

following-through,

taking

responsibility and being accountable are all basics, yet magical tools. In short, no one area can be isolated or seen as being more important than another. Marketing needs to be owned, by the whole company and agencies. If all the details are not listed, ask, brainstorm and give ideas. Do what needs to be done to make it happen. But ultimately, base it on a solid strategic marketing communications plan.

HOLISTIC MARKETING ORIENTATION & CUSTOMER VALUE A holistic marketing orientation can also provide insight into the process of capturing customer value. One conception of holistic marketing views it as “integrating the value exploration, value creation, and value delivery activities with the purposes of building long-term, mutually satisfying relationships and co-property among key stakeholders.‿ According, to this view, holistic marketers succeed by managing a superior value chain that delivers a high level of product quality, service, and speed. Holistic marketers achieve profitable growth by expanding customer share, building customer loyalty, and capturing customer lifetime value. The holistic marketing framework is designed to address three key management questions: 1. Value exploration How can a company identify new value opportunities? 26

2. Value creation How can a company efficiently create more promising new value offerings? 3. Value delivery How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?

If you need evidence that we need a holistic approach to marketing, and business in general, you don't have to look any further than the Big Picture feature (Up Front) in the October 2, 2006 edition of Business Week. The feature pointed out the sad disconnect between what business leaders say and what they do. For those who didn't see it, a new survey revealed that managers tend to ignore their lower-grade workers when it comes to seeking their advice. According to the survey managers tend to want to collaborate

more

with

their

employees

the

more

educated

they

are.

Only 24% of those with a high school diploma or less say their bosses asked them for advice compared to 54% for college graduates. I wonder if there is a Bill Gates or Michael Dell somewhere in the 76% without a college degree who might be able to help. 27

As the feature points out, we tend to treat the folks who work hands-on with customers as if they are functionaries with little or no added value. It is astounding to me that the very ones we trust to work one-on-one with our customers are the same ones that we pay the very least and obviously, from this survey, don't bother to ask for help, advice or input either. If everyone in the organization started seeing themselves as part of marketing, started thinking about how they can create and communicate value to the customer then we would be a lot closer to maximizing the human potential available to us. Many of the solutions we are searching in vain for are locked up inside folks up and down the organization if we would only ask them.

INTERNATIONAL EXAMPLES OF HOLISTIC MARKETING Amazon is one example of how a business, even a Dot-com, can successfully use implement a holistic marketing campaign. As an Internet-based store Amazon does not have the luxury of foot-traffic of a traditional brick-and-mortar store. Amazon must be more creative and resourceful to develop customer loyalty and exposure to their target audience. By melding the traditional concept of direct mail with personalization by providing e-newsletters and personal recommendations notices send via email. This is taken a step further by mailing personalized promotions and referencing the email notice. Amazon is also using traditional direct mail catalogs and referencing them on their site in order to get retuning as well as new customers. Direct mail promotions and catalogs are not new concepts, but integrating messaging and referencing each medium enables Amazon to maximize their return on investment and develop a personal relationship with their customers. But how is Amazon a great example of Holistic Marketing? To see how Holistic Marketing can be adapted to this situation you need to look at the larger picture. •

What is the main business goal of Amazon? To become profitable and expand

•

How does the above marketing strategy fit into these business goals? In order for a business to become profitable it needs to develop a strong relationship with the customer and develop brand identity or loyalty. 28

•

How does a company do this? Personal attention and service.

•

How does a virtual store do this? By offering personalized services that appeal to the customer's preferences. Amazon does this by offering customized enewsletters, personalized recommendations, and promotions based on preferences or buying habits.

•

How can these ideas be reinforced? Use multiple mediums or touch points to reach the customer (i.e. email, e-newsletter, and mailer).

BMW’s big idea - they wanted to link their cars to action and excitement so they used top directors such as Guy Ritchie, Ang Lee, Tony Scott and top actors and celebrities like Gary Oldman, Clive Owen, James Brown, Madonna, to create short action films for on the internet. The power of this project vests in the fact that it is still as relevant today as it was 10years ago when it was first released. BMW have now also extended the life of this concept by developing comics around the same big idea. Avon – Few would have given much thought, until recently to direct home to home delivery and personal selling as a viable strategy of building a large business in personal product. Supermarket, department stores and boutique would be the naturals as option for channel strategy, depending on the degree of sophistication, exclusivity and price premium attached to the brands. Yet in the US, AVON builds a business that earned $5 million in revenues. It is because of their personalized advisory selling approach and unique AVON recipe.

EXAMPLES OF USE OF HOLISTIC MARKETING IN INDIA

RANBAXY - Originally sold bulk substances to unsophisticated markets but gross margins were too low to cover export costs. Its new CEO, Parvinder Singh, challenged Ranbaxy to become a truly global company. He said: “Ranbaxy cannot change India. What it can do is to create a pocket of excellence. Ranbaxy must be an island within India.” •

The company moved into higher-margin businesses like selling branded generics in large volume markets like China and Russia.

•

Ranbaxy then entered the U.S. and Western Europe. 29

•

In just five years, more than half of its US$ 250 million revenues now come from outside of India..

A) SACHET SHAMPOO CASE – there is a wide disparity in India between the urban and rural population in purchasing power and penetration of consumer products with 70% of the population living in villages, with personal incomes as low as US $ 50 a month, its difficult to find markets for which initial outlay is low enough. The challenge is to find a device with features such as which have a low unit price, easier to overcome low per capita incomes and low usage rate, have high function ability, easy to carry and disposable, capable of local refilling and repackaging, encourage occasional users as well as new buyers. The only device which made it possible was the sachet, made up of plastic and heat sealed. This packaging was first tried with shampoo in small way and later entered to a wide range of products. GROWING POPULARITY OF HOLISTIC MARKETING This is the story of how holistic marketing was used to rescue one organization from the brink of extinction. Perhaps there are lessons here for your association. Business-Industry Political Action Committee (BIPAC), Washington, D.C., was in serious financial difficulty. Revenues were falling. Although expenses had been cut to the bone, we still were running a deficit. Saddled with a 10-year-old debt, BIPAC's ability to survive was in serious question. Today BIPAC is a financially healthy, vibrant organization that is widely respected in both the business and political communities. What happened? Marketing in its fullest sense - a holistic strategy of marketing - is what restored vitality and success to BIPAC. As a result, BIPAC's revenues have increased 70 percent in four years, its debt has long been paid off, and a steadily growing surplus is enabling BIPAC to build a reserve fund. BIPAC was founded in 1963 to elect pro-business candidates to Congress; that remains its primary mission. During the 1980s and early 1990s, BIPAC developed an image among friends and supporters as a reluctant-to-change organization that did the same things in much the same way it always had. "Stale and stodgy" was how one friend used to describe it. As a result, BIPAC's revenues began to stagnate and slump. At one point, to alleviate a cash flow problem, the organization incurred a sizable revolving debt, which it never was able to pay off 30

permanently. For the turnaround, two events occurred that proved pivotal. The first was a decision by BIPAC's board of directors to rescue the organization from its long-term debt. A relatively brief but intense campaign among board members raised the money to pay off the debt and give the organization a modest cash cushion. The second event was a decision to place responsibility for fund-raising with the 10-member staff, which then developed a plan to market BIPAC. Implementation of the plan required bringing on to the staff a top professional experienced in fund-raising and marketing. BIPAC never really had a marketing strategy. But they treated both their services and their market monolithically, and used telemarketing as their primary tool for getting business dollars. That approach worked fairly well for a number of years. ELEMENTS OF HOLISTIC MARKETING - The strategy evolved over a period of a year or two. These were: •

Quality – to be achieved in everything that BIPAC did. For example, BIPAC has long been known for thoroughly researched and well-written political analyses. High quality for BIPAC also means quick and complete responsiveness to supporters' requests and questions. Periodically, the chief staff executive and the staff review specific areas that need improvement.

