Abstract
In light of the explanations that were presented in class, the purpose of this project is to suggest potential solutions for the complicated market environments that two organizations, Tesco and Macy’s, are now experiencing. Both the marketing and sales of commercial organizations are the focus of the recommended approaches, which are based on previous research that has been conducted successfully. With the help of this subject, these businesses will be able to conquer their problems with customer loyalty and achieve greater levels of success.
Table of Contents
List of figures
Figure 1: Marketing Environment 5
Figure 2: Approaches to Service Quality. 6
Figure 3: Service Marketing Mix. 7
Figure 4: AIDA Model for Promotion. 10
Introduction
The concept of service is fundamental to the process of system design and development. Both the components and the process of building and formulating a service are described in detail. It is the cornerstone of bringing customer expectations in line with a company’s long-term goals. Much like a manufactured product, the services provided by businesses in this sector are composed of a number of individual pieces or components. Nevertheless, the majority of these components lack a physical form; instead, they consist of people, systems, skills, resources, etc., all of which must be used correctly in order to provide the intended “service.” Before a service organization can provide its wares to customers, it must ensure that all of its operational, physical, human, promotional, and material resources are in sync. This will aid the company’s expansion and boost its income sources (Azeem, 2015).
Operations Management
Many kinds of operational, promotional, and other options are necessary for even the most basic service. These choices facilitate taking a service from its conceptual to its deliverable form. Decisions are made at several organizational levels. Ensuring the exemplary service is delivered to the right clients requires careful coordination of all choices made at the strategic, organizational, and service encounter levels (Baca, 2014). This time is uncertain. A controlled and trustworthy market environment is no longer feasible due to the increasing rate of change. The difficulty of rapidly creating and promoting new services has grown in tandem with the growing and fluctuating wants and preferences of consumers. A number of reasons, including but not limited to globalization, technical innovation, consumer activism, and the expansion of social networks, have contributed to today more diversified and competitive market environment. A company’s future strategies and operations must be more flexible to handle this scenario. So, retailers like Macy’s and Tesco need to be operationally creative to change the market conditions quickly. In response, they might develop a product that gives them an edge in the market (Baca, 2014).
Figure 1: Marketing Environment
Image source: https://www.iedunote.com/marketing-environment
Marketing Management
Profits are the goal of all companies. Corporate profitability in the service sector is increasingly influenced by the standard of service rendered. Because of factors such as globalization, there is a rising market trend and an increase in ever-increasing global competition today. The service sector understands the significance of customer loyalty in defining company success since the expense of acquiring a new client is much higher than the expense of maintaining an existing one. A lot of effort has gone into creating efficient marketing tactics for service providers to attract and keep clients. London, United Kingdom-based supermarket chain Tesco offers Books, apparel, electronics, furniture, toys, gas, software, banking, telecommunications, and internet services are just a few of the many areas into which Tesco has expanded (Bhargav, 2017). Quality is viewed differently by different people; however, it serves as the foundation for all types of business operations and is a key factor in determining service firms’ performance. Furthermore, strategies such as partnership marketing and customer loyalty services are seen as key differentiators for companies competing in this global marketplace. On the other side, consistency in service is a must for relationship marketing as it is a major component in determining client happiness and trust. To maintain consistency across the board, Tesco, as a hospitality firm, should priorities a transcendent and customer-centric strategy. Improving service quality for clients is the goal of these strategies, which depend on feedback from customers and knowledge gained through experience. Take, for instance, a COVID-19 pandemic program that ensures clients can relax while on holiday with them and, in case they get the virus, adjusts their plans accordingly. During the course of using a product, the user eventually gains access to the product’s operational equivalent (Bhargav, 2017).
Figure 2: Approaches to Service Quality
Image source: https://www.onquality.info/wp-content/uploads/2010/04/5qualitydef-1.png
In contrast to Tesco, Asda is a major British supermarket that provides quality clothes, food, and homeware to consumers all over the world. As a result, as a retailer, it should concentrate on product-based and real worth approaches to quality development and maintenance in its businesses. These approaches seek to provide a diverse range of goods and services to a diverse range of customers, with a primary emphasis on providing quality at a fair price. Customer satisfaction is mostly determined by prior experience and relationships with the service provider in order to satisfy customers, rather than what is marketed. As a result, service quality acts as a weapon for companies to gain a competitive advantage in order to maintain their satisfied consumers. Since the retail industry is highly competitive, retailers such as Macy’s must emphasize the importance of quality in both their operational and marketing activities. Since the previously manufacturer-dominated ‘vendor marketplace’ has been replaced by a marketplace powered by customers, companies can no longer expect consumers to embrace the provision of products or services as obvious by the company, bolstering the position of product-based and value-based methods of achieving better service (BSS Commerce, 2018).
