Making It Possible

Making It Possible

EXECUTIVE SUMMARY
This report is the result of my findings, observations and experiences during my project, which I completed successfully in the Customer Services Center Telephone Exchange Pakistan. The report is regarding Marketing Plan of PTCL. During this project I study the current systems of marketing strategies to learn how work is being done in this organization. So this report is nether neither the view point of PTCL management nor it is a mere critics on methods of marketing in PTCL. This report will explain how PTCL market their products & services to customer, how it is managed and processed to get useful information and how this information is shared among different offices of PTCL. In this era computer software has become a driving force. It is the engine that drives business decision- making. It serves as the business basis for the modern scientific investigation and engineering problem solving. It is a key factor that makes a distinction. Software is embedded in systems of all kinds: transportation, medical, telecommunication, military, industrial,

processes, entertainment, office products, ,.................. the list is endless. Software is virtually inescapable in a modern world. In the future it will become the driver for new advances in everything from elementary education to genetic engineering.

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BACKGROUND
BRIFE HISTORY:

1947:To provide Postal and Telecom services a department names Pakistan Post and Telegraphs (P&T) was established in 1947. This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. This department continued its business up to 1962.

1962:The proof of this is that as compared to 1947, there Ire 1,185,865 lines in 1990, this tally was reached to 3,159,477 in 1996, and in the year 2000 this figure was 4,039,291and in 2004 this has raised up to 5,500,390 So since its conversion from PTC to PTCL (A private company) there is almost 74 % increase in the working lines of P.T.C.L.

1990:0n 15-12-1990 Telephone and Telegraphs department was converted into a statuary corporation Pakistan Telecommunication Company that had its own separate legal identity from Government of Pakistan.

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In the changed international telecom environment it became necessary to open the local telecom market for foreign competitors so Pakistan Telecommunication Company was further subdivided into four separate units in 1996, which are; 1. Pakistan Telecommunication Company Limited (PTCL) 2. Pakistan Telecommunication Authority (PTA) 3. National Telecommunication Company (NTC) 4. Frequency Allocation Board (FAB) PTCL was incorporated on December 31st 1995 and it commenced its business on January 1st 1996. The idea behind this was to provide better services to customers giving chance of starting telecom services to other companies. This was established to undertake the telecommunication business formally carried out by Ex-PTC. P.T.C.L is providing various services to its customers like fix-telephone, mobile telephone, Internet, lease circuit, VPN and ISDN (BRI & PRI).

2003:As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing. PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy competition. The company is in process of enhancing organizational and business proficiency through vertical integration and horizontal diversification. At the same time, cross-national ownerships, operations and partnerships are being evaluated with a view to developing and diversifying the business.

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Mr. Mohamed Abdulla Ali Bamakhrama (President & Ceo)

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2 - VISION STATEMENT
To be the leading ICT service provider in the region by achieving customers satisfaction and maximizing shareholders value.

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MISSION STATEMENT
To achieve my vision by having: An organizational environment that fosters professionalism, motivation and quality. An environment that is cost effective and quality conscious. Services that are based on the most optimum technology. Quality & Time conscious customer. Service. Sustained growth in earnings and profitability.

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Corporate Customer Centers

Corporate Customer Centers are a one-point contact facility designed to give its valued Corporate Customers the maximum convenience with a personalized and prompt service. These centers will facilitate Corporate Customers in: Provision of end to end communication solutions Maintenance support Provision of new telephone connections

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has established many Corporate Customer Centers to facilitate its corporate customers. Currently these centers have been established in only main cities of Pakistan like Islamabad, Karachi, Lahore, Quetta and Peshawar. The aim is to provide better customer care through: One window operation for all telecom services Convenient registration procedure Minimum documentations for hassle free registration Swift processing of corporate customers request

