Empirical Research On Entrepreneurial Orientation Essay

Question:

Discuss about the Empirical Research on Entrepreneurial Orientation.

Answer:

Introduction

The aim of this report is to learn the service marketing of a company whose get benefits by initiating a good relationship marketing program in their company. The business organization must start initiative related to the relationships in the marketing and with the other industries and organizations. There are various profits in making good relations with the business organizations (Ballantyne, and Varey, 2008). It also benefits the customers if there are good relations between the business organizations. There are various types of segment that can be targeted to establish good relations and to promote relationship marketing program. Such kind of program not only benefits the organization but also the customers. There are various ways by which the companies can target and encourage a long term relationships that are profitable in nature.

In this report, all the ways and criteria will discuss related to the relationship marketing program and its promotion to the customers and other parties related to the business. It allows the marketers to know more about the company. It helps in the brand positioning and creation of the brand value (Jacob, and Ulaga, 2008).

I am a marketing consultant, writing this business report to the marketing manager of Myer Company to let them know the benefits of relationship marketing programs. The company can also use effective tactics related to the market relations for the company. The report will also provide various recommendations that can be used to have better result in the relations with parties and customers (Vaaland, Heideand Gr?nhaug, 2008). The requirement is to make changes in the exiting relations and then to establish effective and long term relation with the other business organizations.

The chosen company in this report is Myers holdings limited. It is one of the famous companies of Australia as it has an old history. There is various division of this company as they provide a large variety of products and services to their customers. The company still required to have strong relations with the parties to have effective management in their company (Lusch, and Vargo, 2014). The purpose of establishing good relation with the parties is to have the effectiveness of the company with the related companies, customers and within the market. It helps in achieving the satisfaction and loyalty of the customers (Zott, Amit, and Massa, 2011).

An overview of the company

Myer group is one of the largest groups in the Australia and the company is operating since 1900. They do business related to the style, lifestyle, and fashion products. It is one of the largest departmental stores as the turnover of the company is more than $ 3.1 billion in the year 2014. There are 11 core products that are offered by the company under the brand of Myer that includes women wear, menswear, lifestyle product and many other products. The company has more than 65 stores in Australia and more than 100 stores in all over the world. The Myer Company provide discount stores Myer stores, grace bros, supermarkets, etc. now the aim of the company is to enhance the customer and marketing relations by a program relationship marketing program. As the company want to increase the sale, they want to adopt new techniques and this relation marketing program is one of the part of those project (Blocker, and Flint, 2007).

There are various types of benefits a company like Myer can get after enhancing relationship marketing in their company. It is one of the universally accepted facts that the “customer is king”. It is related to the understanding that company must have good relations with the customers who can provide benefits to the company in future. The relationship marketing is basically represents that the concept can be shifted within the marketing (Payne, Storbacka, and Frow, 2008). The company must focus on the retention of relationship with the stakeholders and customers. The basic theory of relations marketing says that to build effective relations with the existing customers and stakeholders instead of making new one.

On the basis of this assumption, the company Myer tries to build effective relations with the company customers and stake holders like suppliers, government union and regulators, shareholders, brokers, customers, competitors, etc. The other parties with whom the company try to have good realties are the retailers, stores, super markets, wholesalers, distributors, etc. (Lovelock, 2011) It is due to the fact that they are the supply chain management team of the company that helps the company to have effective and efficient delivery of the products and services to the customers. If the company is able to have good relations with the same, it will help in future growth and development of the profits and sales of the company (Vargo, and Lusch, 2011).

Benefits with the customers

Building good relation with the customers may help Myer company to have effective management of the business organization in various types of field. It will provide loyal business customers to Myer with whom the company can deal for a longer period of time in the future. It is very essential for the future growth and development of the company. The stakeholders have a strong impact on Myer Company as they are the one who supplies all the material to the company (Verhoef, Lemon, Parasuraman, Roggeveen, Tsiros, and Schlesinger, 2009). It will provide long term relations with the customers, loyal customers, develop trust customers, etc. there is a mutual understanding between the two parties and the communication becomes easy for the dealing.

