Write report on “Current Marketing Issues”.
Ali and Amin (2014) have stated that the customer experience is the practice of designing as well as reacting to the customer interactions for the purpose of meeting as well as exceeding customer expectations, thereby, increasing the customer satisfaction, loyalty as well as advocacy. It can be stated that a positive customer experience is highly important in those customers who are savvy and have the power to choose between the competing companies that offer varying levels of the customer service from poor to the excellent. A recent research work has stated the fact that 80% of the customers would like to pay more for a particular product or service in order to make sure of a superior customer experience.
Brocato, Voorhees and Baker (2012) have stated some strong reasons of maintaining proper customer experience in any organizations because positive customer experience enhances the customer satisfaction, fosters repeat customers and the customer loyalty, increases customer advocacy and the referrals. Apart from that, it reduces consumer churn, creates a strong competitive advantage, enlarges revenues and sales as well as constructs stringer customer relationships. Therefore, it can be stated that for any organization, it is required to look at the positive customer experience part, as this is one of the major parts of the enhancement of the business. In order to carry in this specific research work, Perth Painting Company has been selected and the issues of this organization has been shed light on that might affected the customer experience. If the customers are not satisfied with the buying experience, probability is high that they might not like to visit the shop again and this would hamper the business of the company in the long-run (Brodie et al., 2012).
The Perth Painting Company over the past few years has set the bar for all the decorating services across the Western Australia. Through the honest, high quality work, the management of the company has established a string reputation as one of the leading companies Perth has to offer. The range of the services takes into account residential, industrial, commercial, and corporate as well as office painting. The experienced teams of the company are able to tackle all the large jobs as well as any smaller projects. The management of the company provides reliable and professional service that delivers great results. The team assures to deliver best and consistent services to the customers all the time. Moreover, from the company website, it can be seen that regardless of the fact that a company is big or small, Perth Painting tries to take care of all the projects equally. The reputation as one of the leading and best painting company in Perth is a direct result of the hard work they put in place in every work they do (Perth-paintingcompany.com.au, 2016).
From the company website, it can be seen that if a company requires giving the company a facelift or wanting to liven up the office, the expert team of the company is present there to provide some affordable services to them. The teams complete their tasks regardless of size and this is one of their best parts in the business. Apart from that, it can be seen that the company take pride in displaying their great workmanship and this help the company to stay competitive in this market. Moreover, the services of the company is extended in such a manner that if one look for either interior or the exterior services, the painters team are always available there to completed the entire job with minimum fuss. Therefore, it can be stated that for quality services, one cannot beat the experience, professionalism and personal attention of the concerned The Perth Painting Company (Perth-paintingcompany.com.au, 2016).
Present day, there exist two types of paint to select from and one is water based paint, most often referred to as the emulsion paint and the other one is solvent based paint. It can be stated that all the solvents are potential to health hazards and even if toxicity varies from the solvent to solvent. It can be stated that the solvents penetrate into the human body and this is one of the major issues that most of the companies face in this industry. Therefore, it can be stated that the manufacturers must recognize ingredients used in the paint formulations and besides that, the manufacturers and the suppliers must develop Material Safety Data Sheets. Therefore, it can be stated that the most discussed issues in the paint industry, particularly in the paint cans are the skinning of the solvent borne paints, skinning of the waterborne paints along with gassing, lumps or the bits, settling issues and gelling paints. In case of the color problems, it can be seen that the issues are wrong to the color card; tinter lumps, poor tinter acceptance and variation from one can to another. It has been seen that the Perth Painting Company has been suffering from the negative customer experience, as the customers are not satisfied with the experience (Gummerus et al., 2012).
Already done research work has stated the fact that present day consumers target to purchase the items that has special characteristic trait in order to distinguish from the similar other products of the same or other important purposeful ventures. It can be stated that the Australian economy has struggled to get out of the third gear over much of 2013, but the government is hopeful enough that the economy would finally find fourth gear over the 2014 year. It has been observed that the main culprit that was holding back the economic flow was the election. Most of the businesses and the customers were not prepared to ramp up the spending as well as the investment and the employment, until the election was out of the road. Apart from this issue, it can be stated that the marketing budgets are increasing globally with 84% of the marketers planning to increase or maintain spend in 2015. However, in Australia, budget constraints are top on the list of the pressing issues. However, several survey reports stated the cat that three major global issues are new business development, quality of the leads along with remaining up to date with the present marketing technology and the trends. Besides discussing these global issues, focus must be shed on major pressing issues in Australia and these are budgetary constraints, new business development as well as building proper and deep relationship with the customers. Therefore, it can be stated that the problem faced by the Perth Painting Company Tokunaga s under this category, as the company as well facing some challenges in building proper relationship with the customers (Gustafsson, Kristensson & Witell, 2012).