Another method for gaining a loyal customer base is to use marketing mix components, which are a set of promotional techniques used to achieve organizational objectives. A recommendation for the retail business sector, such as Tesco, is to include end users in the process of developing core facilities. This would allow for increased word-of-mouth ads from consumers, which could then be supplemented by marketing without the need to lower prices to boost sales. Employee preparation also leads to quality of service delivery in this respect (BSS Commerce, 2018).
Figure 3: Service Marketing Mix
Image source: https://theintactone.com/2019/03/07/mm2-u1-topic-3-service-marketing-mix/
Tesco should follow the art of putting customers first, anticipating their challenges and desires, customizing goods and services to meet those needs, and developing long-term relationships as part of good customer service. As part of its customer support, the approach of putting the customer first, predicting needs and challenges, tailoring goods and services to meet needs, and building long-term customer relationships. Its product mix can make up the entirety of its offering. Aside from that, it should concentrate on defining its target market in order to determine and provide appropriate service (Fick, 1991).
Tesco’s should use its marketing mix elements to evaluate and examine the viability of its services and products because these elements are critical for successful and efficient service delivery. It is the definition of customer support that necessitated the need to extend the obsolete marketing mix of 4Ps to 7Ps for the service industry. Tesco needs to distinguish itself from competitors and gain market share by tailoring its products and services (which include a combination of monetary and non – monetary components) to the needs and requirements of the customers (Goldstein, 2002).
On the other hand, for a retail firm such as Macy’s, multiple quality criteria can be defined to assess retail service in various dimensions, such as structural components of customer business (store location and layout), consistency, problem-solving, regulation, and so on. Marketing tactics can be used by Macy’s as a way for companies to concentrate on marketing strategies. Its marketing strategy should define the main activities that marketing managers must perform in relation to key factors such as consumer attitudes, pricing, location, promotion, and so on. Various analysts have added different basics to retail firms’ marketing mix, such as marketing, delivery, brand image, and layout of the store, among others (Grönroos, 2001).
As a result, both of these factors need to be considered when deciding Macy’s marketing strategy. Intensity of delivery is an important component of the business mix, which is defined as the total number of facilitators used by a service firm or the amount of accessibility chosen to deliver its services to its customers. Several factors influence distribution intensity, including target demographic, production capability, and placement and marketing practices, and so on. Since these middlemen play an important role in building brand loyalty among consumers by increasing potential value, Macy’s must prioritize distribution intensity in order to foster brand loyalty to its company (Grönroos, 2001).
As a result, standardizing the purchasing process for consumers at a retail store allows retailers to retain customers while gaining a competitive edge. Price is another critical element of marketing mix. Price-conscious customers also resist buying from brands that offer higher-priced goods. The decision to repurchase is often influenced by the value gained for the price paid. As a result, both Tesco and Macy’s must pay very close attention to such pricesensitive buyers and attract them with pricing strategies such as promotional deals, affordable bundles, and so on in order to protect customers to other brands.
Another critical element in the retail sector is the location of shops or retail outlets. Customers’ preferences are influenced by the location/place of stores as well as the overall style. In layman’s terms, a store’s picture refers to the prestige of a store that develops in the minds of customers. The picture of a store includes a variety of outcomes such as employee friendly nature, store location, venue, and physical setting. As a result, a recommendation for Macy’s in this regard is to enhance the effectiveness and layout of its shops in order to make them more user friendly and add to the ease of buying experience. The advice for Tesco may be to redesign its stores and other services in a way that distinguishes them from competitors and attracts more customers (Grönroos, 2001).