•

Listen to customers - This kind of marketing strategy requires staying in close touch with the supporters to learn what they want and need - and then finding the best ways to meet those needs. Also use focus groups and questionnaires to evaluate existing services and find out what else supporters want.

•

Expand services - Based on what customers tell, begin to develop new services. One was the creation of a Web site that includes a breadth and depth of political intelligence available nowhere else. Increase visibility and prestige. Being quoted and cited in the press is a great boost to marketing.

•

Stratify services - Stratifying services by level of financial contribution was another valuable sales technique. "Basic Supporters" received the publications, invitations to BIPAC’s monthly political briefings, and access to the entry level of the Web site. "Major Supporters" also got invitations to the Barometer Breakfasts, gain access to 31

the databases on the Web site, and participate in Political Leadership Forum. "Premier Supporters" obtain still greater services, including an additional series of issue-oriented breakfast meetings. •

Segment your market – BIPAC segmented their current supporters and prospects by size and by scope of their Washington involvement, recognizing that different companies and associations have different needs and abilities to contribute.

•

Motivate the staff - If the concept of holistic marketing is to work in an organization in which the staff bears the primary fund-raising responsibility, it has to be accepted by every staff member, not only those in marketing and sales. The staff requires support from the board and requires education and motivation from the chief staff executive.

•

Go all the way - Holistic marketing turned out to be BIPAC's salvation. Holistic marketing permeated the entire staff and would not have worked in partial steps.

HOLISTIC MARKETING AND CHALLENGES Holistic Marketing is the idea that marketing is everything. It is the idea that to truly be successful an organization must have a holistic approach to marketing where each facet of the organization is focused on how to add value to the customer and communicate that value. Holistic Marketing is not just thinking about the customer strategically as in having a market orientation or achieving consistency of message, look and feel across all platforms as in integrated marketing communications but rather focusing on the principle that if value is not being created it is being destroyed. The challenge is to focus on building value in everything that the organization does. Too often creating value is left to the innovators and strategists while marketers are tasked with communicating that value. This old paradigm is broken because it leaves out the folks in between who really drive value for any organization, the folks on the line who execute. A business can have the best strategy and marketing communications in the world but if the people who deliver the product or service aren't interested in creating value for the customer then the entire equation will be undermined. The great challenge then is to get everyone within the 32

organization pulling in the same direction. One of the pillars of this new philosophy of business is the seminal work, Built to Last by Jim Collins and Jerry Porras. Collins and Porras postulate that one of the driving forces behind great organizations is a shared sense of purpose and a culture so strong it is almost cult-like. These two elements combine to give people within the organization something to believe in which results in them all pulling in the same direction. When everyone in an organization feels empowered to create the next customer solution then you get value being added up and down the organization, even by those folks at the bottom of the pyramid. Holistic marketing is this concept; that value is not created in the corner office but by those on the line, delivering the product or service to the customer. The folks on the line will only continue to add value if they are engaged in the process and empowered to do so.

MARKETING SUCCESS THROUGH HOLISTIC APPROACH A brand is a claim of distinction. A claim of distinction helps a brand to stand out the off cluster and provides the customer a clear reason to choose the brand over the competitor’s offerings. Brand building is a costly exercise. In a survey of marketing executives, 85% were indicative of the fact that marketing efforts fail because marketing department is the only group behind all the initiatives and efforts. This has to be replaced by a holistic solution for brand development that is every individual throughout the organization needs to be on board in an exercise of such magnanimity. This claim of distinction should be generously supported in every aspect of, and interaction with your brand. One-sided marketing campaign based on the traditional 4 P’s of marketing – Product Price Place Promotion is INADEQUATE in developing consistent messages. Holistic brand development presumes synergistic use of culture, behavior, products and services, markets and customers, designs and communication in order to create differentiation. A compelling and consistent message should be delivered throughout the organization in each brand – customer – employee interaction. Branding is everybody’s business. Brand building initiatives should emanate from very area that is significant to brand audiences. “Everything that an organization or any individual in an organization does – create a brand” is the underlying dictum.

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HOLISTIC BRANDING AND CORPORATE IDENTITY Corporate identity is the essence of all impressions and influence of or about the organization held by its stakeholders. It is the signature of the company that envisions the intent of the owners of the company. It is the integrated message imparted by every possible touch – point like communication, offerings, tone, pitch, packaging, ambience, visions, logo, jingle, color scheme, insignia through a judicious use of media. Corporate identity is in itself a holistic concept and indispensably needs holistic branding for its successful execution. “If coca cola’s assets were destroyed overnight, whoever owned the coca cola name would walk into a bank the next morning and get a loan to rebuild everything” – Carlton Curtis, VP, Corporate Communications, Coca Cola. Such is the power of a brand. A brand could be regarded as the DNA that runs throughout the organization and thus imparting it a particular and unique identity. A brand is much more than the logo. It’s a promise, a claim that distills and expresses the core identity and personality of a company and its offerings. It is a highly intangible asset that needs strategic nurturing to provide a consistent identity.

ATTRIBUTES OF A HOLISTIC BRAND A holistic brand is: 1. One that takes the lead in developing the industry 2. Customers choose it for the value that it creates for them 3. Attracts investors for the value that it creates. 4. Attracts employees, as they are proud to work for the organization offering the holistic brand. 5. Attracts suppliers by being an active partner.

HOLISTIC BRANDING AT STARBUCKS

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Starbucks is known for its quality driven specific brand image. Howard Schultz’s founding success principle was: “Never compromise quality or price for quantity”. This, indeed, is a lesson for all of us. Schultz was on the cutting edge of branding when he crafted his specific brand image. He made profuse use of power of the Emotional Selling Proposition (ESP) where products are perceived to be superior primarily because of a customer’s emotional attachment to the brand. Starbucks embraces holistic branding by integrating sight, taste, touch, smell and sound. Music and Starbucks struck a connection with customers before the competition could even imagine its potential correlation. The mission at Starbucks was not only to attract customers to the coffee business, but to make it so uniquely memorable, so that people come back again and again while serving as extended sales people to everybody that they know.