The paint industry has been growing rapidly and to stay competitive enough in this market, all the companies need to rely on the innovative technologies. To implement these technologies, the companies are required to have strong budget base and the selected company of this research work has failed to incorporate all the technologies and thus the business has got hampered. The customers in this case prefer to rely on some other companies that are highly innovative and thus the customer experience for this company had got disturbed. Therefore, from the above discussions, the current market issues in the Australian market has been found and the impact of these issued on the Perth Painting Company as well have discussed in details (Kärnä, 2014).
The major area of discussion of this assignment is related to effective customer based experience development. In the case of painting industry, there are two major issues have affected the customer experience (Bowman & Narayandas, 2014). There are mainly two types of paint have been developed by the company Perth paint. They are such as water based paint and emulsion based paint. All these types of solvents use in the paint products have potential threats related to it. As Teixeira et al. (2012) stated that, paint contains solvents and metals, which can harm the health of human beings if they are not disposed of properly. Inappropriate disposal of chemicals in the sewerage system can increase the chance of contamination (Subramanian et al., 2014). Most of the customers are unaware of the potential danger caused due to hazardous paint.
The company has not followed the safety procedure implemented by the ISO regulation. As Bowman and Narayandas (2014) mentioned that, the safest and the simplest way to dispose of paint is to use it for its intended purpose. The company should develop a policy that none could use old paint for land filling. Latex paint can be used for land filling if it is less than 10 years old (Tokunaga et al., 2013). The company needs to remove the lid and allow the paint liquid to evaporate. The company needs to develop efficient technology to break the “skin” that forms on the top of the liquid. All these processes are the part of the quality improvement strategy initiated by the organization. There are various reports have been given by the customers about the potential hazards related to the product of Perth painting. The company uses excessive lead in their products, which makes their paint hazardous for health (Sashi, 2012). They should focus on limiting the use of lead materials in their products.
On the other hand, the company has a limited amount of budget needed to be invested in product innovation. As Ryu Lee and Gon (2012) stated that, in the present competitive market, it has become impossible for a company to compete on the basis of price. The company needs to focus on creating product differentiation, which will help it to gain a sustainable position in the market of Australia. They need to invest more on R&D, so that the excessive lead used in the paints can be replaced by some other non-toxic elements, without hampering the product quality (Rose et al., 2012). The company can focus on developing some other painting related products such as thinners, roofing tars, turpentine oil and mineral spirits to increase the product differentiation.
As Luo and Bhattacharya (2013) stated that, customer satisfaction is the most important aspect of business. With the help of customer experience rates and customer satisfaction level a company decides the investment plan for customer experience (Reinartz, Krafft & Hoyer, 2014). It has been found that enhanced customer experience can help the company to increase customer satisfaction and enhance customer retention (Luo, Ba & Zhang, 2012). It has been found that customers want to buy forms those places, which make them feel good. A company can create an effective customer experience, by providing effective customer services. Making their buying experiences enjoyable and memorable makes customers come back for more purchasing. As Kärnä (2014) stated that efficient approach to customer handling can increase repeat purchasing behavior of employees. As Gustafsson Kristensson and Witell (2012) mentioned that, presently companies are not able to compete on price. They need to develop product differentiation, in order to gain a competitive advantage in the market (Gummerus et al., 2012). Developing emotional bonding with the customers can help an organization to increase customer loyalty.
Now it is required to look at the current marketing strategies adopted by the organization Perth painting. The primary marketing objectives of the company are such as:
In order to make successful product differentiation, there are three major strategies have been developed by the organization. They are such as the development of customer value, providing perceived value and development of a business model that is hard to copy.
Development of customer value
The company is focusing on developing on customer differentiation in the perspective customers rather than operational perspective. As Brodie et al., (2012) mentioned that, this strategy helps the company to reduce cost, enhancing performance and satisfying the unfulfilled needs of customers.
