Role of Data in Improving Relationship Marketing and Customer Expectations

This document discusses the role of data in improving relationship marketing and customer expectations. It explores how data helps in building customer loyalty and improving service excellence. The document also provides insights into segmentation, targeting, and positioning specific to a product or service, as well as the rationale for innovation in product and service design. Additionally, it analyzes the market and provides solutions for meeting customer needs.

Marketing Management
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
A. Evaluation of the role of data in improving relationship marketing and how it improves
customer expectations and service excellence............................................................................3
B. Explain segmentation, targeting and positioning specific to a product or service.................5
C. Provide the rational for innovation in product and service design.........................................6
D. Analyse the market and provide solution and review the effectiveness of meeting
customer's need...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Management is the process of getting activities and operations done in well organised and
effective way within the organisation (Adams, Freitas and Fontana, 2019). Marketing
management is the part of management which helps in decision making process, planning and
controlling in order to provide better results within the marketing system. Marketing is one of the
important aspect of business which is responsible for identifying and controlling the demand for
goods and services in marketplace. Basically marketing management determines the taste and
preferences of customers and accordingly develop strategies for sales teams for business
development. The organisation chosen for this report is Airdri ltd. The company is operating at
small level that is only in UK market and dealing in hand dryer and air purifiers from very long
time that is from 40 years.. The company was established in year 1974 by Peter Philipps and is
recognised as a top design and manufacture of wash room essentials. The topics covered in
report are role of data in improving relationship marketing and how these data help in improving
customer expectations, concept of segmentation, targeting and positioning specific to product,
role of innovation in product and service design in meeting the needs of customers with help of
organisational strategy and develop viable solution within a specific target group to review their
effectiveness in meeting customer's needs and wants.
MAIN BODY
A. Evaluation of the role of data in improving relationship marketing and how it improves
customer expectations and service excellence.
Data is becoming one of the important element in the marketing process as it help in
gathering information about performance of company and its customer base. These informations
provide grate support to company in building its brand name by making changes and improving
the marketing channels, products and customer services (Aghazadeh, 2015).
Role of data in improving relationship marketing is as follow-
Relationship marketing is the part of customer relationship management(CRM) which is
responsible for regulating and maintaining customer loyalty and long term relationship with
customers. The primary goal of relationship marketing is to build strong connections with the
customers in order to help company in attaining the success in marketplace.
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 Higher customer lifetime value(CLV): Data acquisition help in building loyal
customers which lead to increase in repeated purchases and high customer lifetime value.
Moreover, loyal customers are like brand ambassadors to company as they do mouth
publicity and recommend the brand products to their known people.
 Reduction in marketing and advertising spend: Spending money on promotion
activities and advertising in order to gain new customers leads to huge expenses. Here,
data play an important role as with the help of data company can directly contact to
customers that is no role of middle person (Beverland and Lindgreen, 2010). This helps
in building relationship with customers and satisfied customers do the marketing for the
brand as customers tell other people about the good quality of brand's products and
services which might convert to sales.
 Stronger organizational alignment around the customers: The organisations which
focus on developing relationship marketing lead to strong organisational alignment
around the customer. This can be achieved by organisations with the help of proper data
collection.
Role of data in improving customer expectations and service excellence
Relationship marketing is the key factor which provide support in maintaining and
developing customer relationship.
 Trust: Trust is one of the important factor in development and maintenance of long-term
relationship with organisation. Airdri ltd. has able to develop trust in UK market by
providing quality products at affordable prices. Therefore, the experience of high value
lead to trust and representing the basis of solid trust.
 Affective and rational commitment: Data collection and proper use of data has helped
Airdri ltd. in building and maintaining customer loyalty and their commitment. The
affective commitment is basically an emotional factor which company has developed by
providing personal attention and involvement in clients satisfaction which result in high
degree of trust and commitment (Gustavo, 2013).
 Fidelity: The data has played a crucial role in building fidelity as company has taken the
set of measures within the operations with the purpose of obtaining stability and progress
in the customer relations.
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 Loyalty and retention: The use of resources with collected data helped the company in
customer retention which leads to establishment of loyalty. Airdri ltd has made strong
and loyal customer base by conducting and maintaining permanent communication with
its active customers. The aim of the company is to provide long team benefit to customers
that is customer satisfaction which lead to increase in profitability level.
 To learn about targeted audience: The proper use of data has helped company in
conducting surveys at different level in order to know about the clients. This has helped
company as they came to know more about their customers in terms of preferences and
taste. This has facilitate in developing better product with the motive of satisfying clients
so that they prefer them over other competitors (Hollensen, 2019).
