Make-Up Art Cosmetics

Abstract M. A. C cosmetics started as a small business and has grown into a multimillion dollar organization. They are innovative and organized and promote customer service. There products are of the best in the industry and are reasonably priced. You can find M. A. C all over the world and being marketed by tons of well known celebrities. They focus on working together as teams and promote employees to think outside the box. Not only is the organization extremely successful but it is incredibly generous. Since 4000 BC the demonstrations of cosmetics was produced by the Egyptians.Cooper minerals, perfumed oils, cream made of sheep fat, lead and soot were used as face make-up to bestow beauty and style. In 1984 Make-up Art Cosmetics, better known as M. A. C was founded in Toronto, Canada by Frank Toskan and Frank Angelo. Toskan was a former make-up artist and photographer and Angelo a former hair salon owner. Both men saw the need for cosmetics that held up under high powered lights f ound in a photo shoot or runway show. Toskan and Angelo’s test market was in the basement at the Toronto department store Simpson’s. M. A.C was a hit, with its slick modern packaging and its hip and unique names. Once celebrities and fashion moguls started to use M. A. C its popularity exploded worldwide. M. A. C has become the leading brand of professional cosmetics. Majority interest acquired in 1994 by The Estee Lauder Companies Inc a $6. 3 billion dollar cosmetic tycoon. Sold in over 60 countries and territories M. A. C is a multimillion dollar bricks and clicks organization. M. A. C’s product categories include lip, eye, face, nail, skincare, brushes, tools/accessories, and fragrances. M.A. C products are used in films, television, theatre, music, fashion, special events and award shows. M. A. C’s philosophy is all races, all sexes, and all ages. M. A. C also has the website www. macpro. com designed only for cosmetic professional. They can learn new tips and get discounts on products. PRODUCT: M. A. C eyes product line consist of several different products from primer, shadow, mascara, liner, brow and lash. Its shadows play apart in all of M. A. C’s different collections and come in over 100 colors with creative names and different textures.Made in Canada by M. A. C chemist and manufactured by The Estee Lauder Companies Inc. Their shadows are highly pigmented applies evenly and blends well. Any product in the Viva Glam collection like the Warm Chill eye shadow, proceeds go directly to the M. A. C Aids foundation. Unlike other cosmetic companies M. A. C only hires skilled make-up artist to represent their products. M. A. C is one of the only companies that when you purchase their products a skilled make-up artist will show you exactly how to use the products by demonstration. M. A.C holds make-up seminars for their customers and conducts runway shows. Single powdered shadows are packaged in a round black container with a clear top in order to see the color and the bottom has the colors name. Combination shadow sets normally are in a rectangular shape. The majority of the time black, compact, and a sleek design are consistent with all M. A. C product packaging regardless of the product. Make-up Art Cosmetics trademark is M. A. C and is printed on all of their products and storefronts. To the left is an image of a wall in a Make-up Art Cosmetics store.PRICES: Compared to its popular competitors like Lancome $16. 50 US per shadow, Nars at $22. 00 US per shadow, Vincent Longo at $24. 00 US per single shadow, M. A. C’s eye shadows is only $14. 00 US below the market price for a single eye color shadow and even less expensive at $32. 50-$36. 00 US for color combination sets. M. A. C’s shadow prices don’t come with sticker shock and should attract any class of people. They don’t shout â€Å"I’m high end and only the rich can afford me†. The prices are affordable a nd they don’t fluctuate.The shadows are one fixed price and although they do not go on sale or clearance they are still a bargain for professional style products for consumers. PLACE: Before M. A. C consumers as I can get M. A. C product a channel of distribution must take place. M. A. C’s channel consists of a manufacturer The Estee Lauder Companies Inc – a billion dollar corporation, to several different wholesalers such as Florence’s Enterprises and Sage Within, masses of different retailers. Some retailers of M. A. C cosmetics are the M. A. C. Stores, Nordstrom’s, Bloomingdales, and Macys to name a few.M. A. C is sold in over 60 countries and territories to date. M. A. C can also be purchased on its website at www. maccosmetics. com. The consumer has the option to purchase M. A. C at their favorite department store or online within the comfort of their home. Marketing intermediaries are critical in this billion dollar industry of beauty and M. A. C cosmetics with its popular status is no different, M. A. C is too â€Å"big time† not to have marketing intermediaries in place. M. A. C cosmetics can be found in almost every US mall, whether it is in a popular department store or a M.A. C exclusive store providing place utility. PROMOTION: M. A. C stays innovative, very artsy, fashion forward and their advisements are always very colorful demanding attention when walking by a poster or flipping thru the pages of a fashion magazine. Their advertisements are never restrained always dramatic and in your face. M. A. C has a number of collections and one of them is their Viva Glam collection and celebrities are always used for this collections advising. Such celebrities as Pamela Anderson, Fergie, Eve, and Dita Von Tesse can be seen in Viva Glam advertisements.Expressing to consumers that if it’s good enough for this celebrity then it is good enough for you also creating brand association. All of the collections proc eeds go to the M. A. C Aids fund. M. A. C even collaborated with Disney in 2005 when M. A. C. Cosmetics introduced the Tint Toons collection based on classic Disney animals like Daisy Duck. (HOWARD, H 2010). As noted earlier M. A. C is a bricks and clicks organization. On their website www. maccosmetics. com standard shipping is free in the US with any $60 purchase and free standard shipping on and summer selects purchases until July 8th in the US only.M. A. C also mails brochures to existing customers advertising their newest collections. I just received a little pamphlet promoting their new Neo SCI-FI collection. Eye shadows remain the same price at $14. 