STRATEGIES FOR HOLISTIC BRAND DEVELOPMENT 1. Connecting with the customer – Holistic marketing is about giving customers what they really want. It aims for a substantial enlargement in the kinds of value, which can be delivered through market mechanisms. “You don’t build it for yourself. You know what people want and you build it for them” – Walt Disney. 2. Connecting with the company’s internal stockholder’s – Align the external and internal values – Involving the company’s internal stockholder’s especially the employees and the management of the organization in the delicate process of brand building can help creating a holistic brand experience. Obtaining qualitative inputs from internal audiences can be critical to inventing or re-inventing the brand, whether it is done via one on one interview, focus groups or some other research vehicle. It gives a 360 degree picture of the brand and helps understand more of the dimensions of the current brand, whether they are positive, negative or neutral. It allows for thoroughness or to understand the brand from a variety of angles. A brands heritage, its history, philosophy and the reason for its existence is most likely instilled by the brands founders. Internal audiences probably understand the importance of history better than most stakeholder audiences. If they can share their understanding of a brands heritage, it may help re-establish brand continuity, 35

connecting the brands future positioning to its roots. This exercise is especially helpful to marketers trying to ascertain whether the organization’s (or internal) “truth” about the brand matches the markets (or external) “truth” about the brand, why these truth’s may differ and how they are shared within the organization. Doing this generates a feeling of involvement and ownership among the internal audiences in the resulting of brand positioning. Employees are critically important ingredients of the brand and they need to develop a shared understanding of brand values in order to manifest brand supporting behavior. A rigorous training for the employees helps the organization in its pursuit of developing a Holistic brand. Take the case of HDFC where all the employees know exactly what HDFC stands for and what products it offers. This does not happen without proper training. As brand stewards, each of your employees must integrate your corporate vision and reflect it internally and externally. 3. Deliberations and decisions on corporate values and intends and consistent execution of the same to every possible consumer touch point. This involves a phase of qualitative research with the top brass of the organization and translating the intent in every message that is exposed before the audience. TATA Company’s announcement of donating a particular sum per packet sold of TATA salt to a beneficiary NGO is driven by the corporate intent of social responsibility and making a difference to the society. ICICI’s campaign “Hum Hain Na” is basically an extension of its intent to be a Trust Mark, a confidante of the consumer. 4. Creating a good product creates a better and honest identity - TATA encashes upon this dimension. The umbrella brand “TATA” has become synonymous with quality and trust.

TO CONCLUDE WITH The brand is an asset, a component of anything and everything and organization does. Despite the fact that it is the marketing department’s baby, the brand is represented by the entire organization right from the receptionist at the front desk to the customer service rep staffing the phones to the CEO. A strong brand necessitates that everyone in the organization has a comprehensive understanding of, and ability to express, the brand positioning and attributes. 36

Corporate identity is in the words of tom Peter’s a trust mark, shorthand a sorting device. It has to be well orchestrated with all possible audience touch points. Remember that we are carving an identity that is not transient but lasts as long as eternity.

FUTURE OF HOLISTIC MARKETING IN INDIA After a year of exposure to corporate scandals and economic challenges, companies and other organizations will reexamine their values, elevate branding discussions to the executive level, and consider the impact of corporate decisions on their brands. With more than 30 years experience in corporate identity, branding and environmental graphics, experts from Monigle Associates predict branding will take on new significance among corporate executives in 2003, as consumers, shareholders and the government clamor for truth and accountability from American businesses. "Companies are becoming much more thoughtful and strategic about aligning their brands with their business objectives," said Rick Jacobs, principal of Monigle Associates. "As a result, discussion about branding has evolved to include more than just members of the marketing department. Corporate executives are realizing that successful execution of the brand means a more holistic approach than just approving a new ad campaign. Because the brand is a reflection of what a company wants to be, and how the public sees it, the promise of that brand should direct how an organization

behaves

toward

all

of

its

audiences."

Here are some additional branding trends to watch for: Experiential Branding to Increase - As businesses shift their brand strategy to an even more strategic level, Jacobs predicts more corporations will incorporate "experiential" branding branding in which organizations connect with their stakeholders by enabling them to experience the brand promise through all company touch points. "A positive experience with the accounts receivable department will tend to be more personally meaningful to a customer than any broadbased marketing campaign," said Jacobs, "and if the experience validates other communication the customer receives from the company, he or she may be more likely to be loyal to that brand in the future." 37

Company employees will continue to play a key role in executing the brand, by acting as ambassadors to customers, the community, and members of the media, industry analysts, and shareholders. It will be up to company leaders to ensure employees receive an orchestrated presentation of the organization's core values, including its vision and points of differentiation. Measuring Your Brand's Emotional Intelligence - A smart organizations will calculate the success of their brands not only by numeric measurements, but also by taking into account the emotional effect the brand has on their stakeholders. Now, companies use a person's emotional intelligence as a success indicator. Since brands resonate emotionally with people who come in contact with them, it doesn't make sense to measure their success strictly on numbers alone." Creating a Strategic Blueprint for Brand Architecture - When two companies merge, decisions for naming the merged entity often aren't strategic. "The new name maybe the result of closed-door discussions between CEOs or attorneys, without consideration of other brands, business units or future acquisitions, and the result is often brand soup," says Jacobs. In 2003, brand-savvy companies will know the importance of having a clearly articulated brand architecture and naming conventions, which will enable them to incorporate new products, services, business units and companies without having to reinvent their brand hierarchy every time.

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CHAPTER 2 REVIEW OF LITERATURE

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REVIEW OF RELATED LITERATURE Relationship Marketing: A Source of competitive Advantages By Dr. N. K. Sehgal (Indian Journal of Marketing, march 2007) According to him with the advent of relationship marketing, companies are prepared to do anything to keep their customers happy and satisfied. A satisfied customer is not going to shift his loyalty to the competition’s grab for additional sales. Business firms are now willingly engaged in constant improvisation, personalization and customization, marking a visible shift from “marketing myopia” to “marketing hypermetropia”. The reason of all this is pretty simple. “If you would not take care of your customers, your competitors definitely would.” So the firms should keep pleasing customers and they will keep coming back. Deliver what you promise-on time and in a visible fashion. A satisfied customer is the best advertising a firm can do. So, in present times, to be successful a company needs to be not just High Tech but High Touch as well. Future of a business can be very bright if it nurtures the key relationships well. Sustainable Marketing: Challenges and Opportunities By Rajeev Kumar Panda (Indian Journal of Marketing, Dec 2007) According to him most marketing academies practitioners view marketing and consumer behavior from the perspective of what happens before the product is consumed. The emphasis is on attracting customers to products, pricing them appropriately having them available when and where they are demanded and promoting the products/services. In contrast, environmentalists focus almost exclusively on consumption and post-consumption rather than what goes on beforehand. Sustainable marketing requires that we spend an equal, if not greater, amount of time and energy on what happens after the individual or business “consumes” the product. Designing products in more of a modular fashion to make it easier and cheaper to repair than to grow away the “used” one and buy a new one is a step that is currently being taken by some furniture companies. Finally, the marketing system of the world should be shown with great adaptability and responsiveness. The same spirit needs to be applied to sustainable marketing and hopefully; much more progress and prosperity can be achieved in the times to come.