The customers are the group of people who are required to have extra attention. It becomes very uneasy to handle a customer who is unsatisfied and draining. It helps the company to increase the sale, mouth to mount promotion, rewards for lifetimes, career advancement; etc. It can be developed by developing the people skills, identification of the needs of the relation, scheduling time to build the relations, positive behaviour, management of the boundaries, etc.

The customers will also receive various types of benefits after having good relations with the company. They will provide adequate lead time to the company. The good relation with the other part personalise the relationships and help to gather and collect the information. It is not a complicated process to develop relation with the other parties and stakeholders. It can be done by building good communication, treat them in a good and fair way, trust and loyalty and also to pay them or others on time (Madhavaram, and Hunt, 2008). In this way, it will become easy for Myer to have good relation and ultimately to have benefits out for the same.

Good quality of products- When Myer company build good relation with the other parts like suppliers, they will supply good material which ultimately affects the quality of the products and service s and the company will be able to have higher satisfaction of the employees. It will help to add cash to the bottom line of Myer (Franke, Keinz, and Steger, 2009).

Timeless – The timely delivery of the products is the best and reliable way in the eyes of the customers. It will slow down the risk of the inventory and lower down the cash needs of Myer.

Competitiveness- the supply of the products at good price and on time will provide bet pricing, quality, technological advancement, knowledge of the market and industry trends and pricing of the products.

Innovation and changes- In order to have innovation in the production of the Myer products, the suppliers play a vital role. They understand the company and accordingly provide material to the same. It helps to promote new ideas, services and products.

Finance and credit- This is the most beneficial profit to have good relations in the market. It will help to create credit in the market. It provides financial leverage to Myer Company. The company can also ask and tap to have more and additional financing. It helps in developing a good relation of trust, loyalty and considerable company. It is related to the postponed debt, extended terms on the new supplies and purchase, investment in the company and loan. These all options will bring effective cash position in Myer Company (Daymon, and Holloway, 2010).

In this way, the company must focus on the retention of relationship with the stakeholders and customers. The basic theory of relations marketing says that to build effective relations with the existing customers and stakeholders instead of making new one.

The segmentation of target customers

The segment should be targeted by the organisation for a relationship marketing programme because it will provide a deep knowledge about the segment of the customers that are required to be targeted. It is very relevant to target the ‘right’ customers" because it is imperative to the success of the relationship marketing programme for the company Myer (Parasuraman, and Colby, 2007). The company Myer has started a program related to the customers that is “customer loyalty program” in which more than 3 million customers are the members of the same. It is one of the leading programs for the customers in the entire Australia. The 60% of the sales of the company are because of this program. The customers themselves spend 15 % on the non-members so that they can also join the same program to grab the benefits and to provide benefits to the company (Metters, and Marucheck, 2007).

The company target the segment of the customers by dividing them according to various aspects like demographic segmentation, personal attributes, age, personality types, geographic location, frequency of buying, etc. The analysis of the potential customers in the market is a key to step in the market easily. The process of segmentation provides long- term profitability, business opportunities, etc. (Matthyssens, and Vandenbempt, 2010)

Myer Company tries to target their customers by segmentation of the customers according to the audience and their types. The company Myer try to segment the customers to get better efficiency in the process of advertisement as they segment the fashion products according to the size and trend. The company observed that expending money on the advertisement do not help when the targeted audience is not correct (Giacalone, and Rosenfeld, 2013).

Myer customers are targets by the various approaches and strategies. The most common method used in Myer to segment the target customers’ demographic segmentation which the customers are divided according to personal attributes. It can be done according to age wise, class wise, college-educated, customers between 24-35, middle class, etc. there are other criteria also according to which the market segmentation can be done like personality types, location, geography, Buying frequency of the customer, etc.