Customers often associate distinct meanings with the shopping stores they prefer to shop at or the leisure areas they enjoy. Customers, for example, want to find a variety of goods and services that meet their expectations and budgets at a shopping outlet like Macy’s. This is not the case when customers visit the Liberty London store. Similarly, Tesco customers want a safe and pleasant family outing. As a result, whatever the firm promotes, it must strictly stick to it and focus all of its attention on providing consumers with what they need when they encounter it. Firms can benefit from increased customer satisfaction and retention as a result of this. Advertisement is viewed as a critical factor in influencing customer purchasing habits and purchase decisions when it comes to the marketing of its services (Hanaysha, 2017).
As a result, both Tesco and Macy’s should use the AIDA Model in the design of their product promotion to increase the brand awareness and persuade potential customers to buy. A buying decision is influenced by a number of factors, one of which is the nature and appeal of advertisements and promotions. Other considerations include ease, pricing, and so on. The efficacy of an advertisement message is determined by marketers’ competencies and abilities in identifying their consumer base. Both companies should devote resources to market research in order to understand the characteristics of their target market and then develop relevant marketing messages and choose the most interactive multimedia for promoting the advantages of their goods and services to potential customers (Hanaysha, 2017).
Figure 4: AIDA Model for Promotion
Image source: https://bsscommerce.com/blog/effectively-use-aida-model-for-ecommerce-marketing/
Customer understanding of services is critical because it is the first step in making a buying decision in the hospitality industry. Hospitality organizations’ promotional efforts play a significant role in brand recognition. As a result, both companies must increase awareness of their products and other offerings through various platforms. The advertisements and so on can be promoted on social media, which has recently exploded in popularity and has become a popular platform for many brands to promote their goods and services (Hanaysha, 2017).
References
Azeem, S. & Sharma, R., 2015. Elements of the retail marketing mix: a study of different retail formats in India. The Business & Management Review, 5(4), pp. 51-61. https://www.semanticscholar.org/paper/Elements-of-the-retail-marketing-mix%3A-a-study-of-in-Azeem-Sharma/77f132a3cb10c6a13125e24b270e21661f70ba94 [Accessed 1 January 2024]
Baca, C., 2014. Change Agility: Readiness for Strategy Implementation. PMI White Papers. https://implementationscience.biomedcentral.com/articles/10.1186/s13012-021-01132-0 [Accessed 1 January 2024]
Bhargav, S., 2017. A Study on Marketing Mix of Hospitality Industry. International Journal of Management, IT & Engineering, 7(9), pp. 253-265. https://www.ijmra.us/project%20doc/2017/IJMIE_SEPTEMBER2017/IJMRA-12236.pdf [Accessed 1 January 2024]
BSS Commerce, 2018. How to Effectively Use AIDA Model for Your Ecommerce Marketing. [Online] Available at: https://bsscommerce.com/blog/how-to-effectively-use-aida-model-for your ecommerce-marketing/ [Accessed 1 January 2024].
Fick, G. & Brent Ritchie, J., 1991. Measuring Service Quality in the Travel and Tourism Industry. Journal of travel research, 30(2), pp. 2-9. https://mailchimp.com/resources/aida-model/ [Accessed 1 January 2024]
Goldstein, S. M., Johnson, R., Duffy, J. & Rao, J., 2002. The service concept: the missing link in service design research? Journal of Operations Management, Volume 20, pp. 121-134. https://www.researchgate.net/publication/222534605_The_Service_Concept_The_Missing_Link_in_Service_Design_Research [Accessed 1 January 2024]
Grönroos, C., 2001. The perceived service quality concept – a mistake? Managing Service Quality: An International Journal, 11(3), pp. 150-152. https://www.emerald.com/insight/content/doi/10.1108/09604520110393386/full/html [Accessed 1 January 2024]
Hanaysha, J., 2017. An Examination of Marketing Mix Elements and Customer Retention in Malaysian Retail Market. American Journal of Marketing Research, 3(1), pp. 1-7. https://www.researchgate.net/profile/Jalal-Hanaysha-2/publication/319632481_An_Examination_of_Marketing_Mix_Elements_and_Customer_Retention_in_Malaysian_Retail_Market/links/59b72b56a6fdcc7415bebb36/An-Examination-of-Marketing-Mix-Elements-and-Customer-Retention-in-Malaysian-Retail-Market.pdf [Accessed 1 January 2024]
Huang, P. L., Lee, B. C. Y. & Chen, C. C., 2019. The influence of service quality on customer satisfaction and loyalty in B2B technology service industry. Total Quality Management & Business Excellence, 30(13-14), pp. 1449-1456. https://www.tandfonline.com/doi/abs/10.1080/14783363.2017.1372184 [Accessed 1 January 2024]
Huma, S., Ahmed, W., Ikram, M. & Khwaja, M., 2019. The effect of logistics service quality on customer loyalty: case of logistics service industry. South Asian Journal of Business Studies. https://www.emerald.com/insight/content/doi/10.1108/SAJBS-10-2018-0114/full/html [Accessed 1 January 2024]
Järvinen, M., 2019. Co-creating an in-house service concept for boosting innovation and development. Vantaa: Laurea University of Applied Sciences. https://iona.fi/services/?gclid=CjwKCAiA4smsBhAEEiwAO6DEjfElWM59o9q-OWblqDGr7WaRF7rOd0pGdiDBgXjmAnhzsl97p_mbHhoCMZgQAvD_BwE [Accessed 1 January 2024]
Kalotra, A., 2017. An Analysis of Awareness of Marketing Mix Strategies of Hospitality Industry: A Study of Delhi. Journal of Hospitality Application & Research, 12(2). Macy’s, 2021. About Us. [Online] Available at: https://corporate.marksandspencer.com/aboutus [Accessed 1 January 2024].
