BUS 5112: Marketing Management: Group Project

m
er as
co
eH w
BUS 5112

o.
Marketing Management
rs e
ou urc
Group Activity: Customer Loyalty Presentation

Group 4D: Florence Dawn Siblos, Gladiola Esparza, Teruko Lizuka, Janaka De Silva
o
aC s

Instructor: Crystal Lupo

vi y re
ed d
ar stu
is
Th
sh

1
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
 BUS 5112: Marketing Management: Group Project

ABSTRACT:

Part 1 Role: Florence D. Siblos-Description of the coffee shop

“brief background of the company and a description of the product/service and its major competition.
The second part of the presentation is descriptive. As much as possible, describe the product’s current
marketing strategy (objectives, target segment(s), value proposition), and implementation (marketing
mix).”

Part 2: Everyone??- Find one or two peer-reviewed resources on Customer Relationship Management;
Attracting and Retaining Customers; Building Loyalty; Win-Backs, Creating Long-term Loyalty
Relationships; Customer Perceived Value; or Building Customer Value, Satisfaction, and Loyalty.
Incorporate the concepts listed below into your presentation.
Part 3: Florence-Provide an analysis of the current marketing and implementation strategy for

m
your product or service with recommendations for improvement (unless you think it is perfect

er as
already, which is highly unlikely)

co
eH w
Part 4: Janaka De Silva-Explain why customer retention is important to your business and
provide five customer retention strategies that may benefit your business.

o.
rs e
Part 5: Janaka De Silva-Identify the factors that you would take into consideration to
ou urc
determine the prices of your products or services.
Part 6: Teruko Lizuka- Determine important strategic benefits of brand loyalty that seem most
appropriate to your small firm.
o

Part 7: Teruko Lizuka or Gladiola Esparza-Determine the key factors that influence customer
loyalty after their initial purchase
aC s

Part: 8: Creating a presentation/checking grammar/APA citation: Gladiola Esparza (I will

vi y re

be using Prezi):
together you will discuss the issue below and then compose a presentation of 10-15 slides
(PowerPoint, Google Slides, Prezi, etc.) that explore the meaning and business implications of
ed d

effective marketing strategy and customer loyalty programs towards profitability. Click on the
Group Wiki to see your group assignment (click the down arrow next to the Separate Groups box
ar stu

and select the Project Group that is listed there). Your final project will be due in Unit 7.

REFERENCES:
is

A café where you can sleep, shower | Inquirer Lifestyle

Th
sh

2
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
 BUS 5112: Marketing Management: Group Project

Part 4: Importance of Customer Retention for our Café

Customer retention is commonly viewed as the act of keeping the customers you have already
gained. Attracting a new customer most often is acquired by paid advertisements, and in general
costs five times more than to retain an existing patron. Many times, a 5% increase in customer
retention provides 25% to 95% increase in revenue (Michaelis, 2020). Many company believe
that the grass is greener on the other side when there is plenty of green grass to water and grow
in their own yard. Focusing on more and more customer acquisitions is costlier than focusing on
loyal, existing customers.
Here are a few benefits of having a good Customer Retention Program:
1. Save Money On Marketing
2. Repeat Purchases From Repeat Customers Means Repeat Profit
3. Free Word-Of-Mouth Advertising
4. Retained Customers Will Provide Valuable Feedback

m
5. Previous Customers Will Pay Premium Prices

er as
co
Other than the financial benefits, free word of mouth advertising from loyal retained customers

eH w
becomes priceless by creating your brand a trustworthy reputation which can catapult your

o.
business if it gets viral.
rs e
So, here are 5 strategies to consider when creating a good Customer Retention Program:
ou urc
1. Offer a Loyalty Program:
a. There are many loyalty programs out there, but do you really care about being one in
o

100 people who won a toaster? Or get a free sample only after spending $500?
aC s

(Colley, 2013). No thanks! Customers are smart and they are united socially for the one
vi y re

cause of finding a great deal. So, provide a great loyalty program that really means
something to the customer. Companies often fail to see that going the extra mile or spending
a little more to provide a great benefit pays off much quicker.
b. Our Program: Loyalty App. Download our app and like us on our social media for a 25%
ed d

off coupon code good for any purchase. This cannot be combined with other offers.
ar stu

c. This allows us to gain popularity, retain customers, build our brand and gain analytics.
2. Make it Special:
a. A custom-built coffee or dessert feel like home! Giving the option to customize your
is

order puts you in control and make you feel we care.

