Customer

What most people call getting new customers, I call “buying” new customers.

The reason? If you stop and think about the price you’re paying to bring in added shoppers in terms of time or money, you can start to make better decisions about how and where to put those resources.

The practice is especially important for new business owners who tend to not only have more limited means, but also don’t generally register a profit from a new customer until the fifth of sixth purchase. And without a stable of customers to tap for repeat purchases, being more careful about where you ply your limited resources can only serve you.

Here are four simple ways to “buy” new customers:

The Merriam Webster cautionary defines character as, “the that usually include moral or emotional strength, honesty, and fairness”. From the beginning of time, people have had the example of negative and positive character. The lesson comes from the Bible in Hebrews 13:18 Pray for us: for we trust we have a good conscience, in all things willing to live honestly. These qualities, as stated in Hebrews make a successful leader. A successful leader has a victorious team which will produce quality products and attract loyal customers.

Kettle and Keller state the vital role for any COM is to instill a customer viewpoint and create a loyal clientele (Kettle & Keller 2012). This is done through marketing and includes everyone in the company to reach to consumers. Within the marketing management the holistic marketing approach of 4 elements carries the workload that all employees should know the needs, wants, and interests of their market. This leads to value and satisfaction. If corners are cut to make a cheaper product the customer will not be happy with the quality.

Building or providing high quality goods and services are a sign of character, being honest with good conscience. What would the employee or company do when no one is looking? Would they do the right thing and be honest? Or would they lie, cheat, and steal to close a deal with a customer or client? The best companies will be the ones that give back to the community and help those in need that may be down on their luck. A well known restaurant chain of having a good honest character is Chick-fill-a.

As of last year 2014, Chick-fill-a has given over $68 million to education and various charities, working closely with the community. They have successfully built a loyal market. They also value family time and allow their employees a day off, Sunday. By being an example of giving to the community and creating a firm foundation in character, people are attracted to the values and passion of this restaurant. A mission statement, ‘this is where you breathe real life into the lungs of your organization” (Ramsey 201 1).

Globalcast was one of the world’s largest manufacturers of metal and plastic molded components to almost every industry, including automotive, consumer durables, telecommunications, computers, power tools, etc. With over 100 manufacturing facilities, it operated on every continent, usually in areas of established or emerging industrialisation. In Europe there were large factories in the UK, Germany, France, Spain and Italy, and smaller ones in Scandinavia, Austria, Turkey and Israel. Globalcast’s relationship with large global consumers

Growth is essential in any business as it enhances the profitability of the company which also enhances its image. Globalcast was one of the world’s largest manufacturers of metal and plastic moulded components to almost every industry, including automotive, consumer durables, telecommunications, computers, power tools, etc. It has over 100 manufacturing facilities across the world especially in areas where industrialization has been developed. In Europe there were large factories in the UK, Germany, France, Spain and Italy, and smaller ones in Scandinavia, Austria, Turkey and Israel.

This therefore meant that it had wider market coverage in the region and this was because the company produced quality products so as to retain its clients. Globalcast has good business relations with its large global customers because it has dedicated itself in the provision of quality products as well as products to its customers. It has established its business with large organisations in the region which has ensured that the business benefits from the good business image. Since its operations are distributed in different countries, attention is given to each business unit.

Every factory in the region was a semi-autonomous profit centre therefore this meant that they concentrated on maximising their profits by increasing the output of the company. “Moreover, the managers of these units ensure that the operation are conducted smoothly and within their operational business plans (Lowson, 2002, 244). ” New business was generated by national marketing and there trading partners were always informed of such endeavours especially through word of mouth.

The small technical sales teams at each factory had the responsibility of following up enquiries while arranging visits to the customer where they would give technical advice as required. Moreover, they followed by the preparation of quotations while providing design assistance to its customers. Another positive relationship between Globalcast and its customers was that the advisor to the factories always suggested ways that would improve the designs of the products and this therefore meant that they produced cheaper products for their customers.

The mould costs were also calculated and since the customers paid from the outset, they retained ownership of the products. This therefore meant that they knew that their transactions were always secure and because of the affordable prices, the company retained these large global customers. Globalcast also offers specialised services for its customers. For instance, it organised the purchase of moulds for its customers thus relieving them of the transportation preparations. This was beneficial to the company also as they made profit of about ?