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Brand Marketing through CRM By A. K. Mishra and Pallavi (Indian Journal of Marketing, Jan 2008) They observe that over the years, brand marketing has evolved from a production oriented process to a customer centric approach. In fact, today marketing has slowly but steadily moved towards retaining the customers for longer period to ensure customer loyalty and greater profitability. Therefore, building long-term customer relationship with customers is the key to success for the company. CRM is the customer centric business culture, which help in effective marketing of the brand. I a fiercely competitive environment, CRM has emerged as the core marketing activity for companies. A large number of factors have contributed to maintain relationship with customers, such as increasing pressure of competition, intense brand struggle, frequent introduction of new products, shrinking life cycles of the products, highly informed and more demanding customers, decreasing customers loyalties, etc. Thus, CRM demands building trust as a binding force for value added relationships, which benefit both the company as well as the customers. Success Factors of Place Marketing: A Study of Place Marketing Practices in Northern Europe and the United States By Dr. Seppo K. Rainisto ( Sep 2003) The aim of the study is to evaluate which are the most critical success factors in place marketing, and how these factors could be utilized in place development. The study builds a framework and analyses place marketing practices from the perspectives of the process, assessment criteria and success factors. The main research focus is on marketing management aspects in place marketing. The study makes a managerial contribution by giving recommendations for place marketing practices, and by offering a new and holistic framework to help places move to a more systematic and effective marketing approach. Green Marketing: An Illusion or Reality By Sheenu Jian (Indian Journal of Marketing, May 2007) According to him Green marketing has its own methodology, and within companies, legends abound about the difficulties posed by customers, colleagues, and corporate cultures when trying 41

to develop greener strategies. The practical implementation of green marketing has been often worked on the assumption that since greening was what customer wanted, marketer would follow their lead, and that the rest of the organization would be happy to support them. This would in the world of entirely marketing orientated firms, but neglected the internal environment. How Dynamic Consumer Response, Dynamic Competitor Response and Expanded Company Action Shape Longterm Marketing Effectiveness By KOEN H. PAUWELS (May 2003) The first finding of this study is that dynamic consumer response significantly differs from the net long-term impact and largely follows marketing theory predictions. Second, expanded company action is a main contributor to net long-term marketing effectiveness in both datasets. For tactical actions, such as price and feature changes, it takes the form of inertia (prolonged company action), as promotions continue for several weeks due to both manufacturer and retailer decisions. For strategic actions, such as advertising and product line extensions, cross-marketing support (integrated company action) adds strongly to dynamic consumer response. Finally, competitor response reduces the net long-term impact in one application, but not in the other. As a result, managers are urged to look beyond dynamic consumer and competitor response and to evaluate their company's and retailer's decision rules for expanded marketing actions when assessing long-term marketing effectiveness. Strategic Marketing - Role of Relationships, Information & Services By Komal Chopra (Dec 12, 2004)

In this radically changing business environment, organizations need to develop new competencies almost every minute to be ahead of the competitors. Strategizing from marketing point of view is of crucial importance as this is the platform of direct interaction with the customer. Utmost care has to taken to give the best to the customer in order to expect the best. With a variety of good options available to the customers in almost every industry, it is only providing that “extra” to the customers that will help the firm sustain in the long run. Customer Lifetime Value: stochastic optimization approach By W. K. Ching, K. K. Wong and E Altman (Journal of the operational Research Society, April 2004)

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We are in the age of relational marketing, an age in which a sale starts a customer company relationship. Relationship marketing is a process of making and maintaining value laden relationship with customers. The core of the relationship marketing is the development and maintenance of a long term relationship with customers. In Principle, marketing is the art of attracting and keeping customers. A company should strive to identify the ‘Profitable’ customers and keep them with an ‘acceptable effort’. In this paper they propose a stochastic dynamics programming model for the optimization of customer lifetime value (CLV). Both cases of infinite horizon and finite horizon with budget constraints are discussed. The former case can be solved by using linear programming techniques, and the latter problem can be solved by using dynamics programming approach. The models are then applied to practical data of a computer service company. The company makes use of the proposed CLV model to make and maintain value-laden relationship with customers. Holistic Customer Requirement and the Design-Select Decision By Karl T. Ulrich and David J. Ellison (Management Science, May 1999) Given the economic benefits of selecting existing components, when should firms invest in designing product-specific components? They have argued theoretically and demonstrated empirically that the nature of customer requirements impacts the design-select decision. Specifically, holistic customer requirement and customer requirements involving mass and variable cost are all significant in explaining the degree to which firms design product-specific components. They also argued that the importance of small size will constrain a designer’s ability to select components, but find little empirical support for this hypothesis. In addition to the specific finding presented above, this paper has highlighted the design-select decision and introduced the concept of holistic customer requirements, those customer requirements that arise from many components of the product in complex ways. Profit maximization in a multi-product firm with impatient customers By EJ Levin, Y Ma and RE Wright (Journal of the Operational Research Society, 2004) The Standard model of a monopoly is extended to include multi-product production in which the product range is decided by management and the market is characterized by customers who are willing to pay higher prices for goods that can be supplied quickly. The formal model provides a means by which the solution to this complex problem can be calculated with very little data. 43

Further research is required to relax a number of our simplifying assumptions in order to increase the generality of the model without losing focus with respect to central issues. For example, the assumption that the firm is a monopoly might be replaced by interdependences between firms. A market may be in equilibrium with one firm setting a lower price than its competitors if it also offers a longer delivery date. Likewise, price elasticity of demand need not be zero for the products sold by the firm. The profit function may be sensitive to which products are added or removed from the range offered. More generally, further consideration of the functional relationships between the key decisions variables would provides a closer representations of the issues confronted by multi product firms. Is Knowledge Power? Knowledge flows, subsidiary power and rent-seeking with MNC’s By Ram Mudambi and Pietro Navarra ( Journal of International Business studies, July 2004) In this paper, our objective is to study some of the implications of the dispersal of knowledgecreating activities within the MNC. In particular, we suggest that this trend has increased the extent and scope of subsidiary bargaining power within the firm. In turn, we suggest that such power may underlie findings of increased intra-organizational tension in knowledge creating activities. Further, fears of subsidiary rent seeking may lead many MNCs to forgo the benefits of subsidiary independence. We believe that our study offers some significant novelties. First, we distinguish between discretion and bargaining power at the subsidiary level, where the latter is the extent to which the subsidiary is not subject to headquarters veto. We find strong evidence that such power is exercised by MNC subsidiaries. Second, we attempt to study not only knowledge flows per se, but also the pattern of knowledge flows. We find that this pattern, rather than the extent of flows, has the more significant effect on subsidiary bargaining power within the firm and consequently on the level of rent-seeking behavior.