Providing perceived value
The company is focusing on developing an effective communication strategy to provide the perceived value to their customers. As Brocato Voorhees and Baker (2012) stated that, it helps to improve the brand image of the company.
Development of a business model that is hard to copy
The company has developed a differentiation strategy, which is difficult to copy by other organization. As Ali and Amin (2014) stated that, changing the business operation procedure frequently makes it difficult for other companies to replicate those strategies.
It has been found that the company has adopted five effective marketing strategies to enhance customer experience for the organization (Bowman & Narayandas, 2014). These marketing strategies are mentioned below:
1) 3D customer experience
2) Taking care of all the touch points to improve customer experience
3) Develop products and services in accordance with the customer needs
4) Enhancing relationship with individual customers rather than brand or a company
5) Implementation of enhanced technologies to improve customer experience
However, it has been found that the company is not highly successful to implement this strategy effectively in its workplace due to some internal and external barriers (Bowman & Narayandas, 2014). These barriers are mentioned below:
In this section, it has been discussed how the company Perth Painting has implemented those marketing strategies.
3D customer experience
The company has perused three imperatives for enhancing customer experience simultaneously. They are such as developing experience focused value proposition. As Bowman and Narayandas (2014) stated that, the company has divided its customers into various stages. Depending on the segmentation, the company tailors its customer experience. Secondly, the company has developed cross-functional collaboration to provide a value proposition. For, example the company has developed its supply chain in line with customer experience. The customer service team of the company is always ready to help their customers for painting and provide effective advice on color and product selection (Ali & Amin, 2014). The business operation of the company is developed in such a way that the company can provide superior customer service again and again.
Taking care of all the touch points to improve customer experience
The company is focusing on improving every aspect related to its business operation to improve customer experience. They are such as quality product development, enhancing brand image, advancement of transaction and interaction and customer’s cross-channel exposure (Bowman & Narayandas, 2014).
Develop products and services in accordance with the customer needs
The company has provided a range of services to their customers that include residential services, brick painting, specialty decorative finishes, stripping of old paints and sealing (Bowman & Narayandas, 2014). The company has involved experts in all the service sectors in providing best customer service. The company has divided its services and products in accordance to the needs of customer segmentation. The company provides both commercial and industrial painting facility (Ali & Amin, 2014). It has been found that the company has right equipment and infrastructures to complete big projects within a shorter period.
Enhancing relationship with individual customers rather than brand or a company
The management team of Perth painting is highly focused on delivering personal relationship or connection with its customers. As Teixeira et al. (2012) mentioned that, it is an important aspect of a company to listen to all the quarries and advice given by the customer. The company has taken the initiative to gather feedback from the customers.
Implementation of enhanced technologies to improve customer experience
The company has adopted computer technology to keep the track of their customer responses. Perth painting has also involved itself in the social media websites to develop effective communication with their customers (Teixeira et al., 2012). The company uses online survey technique, web analytics, and tracking tool to measure the level of engagement of consumers.
As Brodie et al. (2012) stated that, customer oriented marketing is the method of developing a strong customer base. As Teixeira et al. (2012) mentioned that, with the help of customer based marketing a company is able to interact directly with its customers and meet their needs. There are various advantages of this marketing issue that the company is able to gather in its business. These advantages are mentioned below:
Increasing profit
The company Perth painting is able to develop its customer’s demographic appropriately. The company provides both commercial and industrial painting services. As the company has an established set of customer demography, the company is able to focus on its advertising efforts. As Brodie et al. (2012) stated that, meeting all the expectation and demand of each set of customers help the company to gain a higher amount of profit.
Reducing the cost of advertising
The company already knows the high-end and middle-end segment of customers are more interested towards its products due to high quality and high price. It helps the company to save extra investment on advertising. For example, the company sends email or SMS to their target customers to acknowledge them about any new product or offers available on existing products. It helps them to create a strong relationship with their customers without spending extra money on advertising (Bowman & Narayandas, 2014).