Venkateswaran, P. & Sundram, S., 2021. Impact of Retail Service Quality and Store Service Quality on Patronage Intention towards Organized Retail Industry. Turkish Journal of Computer and Mathematics Education, 12(3), pp. 1462-1471. https://www.researchgate.net/publication/350864748_Impact_of_Retail_Service_Quality_and_Store_Service_Quality_on_Patronage_Intention_towards_Organized_Retail_Industry [Accessed 1 January 2024]
Burgers, A., Ruyter, K.d., Keen, C. and Streukens, S., 2000. “Customer expectation dimensions of voice-to-voice service encounters: A scale-development study”. International Journal of Service Industry Management, 11(2), pp.142–161. https://www.researchgate.net/publication/235278772_Customer_expectation_dimensions_of_voice-to-voice_service_encounters_A_scale-development_study [Accessed 1 January 2024]
Dabholkar P., and Bagozzi, R., 2002. An attitudinal Model of Technology-based Self-service: Moderating effects of Consumers Traits and Situational Factors. Journal of Academy of Marketing Science, 30(3), pp.184-201. https://link.springer.com/article/10.1177/0092070302303001[Accessed 1 January 2024]
Appendix 1
JOURNAL ENTRY # 1
Student Number:
Journal Entry Number: 1
Name of Firm: Tesco PLC Type of Service: Retail Company Date of Encounter:
Date of Encounter:
Time of Encounter:
Very briefly, describe the business:
The United Kingdom is home to the multinational supermarket and general products business Tesco. Its retail outlets may be found in five different European nations. Online textbooks, clothing, appliances, furniture, toys, gas, software, financial services, telecom, and other services are all part of Tesco’s new retail empire.
How would you rate your level of satisfaction with this encounter? (Scale of 1-7 where 1 is extremely dissatisfied and 7 is extremely satisfied)
6
Apply relevant marketing and operations concepts/theories from the lectures to your service encounter: (briefly describe the concept and its purpose as it applies your service encounter)
Quality in service experiences is a significant criterion for determining whether we, as customers, choose one service provider to another in the market. Quality is interpreted differently by different people. It is, in my opinion, the continuous provision of adequate services in response to customer demands. However, in order to achieve an overall satisfactory result, organizations must follow the Sand Cone Model (described below) to fulfill all value defining goals. Cost, versatility, speed, reliability, and consistency are all factors to consider. As a result, we can conclude that the only attribute that is insufficient is the ability to produce results. My experience with Tesco was compliant with my expectations of a great retail product on a limited budget that adhered to all aspects of the Sand Cone Model (Huang, 2019).
Figure 1: Sand Cone Model
Using bullet points list three main issues that made you satisfied OR dissatisfied with this service encounter
- It has a variety of product offerings to fit various tastes and budgets.
- Its stores are conveniently accessible and close to me.
- In the midst of COVID-19 fears, it provides absolutely healthy and enjoyable shopping in its stores.
