Retail Marketing - Building Trust and Loyalty

The basic need of every retailer is to satisfy customers needs, meat and resolve the customer’s problem by offering an adequate product or a service and maintain a certain margin on the products/services that will lead to profit. Retail Marketing is the leash that connects the retailer with the customers having in sight the retailer's business objectives and goals.

Now days so often we walk into a store that has a shop keeper that knows nothing about so many of their products and knows nothing about those that can help you solve the problem that motivated you to get into that store. That kind of sales people just discourage the customer that a solution can be found at that store and make them leave. This is exactly what the shop owner would not like to happen.  So how to keep the customers and increase footfall and sales?

The basics of every good sales process is building trust. Once a retailer manages to build up the trust that a customer has in his services and products, it is very likely that that customer will buy and return for more. That is the way to build up customer's loyalty towards the retailers store or to a certain brand of products and services. That is one of the basic requirements for every good retail marketing agency. Every campaign and every action the agency plans has to have this as one of the long term goals in order to be successful.

So let's talk about some of the actions that the retail marketers can arrange in order to achieve this goal.  every retail marketing plan should contain activities like loyalty cards, gifts, coupons, special awards in order to build up customers' loyalty towards the product.

Loyalty cards can be used to express the customer's belonging to a certain special group of customers that the retailer wants to award with a special status and discounts for the loyalty and the business they have done in the store over a period of time.

Reward programs will include a special gift for the buyer included in every purchase that has been made in that store, or a special occasion gift like every third home appliance bought by one customer can be accompanied with a additional appliance for free, upon customer's choice.

Sales promotions programs are made to build up a well established relation with the customer and that is the basic of all great retail marketing services. Not so long ago this bonding process and loyalty was not taken into such consideration and it was so often that customers were migrating from one brand to another. Results have shown that building customers' loyalty is not an easy process and it takes time and money to invest into retail marketing activities to achieve e this. But result also have shown that this money is well spend since it provides profit over a longer period of time and long lasting effects.

All well established retail marketing companies will offer you a sales promotion plan that will include building customer loyalty activities as part of the whole process. If they do not, do not hesitate to ask about it and include it for the benefit of your own retail business

10 BEST MARKETING SCREW UPS

By

Swathi. D

III Bcom(MM)

1. Coors put its slogan, " Turn it loose," into Spanish, where it was read as "suffer from diarrhea". 
2. Scandinavian vacuum manufacturer Electolux used the following in an American campaign: "Nothing sucks like an Electrolux."
3. Clairol introduced the "Mist Stick", a curling iron, into German only to find out that "mist" is slang for manure. Not too many people had use for the "shit stick."
4. When Gerber started selling baby food in Africa, they used the same packaging as in the U.S., with the beautiful Caucasian baby on the label. Later they learned that in Africa, companies routinely put pictures on the label of what's inside, since most people can't read.
5. Colgate introduced a toothpaste in France called "Cue", the name of notorious porno magazine.
6. An American T-shirt maker in Miami printed shirts for the Spanish market which promoted the pope's visit. Instead of  "I saw the Pope" (el Papa), the shirts read " i saw the potato" (la papa)
7. Pepsi's "come alive with the Pepsi generation" translated into "Pepsi brings your ancestors back from grave", in Chinese.
8. Frank Perdue's chicken slogan, "it takes a strong man to make a tender chicken" was translated into Spanish as "it takes an aroused man to make a chicken affectionate."
9. The Coca - Cola name in china was first read as "Ke-kou-ke-la", meaning "Bite the wax tadpole" or"Female horse stuffed with wax", depending on the dialect. Coke then researched 40,000 characters to find phonetic equivalent "ko-kou-ko-le", translating into "Happiness in the mouth".
10. When Parker Pen marketed a ball-point pen in mexico, its ads were supposed to have read, "It wont leak in your pocket and embarrass."  

Changing Consumer Attitudes are driving E-CRM

by

 Niveditha E.M

III bcom MM

     We live in a technological age and consumers are now fuelled by internet-induced expectations and an even increasing mood of self-reliance. So we have to compete in an environment where communication, buying processes, data management, delivery and service are all-important in the battle for long-term, profitable relationships.

