The Relationship Marketing Decision Process: A Case Study Of Apple Inc.

Description on the relationship strength between the chosen company and its customers

Discuss about the Relationship Marketing Decision Process.

Berry in the year 1983 first established the overarching concept of relationship marketing. Relationship marketing is the systematic process of making a long-term satisfactory relationship with the customers, suppliers as well as distributors. The success of a business organization is highly dependent on the customer satisfaction rate. An effective relationship develops between organizations, customers only when both the two parties are equally benefited. On one hand, the organization has to maintain a systematic customer relation for fulfilling the needs and demands of customers. On the other hand, customer satisfaction rate helps the organization to enhance the revenue growth of organization. As a result, both the organization and the customers get equal benefits and facilities by maintaining relationship marketing. With the dynamic growth of civilization, the needs and demands of the customers are changing gradually. People have become accustomed with the advancement of technology. Therefore, business experts while dealing with the customers have to be familiar with the development of technological process.

This particular study has provided an in-depth understanding on the customer relation process and strategies of Apple. Apple Inc is predominantly known as one of the largest companies in advanced gadget and technologies. The organization has already spread their entire business process in International market by delivering excellent quality of products and services. Started their journey in the year 1976 under the direction of Steve Jobs, this particular organization has expanded their business in global market (apple.com 2017). In order to expand the business in international market, the organization has to maintain effective customer relation strategy to draw the attention of Global consumers. This particular study has focused to highlight various positive and negative aspects of relationship strength between Apple and it customers. Based on the positive and negative aspects of customers’ relationship process of Apple, an effective evaluation as well recommendation has been provided.

In order to provide an effective service to the customers the business experts of Apple has maintained some of the major strategies and policies for showing customer loyalty. The necessary policies that Apple has followed while maintaining customer relation include:

Apple has achieved the doorstep of customers by launching varieties of products and services for their customers. In order to fulfill the needs and demands of customers Apple has rendered iPod, iMac, iPod nano, iphone, iTunes, iOS Apple Stores. As a result, people get innumerable product variety while purchasing electronic gadget. On the other hand, the service providers of Apple are comfortable with verbal and non-verbal communication both. Therefore, the customers do not have to face difficulties in communicating with the service providers (Armstrong et al., 2014). Flexible work environment enables the customers to get an in-depth overview about the reliability of products and services.   

Evaluation on the relationship strength between the chosen company and its customers

Apple has opened a new store for resolving the customer issues regarding refurbishment. In many cases, it has been observed that customers tend to make complaints after using the products of Apple due to technological errors. The business experts have launched a separate store for refurbishment where the customers can resolve their issues (Armstrong et al., 2012). The service providers of refurbishment department are flexible enough to handle the customers’ complaint. The business experts have appointed sufficient workforce in this particular section to handle the needs and demands of customers.

Before launching a new product in the market, the marketing experts of Apple tend to make a huge media coverage in order to promote the product in different geographical boundaries. As a result, before purchasing the products and services, the customers can get a detailed overview about the reliability of products and services. Therefore, media coverage helps to gain the trust of customers on particular product or services (Buhler & Nufer, 2012). Therefore, Apple business experts before launching a product on market, tend to use the popularity of media vehicle for drawing the attention of customers. In addition, with the help of online promotion the service providers can communicate with the customers directly through public forum. As a result, the business experts can be aware of current needs and demands of customers.

Maintaining effective communication with the business experts is one of the most effective strategies of Apple with the help of which they have drew attention of large number of customers (Chen, & Chen, 2014). Service providers of Apple try their best to respond every individual customer to resolve their query. As a result, people show their interest for purchasing products and services of Apple. On the other hand, good communication with the customers helps the service providers to deliver the services quickly.

The customer service department of Apple while providing customer services maintains gender equity. Both the male and female customers are treated with equal respect and dignity. In order to draw the attention of customers Apple business experts have maintained a balance of gender equity in the customer service department as well. As a result, customers show their interest for purchasing products and services from Apple. Christopher, Payne and Ballantyne (2013) stated that the business experts of Apple have maintained an effective gender equity balance within their workplace as well to set an example in the mind of customers.

The products that Apple product managers intend to design are beyond any cultural and religious biasness. People from different cultures and religions would love to use the products of Apple due to its diversified products (Goddard et al., 2012). At the same time, the service providers of Apple are comfortable of dealing with the people of different cultures and backgrounds. With the help of both verbal and non-verbal communication, the customers are treated with major priority at the customer service department. Therefore, this particular business organization has drawn the attention of International customers belonging to the various places of multinational countries.

Customer satisfaction strategy of Apple vs. Lenovo:

After the entrance of Apple MacBook Air, Lenovo ThinkPad Yoga has become a major threat for Apple in the market. ThinkPad Yoga is affordable for low cost customers as well. Therefore, the business experts of Lenovo have decided to follow low cost strategy in order to draw the attention of large number of customers from average level of income. The device price of Lenovo ThinkPad Yoga is $1,189. As a result, low cost customers can easily afford the price of this device. In order to maintain a balance between customers’ supply and demands, the organizations have faced immense difficulties due to the workforce strength. As a result, the customers show their intense dissatisfaction for using the services of Lenovo. On the other hand, the customer satisfaction scenario of Apple is completely different (Halinen, 2012). The price of MacBook Air is high in range. As a result, it becomes difficult to afford for low customers. Therefore, from the very beginning Apple has started following brand value strategy for satisfying the needs and demands of premium consumers. The employees of customer service department do not have to face challenges for maintain balance between demands and supply. The difference of Apple TacBook Air from another brand has been included as follows:

Johanson and Mattsson (2015) stated that after implementing low cost strategy, the business experts of Lenovo has covered a large number of geographical areas as their target customers. People from multinational countries have showed their interest for purchasing the products of Lenovo and using their customer services. On the other hand, the marketing performance strategy of Apply is different. Providing quality products to the customers is one of the most effective business strategies of Apple. As a result, the customers from selected target group have laid their attention of Apple. Therefore, in comparison to other brands such as Lenovo, Dell, Asus, the market share of Apple is low in range. The comparative analysis in the market share of Apple, Lenovo, HP, Dell and Asus has been presented below.