Present evidence or data collected from the business that applies to the concept/theory:
The organization has implemented a strategy to stay ahead of its competitors in the retail market sector by improving customer experience and quality levels across the board. This approach is founded on the primary goal of establishing and sustaining close and long-term relationships with its customers and all employees at all levels. This is accomplished by adhering to the performance goals outlined in the Sand Cone Model. Furthermore, it relies on the User-based Approach to achieve consistency. It is actively seeking input from customers and business owners about service quality and takes prompt steps to correct the situation (Huang, 2019).
Figure 2: Five Approaches to Quality
What does your analysis, using the marketing and operations course concepts/theories, tell you about the company?
In my opinion, Tesco is a highly sensitive quality product provider that depends on a redemptive and user-based approach to maintain its service quality (see figure above). Furthermore, the transformation model (described below) can be applied here. Tesco provides the customers with transformative tools in order to offer high-quality services that result in a positive customer satisfaction and loyalty. When I first contacted with its staff and I was asked to share my experiences and from my experience in case any of their services needed to be improved (Huma, 2019).
Figure 3: The Transformation Process
Appendix 2
JOURNAL ENTRY # 2
Student Number:
Journal Entry Number: 2
Name of Firm: Virgin Holidays Type of Service: Private Tour Operators Date of Encounter:
Date of Encounter:
Time of Encounter:
Very briefly, describe the business:
Virgin Holidays, founded in 1985, is a subsidiary of the Virgin Group. They are luxury travel operators/travel companies that organize trips to various nations such as the United States, Canada, the Middle East, the Far East, and South Africa (Huma, 2019).
How would you rate your level of satisfaction with this encounter? (Scale of 1-7 where 1 is extremely dissatisfied and 7 is extremely satisfied)
3 (slightly dissatisfied)
Apply relevant marketing and operations concepts/theories from the lectures to your service encounter: (briefly describe the concept and its purpose as it applies your service encounter)
Different kinds of telecom operators can be evaluated and compared using the Sand Cone Model’s five performance measures: cost, versatility, speed, reliability, and efficiency. If all of these success measures/objectives are met, it indicates that a company is extremely attentive and accountable to its customers. Sadly, my experience with Virgin Travels was not a good one because they’re unable to answer customers’ problems during this pandemic era, while many other businesses successfully adjusted to meet customer concerns and desires. This perspective can be described by the following model, which illustrates why organizations struggle at the organizational level (Huma, 2019):
Figure 4: Sources of Potential Failures in Operations (From class discussion slides)
Based on my observations, Virgin Holidays appears to be in the “product design failure” stage. Any error would eventually result in the failure at the customer level.
Using bullet points list three main issues that made you satisfied OR dissatisfied with this service encounter
- Failure to reach refund deadlines.
- Many problems with the website.
- Badly organized customer support centers and processes.
Present evidence or data collected from the business that applies to the concept/theory:
The Virgin Community sees company as an incentive to change things for the better in society and the environment. It bases all of its judgments on this viewpoint, which serves as a filter for strategic planning (Järvinen, 2019). It also aims to provide unique customer interactions by providing a diverse range of options and to challenge the status quo of market leadership by producing good results (Järvinen, 2019).
What does your analysis, using the marketing and operations course concepts/theories, tell you about the company?
Before opting for a stopover with another company, I booked a trip to the Bahamas with Virgin Travels. However, owing to the COVID-19 pandemic, I was unable to take the vacation and contacted the company for a return or readjustment. I was first unable to reach a customer service agent. Recently, when I was successful in contacting one and presenting my problem, the aforementioned refund took an eternity to arrive (Järvinen, 2019).
This can be demonstrated using the Sand Cone Model (presented below). Based on my experience, Virgin Holidays has struggled to be a dependable and versatile travel agency. As a result, it is inconsistent with the five desired outcomes that describe a satisfactory consumer experience (expense, value, reliability, versatility, and pace) (Järvinen, 2019).
Figure 5: Sand Cone Model (From class discussion slides)
In my situation, it was also unable to provide transforming services, which resulted in low service quality and experience on my end. As a result, based on my experience, I would conclude that the company has struggled to provide consumers with a reliable and consistent and trustable service, thus struggling on this front. A company may have all of its features in place, but if it cannot adequately serve its clients, it will lose customers (Järvinen, 2019).