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CHAPTER 3 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

RESEARCH PROBLEM: The study is about to Understand the term Holistic Marketing: Emergence of new marketing concept. The study is also about to find out the various determinants of Holistic Marketing. In the study I discuss the various challenges in the implementation of Holistic marketing. In the study the perceptions of the customers as well as executives regarding the concept of Holistic Marketing have been determined on the basis of various attributes associated with the concept.

SIGNIFICANCE OF THE STUDY Today companies have to prepare themselves for the new economy, which is characterized by globalization, hyper competition, technology and empowered consumer. The old economy marketers worked on certain set theories and principles, which was focused on internal efficiency and productivity. But now the focus has shifted to doing well in the marketplace against competitors and hence strategizing for the future. This can be achieved by implementing holistic marketing. There is a need for holistic marketing, which brings us to the three most important and critical success factors that are Relationships, Information and Services. Their literal meaning is understood by all but what needs to be known is what they symbolically stand for in today’s market. The degree to which these concepts can be applied would vary from industry but their importance cannot be ignored.

3.1 OBJECTIVES OF THE STUDY To describe the concept of Holistic Marketing To find out the major challenges in implementing Holistic marketing To find out various coping mechanisms for the same To study the executives as well as consumers’ perception towards Holistic marketing To find out the factors affecting the social responsiveness of organization in marketing process. 46

3.2 RESEARCH DESIGN Research design used will be Exploratory Research Design as we have to explore the obstacles and also the ways to tackle these obstacles and in later stages research design is descriptive one.

3.2.1 SAMPLING TECHNIQUE The sampling technique used here will be “Cluster Sampling” as we would collect data from 4 different districts of Punjab and Chandigarh.

3.2.2 SAMPLE SIZE 150 respondents including 100 Consumers & 50 Executives.

3.2.3 SAMPLE UNIT Generally all consumers above 21 years of age would be taken as respondents.

3.2.4 DATA COLLECTION TOOLS Through Questionnaires filled by the Consumers and Executives. Through Internet/Search Engines

3.2.5 SCALING TECHNIQUES Scaling involves creating a continuum on which measured objects are located Each respondent is assigned a number indicating as favorable attitude ,a neutral attitude or favorable attitude .Scaling is the process of placing the respondents on a continuum with respect to their attitude . In this study different type of scaling methods are used like

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1.

Rank order Scale.

2.

Likert scale.

3.

Multiple choice questions. Rank order scale: A comparative scaling technique in which respondents are

presented with several objects simultaneously and asked to order or rank them according to some criterion. Likert scale: A measurement scale with five response categories which requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements related to the stimulus objects. Multiple choice questions: In multiple choice questions, the researcher provides a choice of answers, and respondents are asked to select one or more of the alternatives given.

3.26 TOOLS APPLIED: Various tools have been used for collecting the data from the people such as 5 point Rating Scale, χ2 test, Z test at 5 % level of significance, weighted mean, Bi-variate correlation, Factor Analysis and bar graphs is used for the analysis of the data and discussions in the research. χ2 test to find out the significant difference between the Users of various cellular service providers at 5 % level of significance. H 0: There is no significant difference between the users of various cellular services. H 1: There is a significant difference between the users of various cellular services.

48

χ2 test to find out the significant difference between the postpaid and prepaid customers at 5 % level of significance. H 0: There is no significant difference between the postpaid and prepaid customers. H 1: There is a significant difference between the postpaid and prepaid customers. χ2 test to find out the significant difference between the time period of using the services at 5 % level of significance. H 0: There is no significant difference between the time periods H 1: There is a significant difference between the time periods. WMV, Bar Charts and Z test are applied inorder to find out the major important influencers which motivate the people to buy the cellular service from the particular company. H 0: such that performance of service is an extremely important influencer. H 1: such that performance of service is not an extremely important influencer. H 0: such that nominal tariff plans is an extremely important influencer. H 1: such that nominal tariff plans is not an extremely important influencer. WMV, Bar Charts and Z test are applied inorder to find out the people perception regarding the service quality on the basis of its excellence. Service quality is determined on the basis of the excellence of the service attributes and service dimensions. H 0: such that speed of service is perceived as of excellent quality. H 1: such that speed of service is not perceived as of excellent quality. H 0: such that ability of the company is perceived as of excellent quality. H 1: such that ability of the company is not perceived as of excellent quality.

49

Z test and bar charts have been used inorder to find out the overall satisfaction of the people regarding the service and service provider. H 0 : such that people are highly satisfied with the service and the service provider. H 1 : such that people are not highly satisfied with the service and the service provider. WMV, Bar Charts and Z test are applied inorder to find out the likelihood of the people regarding to continue with the same service provider, to refer to others and their likelihood to switchover to other service provider. The tools are used to check the customer loyalty of the people. H 0 : such that people are most likely to continue with the same service provider. H 1 : such that people are not most likely to continue with the same service provider. H 0 : such that people are most likely to refer to others about the service provider. H 1 : such that people are not most likely to refer to others about the service provider. H 0 : such that people are unlikely to switchover to other service provider. H 1 : such that people are not unlikely to switchover to other service provider. The relationship between the Occupation of the respondents and their likelihood to switchover to other service provider is also studied with the help of the bar diagram. The relationship between the Kind of Cellular service users and their likelihood to switchover to other service provider is also studied with the help of the bar diagram. Factor Analysis is applied in order to find out the main factors which lead to customer satisfaction regarding the cellular service and the cellular company. Factor analysis is applied on the various variables which lead to the customer satisfaction inorder to find the major factors.

50

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

51

To what extant each of the following factors evaluate the socially responsible behaviour of the company

Environment

Great 44

Considerable 24

Little 20

Not at all 12

Protection Educational

22

22

40

16

Development Infrastructural

26

38

18

18

Development Ethical

8

16

22

54

Behaviour

60 54 50 44 40

38

40

Environment Protection Educational Development

30

26

24

22 20

Infrastructural Development 22

20 16

22

Ethical Behaviour

18

16

18

12 8

10

0 Great

Considerable

Little

Not at all

In the study the respondents were asked to give their opinion about the various factors which evaluate the socially responsible behaviour of the company. It was found that the work for environment protection by the company greatly reflect its socially responsible behaviour with 44% each agree with this. About 38 % agree with the statement that infrastructural development by the company were considerably important in evaluate the socially responsible behaviour. 40% of the executives considered policies of educational development as little important and 54% 52

considered ethical behaviour of the companies not at all important in evaluating their socially responsible behaviour.

Why more and more companies try to show themselves as socially responsible

Strongly

Agree

Disagree

Strongly

More Sale Brand

Agree 32 52

45 32

8 12

Disagree 15 4

Building Govt.

10

14

44

32

Policies Actually

6

9

36

49

socially Responsible 60 52 49

50

45

44

40

36 32

32

32

More Sale Brand Building

30

Govt. Policies Actually socially Responsible 20

15

14 10

10

12 9

6

8 4

0 Strongly Agree

Agree

Disagree

Strongly Disagree

In the study the respondents were asked to give their opinion about the question that why more and more companies try to shoe themselves as socially responsible. It was found that the brand building is the main motive behind this behaviour i.e. they want to build their strong brand name 53

as 52% of the respondents strongly agree with this. About 45 % agree with the statement that more sale is the main motive behind their socially responsible behaviour. 44% of the executives disagree with the statement that govt. policies are main reason behind their socially responsible behaviour and 49% were strongly disagree that they are actually socially responsible.