Services Offered at Corporate Customer Centers:

offers a host of unmatched services suiting the needs of business organizations. Consumers Services New Telephone connection Shifting of Telephone Change of Telephone Number Change of title / name / transfer of ownership Closing of telephone Restoration of Telephone After disconnection Digital facilities ISDN BRI CLI FAX FAQs Basic Services (PSTN Lines) Voice Data & Video

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Tele mail (VMS) Value Added Service Calling Line Identification (CLI) service. Channel/Stream. Collocation. Digital features like Call Waiting, Call Transfer etc. Digital Subscriber Loop (DSL). Integrated Services Digital Network (ISDN)-PRI, ISDN-Tele Plus. Local Leased Circuits (2 Wire/4 Wire). Local/Domestic/International Leased bandwidth and point to point leased lines. Payphones/PABX. Premium Rate Audio-Text Service. Universal Access Number (UAN). Universal Internet Number (UIN) - for ISP's Licensed only). Voice Mail & Messaging Services.

IN Based Value Added Services 0800 Toll Free Calling Cards Domestic & International Premium Rate (0900) & Virtual Private Network Service.

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SHAREHOLDING STRUCTURE:paid-up capital is 51 billion Rupees; divided into 3.375 billion classes "An" ordinary shares (74%) and 1.23 billion class "B" ordinary shares (26%). The class A share is listed on all the three stock exchanges of Pakistan, while class "B" share have not listed and have been soled to Etisalat a strategic investor. Class "B" share have been transformed by the government to Etisalat. These class B share have four voting rights against one voting right per class "A" share. The government, to date, has sold 11.76% equity of in two trenches. One million vouchers (equivalent to 100mn shares) Ire sold via a local IPO at Rs.30 per share. Subsequently, another 500mn shares Ire sold in the form of GDR's to international investors at Rs.55 per share. In 1995, the government appointed financial advisors for the sale of 26% strategic stake to a foreign partner. Then, the services of previous financial advisors have been terminated and now have its own employees who have worked as a financial advisor and 26% shares have been sold to Etisalat of UAE with management control on 18th of June 2005.

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PTCL Subsidiaries
1. Paknet 2. ufone

PTCL Subsidiaries

Paknet Limited (Paknet)

Pak Telecom Mobile Ltd. (PTML)

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Promotion in General
Upon the creatures I have made, I am my selves, at last, dependent. - Johann Wolfgang Von Goethe Promote yourself but do not demote another. - Israel Salanter

The hope, and not the fact, of advancement, is the spur to industry. Sir Henry Taylor

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When I give a man an office, I watch him carefully to see whether he is selling or growing. - Woodrow T. Wilson

Definitions:-

1. The act of promoting or the fact of being promoted; advancement. 2. Encmyagement of the progress, growth, or acceptance of something; furtherance. 3. Advertising; publicity. 4. A term referring to methods of bringing a product to public attention, including advertising, personal selling, sales promotion, and publicity. 5. Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions.

Importance of Promotion
Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. It would be safe to say that most companies engage in some form of promotional activity every day of the year. Promotion is one of the four Ps of marketingprice, product, place, and promotion. Promotion is generally thought of as a sequence of activities designed to inform and convince individuals to purchase a product, subscribe to a belief, or support a cause. All of the various tools available to marketing managers for promotional activities constitute what is known as the promotional mix.