50,000 from the activity. The relationship between a company and its customers is not supposed to end when their trade transactions are completed. Globalcast has ensured that they retain their clients by ensuring that they continually improve on their services and products. This they do by maximising on existing assets through exploitation and enhancing operational excellence for future success. “This initiative increases operations flexibility, reduces certain operations costs and progresses strategic investment plans of the business (Grimwade, 2000, 120). ”

Henry Ford organized his company as a giant system for efficiently turning inputs into finished motor vehicles. His achievement was outstanding, in creating a technical system that produced millions of vehicles that could be afforded by the masses. Henry Ford was a farmer’s son from Michigan. In his late twenties he decided to become a mechanic rather than a farmer. In 1898 he set up the Ford Motor Company with eleven associates. The way Ford managed his car plants was strongly influenced by a belief that he could bring salvation and liberation to the world through machinery.

He believed that the industrial system was an extension of the logic of the human mind rational systems would lead to the best results. Unfortunately for Henry Ford, many of his assembly line workers did not share his enthusiasm for repetitive physical labour of the kind offered at his Detroit factory. Working for Ford not only meant repetition, it meant committing yourself to a system of harsh discipline while at work and to a lifestyle outside of the factory gate free from any malicious practice derogatory to good physical manhood and moral character. Ford was opposed to gambling, drinking alcohol, smoking and sex outside marriage.

He set up a sociological department to monitor the behaviour of his employees. As the company became more successful, Ford became more and more exacting, insisting that the organization run according to the system he created. Today, he might be described as being a control freak. He appointed people to be his immediate subordinates who were authoritarian. At the height of the purges of management, the sociological department was abolished and replaced by the more ruthless service department. Ford controlled by fear. He believed that humanitarian and social considerations had no place in the work environment.

Within his own organization Ford regarded any sign of humanitarianism with contempt. There is altogether too much reliance on good feeling in their business organization. Mission, Values and Guiding Principles Ford Motor Company is a world-wide leader in automotive and automotive-related products and services as well as in new industries such as aerospace, communications and financial services. Their mission is to improve continually their products and services to meet their customer’s needs, allowing them to prosper as a business and to provide a reasonable return for their stockholders, the owners of their business.

Values, how they accomplish their mission is as important as the mission itself. Fundamental to success for the company are these basic values: People, their people are the source of their strength. People provide their corporate intelligence and determine their reputation and vitality. Involvement and team work are their core human values. Products, Their products are the end of their efforts, and people should be the best in serving customers world-wide. As their products are viewed, so are they viewed? Last is Profits, profits are the ultimate measure of how efficiency they provide customers with the best products for their needs.

Profits are required to survive and grow. Guiding principles, Quality comes first; to achieve customer satisfaction, the quality of their products and services must be their number one priority. Customers are the focus of everything they do. Their work must be done with their customers in mind, providing better products and services than their competition. Continuous improvement s essential to their success, they must strive for excellence in everything they do: in their products, in their safety and value and in their services, their human relations, their competitiveness and their profitability.

Employee involvement is their way of life. They are team; they must treat each other with trust and respect. The dealers and suppliers are their partners- the company must maintain mutually beneficial relationships with dealers, suppliers, and their business associates. Integrity is never compromised-the conduct of their company world-wide must be pursued in a manner that is socially responsible and commands respect for its integrity and for its positive contributions to society. Their doors are open to men and women alike without discrimination and without regard to ethic origin or personal beliefs. (Starkey& Mckinlay 1993).

The expectations of Starbucks’ customers regarding coffee beverages would be to receive a perfectly made coffee, which is also recognized by the Starbucks’ mission statement. The notion of perfectly made coffee at Starbucks will include freshness and richness of taste, choice (varieties by origin, type and flavor), consistency of taste, image of “premium coffee”, some exotic experience, gourmet beverage, unique blends, same consistent quality and same price at every location and every day.

The idea is to help “customers find a beverage that’s right for them from over 19,000 choices, by giving them an opportunity to try new things they didn’t know about and find a new beverage. ” The primary goals of Starbucks’ coffee bean supply chain as being a customer focused organization

The primary goals of the coffee bean supply chain will be to provide total customer satisfaction by ensuring the coffee is available in all varieties, at reasonably affordable prices, and the coffee meets and exceeds customers’ expectations, along with providing the unique experience (as described above), while keeping costs possibly low throughout the whole chain from supplier(s) to end customer(s). How purchasing helps Starbuck achieve their supply chain goals

Being an integral part and the core activity of the supply chain, purchasing is also a key strategic process of the business. At Starbucks, purchasing is ensuring an interrupted flow of coffee at optimal cost and of consistent quality. This is achieved by