Rank the following factors in terms of their importance in relationship marketing Rank Complaint

1 30

2 38

3 20

4 12

Handling After

42

32

18

8

Services Product

20

18

40

22

Quality Ethical

8

12

22

58

Sales

Behaviour

54

70 58

60 50 42

30

40

38

40

20

Compliaint Handling 32

30

After Sales Services Product Quality

20

20

18

22

Ethical Behaviour

18

12

12

8

10

22

8

0 1

2

3

4

Rank

In the study the respondents were asked to rank the importance of various factors in relationship marketing. It was found that the after sale services is considered the most important in relationship marketing with Rank 1. Complaint Handling is next important factor with Rank 2. Product Quality and Ethical Behaviour comes next with Rank 3 & 4 Respectively. Importance of After Sale Services On an average the most important factor in Relationship Marketing is After Sale Services. The respondents rank the importance of After Sale Service on the 1 to 4 Rank scales. The mean score came out to be 1.92 and about 42% of the people surveyed rank After Sale Service as extremely important. Test of Hypothesis: Meanp = 1, Means = 1.92 and σ = 1.11 Let us make the hypothesis that there is no significant difference between the sample mean and hypothetical population mean i.e. Meanp=1; H0: Means =Meanp; 55

H1: Means ≠Meanp; Level of Significance= 5%; S.E. = σ/√n i.e. 1.11/√100=0.11 Zcal = Difference S.E. = (1.92 - 1)/0.11 = 0.92/0.11 = 8.36 Zcal > Ztab at 95% level of confidence: i.e. 8.36 > 1.96 Null Hypothesis Rejected Therefore with 95% level of confidence it can be said that there is significant difference between the sample mean and hypothetical population mean, so it is accepted that the After Sale Service is an important factor which strengthen Relationship marketing but not extremely important.

Rank the following companies in terms of their socially responsible behaviour

Rank Tata group Reliance P&G HUL

1 88 6 4 2

2 6 64 18 12

3 4 18 54 24

4 2 12 24 62

56

100 90

88

80 70

64

62

60

Tata group

54

Reliance

50

P&G

40

HUL

30

24 18

20 10

24

18 12

6

4

2

12

6

4

2

0 1

2

3

4

Rank

In the study the respondents were asked to rank the four companies in terms of their Socially Responsible Behaviour. It was found that the Tata Group is considered the most Socially Responsible Company with Rank 1. Reliance is next Socially Responsible Company with Rank 2. P & G and HUL comes next with Rank 3 & 4 Respectively. Tata Group as Most Socially Responsible Company On an average the most Socially Responsible Company is Tata Group. The respondents rank the Tata Group on the 1 to 4 Rank scales. The mean score came out to be 1.20 and about 88% of the people surveyed rank Tata Group as extremely Socially Responsible Company. Test of Hypothesis: Meanp = 1, Means = 1.20 and σ = 1.431 Let us make the hypothesis that there is no significant difference between the sample mean and hypothetical population mean i.e. Meanp=1; 57

H0: Means =Meanp; H1: Means ≠Meanp; Level of Significance= 5%; S.E. = σ/√n i.e. 1.431/√100=0.143 Zcal = Difference S.E. = (1.20 - 1)/0.143 = 0.20/0.143 = 1.39 Zcal > Ztab at 95% level of confidence: i.e. 1.39 < 1.96 Null Hypothesis Accepted Therefore with 95% level of confidence it can be said that there is no significant difference between the sample mean and hypothetical population mean, so it is accepted that the Tata Group is more socially Responsible company as compare to other companies.

Social responsibility is an important factor while making purchase decision

Strongly

Agree

Neutral

Disagree

Strongly

agree 10

38

26

18

Disagree 8

58

8%

10%

18%

Strongly Agree Agree Neutral 38%

Disagree StronglyDisagree

26%

In the study the respondents were asked for their opinion about the importance of Social Responsibility of the company as a factor in their purchase decision. It was found that the majority of people about 38 % agree with statement that social responsible behaviour of the company effect their purchase decision. About 26% of the people show neutral behaviour. 18% of the people disagree with the statement whereas 8% are strongly disagree with the statement.

Companies follow their promises made at the time of sale.

Strongly agree 10

Agree 25

Neutral 20

Disagree

Strongly

34

Disagree 11

59

10%

11%

25%

Strongly Agree Agree Neutral Disagree

34%

StronglyDisagree 20%

In the study the respondents were asked to give their opinion about the follow ness of promises made by the company at the time of sale. It was found that the majority of people about 34 % disagree with statement that companies follow their promises made at the time of sales. About 25% of the people agree with the statement. 20% of the people show neutral behaviour towards the question. 11% are strongly agree with the statement and 10% are strongly disagree with the statement.

Companies in today’s scenario are actually socially responsible Strongly agree 6

Agree 18

Neutral 24

Disagree

Strongly

38

Disagree 14

60

6%

14%

18%

Strongly Agree Agree Neutral Disagree

38%

StronglyDisagree

24%

In the study the respondents were asked to give their opinion about whether the companies are actually socially responsible or not. It was found that the majority of people about 38 % disagree with statement that companies are actually socially responsible. 24% of the people show neutral behaviour towards the question. 18% of the people agree with the statement that companies are actually socially responsible. 14% are strongly disagreed with the statement and 6% are strongly agreed with the statement.

Previous experience with the company is a determinant while making purchase decision

Strongly

Agree

Neutral

Disagree

Strongly

agree 20

45

20

10

Disagree 5

61

10%

5%

20% Strongly Agree Agree Neutral

20%

Disagree StronglyDisagree 45%

In the study the respondents were asked to give their opinion about the previous experience with the company is a determinant while making purchase decision. It was found that the majority of people about 45 % agree with the statement that previous experience with the company is a determinant while making purchase decision. 20% of the people show neutral behaviour towards the question. 10% of the people disagree with the statement. 20% are strongly agreed with the statement and 5% are strongly disagreed with the statement.