Th

b. Our Program: Coffee, Tea, Creamer, Sugar, Cup size & color, Cookie with name
name on it, Sandwich. Even a free toothbrush and toopaste for you stay.
3. Listen to the Customer:
a. Most customers give a lot of feedback and most companies do not hear them out or
sh

act out on them. 97% of Customer surveyed would become a loyal patron if their
feedback was sustained and 55% of Customers said they would not even go to a
business with bad online reviews (Bosché, 2020).
b. Our Program: We would have a notice board or online post of action taken upon
customer reviews and feedbacks to show we care.

3
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
 BUS 5112: Marketing Management: Group Project

4. Connect with Customer Values:

a. Giving back to the community or supporting a cause is the responsible thing to do
regardless of the benefit it brings from publicity. In today’s world of social
awareness, hatred of greed and increase in corporate responsibility in the public eye,
being a fish that is going against the current gets you noticed as one of the “good
guys” that more and more consumers want to shop at.
b. Our Program: Buy products from manufacturers who protect the rain forest and
provide fair wages to workers in third world countries. Also, give a portion of our
monthly profits to local shelters and kids programs.
5. Happy Employee equals a Happy Customer:
a. $1.7 million in lost business is seen walking out the door to another business due to
unhappy employees providing poor customer service each year (Davies, 2016).
Companies that incentivize their employee to perform well with a 79% better
customer retention rate. “Organizations with above average levels of employee
retention and engagement realized 27 percent higher profits, 50 percent higher sales,

m
er as
50 percent higher customer loyalty levels, and 38 percent above-average

co
productivity” (Rackley, 2019).

eH w
b. Our Program: Improve management style and engagement with employees. Conduct
an Employee Satisfaction Survey semi-annually. Provide a quarterly bonus program

o.
rs e
that an employee can cash out or roll it into their retirement benefits program.
ou urc
Part 5: Factors of Pricing Strategy
o
aC s
vi y re
ed d
ar stu
is
Th

Pricing can be a big challenge when establishing the first product life step for any product, especially for
a new business. There is never a one-size-fits-all formula for figuring out the right price for your product,
rather, it is a complicated, ever-changing process based on many things. The following will describe 5 of
sh

the basic factors that affect your pricing strategy (Krunic, 2019).
1. Identify your Business Goals
2. Know your Costs
3. Know your Customers
4. Positioning
5. Value

4
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
 BUS 5112: Marketing Management: Group Project

1. Identify your Business Goals

a. A company must have a goal to achieve to gauge their success. Caring about what you
want to accomplish is the first step in realizing your pricing – is it “max profits” or “max
market saturation”. The “Network Effect” basically guides our pricing strategy also by
expressing the relationship between supply and demand. The more products in the
market, the lower the price needs to be, in other words, if you start your product price
low, there will be much demand (Banton, 2020).
2. Know your Costs
a. A business must know their setup & production costs for the product for you can cover
your cost and make an ethical profit to consider your enterprise a sustainable success.
The selling price must also consider Fixed Costs involved such as building lease,
permanent labor, materials, advertising, etc., and Variable Costs that fluctuate such as
transport, temp labor, additional custom materials, etc.
3. Know your Customers
a. Finding accurate, relevant statistics about the market and consumer culture is tough since
it is a fickle thing. Most companies conduct their own research online or send out a

m
survey to existing customer base or purchased email lists. Others hire a market research

er as
company. This factor is a mostly a gamble on the part of the marketing manager as only

co
10-20% are proven to be accurate according to Forbes research (Hoffman, 2017).