1. searching varieties and sources that would meet SB standards in terms of supreme and sustainable quality, and careful selection of coffee and contracting reliable suppliers (Coffee Sourcing Guidelines, Preferred Supplier Status Program);
2. building ong-lasting relationships with coffee growers and exporters, including co-ops and individual farmers;
3. hands-on checking on agricultural conditions and crop yields, “audit from crop to cup”;
4. paying premium prices to coffee growers, along with using fixed-price contracts and future contracts; 5
5. Green and social initiatives promoted by SB. How the operations elements of Starbucks’ supply chain support them at achieving their goals.

Objectives of These Elements

Objectives of operations elements will be to ensure the next step in the supply chain meets strategic and tactical goals and provides for compliance with SB’s standards, while constantly minimizing costs by controlling and managing inventories. That is the right quantity of the product has to be forecasted, planned, scheduled, delivered, processed, and distributed in order to secure smooth operations of every SB outlet and distribution channel.

A set of tools is being used to this end: RFID for “dark deliveries” by suppliers, and for shipping containers (Operation Safe Commerce), Integrated Supply Chain Operating systems, Lean operations, Inventory control and forecasting accuracy to SKU level, High-tech roasting and grinding equipment, automated POS systems, DRP (distribution resource planning), TRP (transportation requirement planning), ERP systems. How distribution and warehousing support the supply chain goals of Starbucks. Objectives of the Starbucks’ distribution and warehousing functions.

Distribution and warehousing functions will be the final steps in delivering the product to the end customer, along with ensuring ultimate satisfaction. Again, minimizing costs and maximizing profits. Long-term agreements with logistics providers and foodservice distributors (Sysco, HAVI) complement the Company-operated retail stores and the network of distribution channels, which include retail and grocery store licensing agreements, wholesale club accounts, joint ventures and direct-to-consumer channels, via mail orders and online.

Convenience stores, department stores, movie theatres, businesses, airports, schools and medical facilities are other examples of the network. Why effective integration of activities is required for Starbucks to achieve their goals. Activities Integration plays a crucial role in the whole SB supply chain, as poor performance or failure at any step or activity of the supply chain will jeopardize the whole venture.

Activities and elements involved into integration include building long-term relations with reliable partners, elimination of obstacles in the way of cooperation, working out common goals and tools for such cooperation along with strategies and tactics, effective communication and introduction of modern integrated systems, prompt collection, analysis and sharing of information by all supply chain participants, supply chain performance measurements and monitoring.

Some examples of such activities at the very beginning of the chain will be: common work with coffee growers on cultivation practices in order to improve coffee quality and provide consistency and continuity, which will better match the roasting process, paying premium prices to growers which will contribute to creating sustainable sources of coffee beans, CAFE practices, etc.

Usually the first thing coming on our minds when the word model is mentioned are models of real objects in engineering, architecture and etc. But the point with the business model is to gain understanding of the “big picture“. The business model canvas designed by Dr. Alexander Osterwalder provides you with this knowledge and also with visualizing the same. Aldi functions on an every-day basis. There you would find products you consume every day. Their suppliers (key suppliers) sell items under Aldi`s labels which favors their negotiating position for purchasing the stocks by lower price. Regarding key suppliers and key partners, as I am implementing the business model of Aldi in UK, their partners there are the British farmers when it comes to meat, and all of those suppliers have to pass a high quality testing.

In fact, all of the Aldi`s suppliers have to pass this high quality standards, otherwise they lose them as a company. So starting by this they show their commitment to their customers and begin with the value proposition. Initiating the value “chain“ of the canvas, I would start by defining the one. The value propositions are bundles of products that create a value for the customers. The company satisfies a need or solves a problem for the customer with this crucial segment.

Aldi makes the job done. There aren`t any fancy shelves where the customer can lose him/herself. Everything is simple arranged and by this not only the company increases the usability and accessibility to the products but also saves the consumer’s time. According to me this represents an extra created value with big importance for the consumers. For the segment of customer relationship and customer segments per se, I would combine them together because the answer of several question like:

• For whom we create value?
• Who are our most important customers?
• What type of relationship does each of our customers segments expect us to establish and maintain?
• How are the integrated with the rest of the business model?