Please rank following training needs important for your organization according to their preference level

62

Rank Technical

1 28

2 11

3 7

4 4

training Soft Skills 6

10

24

10

training Coaching and 4

3

10

33

Monitoring On the job 12

26

9

3

training

35

30

33 28 26 24

25

Technical training

20

Soft Skills training Coaching and Monitoring

15 12 10

On the job training 11

10

10

10

9

7

6 4

5

4

3

3

0 1

2

3

4

Rank

In the study the respondents were asked to rank the importance of various training need in the organization according to their preference level. It was found that the technical training is 63

considered the most important among executives with Rank 1. On the job training is next important with Rank 2. Soft skill training and Coaching & monitoring come next with Rank 3 & 4 Respectively. Importance of technical training On an average the most important training among executives is technical training. The respondents rank the importance of technical training on the 1 to 4 Rank scales. The mean score came out to be 1.74 and about 56% of the people surveyed rank After Sale Service as extremely important. Test of Hypothesis: Meanp = 1, Means = 1.74 and σ = 1.236 Let us make the hypothesis that there is no significant difference between the sample mean and hypothetical population mean i.e. Meanp=1; H0: Means =Meanp; H1: Means ≠Meanp; Level of Significance= 5%; S.E. = σ/√n i.e. 1.236/√50=0.174 Zcal = Difference S.E. = (1.74 - 1)/0.174 = 0.74/0.174 = 4.25 Zcal > Ztab at 95% level of confidence: i.e. 4.25 > 1.96

Null Hypothesis Rejected Therefore with 95% level of confidence it can be said that there is significant difference between the sample mean and hypothetical population mean, so it is accepted that the technical training is an important training among executives but not extremely important.

To what extent each of the following factors effect your job selection? 64

Salary Growth

Great 20 20

Considerable 10 24

Little 5 5

Not At all 15 1

opportunities Brand Name Ethical Policies

5 5

14 2

24 16

7 27

30 27 24

25

20

24

20 20 16 14

15

Salary 15

Growth opportunities Brand Name Ethical Policies

10

10

7 5 5

5

5 5 2

1

0 Great

Considerable

Little

Not At all

In the study the respondents were asked to give their opinion about the various factors which effect their job selection. It was found that the salary and growth opportunities have maximum and equal impact on their job selection with 40% each agree with this. About 48 % agree with the statement that growth opportunities were considerably important in their job selection. 48% of the executives considered brand name as little important and 54% considered ethical policies of the companies not at all important in their job selection.

You are satisfied with the training & development programs conducted for employees 65

Strongly agree 12

Agree 20

Neutral 9

10%

Disagree

Strongly

4

Disagree 5

24%

8%

Strongly agree Agree Neutral Disagree

18%

StronglyDisagree 40%

In the study the respondents were asked whether they are satisfied with the training and development programs conducted by company. It was found that the majority of people about 40 % agree with the statement as they are satisfied with the training and development of the company. 24% were strongly agreed as they are extremely satisfied with the programs. 18% of the people show neutral behaviour towards the question. 8% of the people disagree with the statement. 10% are strongly disagreed with the statement. 66

You are satisfied with the company’s promotional strategies Strongly

Agree

Neutral

Disagree

Strongly

agree 10

19

11

6

Disagree 4

8% 12%

20% Strongly agree Agree Neutral Disagree

22%

StronglyDisagree 38%

In the study the respondents were asked whether they are satisfied with the company’s promotional policies. It was found that the majority of people about 38 % agree with the statement as they are satisfied with the company’s promotional policies. 22% of the people show neutral behaviour towards the question. 20% were strongly agreed as they are extremely satisfied with the promotional policies. 12% of the people disagree with the statement. 8% are strongly disagreed with the statement.

67

YOU

ARE

SATISFIED

WITH

THE

INTEGRATION

AND

RESPONSIVENESS OF SUPPLIERS Strongly agree 8

Agree

Neutral

21

10%

15

2%

Disagree

Strongly

5

Disagree 1

16% Strongly agree Agree Neutral Disagree

30%

StronglyDisagree 42%

In the study the respondents were asked whether they are satisfied with the integration and responsiveness of suppliers. It was found that the majority of people about 42 % agree with the statement as they are satisfied with the integration and responsiveness of suppliers. 30% of the people show neutral behaviour towards the question. 16% were strongly agreed as they are extremely satisfied with the suppliers. 10% of the people disagree with the statement. Only 2% are strongly disagreed with the statement.

68

ATTRITION RATE IS NOT AN ISSUE FOR CONSIDERATION IN YOUR ORGANIZATION Strongly

Agree

agree 4

Neutral

16

8%

22

8%

Disagree

Strongly

4

Disagree 4

8% Strongly agree 32%

Agree Neutral Disagree StronglyDisagree

44%

In the study the respondents were asked about the attrition rate whether it is an issue of consideration in their organization. It was found that the majority of people about 44 % show neutral behaviour towards the question. Majority of the people don’t want to take any side. 32% of the people agree with the statement as they think attrition rate is not an issue in their organization. 8% were strongly agreed as they are extremely satisfied with attrition rate. 8% of the people disagree with the statement. 8% are strongly disagreed with the statement.

69

POLICIES FORMED BY UPPER MANAGEMENT COMMUNICATED TO EMPLOYEES EFFECTIVELY

Strongly

Agree

agree 6

16

12%

Neutral 12

Disagree

Strongly

10

Disagree 6

12% Strongly agree

20%

Agree Neutral 32%

Disagree StronglyDisagree

24%

In the study the respondents were asked whether they are satisfied with the information flow with in the company i.e. policies formed by upper management communicated to employees effectively. It was found that the majority of people about 32 % agree with the statement as they are satisfied with the information flow with in the company. 24% of the people show neutral behaviour towards the question. 12% were strongly agreed as they are extremely satisfied with the information flow. 20% of the people disagree with the statement. 12% are strongly disagreed with the statement as they are not at all satisfied with information flow.

70

ORGANIZATION TAKES THE EMPLOYEES INTO CONFIDENCE WHILE IMPLEMENTING ANY POLICIES Strongly agree 6

Agree 18

Neutral 12

12%

Disagree

Strongly

8

Disagree 6

12% Strongly agree

16%

Agree Neutral 36%

Disagree StronglyDisagree

24%

In the study the respondents were asked whether employees are taken into confidence before implementing any policies. It was found that the majority of people about 36 % agree with the statement as they are satisfied with the way of policies implementation with in the company. 24% of the people show neutral behaviour towards the question. 12% were strongly agreed as they are extremely satisfied with the way of policies change. 16% of the people disagree with the statement. 12 % are strongly disagreed with the statement as they are not at all satisfied with the way of policy implementation with in the company. 71

TEAM BUILDING ENHANCES THE PERFORMANCE OF EMPLOYEES Strongly

Agree

Neutral

Disagree

Strongly

agree 14

26

4

4

Disagree 2

4%

8%

28%

8%

Strongly agree Agree Neutral Disagree StronglyDisagree 52%

In the study the respondents were asked whether team building enhances the performance of employees or not. It was found that the majority of people about 52 % agree with the statement as they feel team building enhances the performance. 28% were strongly agreed as they are extremely motivated by team building. 8% of the people show neutral behaviour towards the question. 8% of the people disagree with the statement. Only 2% are strongly disagreed with the statement.

72

YOU

ARE

SATISFIED

WITH

THE

PRESENT

WORKING

ENVIRONMENT OF ORGANIZATION.

Strongly

Agree

agree 11

Neutral

18

10%

14

4%

Disagree

Strongly

5

Disagree 2

22% Strongly agree Agree Neutral Disagree

28%

StronglyDisagree 36%

In the study the respondents were asked whether they are satisfied with the present working environment of organization. It was found that the majority of people about 36 % agree with the statement as they are satisfied with the present working environment. 28% of the people show neutral behaviour towards the question. 22% were strongly agreed as they are extremely satisfied 73

with the working environment. 10% of the people disagree with the statement. Only 4% are strongly disagreed with the statement.