Segmentation of the market

Criteria of segmentation

Demographic segmentation

They take the segmentation on the basis of population, age, occupation, marital status, characteristics, etc.

Physiographic segmentation

This is the segmentation that is distributed according to the lifestyles, fashion and interest of the customers.

Behaviour segmentation

The segmentation of behaviour is distributed according to the products like on different colour, brand loyal, brand switchers, and so on.

Geographic segmentation

These types of segmentation are based on the country, city, region, and other basis of geography.

Benefits sought

This types of segmentation is takes place on the basis of status, values, ethics, convenience, etc.

Suggestion of the ways by which management may encourage long-term profitable relationships with the segments

There are various ways by which company can encourage good and long term relations with their customers. It helps in creating value for the company. It can become possible when Myer produces all the goods and services according to the needs and demand of the customers (Wales, Gupta, and Mousa, 2013). It should link with the aim and objectives of the company too. The requirement is to identify the potential customers and relate them with the future profits.

According to Myer, the customers can boost the customers by up gradation of the technology. As Myer has now transformed the stores as digital stores to engage the customers and their journey with the company. According to them, the retailers also change their stores into digitalised stores. There is a change in the perspective of the customers as they are adopting the digital changes in their lives (Vogel, Evanschitzky, and Ramaseshan, 2008). To make Myer’s customers more loyal and retain, they have spend a huge amount of money that $ 600 million in last five years based on the major four pillars that is

  • Customer-led offers
  • Wonderful experiences to the customers while shopping
  • Omni-channel shopping
  • A productivity step change


They also said that there are three major streams to make the customer happy that is

  • Product that is required to be placed at the right place and at the right time
  • The second part is related to the strategy of the company in the investments that is related to the services provided by the company (Watson, and Noble, 2007). It is all about the experience that customers get after shopping in the stores.
  • The last and their element are related to the Omni-channel.

There are various types of changes take place in the management and marketing of this company (Payne, Storbacka, and Frow, 2008). The boost in-store has known as “Myer hub” in which they serve their customers through digitally enable caretaker in the departmental store. This hub has various kiosks at the store and other places that provide number of services that includes free gift wrapping, Wi-Fi connectivity, a coffee shop click and collect services, etc. it is one of the successful change they had made for the customers which is not found on the other stores (Kayaman, and Arasli, 2007). These kinds of services add a value added services that provides relief to the customers and sparkles the name of the company (Tsiotsou, and Ratten, 2010).

They also started a concept of personalised shopping for the fashion conscious customers who wants to experience an exciting and personalised shopping experience. In this, they provide data and information related to the history of their shopping done before by them. It reveals the purchase history, her likes and preferences, size, colour, and other information. It provides the customers solution (Thamizhvanan, and Xavier, 2013).

In this way, the customer’s feels relaxed and relieved as they can use their own history for the current shopping. The company Myer also collaborated within one of the famous online shopping application eBay so that they can also turn them as first virtual reality store (Brodie, Hollebeek, Juri?, and Ili?, 2011). The customers can use this app by putting their phones in a set of shoptical and VR glasses and to have a real experience of shopping. In this way, the company is willing to provide a different experience to their customers by improving and changing the experience the customers getting today (Van Doorn, Lemon, Mittal, Nass, Pick, Pirner, and Verhoef, 2010).

Marketing metrics and its success on the company

Marketing metrics of Myer is related to the numeric data that allow marketers to evaluate their performance against organisational goals. We would also use marketing metrics to determine if the strategies that are identified before were successful or not (Homburg, Stierl, and Bornemann, 2013). The success of the company is related to the customers. They will also receive various types of benefits after having good relations with the company. They will provide adequate lead time to the company. The good relation with the other parties personalise the relationships and help to gather and collect the information. It is not a complicated process to develop relation with the other parties and stakeholders. It can be done by building good communication, treat them in a good and fair way, trust and loyalty and also to pay them or others on time. In this way, it will become easy for Myer to have good relation and ultimately to have benefits out for the same.