B. Explain segmentation, targeting and positioning specific to a product or service.
Segmentation, targeting and positioning is a strategic approach which helps in analysing
the market trends in order to establish and gain the large market share. STP focuses on
effectiveness that is selecting the most valuable segments with the market for the business
growth and development.
Segmentation
Segmentation is the factor which is very important as for companies it is not possible to
target the entire market so, with the help of segmentation marketplace is divided into parts which
are accessible by the companies and have potential growth and profitability.
 Demographics: Airdri ltd. in its hand dryer range focusing on above 18 age group people
and this product is use by both males and females. The motive of the company is to
provide hand dryers to its audience at affordable prices.
 Psycho-graphics: Hand dryer is become one of the essential product and people are
preferring and choosing hand dryer over hankies.
 Geography: The company is focusing in UK market only that is designed and
manufacture its wide range of hand dryers for UK people.
 Behaviour: The company has able to established its band name by providing good
quality and effective hand dryers at reasonable prices.
Targeting
A target market refers to a group of potential customers which company wants to target
that is to whom they want to sell its products and services.
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 Criteria Size: The size of the company is small and focusing on UK market only with its
wide range of hand dryers.
 Difference: The primary motive of the company is to provide quality product with latest
designs and innovation to its audience at affordable prices thus maintaining difference
through price and quality.
 Money: The company is operating in UK market from long time and has established its
brand name due to which company need to spend much on marketing plan and able to
maintain its the anticipated profits.
Positioning
Positioning of product is done in order to provide product benefits to a particular target
audience. Basically positioning of product refers to the marketplace where companies product
and service fits. Airdri is focusing in the UK market for positioning its product. Moreover in
company is focusing on niche market within UK where company has established contracts with
malls and big companies. The company is focusing on niche market because hand dryer is an
electronic machine which is mostly use in companies and mall restrooms in order to provide
convenience to the people. Hand dryers require continuous electrical supply and has major usage
in crowded places (Ilieska, 2013).
C. Provide the rational for innovation in product and service design.
Innovation is introduction of new things. When companies design things to meet dynamic
environment it is innovation. It is helping brands to grow as the reason of them to sustain is that
they innovate their business processes or products and services. They make them relevant in
market and make customers attracted towards them. It helps them to differentiate and make
quality products and services (Keegan, 2017).
Effectiveness of innovation in designing Vacuum cleaner of Airdri Ltd. Ltd.
 To introduce remote vacuum cleaner of Airdri Ltd. to innovate product design and
increase the profitability.
Provide customer experience- The product and services are designed to meet the needs
of customers. The product cycle is becoming short as customers want new design or innovative
products and services. They always consider products and services which are best in quality and
trendy so that it can give them a good experience. There are competitors for products and service
and customers will choose the brand because they are innovative in design.
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Airdri Ltd. has products like hand dryer and air freshener which are designed for
customers who want cleanliness and company was formed when there was a need for it and
competitors were not there. They have not innovated products. Remote vacuum cleaner will be
an innovation for them and increase products of company. It will give a good customer
experience and they will get profits.
Innovation provides differentiation- It helps the brands as differentiation attract
customers (Kotabe and Helsen, 2020). They make them understand the needs of customers.
Differentiation is the strategy used by brands when they are not able to get the increasing profits
and market share of products and services are constant. There is a need to innovate to sustain in
market. Innovation can be designing a new product and service. The brands can innovate their
products with technology and increase their profits.
Airdri Ltd. has differentiated by new product as they need to increase their market share.
The innovation is important to be relevant in market and they have innovated their products but
not in a new product. This is a remote vacuum cleaner where it is easy for customers as they
have to be relaxed. They can give them directions and increase the effectiveness of the work. It
helps the customers and increase profits.
Provides customers loyalty- It is important for companies to have loyal customers as
these customers give profits to companies (Kotler and et.al., 2018.). They trust companies and
products and services offered. They will be helping companies in innovation. The companies
should design products and services to meet the needs of its customers. The success of the brands
depends on its customers interest in products and services. There are options available to
customers and they can be attracted to that. To make customers interested in company's products
and services, they should innovate.
Airdri Ltd. has customers who trust them as the company is operating from 90's. They
have products and services to meet the needs of customers who want freshness and quality in
services. The remote vacuum cleaner will help them to stay clean. It will help them to provide
customers which want cleanliness. The customers of Airdri Ltd. will take it as innovation for
company and will help company in increasing profits.
Markets the business- There are various promotional strategies used by companies to
make products and services attractive. They have techniques like discounts, cashbacks, etc.