CHAPTER 5 FINDING SUGGESTIONS, LIMITATIONS AND CONCLUSION 74

5.1 SUGGESTIONS: From the study it was found that most of the people are using the GSM technology cellular services and only few people are using the CDMA technology cellular services. The CDMA cellular companies create more awareness about the benefits of using the CDMA enabled cellular service and target the non users in order to increase their market share. The Cellular companies should focus more on the Prepaid cellular services as they are less loyal to the cellular services. Proper services both after sales service and customer service of high quality should provided to the customers in order to increase their satisfaction levels and build the customer loyalty. The performance of the service, tariff plans, network efficiency of the cellular service and the attractive schemes/promotions are the major influencers which persuade the customers to buy the service of the company. Every company should maintain the acceptable standards of the major influencers inorder to attract the competitor’s customers and prospective customers. Every company should focus on improving the Speed of the service, ability of the company, reliability of the company and the tangibles of the company or associated with the service as these are the major attributes or dimensions of the service which builds the

75

perceived level of quality or value in the mind of the customer. Higher the quality of the attributes or the dimensions higher will be the perceived level of the quality. The company should focus more on the Students inorder to develop satisfaction regarding the service, increasing their perceived level of quality or value. So that they become more loyal to the company and the cellular service and reducing their likelihood to switchover to other service provider. Every company should focus on the Employed customers including prospective customers as they are more loyal and unlikely switchover other service providers. Every company should focus on the After sales services and the product attributes as these are the major influencers which builds the customer satisfaction for the cellular service and also building the customer loyalty.

5.2 LIMITATIONS OF THE STUDY 1. Limitation caused by constraint of time confined the study to selected localities. A wider geographical coverage would have made the study more representative. 2. The accuracy of results is limited to reliability of methods of investigation, sampling technique and analysis of data. 3. Despite the best efforts to include all important variables, the chances of some variables not appearing in the study cannot be ruled out. 4. Due to continuous change in the marketing strategies, this study may not hold well an over period of time. 5. Consumer behavior being dynamic, there is very possibility that the findings of today may become invalid tomorrow. 6. The study was mainly a one person study, so all limitations like that of time, finance and coverage were faced. 7. Consumer biasness towards his decision is yet another limitation of this study.

5.3 CONCLUSION 76

5.3.1 SHARE OF CELLULAR SERVICE It was found that the Airtel and Vodafone have the maximum share of 28% each among the entire cellular service companies. And there is a significant difference between the share or users of the cellular service companies.

5.3.2 KIND OF CELLULAR SERVICE USER It was found out that about 54 % of the respondents are using the postpaid cellular service and 46% are using the prepaid cellular service and also there is insignificant difference between the postpaid and prepaid users.

5.3.3 PERIOD OF USING THE CONNECTION It has been found that most of the people are using the connection from more than two years. About 56% of the people are using the connection of present service provider from more than two years.

5.3.4 IMPORTANT INFLUENCERS It was found that the performance of the service and the nominal tariff plans are the most important influencers which motivates the customer to purchase the cellular service of particular company followed by the promotions or attractive schemes of the company and the network efficiency of the cellular service of the company.

5.3.5 QUALITY ATTRIBUTES OR DIMENSIONS

77

It was found that the speed of service delivery and the Ability of the company are perceived as the highest qualitative attributes/dimensions in the service followed by the Reliability of service and Tangibles (Outlets or Offices) of the company.

5.3.6 SATISFACTION LEVEL It was found that the respondents surveyed are mainly satisfied with the Quality of the Service and Price of the Service followed by Company Image and Meeting of the Expectations. Factor Analysis is also been applied inorder to find out the major factors which lead to customer satisfaction. The first factor found out is the “After Sale Services” and the factor found out to be the “Product Attributes.”

5.3.7 OVERALL SATISFACTION LEVEL It has been found out that the respondents surveyed are satisfied with the company and its services. The mean score came out to be 4.28 and 34% of the people surveyed rates highly satisfied with the service and the company.

5.3.8 CUSTOMER LOYALTY It was found that the people are most likely to continue with the same service provider followed by likelihood to refer to others and unlikely to switchover to other company. The relationship between the occupation of the respondents and their likelihood to switchover to other service provider is also considered and it is found that about 90% of the businessmen are most unlikely to switchover to other service provider and about 33.33% of the students surveyed are likely to switchover to other service provider. So it can be said that businessman are more loyal to the cellular service than the students. The relationship between kind of connection of the respondents and their likelihood to switchover to other service provider is also considered and it is found that postpaid customers are most unlikely to switchover to the other service provider than the prepaid 78

customers. So it can be said that postpaid customers are more loyal to the cellular service than the prepaid customers.

79

CHAPTER 6 BIBLIOGRAPHY

80

BIBLIOGRAPHY Sehgal N.K., “Relationship Marketing: A Source of competitive Advantages”, Indian Journal of Marketing, march 2007. Panda R. K., “Sustainable Marketing: Challenges and Opportunities”, Indian Journal of Marketing, Dec 2007. Mishra A. K. & Pallavi, “Brand Marketing through CRM”, Indian Journal of Marketing, Jan 2008. Rainisto Seppo K., “Success Factors of Place Marketing: A Study of Place Marketing Practices in Northern Europe and the United States”Indian Journal of Marketing, Sep 2003. Jain Sheenu, “Green Marketing: An Illusion or Reality” Indian Journal of Marketing, May 2007. Pauwels Koen H., “How Dynamic Consumer Response, Dynamic Competitor Response and Expanded Company Action Shape Longterm Marketing Effectiveness”, Indian Journal of Marketing, May 2003. Chopra Komal, “Strategic Marketing - Role of Relationships, Information & Services”, Indian Journal of Marketing, Dec 2004. Ching W. K., Wong K. K. & Altman E., “Customer Lifetime Value: stochastic optimization approach”, Journal of the operational Research Society, April 2004. Ulrich Karl T. & Ellision David J., “Holistic Customer Requirement and the Design-Select Decision”, Management Science, May 1999. Levin E. J., Ma Y. & Wright R. E., “Profit maximization in a multi-product firm with impatient customers”, Journal of the Operational Research Society, 2004 Navarra Pietro & Mudambi Ram, “Is Knowledge Power? Knowledge flows, subsidiary power and rent-seeking with MNC’s”, Journal of International Business studies, July 2004. Philip Kotler & Kevin Lane Keller; “Marketing Management”, 12th Edition, Prentice Hall of India Private Limited, New Delhi, Jan., 2006. Kothari.C.R.; “Research Methodology – Methods &

Techniques”, H.S.Popai for Wishwa

Prakashan, New Delhi, 1999. Gupta S. P., “Statistical Methods” S. Chand & Co. Ltd., Edition 2001. http://www.spapromotions.com/holistic_marketing_ 81

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