Appendix 3
JOURNAL ENTRY # 3
Student Number:
Journal Entry Number: 3
Name of Firm: Macy’s
Type of Service: Department Store Company Date of Encounter:
Date of Encounter:
Time of Encounter:
Very briefly, describe the business:
Rowland Hussey was an Established in 1858, Macy’s is an American department store business. In 2015, Macy’s had the highest net revenue of any U.S. department store chain. Along with 395 core shops (11 flagships and 384 magnets) and 58 neighborhood stores, there are 47 furniture galleries, 2 furniture clearance centers, 2 locations converted into distribution centers with the Macy’s moniker, and a whole lot more spread out over the United States (Järvinen, 2019).
How would you rate your level of satisfaction with this encounter? (Scale of 1-7 where 1 is extremely dissatisfied and 7 is extremely satisfied)
5
Apply relevant marketing and operations concepts/theories from the lectures to your service encounter: (briefly describe the concept and its purpose as it applies your service encounter)
When it comes to basic necessities like food, clothes, and household goods, quality is all. Quality can mean different things to different people. In theory, there are six consistency parameters:
- Functionality – How much the product/service performs its function
- Appearance – The visual characteristics/aesthetic attractiveness
- Reliability – Consistency of results over time
- Durability – Total estimated useful lives
- Recovery – The ease in which issues can be resolved
Macy’s is known for its creative and fresh food, as well as its fashionable and wearable clothes at a reasonable price. Macy’s main emphasis is on creating value for consumers’ money and building its own labels in food, clothes, and homeware, making it the preferred option of millions of customers looking for value.
Using bullet points list three main issues that made you satisfied OR dissatisfied with this service encounter
- A wide variety of goods to suit the tastes of millions of customers;
- Innovative, high-quality, innovative, and delicious food items;
- Great value for the money.
Present evidence or data collected from the business that applies to the concept/theory:
At Macy’s, customer satisfaction is paramount to innovation and expansion. Given the global nature of its customer base, it is imperative that it takes local tastes in apparel and cuisine into account. It is the stated goal of Macy’s to provide customers with exceptional service and an unforgettable shopping experience. Its exceptional customer service is based on the Transcendent and User-Based Approach (Järvinen, 2019).
Figure 6: Five Approaches to Quality
What does your analysis, using the marketing and operations course concepts/theories, tell you about the company?
According to the theory, Macy’s marketing management is highly focused on efficiency and customers. With every product and service it offers, it aims to include quality and client care. Quickly adjusting to meet the needs of a more diverse customer base, it saw that its food firm had become very premium. Its functioning is therefore in line with the five primary performance goals shown by the Sand Cone Model (Kalotra, 2017):
Figure 6: Sand Cone Model
The goal of Macy’s is to improve the lives of its consumers and to ensure that they have a pleasant shopping experience every time they connect with the company. Building long-term sustainable company success, it stays in touch with the local population in every place it represents, identifying and responding to their changing requirements. Consequently, its service is dependable, quick, of high quality, and flexible (Kalotra, 2017).
Appendix 4
JOURNAL ENTRY # 4
Student Number:
Journal Entry Number:
Name of Firm: Liberty London (Liberty’s)
Type of Service: Luxury Department Store Date of Encounter:
Date of Encounter:
Time of Encounter:
Very briefly, describe the business:
Liberty, also known as Liberty’s, is a high-end shopping Centre located in London, England.
How would you rate your level of satisfaction with this encounter? (Scale of 1-7 where 1 is extremely dissatisfied and 7 is extremely satisfied)
6
Apply relevant marketing and operations concepts/theories from the lectures to your service encounter: (briefly describe the concept and its purpose as it applies your service encounter)
Liberty London employs the Transcendent Quality Approach to provide extraordinarily creative and comfortable products to its artistic customers. Liberty London is a popular choice for people who value aesthetic appeal in their clothing, home décor, and so on.
Figure 7: Five Approaches to Quality
Furthermore, when adding the 7Ps of marketing blend to my experience with Liberty London, it is fair to say that all of the components are well designed to influence social change in clothing and home decoration. It intentionally positions itself in a position where it can be recognized for its strong ties to art and culture (Kalotra, 2017).