PTCL Promotional Objectives / Strategies

There are a number of promotional objectives, some of the most common being

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Information dissemination. Service demand. Service differentiation. Service highlights Sales stabilization. Regardless of the promotional objective selected, the company's goal is to inform and convince consumers to buy the product. Information Dissemination One of the most basic desires of is to provide information about a Service to potential consumers. Tools available to an organization for informing potential consumers about a product include billboards, flyers, Internet Ib sites, magazines, newspapers, radio spots, and television commercials. Product Demand Another goal of promotional activities is to create product demand. A company has several promotional options for fostering product demand. For example, a company may focus on using a primary demand strategy that concentrates on trying to increase demand for a general product or service line. Product Differentiation A common challenge faced by companies is increased competition, which often results in the market being flooded with similar products. Consumers may conclude that no substantial difference exists betIen the products (homogeneous demand) and, therefore, look for the loIst-priced product to purchase. Product Highlights have another tool to employ in order to justify a higher-priced product: A firm can accentuate the product's exceptional quality in detail to convince consumers that the extra cost is worthwhile. Highlighting a product's quality might sound easy, but a company must first develop superior advertisements to promote the product. Sales Stabilization A challenge that face is inconsistent demand for their products throughout the year. Reasons for this fluctuation can range from seasonal demand to changing economic conditions. Most companies would rather have a consistent demand for their products throughout the year, since this would allow them to have steady production and distribution facility operations

PTCL Promotional Mix

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Marketing managers use different components of the promotional mix as tools for achieving company objectives advertising, personal selling, public relations, and sales promotion . Each of these elements can be further divided into additional subcomponents or strategies. The majority of a company's promotional remises are usually spent on these four elements for a simple reason: Company perceive these methods as the most effective means to promote their products. Other specialized promotional techniques, hoIver, are also used to enhance promotional objectives.

1. Advertising
Advertising is often thought of as the paid, non-personal communication used in the promotion of a cause, idea, product, or service by an identified sponsor. The various advertising delivery methods include: Banners at sporting events. Billboards. Internet Ib sites. Logos on clothing. Magazines. Newspapers. Radio spots. Television commercials. are

The common forms of advertising of Advocacy. Comparative. Cooperative. Informational. Institutional

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Persuasive. Product. Reminder. Point-of-purchase.

Specialty.

2.

Personal Selling:-

Personal selling is considered one of the most effective promotional techniques because it facilitates interaction betIen consumer and seller. With personal selling, a salesperson can listen to and determine a consumer's needs by asking questions and receiving feedback from the consumer. Furthermore, personal selling activities can generate longlasting friendships betIen consumers and sellers that typically generate many repeat purchases. Personal selling can also occur by means of:o Interactive computers. o Telephone conferences. o Interactive videoconferencing. A drawback of personal selling it is high cost.

3.

Public Relations

Public relations have been de scribed as building goodwill with a various publics, including: Consumers. Employees. Government officials. Stockholders Suppliers.

The overall goal of any public relations effort is to project a positive image when dealing with such issues as community and government relations, employment practices, and environmental issues.

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Consumers. Public relations efforts are extremely important for maintaining a consumer base. Consumers must believe that they are buying from a caring, honest, and trustworthy company. Employees. The most valuable asset a company has is its employees. Therefore, it is essential that employees believe in their company. Public relations communications are extremely important in ensuring that employees receive information about the company before outside media receive and report the information. Government officials. Maintaining a positive public image is also important because government agencies and offices monitor the media and have regulatory oversight over company activities. Positive stories in the media obviously help promote a positive image to government regulators, which reduces the chance of being investigated and possibly fined. Stockholders. Another key interest group for that offers publicly traded securities is the stockholders. If company stockholders generally receive positive news about a company, they are more likely to maintain investment, which helps keep the stock price up. Suppliers. Positive public relations are essential for a company's relation with its suppliers. Suppliers are most concerned about being paid for the product they are selling to a company. Since most suppliers are generally not paid until ten to twenty days after delivery of their product, they must have faith in the ability of to pay its bills.

4.

Sales Promotion

Sales promotions are marketing practices designed to facilitate the purchase of a product that do not include advertising, personal selling, or public relations. use sales promotion for a variety of reasons; To attract new product users who will hopefully turn into loyal consumers who keep buying the product. To reward existing consumers with a price reduction, thereby maintaining their loyalty. To encourage repeat sales from occasional consumers.