eH w
4. Positioning

o.
a. This factor deals with where a company wants to position itself and the product in the
rs e
market or how it wants to be viewed by the consumer. Perhaps as a luxury product that
ou urc
affords a premium price or a bargain cheap product that provides a bang for the buck
somehow. Of course, many choose the middle ground but there is a big range there as
well. So, this decision too can be fine tuned quickly upon product unravelling.
o

5. Value
aC s

a. Bringing a perceived great value to the customer is paramount to the success of your
vi y re

pricing strategy. Sometimes a customer will pay a premium if they believe they are
getting a premium product according to their value system and sometimes a customer just
wants a bargain product as they are purchasing on an impulse or whim. A company must
consider what value they are bringing to the customer and exploit that truth in their
ed d

marketing. One could run a pricing calculation to find out where they want to be.
ar stu

i. Cost-Plus Pricing means it is your minimum price which covers your costs only.
ii. Fair Pricing is set when you want to provide a price that is acceptable no matter
how grand the perceived value is.
iii. Value Pricing is the max price because of the perceived value being higher than
is

all costs combined. Most companies feel their product lies in this category until
Th

market research proves otherwise.

Our Program: With the increasing boom of technology, the latest apps have developed a way of finding
out what the market price is at any given period for similar products to yours. Software such as
sh

Price2Spy which provides raw data and even suggest a business decision for your pricing strategy based
on their specific research – in essence cutting out all the hard work for you (Krunić, 2016). We will
utilize this and depict our pricing strategy on its findings.

5
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
 BUS 5112: Marketing Management: Group Project

References:

Banton, C. (2020, December 14). Understanding the Network Effect. Investopedia.

https://www.investopedia.com/terms/n/network-effect.asp.

Bosché, M. (2020, August 6). Customer Feedback and Loyalty on the Mobile Frontier.
Apptentive. https://www.apptentive.com/blog/2016/03/16/feedback-and-loyalty-on-the-
mobile-frontier/.

Colley, A. (2013, April 25). The 4 Best and 3 Worst Customer Loyalty Cards. Money Talks
News. https://www.moneytalksnews.com/the-4-best-and-3-worst-customer-loyalty-cards/.

Davies, L. (2016, March 23). U.S. Companies Losing Customers As Consumers Demand More
Human Interaction, Accenture Strategy Study Finds. Newsroom.

m
https://newsroom.accenture.com/news/us-companies-losing-customers-as-consumers-

er as
demand-more-human-interaction-accenture-strategy-study-finds.htm.

co
eH w
Hoffman, A. (2017, July 5). How Accurate Is Marketing Data? Forbes.

o.
https://www.forbes.com/sites/quora/2017/07/05/how-accurate-is-marketing-data/?
sh=266314ee68e2. rs e
ou urc
Krunić, M. (2016, June 28). Pricing Strategy - suggesting business decisions. Price2Spy® Blog.
https://www.price2spy.com/blog/pricing-strategy-identify-products-with-pricing-
o

opportunities/.
aC s
vi y re

Krunic, M. (2019, November 21). Factors to Consider When Pricing a Product/Service.

Medium. https://price2spy.medium.com/factors-to-consider-when-pricing-a-product-
service-644b5a84bf47.
ed d

Michaelis, C. (2020, September 2). 5 Reasons Why Customer Retention Is Key To Your Business.
ar stu

DCR Strategies Inc. https://www.dcrstrategies.com/customer-incentives/5-reasons-

customer-retention-business/.

Rackley, J. (2019, May 19). The Key to Achieving Your 2014 Goals: Employee Engagement.
is

Vistage Research Center. https://www.vistage.com/research-center/business-

Th

leadership/key-achieving-2014-goals-employee-engagement/.
sh

6
This study source was downloaded by 100000834502369 from CourseHero.com on 10-14-2021 10:13:53 GMT -05:00

https://www.coursehero.com/file/79817441/BUS-5112-Group-Activity-Customer-Loyalty-Presentationdocx/
Powered by TCPDF (www.tcpdf.org)