Small Business
...t can meet customers needs and wants, will build up the confidence in the mind of customers through developing shared values and beliefs. Therefore, we can say that a good service will result in high satisfaction and customer loyalty. When the customers satisfy with the services that they received, they are more willing to purchase the services on a repeated and preferably basis. In addition, they will also recommend the services to their friends or relatives, in which to be known as word-of-mouth advertising. It is a free advertising as the company does not have to pay a cost on it, and can easily get the awareness from them. The word-of-mouth advertising is very effective in marketing aspect as it holds the high credibility in the minds of customers. On the other hand, practicing societal marketing concept in company will improve the pubic image of the company. As societal marketing concept holds that the company will have social responsibility in society’s well beings. Firms that conduct activities concerning about environmental problems, child poverty and homeless problems, and other social problems will satisfy both customers and social’s interests. Moreover, it will also improve the company’s public image. Johnson &Johnson, for example, was rated each year in Fortune magazine poll as one of America’s most admired companies, especially for its community and environmental responsibility (Kotler & Armstrong, 2001, Pg21). Furthermore, doing more activities on the basis of social’s interests will increase companies’ awareness by having free advertising for the companies. The name of a company will be shown on the newspaper or magazine when the company has done activity on society’s well beings. Consequently, the name of the company will be make known to all the people in the society, and therefore will increase the reputation of the company through free advertising. In conclusion, practicing marketing and societal marketing concepts are the best choice for the company as it fulfills the customers’ needs and wants and also the society’s interests. Applying the both of concepts will balance and juggle the often-conflicting criteria of company profits, consumer wants, and public interest (Kotler, 2003, Pg17). Q2. What methods of marketing research were used by ScrubaDub? What additional research could it do to better understand its customers? Nowadays, marketing research plays an important role in business decision making, especially for managers. Research can be used to fulfill their need for knowledge of the organization, the market, the economy and other aspects of business. Marketing research is defined as the process of investigating the present and future requirements of the market, systematically analyzing the results and presenting the information to management in such a form that decisions concerning the marketing policy of the organization can be taken (Masslearning.com, 2002). There are three types of research: exploratory research, descriptive research, and causal research (Zikmund, 2000). These three researches can obtain the information that is necessary in business effectively and efficiently. Exploratory research is an initial research conducted to clarify and define the nature of the problem and to understand the problem. Whereas, descriptive research designed to describe characteristics, perception, attitude, needs of a population or a phenomenon. Causal research conducted to identify the cause and effect relationship among variables where the research problem has already been known (Zikmund, 2000). Two types of data can be collected through marketing research, which are primary data and secondary data. Primary data is data does not exist before and are collected first hand by the researcher. In contrast, secondary data is data that already exist and it has been collected by someone else. Primary data can be collected through the methods of survey, observation, experiment, focus group, in-depth interview and projective techniques (Zikmund, 2000). SrubaDub has used a variety of research methods to evaluate the quality of their service at the eight locations. In order to collect the accurate and reliable information on customer satisfaction, the company used two types of research methods: survey and observation. Survey is a structured questionnaire given to a sample of the population and designed to elicit specific information from respondents (Zikmund, 2000). Survey methods that SrubaDub has conducted include comment cards available to all customers. Besides, managers personally asked some drivers to fill out the special reports each month. The company also provided new service questionnaire for customers getting the inside car cleaning service. Thus, the company can get written information via survey. Since using only one method to obtain information is not adequate, therefore, to supplement the research, ScrubaDub has employed an outside firm to send people through the car wash and generate professional “shoppers’ reports” base on their experiences. This is to measure customer satisfaction towards its services. This type of research is known as observation where the situation of car wash centre and behavior of its employees will be recorded by human observers (Zikmund, 2000). On the other hand, ScrubaDub has also used mechanical observation, which is part of observation, to obtain the primary data of its members buying behavior. The behavior of its members will be recorded by computer database. An employee scans a bar-code sticker every time a member visits the store then logs the information into database. From using this type of research, the company will know the frequency of customers’ visits and the services purchased. In order to better understand its customers, ScrubaDub should conduct different forms of marketing research as the information will not be so reliable if the company has only conducted two types of research. First, it is not necessary that the company has to conduct primary research on consumer behavior. The company can also conduct secondary research in which the data that has already existed. These types of data can be gathered from sources such as newspapers, magazines, reports or other written articles. These secondary data will include consumer spending pattern in terms of car wash service; the period of time that consumers will spend more in car wash; and also the culture of people in US. The benefits of getting secondary data are low cost and less time consuming. These data can also help the managers of ScrubaDub to make a better decision in terms of customer service. Since the company has its members’ personal information, for example, their names, home addresses, emails and so on. Therefore, it can send a feedback form in the form of email to those members’ email address. The email will be sent on the day after the consumers visit the car wash centre. The purpose of using this type of research is because some of the customers may not have much of the time to spend in writing a comment in the comment cards and also filling out the special reports or questionnaires. Thus, sending the feedback form via email to consumers will be the effective way to collect the data as they can fill out the form during their free time. Information collected in this way will be more accurate and reliable because the consumers may have more of the time to think of the services seriously. Finally, it is necessary for ScrubaDub to conduct a marketing research in terms of consumers’ buying habits in order to better understand its customers and then provide the better services to them. Money spend in research must be viewed as investment and not loss as it helps the managers to make a better decision. Q3. Do you think the promotional activities of ScrubaDub could be improved and/or extended? Explain. A company’s total marketing communications mix, also known as promotion mix, consists of the specific blend of advertising, personal selling, sales promotion, public relations, and direct-marketing tools that the company uses to pursue its advertising and marketing objectives (Kotler & Armstrong, 2001, Pg512). Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor whereas personal selling includes personal presentation by the firms’ sales force for the purpose of making sales and building customer relationships (Kotler & Armstrong, 2001, Pg512). ScrubaDub Auto Wash spends much on promotion in order to build customer relationship and increase sales. ScrubaDub has practiced promotional activities in terms of personal selling, for example, sales advisors can remind the customers the services they have purchased before by call up their histories on a computer terminal. In addition, employees also use the histories to suggest customers to upgrade services. Besides, the company has done a lot of sales promotion for car wash service. Sales promotion is short-term incentives to encourage the purchase or sale of a product or service, including discounts, coupons, point-of-purchase and etc (Kotler, Armstrong, 2001, Pg512). Sales promotional activities that ScrubaDub has done includes member special of a free wash after 10 paid cleanings;...