PTCL Special Promotional Activities

Use a variety of sales promotion tactics to increase sales, including:-

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Advertising specialties. Cash refund offers/rebates. Contests and sweepstakes. Coupons. Patronage rewards. Point-of-purchase displays. Premiums Price packs/cents-off deals. Samples. Trade shows. Advertising specialties. frequently create and give away everyday items with their names and logos printed on the items such as bottle/can openers, caps, coffee mugs, key rings, and pencils. prefer to use inexpensive handouts that will yield constant free advertising when used by the recipient. Cash refund offers/rebates. A cash refund or rebate is similar to a coupon except that the price reduction comes after the product is already purchased. In order to receive the cash refund/rebate, the consumer must send in a "proof of purchase" with the company offer in order to obtain the refund. Rebates are often an excellent form of sales promotion for a company to use because a high percentage of consumers will not send in the forms for the refund. Contests and sweepstakes. use contests and sweepstakes to increase the services. As a reward for participating, consumers might win cash, free products, or vacations. With a contest, participants are required to demonstrate a skill; for example, entrants might be asked to suggest a name for a new product, design a company logo, or even suggest a company name change. Coupons. Coupons are certificates that give consumers a price savings when they purchase a specified product. Coupons are frequently mailed, placed in newspapers, or dispensed at the point of purchase. In addition, some have coupons generated when an item is scanned at the register.

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Patronage rewards. Awards provided by to promote and encourage the purchasing of their products are called patronage rewards. Point-of-purchase displays. Point-of-purchase promotions can include displays & demonstrations that take place at the point of purchase. The cardboard cutouts of popular movie stars that are put next to merchandise are excellent examples of this method. frequently offer assistance in assembling and removing promotional displays to encourage storeowners to use their point-of-purchase displays. Premiums. A premium is a good offered free or at a low cost to encourage consumers to use a particular service. can also offer premiums in the form of reusable containers bearing names and logos in order to help promote other services. In addition, a company may also decide to use a self-liquidating premium. The costs associated with selfliquidating premiums are passed along to consumers through the cost of product. Price packs/cents-off deals. Price packs provide consumers with a reduced price that is marked directly on the package by the manufacture. can offer price packs in the format of two for the price of one or offer products such as a V-Phone set and an external antenna in one package for a lower price than that of the two items purchased separately. Consumers generally react favorably to price packs because they are perceived as a real bargain. Samples. offer free samples of their products. The rationale for offering a free product sample is to achieve immediate consumer introduction to the product. Commonly used delivery methods include mailing the product, passing the product out in stores, or door-to-door delivery of the product. Trade shows. hold conventions and trade shows each year to show off new technology, assess consumer trends, and review other issues important to the industry. Trade shows provide an excellent opportunity to promote new services, make new contacts, renew existing business relationships, maintain or build a reputation, and distribute promotional materials. .

How PTCL promote its services & products

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Through Internet Today Information Technology, herein after referred in short as IT, is touching all of us. It is in the peak of its importance. A country poised to become the super financial power and the most sought after destination of the world, is looking forward on IT to play a major role in fulfilling this dream. None of us have any doubt on this. IT will definitely play the major role to take my country ahead of all other countries in the world. Hence use this tactic very Ill.

A View of PTCL web Site

Pakistan Telecommunication Company Limited.

About PTCL Financial Reports Subsidiaries Corporate Information What's New Site Map Contact Us FAQ's Media Campaign Share Registrar
Useful Links

PTCL Messaging Service

Universal Internet Number

Bill Payment Complaints Numbers

Change of Telephone Number Digital facilities

ISDN PRI/E1 Policy

TelePlus (ISDN/BRI)

PTCL 17

News Centre Career Opportunities(new) Tariff Tenders (new) Invitations (new)

Co Location

PTCL 18

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Call Centres

More ....

More ....

More ....

Search :

marketing

Go

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Through Media (Print & Broadcasting Media) There is a huge variety of media available through which advertising campaign. conduct an

"An investigation into the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign" spent 1.53% of its annually income on media promotion.