ECRM helps us to measure, create and increase income and reduce costs and operate more efficiently and profitably. The Internet, as both a marketing and sales channel is redefining well-known customer shopping patterns and behaviours. As technology and manufacturing fast become commodities with little difference in product pricing and margins, the customer relationship is the only area where real competitive advantage is still possible.

Yet, even on web sites that are well designed and usable, it's difficult to get quality customer service when you need it. If you send an email request, do you receive a quick and helpful reply? How easy is it to find a phone number to call? If you call the help line, do the customer service representatives answering the phone understand how you spent the last hour on their company's Web site? Will you ever visit or shop online there again? When you consider that the cost of making a new customer is nearly five times that of retaining an existing one.

No wonder that in today’s world of decreasing margins, increasing competition and ever changing business environment, corporate success depends on an organization's ability to build and maintain loyal and valued customer relationships. But that is easier said than done.

Every visitor to your Web site provides important information, from what they look at to how long they stay on your site. But online behaviour is not your only source of information. It's likely that your company already has relevant data sitting idle or underutilized in databases or filing cabinets within your company. However, this data is often difficult to combine into a unified picture, when today more than ever you need a single, unified customer view.

The key to meeting today’s customer’s expectations is ‘Electronic Customer Relationship Management’ (eCRM) an approach that integrates all of your customer information and makes it available for each customer contact, so you can provide the kind of consistent and effective personalized service customers want. It need not be expensive for a small to midsized company as it not primarily a single technology, but a refocusing of an organizations collection and use of customer data using existing technologies. Although companies selling unified e-CRM solutions may dispute this point. The goal of e-CRM is to serve the same essential purpose of customer service in any business. That is, understand who your customers are and what they want.

The challenge for e-business is to quickly merge your information from a variety of diverse sources into a sales face that can provide your customer with the comforts of shopping environments with which they are already familiar. e-CRM integration supplies a familiar contact point that remembers them personally and has knowledge of their likes and dislikes, their history with your company and their details and credit status.

However many contact points your online business has, such as, e-mail, instant messaging, voice-over Internet, Web chat, voice mail or live help desks, e-CRM provides a solution that brings them all together for each and every customer contact. e-CRM will enable your companies marketing department to identify and target your best customers, manage marketing campaigns with clear goals and objectives, improve telesales, account, and sales management, generate quality leads for the sales team identifying the most profitable customers and providing them the highest level of service.

Cyber law case - Syed Asifuddin and Ors. V. The State of AP. & Anr., 2005CriLJ4314

- complied by

 Sonam Bagla 

(III bcom mm)

Facts of the case :

Tata Indicom employees were arrested for manipulation of the electronic 32-bit number (ESN) programmed into cell phones that were exclusively franchised to Reliance Infocomm.

The court held that such manipulation amounted to tampering with computer source code as envisaged by section 65 of the Information Technology Act, 2000. 

Case Details:

Reliance Infocomm launched a scheme under which a cell phone subscriber was given a digital handset worth Rs. 10,500/- as well as service bundle for 3 years with an initial payment of Rs. 3350/- and monthly outflow of Rs. 600/-. The subscriber was also provided a 1 year warranty and 3 year insurance on the handset.

The condition was that the handset was technologically locked so that it would only work with the Reliance Infocomm services. If the customer wanted to leave Reliance services, he would have to pay some charges including the true price of the handset. Since the handset was of a high quality, the market response to the scheme was phenomenal.

Unidentified persons contacted Reliance customers with an offer to change to a lower priced Tata Indicom scheme. As part of the deal, their phone would be technologically "unlocked" so that the exclusive Reliance handsets could be used for the Tata Indicom service.

Reliance officials came to know about this "unlocking" by Tata employees and lodged a First Information Report (FIR) under various provisions of the Indian Penal Code, Information Technology Act and the Copyright Act.

