Consumer relations
⚫
Marketing and PR share some concepts
–
⚫
PR differs in:
–
–
–
–
1
Research; publics; planning; evaluation.
Internal + external publics
Noncustomer and environment
Focus on human nature
Stabilize or change opinion; other than products
Consumer relations
Functions of marketing and PR blending
⚫ Relationship marketing; PR marketing
⚫ PR must:
⚫
–
–
2
Motivate purchase
Create hospitable environment
for product / org
Consumer relations
Consumer society requires more
marketing
⚫ Ads exceed limits of truth; accuracy
⚫ Businesses shift approach from “share
of market” to “share of mind”
⚫
⚫
3
People want to be served, not sold.
Business response to consumer
activism
⚫
⚫
⚫
⚫
⚫
⚫
⚫
4
Ombudspersons
800 numbers
Understandable warranty statements
Improved listenership and response
Calls to check customer satisfaction
Quick settlements of injury claims
Products recalls
Originally PR supported sales:
Media publicity
⚫ Promotional events
⚫ Consumer
information
programs
⚫
5
PR objectives
Inform audience about
product/service
⚫ Show their benefits
⚫ Build positive relations
⚫ Promote image
⚫
6
New PR activities
Forming user groups; build loyalty
⚫ Adopt customer satisfaction programs
⚫ Publicize / promote to take customers
away from competitors
⚫ Protect reputation of product / org.
⚫
7
Customer delight replaces service:
process
Phase 1: brainstorm; those who deliver
⚫ Phase 2: learn what customers want
⚫ Phase 3: take results to top
management; prioritize
⚫ Phase 4: Ongoing evaluation; update
plans
⚫
8
Customer delight program
The promise
⚫ Customer expectations
⚫ Delivery
⚫ Aftermath or maintenance.
⚫
9
139
25, USA Today, February 1, 2010, p. 3B
2. USA Today, February 25, 2010, p. 10A
27. Liker, p. 128
28. Liker, p. 130
29. Liker, p. 132
30. Liker. pp. 133-134
31. Liker, p. 137
32. Liker, p. 138
33. Liker, p. 141
34. Liker, p. 150-151
35. Liker, p. 195–197
36. Liker, p. 198
37. Liker, p. 163
38. Liker, p. 167
39. Liker, p. 173
40. Liker, p. 178
41. Liker. pp. 179-180
42. Liker, p. 217
Chapter 6 . Consumer Relations
Consider what type of research you would use to
determine how to manage customer satisfaction-
how to attract new customers and how to retain the
loyalty of existing ones.
On the basis of your research, prepare a one-year
strategic marketing plan that prioritizes your publics
and uses a mix of one-way and two-way communi-
cation activities with evaluation methods built in.
Provide a budget that allocates the $11,000 between
research and customer relation activities.
Finally, what issues should Berry's be speaking
out on, considering the enormity of alcoholism and
driving-while-intoxicated problems, so much in the
news today? Think about how to position Berry's as
a socially responsible drinking establishment.
PROBLEM 6-B GOOD INTENTIONS,
BAD RESULTS
Earlier this year, when you graduated from col-
lege, you were fortunate. You had a job waiting for
PROBLEM 6-A A WINE BAR NEEDS
you at Bart's Cartmart Inc., the largest distributor
POSITIONING
of motorized vehicles and accessories in Amarillo
"Berry's" is a wine bar in a southwestern U.S. city The firm's slogan is, "Speed Up with Us!" Bart
with a population of 400,000. In fact, it is the only (Cartwright), the owner, happens to be your father.
full-fledged wine bar in the city. While many other That saves having to work your way up. Besides,
bars serve wine, none specialize in fine wines of the you've already helped out summers, when you
United States and Europe as Berry's does. The fact weren't using one of the products playing golf,
that it is the only wine bar in the city is its problem. cruising off-road, or mowing the lawn.
Although the city has ample well-educated middle- This job has great promise. You're an only child,
income people, wine has not developed a follow- and your dad has long had in mind that you would
ing as it has in some larger cities. Because no other be taking over the business some day. In prepara-
Wine bars are available, wine drinkers have become tion, you majored in marketing, minored in public
used to ordering wine at regular bars rather than at
relations, and took several elective courses includ-
"specialty-shop" wine bars.
ing one in business law.
erry's location is good-downtown near som
To start you out full-time, your dad put you in
fine hotels and in an area that is being revitalized, charge of customer relations. It has been fun and
further emphasizing its upscale image. The interior challenging. This first year, you devised a follow-
15 pleasant and has wine vaults for people who want up program in which you or an assistant called
Do store their wine there and have it available when- on each customer a week or so before the war-
ever they come into the bar. All of these vaults have ranty period for the product purchased expired.
You asked whether the customer needed anything
The wine bar has been open for only six months.
that you could supply within warranty. Customers
It has a good lunch business, but needs a better eve-
praised and liked that attention. And you've had
ning business (especially during the week).
Bart's Cartmart sponsor the winners' awards in one
only $11,000. Mr. Berry comes to you because he
The total budget for creating the new business is of the major competitive events at the annual Stock
ows you have just opened your own communica-
Breeders' Exhibition (motor vehicles as well as
tions form. He says, "I know it's not a lot of money.
plaques and ribbons, of course).
but it's a lot for my business. I can't afford to just
This week, the Annual Harvest Festival is on, and
acting on a request from the committee running it, you
have loaned six used golf carts for the festival events.