00 US but come in a neon orange container versus the usual black. With spunky names like Time & Space, Magnetic Fields, and Expensive pink. You will not see M. A. C advertising in a commercial or infomercial but you will see global advertising as they are located all over the world. M. A. C does however partner with the department store Nordstrom’s and take part in their annual in house fashion shows.After the show guest can sign up with M. A. C to have a M. A. C artist do their make-up for free. During this time an artist will makeup your face encouraging you to purchase M. A. C products. I can contest it works every time! SRTATEGIC DECISION MAKING: M. A. C’s organization has utilizes the marketing mix in a victorious way creating a Multi million dollar organization that is well-known worldwide. Their shadows come in almost every color imaginable and some with names like Shadowy Lady, Nocturnelle and Poison Pen. M. A.C’s products are priced below market when compared to its competitors for professional style goods. Like most other big chain cosmetic companies M. A. C’s channel of distribution uses intermediaries and tons of retailers. M. A. C has some excellent promotional programs in place, bringing in empty containers in exchange for a free lipstick, free shipping on online pur chases, using very artistic style advertisements. Hiring only professional artist and having them sell the product is genius, who better to explain a product and show you how to use it then a professional instead of a regular employee off of the street.Donating proceeds to their AIDS fund and using trendy celebrities to promote collections. I wouldn’t change a thing, I think what M. A. C is doing works and I wouldn’t try to fix something that isn’t broken. SOCIAL RESPONSIBILITY: M. A. C practices its social responsibility through the M. A. C Aids fund founded in 1994 by Toskan and the Back to M. A. C Program. M. A. C Aids fund supports men, women and children all over the world. The proceeds earned by M. A. C when it sells a Viva Glam lipstick are given to their AIDS fund, every cent. The company had many $128 million up to date for this AIDS find.The companies 11 board members are responsible for keeping what Toskan started in 1994 the success it is today. The Back to M. A. C Program is M. A. C’s way on helping the environment. For every seven empty M. A. C containers you return to a M. A. C store you will receive one free lipstick of your choice excluding the Viva Glam collection. ORGANIZATIONAL DESIGN: Posted in all of Estee Lauder offices are the following principles: †¢Strive for excellence – deliver your best. †¢Put your customer first. Know your customers, understand their needs and surpass their expectations. Be passionate about what you do! Enthusiasm and energy are contagious. †¢Never stop caring. Show concern and respect for every individual, regardless of position or title. †¢Understand your role in the big picture. We’re all part of a larger whole. †¢Look for new and better ways to do things to continually raise our standards. †¢Communicate! Voice your ideas, share your concerns, pass on what you know and be honest. †¢Be a team player. We’re stronger when we work t ogether. †¢Listen when others speak. Good ideas can come from anywhere. †¢Be flexible.Success depends upon willingness to adapt when situations change. †¢Pay attention to details – little things do make a difference. †¢Solve the real problem, don’t treat the symptom. †¢Spread the good news. Let others know when they’ve done a good job. †¢Smile†¦. and have fun! (elcompanies,2010) These are characteristics of a learning organization. Creating a sense of community in their organizational culture, caring and strong mutual relationships. Utilizing teams and empowerment in their organizational design. Promoting information sharing and leadership. Robbins & Decenzo, 2008). CEO: As of July 2006 Mr. John Demsey oversees Estee Lauder, M†¢A†¢C, Tom Ford Beauty and Prescriptives brands as well the company’s Specialty Group of brands, Bobbi Brown, Jo Malone and La Mer, which were added to his portfolio in July 2009. (elcomp anies, 2010). But from 1998-2005 when Demsey was M. A. C’s president he expanded the company from 19 global markets to over 65 and is credited for making M. A. C into the billion dollar powerhouse it is today. Demsey has held several positions with the Estee Lauder corporation working his way up the ranks.In a nutshell, I wonder in founders Frank Toskan and Frank Angelo could have ever imagined that M. A. C would turn out to be such a huge empire. M. A. C has come a long way from selling in a departments store basement to selling all over the world in the companies own brand stores and in a multitude of popular retailers. M. A. C stays innovative, creative and all the rage. Their eye shadows are far form boring with a broad range of colors with great pigment and longevity in sleek round compact design packaging. M. A. C is reasonably priced for the average fashionista to afford.