The police then raided some offices of Tata Indicom in Andhra Pradesh and arrested a few Tata Tele Services Limited officials for re­programming the Reliance handsets.

These arrested persons approached the High Court requesting the court to quash the FIR on the grounds that their acts did not violate the said legal provisions.

Issues rose by the Defense in the case:.

1.It is always open for the subscriber to change from one service provider to the other service provider.

2.The subscriber who wants to change from Tata Indicom always takes his handset, to other service providers to get service connected and to give up Tata services.

3.The handsets brought to Tata by Reliance subscribers are capable of accommodating two separate lines and can be activated on principal assignment mobile ( NAM 1 or NAM 2). The mere activation of NAM 1 or NAM 2 by Tata in relation to a handset brought to it by a Reliance subscriber does not amount to any crime.

4.A telephone handset is neither a computer nor a computer system containing a computer programmed.

5.There is no law in force which requires the maintenance of "computer source code". Hence section 65 of the Information Technology Act does not apply.

Courts Observation:

1.As per section 2 of the Information Technology Act, any electronic, magnetic or optical device used for storage of information received through satellite, microwave or other communication media and the devices which are programmable and capable of retrieving any information by manipulations of electronic, magnetic or optical impulses is a computer which can be used as computer system in a computer network.

2.The instructions or programmed given to computer in a language known to the computer are not seen by the users of the computer/consumers of computer functions. This is known as source code in computer parlance.

3.A city can be divided into several cells. A person using a phone in one cell will be plugged to the central transmitter of the telecom provider. This central transmitter will receive the signals and then divert them to the relevant phones.

4.When the person moves from one cell to another cell in the same city, the system i.e., Mobile Telephone Switching Office (MTSO) automatically transfers signals from tower to tower.

5.All cell phone service providers have special codes dedicated to them and these are intended to identify the phone, the phone's owner and the service provider.

6.System Identification Code (SID) is a unique 5-digit number that is assigned to each carrier by the licensor. Every cell phone operator is required to obtain SID from the Government of India. SID is programmed into a phone when one purchases a service plan and has the phone activated.

7.Electronic Serial Number (ESN) is a unique 32-bit number programmed into the phone when it is manufactured by the instrument manufacturer. ESN is a permanent part of the phone.

8.Mobile Identification Number (MIN) is a 10-digit number derived from cell phone number given to a subscriber. MIN is programmed into a phone when one purchases a service plan.

9.When the cell phone is switched on, it listens for a SID on the control channel, which is a special frequency used by the phone and base station to talk to one another about things like call set-up and channel changing.

10. If the phone cannot find any control channels to listen to, the cell phone displays "no service" message as it is out of range.

11. When cell phone receives SID, it compares it to the SID programmed into the phone and if these code numbers match, cell knows that it is communicating with its home system. Along with the SID, the phone also transmits registration request and MTSO which keeps track of the phone's location in a database, knows which cell phone you are using and gives a ring.

12. So as to match with the system of the cell phone provider, every cell phone contains a circuit board, which is the brain of the phone. It is a combination of several computer chips programmed to convert analog to digital and digital to analog conversion and translation of the outgoing audio signals and incoming signals.

13. This is a micro processor similar to the one generally used in the compact disk of a desktop computer. Without the circuit board, cell phone instrument cannot function.

14. When a Reliance customer opts for its services, the MIN and SID are programmed into the handset. If some one manipulates and alters ESN, handsets which are exclusively used by them become usable by other service providers like TATA Indicom.

E-MARKETING : PEOPLE ENABLED OR TECHNOLOGY ENABLED

Swathi D. 

III B.com(MM) 

              EMarketing is gaining more influence on consumers' buying decisions and television's influence on awareness is decreasing.

            EMarketing is not just about technology. EMarketing is like most marketing - you have to understand your mission and engage your customer or potential customer positively in the experience.

             EMarketing gets you closer to customers by creating a dialogue, asking questions and learning about customers' preferences. In all aspects of internet and online marketing we must always remember that it is not about the technology - that merely 'enables'.

           EMarketing is about people and making sure that the process, like all marketing, is people orientated - far too many times it is producer or technology orientated and businesses wonder why it doesn't work.