(Continued)
been rented.
wyals-What do you suggest?"
141
140
Chapter 6 . Consumer Relations
Chapter 6 . Consumer Relations
continually arrive and depart late due to inefficient the meantime, you need to get a plan formulated
airport crew members, and the on-flight crew hus because you can't afford to further antagonize cus-
received poor ratings because of rudeness
tomers. In fact, you want to delight customers. How
To add to this pressure, flight attendants and will you do that knowing what you know about this
pilots are complaining about being overscheduled
situation? What is your immediate plan of action?
They want time off to enjoy the holidays at home
Put together a one-year strategic plan to build
with their families, not in some remote location as consumer relationshipsand outline possible prob
they wait for a flight back-a result of poor sched- lems and solutions. Put into action an evaluation
uling, which has been happening more frequently
process that will help you gauge the minds of
The number of customer complaints is grow- your consumers as well as your employees. This
ing as are employee complaints. You do not have will make it easier for both sides to communicate
responsibility for human relations but you can what they like, don't like and would like to see
see that it impacts customer relations. The head
improved. You hope this will bring about improve
of human relations is very busy and understaffed. ments and repeat customers, which will help busi-
but she has agreed to meet with you tomorrow. In ness in the long run
Your father has been most tolerant of your firm handling the company's insurance, and wis
person at the police department who said he w
activities. He obviously wants you to enjoy your
hold the cart. Your father's lawyer, he said, would
job and to relish growing with the company. At the
same time. Bart is no softie. He came off a farm and be talking with the legal department of Rundo the
.
rose in business the hard way. He knows what he
Before the day was over, you and your father
wants and is determined to get it. At times he can
talked again in some detail. "This is the kind of
be tough, if he feels he has to, and even dictatorial
When you got to work recently. you were thing you dread in a business like this." he told you
"And with so damn many ambulance-chasing les
handed a moming newspaper by the receptionist
yers around, good intentions and fair dealing don't
In it there was a story about a 12-year-old boy, the
son of a local farmer and Harvest Festival official always come out the way you had in mind. With the
who was driving one of your carts around late yes- reporters looking for things to blow up into head.
terday afternoon for fun. Something happened, and lines. I can see this thing heating up into a con
the cart tipped over on his leg, mangling it, with case and a local issue where people who should be
possible permanent damage. The kid, in the hos minding their own business stick their moses into
pital, told his parents, and they told the newspaper ours and choose up sides."
reporter, that he didn't know what happened. You assure your father that the good intention
was just going along fine." when he felt a bump in loaning the carts will pay off in the end and the
and he couldn't turn the steering wheel. Next thing if you're open with the newspeople they'll be fale in
he knew, the cart was headed for a big harvest whatever they write or say. He says, "We'll see. I
machine. He tried to turn the wheel, but it wouldn't you have any ideas as this thing goes along, come
work and he became jammed between the car and tell me. I'll welcome them. But don't go off half-
the machine. The newspaper carried a head shot of cocked talking with others at the newspaper, with
the boy. He was cute. The story indicated that the the people on the Festival Committee, or with the
cart had been borrowed from Bant's Cartmart. next-door neighbors. Come see me first."
You sought out your father immediately. He Obviously, you are anxious to help to apply
said he'd gotten a call from the newspaper late in what you learned over four years, and to retain the
the evening, but there was no reason to disturb you. conviction that if you treat others fairly, you'll be
He had called the boy's father and mother, with treated fairly in return.
whom he was acquainted to express concem and Given the four-step planning process, and the
sympathy. They were very upset. When he'd men- aforementioned events, what might you set as your
tioned to them that these heavy carts weren't really objective. your strategy, and your main tactics in
muse for handling by little kids, the father had made helping resolve the problem before it boils over into
some critical remarks about lending out used carts
that might have something wrong with them
the community and into a courtroom? What might
you recommend to your father about the dos and
don't react resumably when their own flesh and fixtures, and communications about those relations?
don'ts of customer and community relations in the
blood is involved. I doubt we've heard the last of
14" You asked him what you could do. Should you PROBLEM 6-C TURNING CUSTOMER
send someone in the shop with a trailer to bring the
cart back and have it inspected send the boy a book
COMPLAINTS TO CUSTOMER DELIGHT
read, to retrieve all the loaned curts, or Eagle's Wings Airlines is a young company that
sald.net until I can talk to our lawyer. Just sit tight
for a few hours, and we'll know where this thing is
work for its public relations department. Winterhof
iday time is approaching and rights are booked, but
Within the hour. a lawyer representing the cheaper ticket prices are keeping reservations
injured boy and his family called the company to say but if the level of complaints continues
customer complaints are increasing. For now, the
he had requested that local authorities "impound" will be lost. In fact, you have just bon
the cat and indicated he would want to talk with that Eagle's Wings has been named the worst
Bart soon. Also within the hour, your her had line in customer service. The number of custom
walked with the company's lawyer, the age of the complaints has been piling up on your desk. Fy
going
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