The answer is the mass market. For all consumers. Although at the beginning this retail business was categorized as a low-budget families, and sort of shame for the middle and upper class, today (better to say after the recession) Aldi`s customers are everyone. They want cheap and good quality products-the retail company gives them that. There is mutual interest which is highly fulfilled followed by high revenues.

The generic items and their label on it is a way of cost reduction. Another one is the “coin-system“ for the shopping trolleys which you receive back when you are returning it. By this an expenses for extra staff`s salaries are saved. Another connection with the cost savings is that as one of the distribution channels for Aldi is organized by the retailer itself. It`s more cheaper and quicker, and of course increases the revenues. Seems they don`t have any need of intermediaries because they sell their own products. Aldi falls under the category of firms which are capital intensive (financial resources). They need a big capacity (store capacity); parking lot and also warehouses. Read about components of staffing

Aldi has their own warehouses from where the stock is distributed to the stores. The item`s choice is limited to 2-3 selection options. Concerning the key resources, human resources are something in which Aldi invests a lot. The entity wants the employees to know the business model in which they participate; the business strategy and on that way they would know how to sell the product. I would finish with the key activates as one of the canvas`s compositions. Focusing on low price products with high quality and having the cost leadership as a competitive advantage are the key drivers for Aldi`s success.

The report also hopes to target specific business functions and show ways of using the marketing concept to improve them. It will also identify ways in which marketing can help achieve various goals within the organisation.

The Marketing Concept (alternatively known as a ‘business philosophy’ or ‘a way of doing business’) has become an effective way of improving the overall performance of many businesses in recent years. Companies have realised that in order to make profits and sustain them, they must consider the needs and wants of their customers. They must then compare these needs and wants to the product or service that they currently offer.

The concept of marketing is based upon the idea that if the customer has a need and is satisfied with the product, then ultimately sales will be good – hence profit will be good. It goes without saying that every company’s aim is to maximise their profit margin, but in order to do this, some tend to focus too much on the selling aspect and not enough on the actual customer.

A Company can be orientated in different ways:

A sales orientated company will focus purely on the amount that they sell, working on the assumption that sales and sales only can make money. Companies adopting this attitude have come under scrutiny, due to the actions of over-zealous salesmen who will stop at nothing to get a sale – you are probably familiar with the phrase “never trust a salesman”. This way of doing business is no longer acceptable as it has become apparent that in order to sell something, someone must want to buy it. The old style of “conning” the customer into buying goods whether they need them or not, purely to ensure a sale, is now shunned by most industries.

A marketing orientated company is a customer orientated company. They take into account customer requirements and focus on them. Communication between a company and their customers is essential to ensure the success of any marketing method. Market research is used to identify specific requirements of both existing and potential customers. Satisfied customers are loyal customers who will inevitably create repeat business as well as providing free word-of-mouth advertising. This would undoubtedly result in increased profits.

A production orientated company will focus purely on the production of their product. A company who cares enough about their ability to produce goods of only the highest quality possible must be admired for their dedication. However, dedication does not necessarily guarantee profit, and without profit, a company could easily fold.

Although a similar concept to the one of the production orientated company (above), the product orientated company focuses on the product itself. The aim is to make the best product possible. Research and development is usually involved in the process, ensuring that there is a substantial demand for the product. It is hoped that a company will end up with a high quality product that will sell.

The marketing mix consists of various factors that a company can mix to determine of there is a match between the needs of the customer and what the company currently offers them.

There are four main elements of the marketing mix –

Defining the characteristics of the product to meet customer requirements e.g. introducing optional features with a product that are not standard or providing an additional warranty that may not be deemed necessary in law, i.e. providing more than legally necessary with regard to the product.

An important element of the marketing mix, the price places a value on the product. It is possible for the buyer and the seller to compare this price to that of competing products. It is then possible to alter the customer’s perception of the value by offering additional elements such as cash trade discounts, credit facilities and easy payment terms. From the marketing point of view, the price is the ultimate way of calculating profit.

Another word for distribution of the product. The product must be easily available to the customer in order for it to sell well. There are various channels in which a product can be distributed. For example, TJ600 would probably choose to distribute their goods by way of a supplier, but they could also introduce a direct mail order service to increase sales.

In deciding which methods to use, you must first consider who your potential customers are and where they are likely to shop for these products.

Although part of the marketing mix, promotion consists of four elements of its own called the “Promotion Mix”. These are –

Advertising – paid presentations such as television advertising, newspapers and posters fliers etc

Public Relations – the launch of a new product and the ways it can be promoted to the trade and consumer press

Personal Selling – a method of promoting sales by means of oral communication. This can be either face to face or over the telephone.