The marketing executives of Apple should maintain the customer relation more effectively while promoting the brand in order to make them understand about the reliability of products and services of Apple.

In order to evaluate the process of customer satisfaction rate, different eminent scholars have established numerous theories. Among several theoretical approaches, theory of Assimilation is mostly used at the workplace of Apple. Festinger’s in the year 1957 has established this particular theory. As per the concept of this particular theory, customers like to make an effective comparison between expectation and perceived product performance Zhou, L., (Wu & Barnes, 2012). Customer expectation about a particular product may not match with the product performance. Therefore, before launching a product in the market and making the product design, the business experts have to make an effective market survey (Papasolomou & Melanthiou, 2012). With the help of an effective market survey, the sales executives would get to know the current needs and demands of the customers. Business managers while implementing plans and policies regarding the products and services, tend to collect the customers response and expectation in order to match the rate of product performance. 

Apple business experts have followed the theory of Assimilation due to fulfill the customers’ expectation. Payne and Frow (2013) opined that Assimilation theory is appropriate for Apple to satisfy the needs of customers due to several reasons (Turnbull & Valla, 2013). This particular concept believes that organization in order to make a perceived product successful in the market, the organization has to get an in-depth overview about the expectation level of customers. Market surveys, online surveys are the several process, with the help of which the organization can collect the customers feedback. Therefore, the products would be able to fulfill the satisfaction level of customers. In this kind of situation, Assimilation theory would be effective for satisfying customers’ demands. On the other hand, Rust and Huang (2014) differed the point of view of previous scholars. This particular author has stated that Assimilation theory is not competent enough to fulfill the rate of customer satisfaction. With the help of this particular theory, people from different geographical boundaries cannot expose their opinion regarding their needs and demands (Segoro, 2013). The theory very limited number of people for providing effective feedbacks on product expectation and services. 

After evaluating the Apple’s customer relationship strategy, it can be analyzed that Apple is running their business successfully in the international market. At the same time, it is also undeniable that some of the major competitors’ of Apple such as Asus, Dell, Hewlett-Packard, Lenovo, Toshiba has enhanced their range of market share in terms of PC segmentation. Therefore, based on evaluation, some of the major recommendation can be provided:

Increasing the range of target customers:

Due to the implementation of brand value strategy, the price range of Apple’s products is beyond affordable for the low cost customers. Therefore, the premium customers are the primary target group of this particular organization. The range of target market of Apple is thus limited within the people of high-income level. In order to increase rate of target customers, the marketing managers can focus on product promotion more effectively for making the customers understand about the brand value of Apple. At the same time, the service providers while making direct marketing and sales promotion can maintain an effective promotion with the customers with the help of which people from different cultural backgrounds can be comfortable to interact with the service providers. As a result, customers would never hesitate to resolve their necessary queries. The interpersonal relation between the customers and the service providers would be effective.

Shimp and Andrews (2012) stated that the refurbishment department of Apple should be re-structured. Apple has opened a refurbishment stores for resolving customers’ complaint. As a result, the business experts can easily keep up customer relation. Now a day it has been observed that customers have to wait for a long time for resolving any necessary issues. Therefore, the business experts have decided to implement innovative management at Apple refurbishment stores with the help of which the service providers can be more accustomed with the changing process of technology. Automatically, the service process would be systematic and it would be delivered at proper time.

As per the current needs and demands of customers, the business experts should focus on recruiting more employees in the customer service division to deliver the service process systematically (Wilson, 2013). It has been observed that customers have to wait for a long time for resolving any complaints related to products in the refurbishment department. Therefore, the business experts should focus in increasing their workforce strength so that customers do not have to wait for a long time (Smith, 2014). At the same time, it is undeniable that sufficient number of workforce can help for making the entire service process more systematic.

Apple has recruited the people from different cultures and backgrounds within the organization. The primary purpose of this business organization is to focus on skill and competency of the employees rather than their religious backgrounds. However, the department of customer service is also possessed with employees of various cultural backgrounds. As a result, employees have to face linguistic barriers, psychological barriers and cultural barriers at the workplace (Turnbull & Valla, 2013). These kinds of organizational barriers affect on customer services highly.  In order to overcome several barriers at the workplace, the organization can arrange an effective professional training and development program in order to evaluate the mental skill and competencies of the employees. However, an effective professional training would help the employees to manage customers’ needs and demands more tactfully.

The entire study has focused to evaluate the importance of maintain customer relation for rendering the success of business organization. The entire revenue growth of business organization is highly dependent on the customers’ satisfaction rate. In this particular study, a detailed description, evaluation and recommendation have been provided on how Apple intends to maintain their customer relation. While discussing the importance of customer relation, the value of Assimilation theory has also been discussed in this particular study. The opinion of several eminent scholars regarding the Evaluation process of the relationship strength between Apple and its customers has been provided. At the same time, based on opinion of eminent scholars, some of the major recommendations are given for improving the customer relation strategy of Apple.

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