Critical Response Paper

The development of political thought was always close-knit with the author’s epoch and regime of governance he lived under; however, in spite of the ethical and technological limitations, associated with the temporal factor, the majority of political scientists sought to build a universalized framework of justice and legitimate state power.John Rawls is distinguished for his positivist, or â€Å"realistic utopian† approach to justice and principles of peaceful coexistence among individuals as well as peace between government and population. However, the proportion of utopianism is much higher in his writings, as compared to the realism ratio, given that he fails to address the challenges, related to diversity and class inequality which are dominating the modern North American society.First of all, it is important to pay attention to Rawls’s dynamic and positivistic model of justice. According to the article, instead of seeking the ideal of justice beyond the exis ting order of affairs, the scholar tries to enable reasonable and gradual improvements of the internal structure and situation: â€Å"We can see this idea through the rather well-worn metaphor of the difference between the efforts needed to fix a boat that is at sea one plank at a time rather than trying to rebuild it from scratch. Generally speaking, it makes more sense to engage the first sort of repair job than a complete rebuild† (Mini-lecture, p.4).Interestingly, the author focuses predominantly on the strong points of the current ideas of justice as articulated both in legal terms and through societal behaviours.However, this task might appear extremely challenging given the focus of diversity in most European and North American policies. Diversity is a delicate issue, since there is a number of conflicts among beliefs, interests and practices, underlying each cultural or social group. Obtaining true impartiality also turns into a difficult task, as the society, which l acks uniformity in certain vital political issues, is likely to encourage its groups to perceive and assess the objective reality from the intragroup value system; as a result, such judgments can seem neither objective nor neutral.According to the article, â€Å"He does not propose a vision of justice that would stretch our character too and tries to build a theory that is responsive to our current conditions† (Mini-lecture, p.5).However, taking into consideration the above provided chain of reasoning, one can assume that the existing disproportion and divergence of political values will inevitably result in the necessity of â€Å"stretching† the philosophies or ideologies of certain minority groups, either religious or cultural. However, for the purpose of maintaining/ establishing social cohesion, this step can be justified, since the vast majority is likely to benefit from it.This excessive pluralism is partially addressed in the reading: â€Å"Bearing this point i n mind, he tries to find a way to build an impartial model for deliberating about principles of justice that everyone can reasonably be expected to endorse despite holding different religious and moral views† (Mini-lecture, p.5).The statement is quite abstractive, whereas the particular scenarios of its realization point to the existence of disparities in core values of each group. For instance, in the United States, there are several large Muslim communities, whose polity greatly resembles the lifestyles of Middle Asian societies. The U.S.-based communities might engage with political activity and unite into a faction, requiring, for instance, the cancellation of women’s right to take certain jobs, and referring to the fact that the existing state-of-art offends their vision of gender morality.Surprisingly, this faction might be supported by other political groups, which also share this view on gender equality – as a result, the society might be torn by the deba te over the true justice. As one can notice, the representation of the core values of liberty might be uneven in our society, so both federal and state legislations necessarily challenge the beliefs of a certain minority.  Furthermore, Rawls’s concept of justice and stability is quite unrealistic, since it provides an abstractive picture, barely imaginable in the current world. According to the political philosophy article, â€Å"His core insight is that a stable and enduring society is one that is also just, that is, where citizens are considered to be free and equal. More importantly, citizens have to be able to see themselves and each other as free and equal† (Mini-lecture, p.6).However, inequality is inescapable, it is often referred to as an engine of social and political development, which motivates individuals to participate in political processes. The true equality, as articulated in the paper, consists in people’s outlooks and convictions, yet the for mation of â€Å"equality beliefs† is normally realized only partly, since there still exist economic, social, regional, gender and age boundaries which make people feel underprivileged or superior.In this sense, Rawls refers to Kant and observes that the greatest political ideas were realized from the personal to the public, i.e. if an individual considers certain pattern ‘fair’, this pattern is likely to appear to be ‘fair’ in the whole society.However, this logic of reasoning fails to take into consideration the fact that the idea of equality was first born in autocratic societies, bearing much higher uniformity within its aristocratic and power circles, as compared to the modern Western world. Given that Rawls himself states that the relevance of political ideas depends on temporal and spatial (regional) factors, so the ideas of liberty and equality, which existed in the ancient world and Enlightenment society, are not fully suitable in the modern North American society.Thus, given that the author implies a positivist approach o the development of political values and proposes that they be formulated â€Å"from within†, Rawls should have also looked closely at specific cases and considered the workability of his perspective in real macrogroup situations.Reference listMini-Lecture. A Brief Introduction to Rawls’s Project, pp.1-10.