1. Press Ads.

2. TV Commercials.

Press Ads

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Media Archives
PTCL Corporate

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Media Archives
PTCL Wireless

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Media Archives
PTCL Calling Cards

Through Banners & Signboards

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Banners & Signboards are very attractive now days, because they are feasible to every one living in the society. cash this promotion tool very Ill by spent 0.5% of its income last year on promotion through this tool.

Through Free Packages

introduces many free packages time to time to attract the new customers & satisfying the loyal ones. 1.03% of its income last year spent by PTCL on free packages. Get Free Connection is very popular free scheme of PTCL.

Through Easy availability nationwide

is the largest Telecom operating company in Pakistan. The company motto is to attract customer by providing telecom facilities at their door step.

Through Eids & Special days packages

On special occasion like Eid days & special days give incentive by reducing its call rates to increase tele-traffic to its consumers.

Through investment in educational departments (Telecom Sector)

invested in education sector especially in Telecom Sector, which ultimately increases its good will also those educational sectors, plays an essential part to promote company services.

Through Relief packages

Recently Earth Quake suffered Pakistan badly. like other companies helped the suffering people by providing free telephonic facilities & also denote a handsome amount in President Relief Fund, as its motto was You are not Alone.

Through special arrangements in rural areas to increase tele-density

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As 65% population of Pakistan living in Rural Areas, but they are not able to use expensive communication facilities. providing cheaper new connection fees as special arrangement in rural areas irrespective gaining revenue from these areas.

Through providing backend media to other Telecom company

providing backend media to other Telecom companies like Fiber & Satellite Networks having over country wide, other small telecom companies use this network by paying low charges and this factor ultimately promote .

Promotion through PTCL bills

is using new & attractive technique of promotion like printed Ads & Archives on telephone bills.

Through adopting new technologies, people are willing to use its services & retain as loyal
In the era of global village adopting new technologies especially in IT field, and people are willing to use its services & retain as loyal plus this factor attracting the new customers.

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PESTEL ANALYSIS
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT; inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom. The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors.

Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs 29

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of exporting goods and the supply and price of imported goods in an economy

Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

SWOT ANALYSIS
Strengths Largest operational network and infrastructure within ICT 30

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(Information & Communication Technologies) segment. An integrated Monopoly. Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. PTCL (Ufone) is market challenger in GSM segment. Ufone is performing well though Warid and Telenor are tough competitors. PTCL, Ufones profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655 million in the corresponding period last. Competitors still depend on PTCL network either directly or Indirectly. Experienced Telecom Resources.

Weakness

Not been able to nurture its growth around customer Services oriented strategy. Not been able to nurture its growth around customer services oriented strategy. Monopolistic culture has further added to its complexities. Packet, the internet service provider arm of PTCL continues to incur losses due to poor management and lack of network optimization. PTCL-V, the fixed wireless phone service is poor. Over employment & low productivity. Slow decision making including external interferences. Corporate culture akin to government departments Opportunities Low teledensity of Pakistan. Have vast infrastructure and real estate assets which can be Leveraged further. Global connectivity reliability has been improved. PTCL is Expanding the long distance and infrastructure side through Spreading out two sea-me-we submarine cables. Partnership with new entrants in a deregulated environment. Scope for efficient/cost effective operations. Threats Increased competition in long distance continues to exert Pressure. VOIP use is increasing despite ambiguous and discriminatory Policies. Exposure to market competition. Migration to Cellular Networks. Ability to Attract & Retain Quality Professionals. 31

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Reduction in International Settlement Rates

Strategies for the different stages of the PLC

Introduction stage of PLC The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Advertising differentiates the product. Print ad of a Printer giving details about its specifications Growth stage of PLC Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilize. Advertising establishes participation with the marketplace. Maturity stage of PLC

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media. Advertising puts price ahead of the competition.