The success of the company is related to the effective marketing metrics of the company. There are various types of marketing metrics followed by the Myer Company.

There are various ways by which the company can get and gather information about the marketing condition of the company. It is very relevant to create dashboard of the customers like google. Google will provide exact data related to the company and its reviews in the market. It can be done simply clicking on the custom report tab, then select a new report option and specify the metrics that can be included n the report.

Marketing metrics to show that the above ideas are successful or not

NEW MYER TARGET MARKET AND THE RESULT OF CHANGES

Sales

Target average sales growth greater than 3 % between 2016 – 2020

FY 2016 sales up by 2.9 %

Sales/ SQM

Target greater than 20 % improvement by 2018

Sales per square meter increased by 5.6 %

EBITDA

Target EBITDA growth ahead of the sales growth by the end of 2017

EBITDA shows a done by 7.6 %

Total sales up by 2.9 %

ROFE

Target ROFE greater than 15 % by 2010

ROFE is 9.1 %

Recommendations

It is recommended that the company should focus on the program started by them to enhance the relationship marketing with their customers. The one key way and method by which the company can make the customers happy and relate them with the company for a longer period of time is by analysing the demand and to sell the products and services according to the needs and wants of the customers. They have to be very patient and effective while building relations with the customers. It is very relevant to get to know about the area of interest of the customers and accordingly work to make them happy with the goods and services of the company.

There is a need to go beyond the practices and tactics played by the competitors and substitutes companies like Woolsworth, Wesfarmers, etc. the company should also focus on the each and every customers related to the company and provide them equal importance. It is one of the major points that most of the companies forget to follow. The company must respond to the customer’s emails, reviews, messages, calls, etc. it provides the customers a level of satisfaction and connection with the company. They feel important and valued. Myer also concentrates on the connectivity of the company with the customers. It is vital for the companies to be more than an email id. There must be customer care numbers, phone calls, pages, applications, etc. There is various division of this company as they provide a large variety of products and services to their customers. The company still required to have strong relations with the parties to have effective management in their company (Lusch, and Vargo, 2014).

The purpose of establishing good relation with the parties is to have the effectiveness of the company with the related companies, customers and within the market. It helps in achieving the satisfaction and loyalty of the customers. The company must focus on the retention of relationship with the stakeholders and customers. It can be done by building good communication, treat them in a good and fair way, trust and loyalty and also to pay them or others on time. In this way, it will become easy for Myer to have good relation and ultimately to have benefits out for the same.

Conclusion

To conclude the present report, we can say that service marketing and the relation in the services marketing plays a vital role as it define the company and its relation with the customers and other parties related to the same. It helps in sustaining of loyal customers in the company as it is a very strong aspect for Myer and other companies too. It helps Myer to minimize the cost so that they can get the new customers, efficient way to manage the operation cost, etc. the management of loyal customers influence the other customers to use a purchase the brand. The maintenance of customer’s relation helps the company for the better future opportunity not only for the company but also for the customers.

The concept of relationship marketing has now become a well recognised and applied way by which Myer company and other companies sell themselves to the customers. It is one of the cultivated and constructive ways that Myer Company can use for the better relation with the customers. There are lots of benefits that can be gained by the company after having effective relationship marketing. The applicability and adoption of the relationship marketing is an approach through which Myer Company can face big challenges in an easy way.

The business organisations that are dealing with services like Myer Company required having relation marketing in their company. The study is all about building relationship with the customers and other parties train the employees for the same and make the organisations’ a familiar and friendly one so that in future the company can get benefits out of the same. It helps in free advertisement of the company’s products and services, positive word of mouth suggestions for the potential and future customers, customer loyalty, trust of the customers, savings that are great for the business organization, increase in the sales of the products and services even in the off season, retention of the customers, etc. the overall impact of this is that Myer will get higher profits, improve in the overall function an operations of the company.

References

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