The customers, who are satisfied with the products and services are given by the company Perth painting, recommend their friends and family members to use their painting products in their houses (Bowman & Narayandas, 2014). It will increase customer awareness about their business. As Ali and Amin (2014) mentioned that meeting the demands of customers on a regular basis and developing a positive relationship with customers will increase the effectiveness of word-of-mouth marketing. It will also give the company the chance to analyze the present business trend of the customers (Teixeira et al., 2012).
There are various disadvantages that the company has to face while making a customer-centric approach. They are also mentioned below:
There is a possibility to miss out a segment of customer
As Teixeira et al. (2012) argued that, customer relationship marketing is mainly focused on customers who are already purchasing goods from the company. There is a huge possibility that the company can miss out a segment of interested customers. For example, the company has already perceived that the high-end and middle-level customers are only attracted towards their products due to their high quality of products (Bowman & Narayandas, 2014). The company needs to provide effort on developing products for low-end customers. As Brodie et al., (2012) stated that, limited market efforts retract business expansion of a company.
There is a possibility of over-advertise
Most often it has been found that companies provide more than an extra effort on advertising. As Teixeira et al. (2012) stated that, instead of sending weekly email and SMS, the company needs to develop a monthly newsletter to let their customers know about the existing offers, product, and services available for this month.
After going through the issues faced by the company in the existing market, it is required to discuss some effective recommendations in this part that might help the company to deal with the addressed situations carefully.
After providing the necessary recommendations to the company, in this part is required to design an implementation schedule in this part. This is a step by step process that is useful enough to gain proper competitive advantage in the market.
In the first stage, it is required to develop the marketing plan for the company; which would help the company to expand in the existing market. Initially, it has been seen that the company has targeted the high and the high to middle income group customers in the society. This helped the company to earn revenue from limited projects. However, it can be stated that in order to stay competitive in the market, the company must shift their target customers to the middle to low income groups (Bowman & Narayandas, 2014). It is no doubt to say that the numbers of customers in this group are always high and if the company targets them, they must revise their existing pricing strategy. Comparative low prices of the products would help the company to reach wider section of population in a short time and this would enhance the company’s business growth. Proper and effective communication with these target people is required to make from the marketing team of the company to spread the business. Therefore, it can be stated that the shift in the target market helps the company to revise their existing market position (Gergely et al., 2014).
In order to do that, it can be stated that the marketing and the management team of the company is required to develop an integrated media platform, which would help the company to spread. Proper advertising, social media campaigning, distributing leaflets, displaying eye-catching hoardings and brand endorsing are some of the well-accepted marketing activities that Perth Painting Company can rely on. Promotions through these effective and powerful channels are expected to help the company to reach the target market (Reinartz, Krafft & Hoyer, 2014).
In the next stage, it can be stated that the company must improve the customer service, as maintaining proper customer relationship largely decides the sustainability of the corporation. Initially the company is required to analyze the feedback of the existing customers and based on their feedback, the company is required to take the further steps (Fall et al., 2014). The marketing team is advised to focus on arranging promotional offers for the customers, who would take the service of the company for the first time. Additional benefits to the first time users and discounts on the services of the existing users might help the company to get the attention of large number of customers. With the course of time, marketing through social media has become one of the strong means to reach wide section of population in a short time and thus this part is required to shed light on (Pérez et al., 2013).
The entire process is required to implement on an urgent basis and monitor that regularly. Distributing questionnaire related to the customer satisfaction is necessary to get the feedbacks from the customers. Analyzing the reports might help the company to either modify or stick to the existing policies. Apart from that, the sales department of the Perth Painting Company must look at their revenue. If the margin rises, it can be understood that the strategies are working and if not, the company needs to revise the policy on an urgent basis. Thus the implementation schedule can be prepared (Luo & Bhattacharya, 2012).
10. Conclusion
After conduction of the entire research work, it can be stated that customer experience is one of the major parts for sustainability of any business. If the customers are not satisfied with the buying experience, they might not rely on that company further. Therefore, the customers are one of the strong pillars of any business. It has been seen that the Perth Painting Company was suffering from poor customer experience and this has been analyzed here in details. For dealing with the situation carefully, some effective recommendations have been provided here and it has been expected that the company would be able to revise the situation on an early basis. Therefore, maintaining positive customer experience in the present day’s strong competitive market is important enough. Moreover, it can be stated that positive customer experience contributes in referrals and these are often quicker with closing sales and less complicated or demanding consumers.
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