Sales Promotion – a way of enhancing consumer purchasing. This usually consists of displays, shows and exhibitions.

Market Research is used to identify not only customer requirements but to identify any marketing problems that the company may be experiencing. Planning is extremely important when compiling the data to be used in the market research. In order for the results to be accurate, the questions asked must be relevant. This will involve discussions with marketing management and on occasion, outside consultants. Research can be used to improve any element of the product (detailed in the marketing mix).

When considering any form of market research, it is important that any external factors affecting the results are considered. These are commonly known as PEST:

Political – any new legislation that may affect the product

Economic – unemployment rates, spending power of the consumer

Social – environmental issues that may affect the product

Technological – introduction of new technology that may affect the company

Once a decision has been reached regarding the purpose and content of the research, it is necessary to determine the best way of getting a response. There are numerous ways of conducting market research, including postal surveys, telephone surveys and face to face interviews. The best response rate, however, tends to be with face to face interviews (usually questionnaires), due to the fact that an immediate response is given by the interviewee.

It is vital that once data has been collected that it is carefully reviewed, in order to interpret the information given as a result of the research. Additional research may be carried out if the data shows that there is another area that can be improved upon.

In order for a company to go forward in business, they must set objectives goals. These usually form questions relating to the business, such as:

For example, the organisational goals of TJ600 may be to:

Expand product range & distribution

These objectives are usually made at a strategic level – in this case the managing director would be responsible for setting the objectives.

It is reasonable to assume that TJ600 are aware of their position in the manufacturing business, due to the fact that they have been successful for 20 years. The goals detailed above give an idea of where the company would like to be in the future. All that is left is to figure out how to get there and it is at this point that marketing plays its role.

Outlined below are ways that marketing could help achieve the aforementioned goals:

In order to retain customer loyalty, it is important that the customer is satisfied with the product they currently buy. Market research is extremely useful in identifying customer needs and to establish whether or not they are completely satisfied with the product. It is at this point that elements of the marketing mix can be used to alter certain characteristics of an existing product e.g. if market research was to show that existing customers were basically satisfied with a product supplied by TJ600, but would welcome more after sales service, then management would want to look at the product element of the marketing mix. It is possible from there to ascertain whether extended warranties etc would be viable to the business with regards to cost effectiveness i.e. would additional staff be required?

Again, market research is useful to determine whether there is a market for expansion of a certain product or expansion of an existing product to another country.

Past and present success of a company cannot be taken as a guarantee for the future. Many large companies invest in regular market research to ensure that they stay one step ahead of their competitors. Although TJ600 has had continuing success in the past, it would be rather arrogant to expect the same success in the future.

Expansion is a good way of improving on something that is already popular and offering the customer more choice at the same time. In today’s business world, it is inevitable that at one point someone will offer customers an improvement on their current product. Investing in market research will help to ensure that, if a product would benefit from expansion, then you will be first to do it.

Once a company has established their organisational goals and the marketing methods that they are going to use to achieve them, they must ensure that they have the co-operation of every department. Communication plays a vital part in marketing to ensure that the changes are implemented with maximum effect.

For example, using the organisational goals detailed previously for TJ600, it would not be possible to make changes to the product range by consulting only the production department. Outlined below are the roles that other business functions would play in marketing:

The finance department is usually responsible for setting annual budgets for the whole of the company and expects other departments to adhere to them. They are also responsible for setting time limits on credit facilities and these sometimes tend to be shorter than the customer would like. Communication between the finance department and marketing could look to improve credit terms if required and may allow room for compromise if a certain department required more money. It is the responsibility of the finance department to ensure that the company makes a profit and they may not be keen to spend more money or wait longer for customers to pay. This is where communication plays an important role; if it is explained from a marketing point of view that these additional costs would result in a higher market share or increased sales, then the finance department would realise that this would lead to increased profits.

The production department is unlikely to welcome the idea of modifications or improvements to the product. They tend to work in long production runs and like to keep things as standard as possible. Communication between marketing and the production department may help them understand the need for improvements to a certain product – it may be that improvements are necessary in order for them to stay ahead of competitors in the same market.

It is vital to the smooth running of any organisation that the right people are employed for the right jobs e.g. marketing may have highlighted the need for customised orders to be introduced, which in turn would mean that staff are required to work more flexible hours. It is the responsibility of the personnel department to ensure that the company has adequate staff to meet these requirements.