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Decline stage of PLC At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting. Defensive advertising or for revitalization. The Strategy Clock: Bowman's Competitive Strategy Options The 'Strategy Clock' is based upon the work of Cliff Bowman (see C. Bowman and D. Faulkner 'Competitive and Corporate Strategy - Irwin 1996). It's another suitable way to analyze a company's competitive position in comparison to the offerings of competitors. As with Porter's Generic Strategies, Bowman considers competitive advantage in relation to cost advantage or differentiation advantage. There are six core strategic options:

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Option one - low price/low added value Likely to be segment specific. Option two - low price Risk of price war and low margins/need to be a 'cost leader'. Option three - hybrid Low cost base and reinvestment in low price and differentiation. Option four - differentiation (a) Without a price premium: Perceived added value by user, yielding market share benefits. (b) With a price premium: Perceived added value sufficient to to bear price premium. Option five - focused differentiation Perceived added value to a 'particular segment' warranting a premium price. Option six - increased price/standard Higher margins if competitors do not value follow/risk of losing market share. Option seven - increased price/low values Only feasible in a monopoly situation. Option eight - low value/standard price Loss of market share.

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Marketing scenario in 21st century Instead of suppliers and customers, there is us. Your supply chain is your customers customer to your suppliers supplier, and youre all in it together.

What does your customers customer want? Instead of benefits, there is resonance. When people can get their needs met from multiple sources (and They can), theyll buy from the source that feels the best. Instead of making the sale, there is building a relationship. We want a life-long customer that generates referrals. Instead of shouting from the rooftops, we craft specific messages for a specific audience. Differentiate, differentiate, and differentiate.

21st Century Marketing the Biggest Change The hardest part of marketing is harder than ever! Its harder than ever: Much more competition Much more messaging Much less trust Much faster pace More technological barriers Voice mail, spam filters, iPods, pop-up blockers Means you must have a Clear, correct, consistent, continuous message!

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Suggestions for Improvement

Negative buying experiences are almost always linked to shoddy customer service. These days it's rare to find good customer support, even though most businesses claim that they put people first. But customer service hasn't gone the way of the dodo. In fact, after consumer groups and the media took potshots at e-commerce sites last year for leaving customers in the lurch, many businesses started to pay more attention to the levels of service they provide. Good customer service is essential for all businesses, and I am suggested as under to for improvement its promotion strategies. 1. Commit to quality service. Everyone in the company needs to be devoted to creating a positive experience for the customer. Always try to go above and beyond customer expectations. 2. Know your product. Conveying knowledge about products and services will help you win a customer's trust and confidence. Know your company's products, services and return policies inside out. Try to anticipate the types of questions customers will ask. 3. Know your customers. Try to learn everything you can about your customers so you can tailor your service approach to their needs and buying habits. Talk to people and listen to their complaints so you can get to the root of customer dissatisfaction. 4. Treat people with courtesy and respect. Remember that every contact with a customer whether it's by email, phone, written correspondence, or face-to-face meeting leaves an impression. Use phrases like "sorry to keep you waiting," "thanks for your order," "you're welcome," and "it's been a pleasure helping you." 5. Never argue with a customer . You know darn Ill that the customer isn't always right. But instead of focusing on what went wrong in a particular situation, concentrate on how to fix it. Research shows that 7 out of 10 customers will do business with you again if you resolve a complaint in their favor. 6. Don't leave customers hanging . Repairs, callbacks and emails need to be handled with a sense of urgency. Customers want immediate resolution, and if you can give it to them, you'll probably win their repeat business. Research shows that 95 percent of dissatisfied customers will do business with a company again if their complaint is resolved on the spot.