          Before the internet, consumer purchases were restricted by time, geography, location, and physical store space. In the digital economy, buying is unlimited by these constrictions. The internet allows near-instant gratification and any internet marketer has to realize this and ensure that the internet marketing programs they create take account of this consumer behaviour.

          But remember what we said right at the beginning? EMarketing is about people and making sure that the process, like all marketing, is people orientated - far too many times it is producer or technology orientated and businesses wonder why it doesn't work. Basically, being interactive means that you give people choices that they act upon. People like to be involved. But what does EMarketing technology give you. That's it! The chance to give people what they want: to become involved.

         As an example e-mail marketers sometimes offer a choice between HTML and plain text messages, but that's where interactivity usually stops. Some companies let users make further decisions about frequency and format of the messages their recipients get. This usually increases ROI quite significantly. So something as simple as the format in which an Email is sent or requested or wanted can dramatically affect the success of your EMarketing campaign.

         But why not go further? Let people decide when and what they want to receive. This is a great idea for online stores and catalogues. Simply add a small box "Notify me when this item goes on sale." Allow a person to select whether he or she wants to receive an offer about this particular item only or other special deals as well. "OK", the classic marketer would say, "but that means I am losing high margin sales." But is this true? Too often things like this are not measured but an internet marketing campaign can be constructed - just like any direct marketing campaign - to give you the answers to thsi sort of question.

          Here is another EMarketing idea - the human being is a strange creature that does not trust sales people (well, maybe they have a reason for that). However, people do trust others who are just like them. Plus, people like talking to each other and exchanging ideas. So, create a community. Frequently, people lack enough information to make a decision, but they are afraid to ask.

          Why not add an option "Put me in touch with other people who bought this product." You have to be careful here and create a forum that allows them to interact in a chat room like way.

            Or how about a discount? Simply offer people a choice, what discount they'd like to get - 5%, 10%, 15%, 20%, 25%, 30%, etc. Let a website visitor make his or her selection. Most people opt for the biggest discount first. After they made their selection, you explain how they can get that discount - for example, order 100 copies, or spend £10,000. Now that's interactive and gives you the chance for larger orders. EMarketing allows you to do this in a more interactive and interesting way than classic marketing.

        Most people aren't going to spend that much money or order so much stuff. But they will explore other discount options if you set the thing up to be database driven and may find a deal they are looking for. Your EMarketing objective is to inform people about discounts available. The usual discount table is not nearly as effective. Also, remember one very important thing - always offer the smallest discount (5% in this case) for just participating as the way of thanking the customers.

       So, we repeat that in all aspects of interactive marketing we must always remember that it is not about the technology - that merely 'enables'.

       Interactive marketing is about people and making sure that the process, like all marketing, is people orientated - far too many times it is producer or technology orientated and businesses wonder why it doesn't work.

Jupiter Research has identified seven trends that affect EMarketing:
        Individuals' interconnectivity is increasing. The adoption of digital technology enables business people and consumers to more easily and rapidly connect with each other, wherever and whenever, through e-mail, mobile messaging, Friends Reunited, LinkedIn, Ecademy etc.. The spread of peer-to-peer communications and content extends and reinforces social networks and builds new virtual "communities" and 'viral' communications. EMarketers have to recognize the power and influence of networks and communities.
          The information playing field is being levelled. Digital technology has increased the ease and speed of content creation, access, and consumption. EMarketing has therefore to take account of the effect this has on search engines and consider SEO and PPC.
          As a result of a more level playing field, information is 'democratized'. With more information comes more knowledge, and with more knowledge comes more.... and more... If, as an internet marketer you do not take this into account you will be left behind.
          Relevance is growing. Digital content's abundance creates a growing need for information management and relevance filtering as consumer struggle to find exactly what they want, when they want it. Consumers are spending more time searching for relevant information (a boon to search providers) and increasingly seek to have information aggregated and delivered. Consumers need help managing digital information to avoid digital obesity. So, as an internet marketer how can you help consumers. If the EMarketing that you do does not deliver relevant pages you will be "clicked away".
           Niche aggregation is growing. Online content's abundance and diversity enables consumers to more easily participate and indulge in specialist interests and hobbies. They gather in niche communities of like minded individuals, which results in homogeneous mass consumers fragmenting into an increasingly complex individuality. This is happening with all marketing but is a particular issue for EMarketing as niches are pretty much what the web is about.
          Micropublished self-expression is blossoming. Digital media's open-source, interactive, interconnected nature enables discussion forums, message boards, feedback forms, voting platforms, personal photo galleries and blogs. As an EMarketer how can you use this?