Innovation is a promotional strategy which help the brands to meet demands of customers. They
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can sustain in market when they provide better options to customers. Innovation helps the brands
to sell products and services and it involves cost so companies should innovate to increase
profits.
Airdri Ltd. is providing quality products and services to customers so their innovation in
products and services should be good. They should meet demands of customers. The remote
vacuum cleaner will make them innovative in market and it will be promoting the business
(Levy, 2012).
D. Analyse the market and provide solution and review the effectiveness of meeting customer's
need
Airdri Ltd. has its own manufacturing units where they design products and services
according to the taste and preference of customers and their business operations. They provide
products and services at affordable prices and good quality. They want to grow in markets of US
and South Africa which will help them in making business strategies. They are in market of UK
which is not making them competitive and customers get products from many countries.
Evaluating the opportunities for growth for products and services
There are many options for companies and they need to analyse risk because there are
factors which helps businesses to make decisions. They can use Ansoff matrix to identify the
best strategy.
Target Market- The market with customers having cleanliness need with affordable price
products and services. They want products and services to be innovative and having good quality
(Navarro and et.al., 2011).
Market Penetration
This strategy is used by companies to expand in existing market with existing products
and services. It is helpful for companies to expand in market where they have customers. It will
increase their market share. It is used by companies when they want to increase their profits by
promoting.
Airdri Ltd. can use this strategy by innovating products and services. They can innovate
their products and services and provide customers with better technology. The business strategies
will help customers and companies because they have to penetrate in market (Park, 2020).
Product development
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This strategy is used by companies to develop new products for existing market. The
market for product is growing and it will help organisations. The companies use this strategy to
increase products and services.
Airdri Ltd. has products and services which needs to be updated and they need to develop
new products so that customers gets attracted.
Market Development
This will help companies to expand into new market with existing products. The market
expansion is a strategy used by companies when they want to increase their market share and
globally expand market.
Airdri Ltd. has a market in UK and they have customers who like products and services.
They can expand to markets which want products and services for cleanliness.
Diversification
This strategy is used by companies where they expand in new market with new products.
This give companies different markets and they can make strategies to increase profits (Polat and
Donmez, 2010).
Airdri Ltd. can make new products and services and make the strategies for them. It will
help company in making strategies and increase their profits markets.
The best strategy for Airdri
Airdri Ltd. Should use product development as this strategy will help the company to
expand its products in existing market. The market of UK is good for company as they are
operating with existing products and services. The company can develop new products and use
innovation as their business strategy.
Effectiveness of meeting customer's need
The brands should make strategies to meet the needs of customers and as they are
important for business. They need to make products and services by understanding the needs of
customers and helps them in increasing their profits (Polat and Donmez, 2010).
Long term relationship- It is important for companies to maintain long term
relationships with customers as it will help them. Airdri Ltd. has the best quality products which
help customers (Weinstein and Pohlman, 2015).
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CONCLUSION
The marketing strategies of companies should help customers as they will make
companies achieving profits. Innovation is the best strategy use by companies as they will make
customers attracted to products and services of companies. The market of company helps them in
making strategies which is important for meeting needs of customers. The management should
make innovation is their business strategy and quality should be maintained. The project has
used segmentation, targeting and positioning to specify the markets they need to focus on. It
includes analysis of markets and strategies which is best for company. It help companies to
manage the resources. The role of data is important to organisations as they will get customer's
knowledge and it will help companies to make strategies for products and services. It helps
companies to understand market and factors which help companies to understand customers. The
companies which are having operations in many countries need to understand customers. The
management help them to make strategies and provide the best quality products and services.
The companies need to make products and services which will help them in increasing customer
and profits.
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REFERENCES
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Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral
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qualitative case research published in Industrial Marketing Management, 1971–2006.
Industrial Marketing Management. 39(1). pp.56-63.
Gustavo, N., 2013. Marketing management trends in tourism and hospitality industry: facing the
21st century environment. International Journal of Marketing Studies. 5(3). p.13.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Ilieska, K., 2013. Customer satisfaction index–as a base for strategic marketing management.
TEM journal. 2(4). p.327.
Keegan, W.J., 2017. Global marketing management. Pearson India.
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Levy, S.J., 2012. Marketing management and marketing research. Journal of Marketing
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Navarro, A. and et.al., 2011. Integrated model of export activity: Analysis of heterogeneity in
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Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Polat, G. and Donmez, U., 2010. Marketing management functions of construction companies:
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Weinstein, A. and Pohlman, R.A., 2015. Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
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