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7. Always provide what you promise . Fail to do this and you'll lose credibility and customers. If you guarantee a quote within 24 hrs, get the quote out in a day or less. If you can't make good on your promise, apologize to the customer and offer some type of compensation, such as a discount or free delivery. 8. Assume that customers are telling the truth . Even though it sometimes appears that customers are lying or giving you a hard time, always give them the benefit of the doubt. The majority of customers don't like to complain; in fact, they'll go out of their way to avoid it. 9. Focus on making customers, not making sales. Salespeople, especially those who get paid on commission, sometimes focus on the volume instead of the quality of the sale. Remember that keeping a customer's business is more important than closing a sale. Research shows that it costs six times more to attract a new customer than it does to keep an existing one. 10. Make it easy to buy. The buying experience in your store, on your web site or through your catalog should be as easy as possible. Eliminate unnecessary paperwork and forms, help people find what they need, explain how products work, and do whatever you can to facilitate transactions.

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SHORT NOTES
SWOT ANALYSIS
Strengths, Weaknesses, Opportunities and Threats (SWOT). SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. In SWOT, strengths and weaknesses are internal factors. For example: Strength could be: Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures.

Any other aspect of your business that adds value to your product or service. A weakness could be: Lack of marketing expertise. Undifferentiated products or services (i.e. in relation to your competitors). Location of your business. Poor quality goods or services. Damaged reputation.

In SWOT, opportunities and threats are external factors. For example: An opportunity could be:

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A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor.

A threat could be: A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

Porters five forces

1. 2. 3. 4. 5. Existing competitive rivalry between suppliers Threat of new market entrants Bargaining power of buyers Power of suppliers Threat of substitute products (including technology change)

Typically this five forces model is shown as a series of five boxes in a cross formation, item 1 being central. Porter's Five Forces model can be used to good analytical effect alongside other models such as the SWOT and PEST analysis tools. Porter's Five Forces model provides suggested points under each main heading, by which you can develop a broad and sophisticated analysis of competitive position, as might be used when creating strategy, plans, or making investment decisions about a business or organization. Porter is also known for his simple identification of five generic descriptions of industries: 1. 2. 3. 4. 5. Fragmented (eg, shoe repairs, gift shops) Emerging (eg, space travel) Mature (eg, automotive) Declining (eg, solid fuels) Global (eg, micro-processors) 39

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And Porter is also particularly recognized for his competitive 'diamond' model, used for assessing relative competitive strength of nations, and by implication their industries: 1. Factor Conditions: production factors required for a given industry, eg. skilled labour, logistics and infrastructure. 2. Demand Conditions: extent and nature of demand within the nation concerned for the product or service. 3. Related Industries: the existence, extent and international competitive strength of other industries in the nation concerned that support or assist the industry in question. 4. Corporate Strategy, Structure and Rivalry: the conditions in the home market that affect how corporations are created, managed and grown; the idea being that firms that have to fight hard in their home market are more likely to be able to succeed in international markets.

BCG Growth-Share Matrix

Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. In the early 1970's the Boston Consulting Group developed a model for managing a portfolio of different business units (or major product lines). The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs. market share relative to competitors: BCG Growth-Share Matrix

Resources are allocated to business units according to where they are situated on the grid as follows: 40

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Cash Cow - a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. Star - a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures. Question Mark (or Problem Child) - a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. Dog - a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.

The BCG matrix provides a framework for allocating resources among different business units and allows one to compare many business units at a glance. However, the approach has received some negative criticism for the following reasons:

The link between market share and profitability is questionable since increasing market share can be very expensive. The approach may overemphasize high growth, since it ignores the potential of declining markets. The model considers market growth rate to be a given. In practice the firm may be able to grow the market.

Ansoffs Matrix
To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff's matrix is shown below:

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Ansoff Matrix Existing Products Existing Markets New Products

Market Penetration

Product Development

New Markets

Market Development

Diversification

Ansoff's matrix provides four different growth strategies:

Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. Market Development - the firm seeks growth by targeting its existing products to new market segments. Product Development - the firms develops new products targeted to its existing market segments. Diversification - the firm grows by diversifying into new businesses by developing new products for new markets.

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