        The "prosumer" is rising. Online media's unique characteristics enable consumers to become increasingly involved in the creation of the products and services they purchase, shifting the balance of power from producer to consumer. Individuals are more involved in specifying, creating, and customizing their purchases to their requirements, as well as shaping their experiences and the communications they receive. Traditional mass-production and mass-marketing concepts are rapidly becoming a thing of the past. It's on-demand everything, everywhere. Growing digital technology ubiquity and the corresponding acceleration of business practices allow consumers to satisfy their needs faster, more easily, and with fewer barriers. Marketing has always been about satisfying consumers but in EMarketing consumer involvement really can create a new level of complixation or a unique opportunity.

USING INTERNET MARKETING, IT IS POSSIBLE TO DO THINGS THAT WERE ONLY DREAMED ABOUT BEFORE INTERNET MARKETING

        Direct marketing has been around almost forever – well since postal delivery was possible, though if you look at the way commerce worked during the Roman Empire there are some similarities to direct marketing. Does ordering something from someone 2,000 miles away via your local merchant count?

        Database marketing, on the other hand, got started in the mid 1980s as computers and software became sophisticated and widespread.

          It is now possible to store information about customers, and use the information to build lasting relationships with them. As a result, it is possible to increase sales and profits by:
Changing customer buying behaviour
Cross sales, repeat sales and upgrades
Working out what's profitable and what's not
Creating referrals and customer loyalty

        Models can be used to create customer profiles, segmenting customers into profitability or preference groups, and organisations can develop a different strategy for each group. But, until recently, to devise a different strategy for each person was really beyond the capability of any but the most sophisticated marketers.

          Then along came the Internet. It took some time before marketers realized the potential of the web for business, but when they did they saw that Internet Marketing is the greatest direct and database marketing vehicle ever invented, perhaps even the greatest marketing solution ever invented.

           Using Internet Marketing, it is possible to do things that were only dreamed about before. For example, with cookies, you can recognize a customer whenever she returns to your web site, and greet her by name: “Welcome back, Margaret”.

          Local shops used to do this whenever a customer walked in and customers love personal recognition opening up a whole new world of relationship-building possibilities. The response to any ad or offer should include both a free phone number and a web response option. There are several important reasons for this:
The costs of web direct marketing are very low
        Customers grow to prefer this sort of response as they never get put on hold and can contact you 24/7.
Customers enter their data directly into the web which can be (and should be) directly connected to the customer database. That means that your reaction to their response can be instant: an Email thank you, and a shipment within a few hours.

          That cannot happen with any of the other response mechanisms. Now you can customize or personalize your web site for each customer.

            Since you know what customer has bought, even what she/he is interested in (as a result of an on-line survey) you can deliver an entry page for customer with items of specific interest to the customer.

             Then you can truly personalise your Internet Marketing communications with customer. It the old days, the best you could do was to send out an occasional “Thank you” letter or birthday card if you were reasonably switched on. Today you can:
          Say “Thank you for your order” and describe what that order is when the submit button is pressed,
Send customer an Email thanking for the order and telling what to do if he/she wants to change or cancel it
Send customer relevant additional Emails such as: Your order will be sent on ; Your order was sent using … and here is the tracking number; Did your order arrive satisfactorily? What was your opinion of the product and the ordering process?

          What’s more, all these communications are free. If you are not already doing this then you should at the very least be thinking about it - if you don't someone else will and where will the customer go then?