Using bullet points list three main issues that made you satisfied OR dissatisfied with this service encounter
- A shopping environment steeped in British tradition
- A selection of goods and services that cater to the artistic sensibility
- Impressive and prompt customer support with on-time home delivery
Present evidence or data collected from the business that applies to the concept/theory:
The designers of the Liberty store permitted their dreams to be visualized, resulting in the development of a master-piece, with each ornament becoming a one-of-a-kind – paving the way for exploration (Venkateswaran, 2021). Liberty London selects extremely high-quality transformed services as inputs to drive the ideal customer experience (Venkateswaran, 2021).
Figure 8: The Transformation Process
What does your analysis, using the marketing and operations course concepts/theories, tell you about the company?
Based on my observations, Liberty London pays careful attention to preserving its heritage based on art and culture and strives to offer goods and services that are explicitly designed to cater to artsy consumers. Since quality is subjective, it is difficult to define. Quality in Operations Management can be characterized as clear conformity to customer expectations. One of the five operational management efficiency objectives is quality. It is the most noticeable of all operations and hence has a high priority both internally and externally. External consistency is a critical factor in determining consumer satisfaction. Internally, quality operations lower costs and improve dependability. Furthermore, consistency has a positive impact on sales since it (Venkateswaran, 2021):
- Improves brand image
- Allows for a quicker customer response time
- Lowers the costs associated with mistakes.
To summarize, Liberty London aims to offer top-notch offerings to its consumers who are very picky when it comes to quality of their clothing, homeware, and so on. Mostly, these consumers are unconcerned with high prices; they are concerned with quality (Burgers, 2000).
Appendix 5
JOURNAL ENTRY # 5
Student Number:
Journal Entry Number: 5
Name of Firm: Amazon UK Type of Service: Online Business Date of Encounter:
Date of Encounter:
Time of Encounter:
Very briefly, describe the business:
Amazon UK is an online marketplace that accepts inventory from suppliers and delivers it to customers.
How would you rate your level of satisfaction with this encounter? (Scale of 1-7 where 1 is extremely dissatisfied and 7 is extremely satisfied)
6
Apply relevant marketing and operations concepts/theories from the lectures to your service encounter: (briefly describe the concept and its purpose as it applies your service encounter)
I was recently piqued by some purchase-inducing advertising from the online retailer Amazon UK and ended up making some purchases. Amazon UK’s advertisements piqued my interest and were the impetus for my purchases. The advertisements were produced in accordance with the AIDA advertising model. This model consists of four critical steps: knowledge, interest, desire, and action. The advertisements I saw were for an echo speaker and an HD smart show, and they were well-designed to catch my attention. Later, as I looked into them further, I was captivated by the advantages of buying them in the manner in which they were marketed. Furthermore, the purchasing process was becoming increasingly smooth, so I couldn’t resist making a purchase (Burgers, 2000).
Figure 9: AIDA Model for Advertising
Using bullet points list three main issues that made you satisfied OR dissatisfied with this service encounter
- A Consumer Opinion Section that aids in the purchasing decision
- A diverse array of products and services to fit every person and taste
- Outstanding and prompt customer service with on-time delivery services
Present evidence or data collected from the business that applies to the concept/theory:
Amazon market segmentation (Amazon 7Ps of marketing) consists of seven elements of the marketing mix such as product, place, price, promotion, method, people, and physical evidence.
The following is a breakdown of each P element (Dabholkar, 2002):
Figure 10: 7P’s of Marketing Mix
- Product: Amazon’s items are divided into four main categories: Amazon websites (which enable third-party vendors who are paying prime members to sell products on Amazon), digital equipment, media material, and Amazon web services.
- Location: Initially, Amazon only worked online, but it has recently opened many retail locations (Dabholkar, 2002).
- Price: Although cost leadership is the overarching term for Amazon’s price strategy, the biggest online retailer in the world does use other pricing tactics in some areas.
- Marketing: As a primary communication method, Amazon relies on advertisements, product promotion, and, more recently, social media. These are used to communicate the organization’s message to the appropriate audience.
- Procedure: Amazon provides a safe online shopping experience.
- People: Amazon has assisted in the creation of thousands of jobs in the United Kingdom. It has something to give everyone.
- Physical Evidence: Almost all Amazon services have material proof, whether they be tangible objects or intangibles like web services.
What does your analysis, using the marketing and operations course concepts/theories, tell you about the company?
Based on my observations, Amazon relies on its solid marketing strategy to sell thousands of goods and services on a regular basis. Quality is one of Amazon’s five business management success goals (Dabholkar, 2002).