Which Place Do You Prefer to Live?

Which place do you prefer to leave: in a small town or in a big city ? Small towns and big cities both have their good sides. First big cities have unlimited choices of things you can do. There is always a lot to do and visit. Living in a big city is more comfortable because there are cinemas, theaters, museums, shops, malls, lots of restaurants to choose. There are a lot of possibilities of shopping. Secondly the standard of education is also very high in big cities. People have many oportunities and it’s also much easier to find a well paid job.Teenagers can receive a good education in big cities because universities have different subjects. So, an argument in favour of living in a big city is that students can have more choices for their future careers. In a big city there are many people that you don't know and you can make many friends comparative to a small town where people always know something about you. Also famous singers or personalities come in big cities so you c an meet your favourite singer and take an autograph. Lastly big cities have other conveniences like airports and good hospitals.I think that to many teenagers big cities are exciting while the small towns are boring. Coming down to me I prefer living in a small town than in a big city because I don’t like noise and crowded places. I stayed in Bucharest for 2 weeks and it was too long for me. I had never ever been so tired than that time. Every night I had heard motorcycles, cars, dogs, horns, people talking very loudly. The first advantage of living in a small town is a healthy life. One of the conditions that helps us to be healthy is good weather and less population that exist in a small town.Also, in a small town there are less crowded and less traffic. Living in a place with less pollution such as air pollution or sound pollution helps us to have a healthier life and one of the main consequences is less stress and more happiness. In addition, in a small town foods and mat erials we need are healthier than in big cities. Therefore living in small towns is healthier than in big cities. Secondly, another advantage of small towns is living costs which is cheaper than in big cities.In particular, in a small town we can live in big houses with beautiful landscapes. Transportation cost is less than in big cities and we have less traffic so that we can save time and money. In conclusion, I prefer to live in a small town and I think it has some advantages such as less stress. In small town people know each other and have better relationships together than big cities therefore, in my opinion, in big cities people feel alone and depress. And it is obvious that people in small town have more happiness and friendships and less illness.

Creative Media Essay Example | Topics and Well Written Essays - 2250 words

Creative Media - Essay Example These building blocks include the sounds and images. The value of aesthetics in animation cannot be quantified. It may appear subtle. However, aesthetics in animation plays a vital role. In other fields like cinemas, the content within a storyline as well as the storyline itself play the aesthetic role. By use of aesthetics, a story may be delivered as intended, or it may deliver the contradictory message. The thrill in collaboration of images and pixels of objects surpasses the verbal grasp. For this reason, animation may appear to be imaginary or real (Kreowski & Ehrig, 2005). In order to deliver the best aesthetics in animation, one needs to consider the coherence of the artificial models. Poor aesthetics, on the other hand, may be able to result in delivery of the wrong message. This could make a film to appear disengaging or even unprofessional. When making animated films, attention to aesthetics is inevitable. Proper aesthetics helps the audience to build their trust in the product. Consequently, they may forget that they are watching a film. This helps in impacting the intended emotions in the audience (Pikkov, & Näripea, 2010). In animation, style may be referred to as the preferences of the filmmaker in the choice of aesthetics. A filmmaker’s style may be determined by the kinds or models of worlds that he chooses to lean on. The choice of style depends on the consideration of its purity and authenticity. In addition, they may choose to exploit their prowess, experience and knowledge. Often, the filmmakers may not be quite aware of their choice of style. These filmmakers perform their chores so faithfully and naturally (Carroll, 2001). Style generates itself through a combination of ideals of the filmmaker. In essence, style emanates through the product as compared to the inputs. Sometimes, style may be misinterpreted as the superficial change of the appearance of an

Explain Descartes theory in relation to doubt and evaluate his Essay

Explain Descartes theory in relation to doubt and evaluate his rationalism - Essay Example f Descartes effort to overcome skepticism through showing whether if one proceeds to consider matters systematically and the truths that one cannot doubt. Descartes uses a method of doubt and method analysis to ascertain the hypothesis. The doubt method involves the act of creating and posing strong and skeptical hypotheses that ultimately call into the doubt classes of the claims of knowledge. Cartesian doubt method normally gives more details regarding the method. Under normal circumstances, determination of the classes take place through three facilities that Descartes hold and that might come to understand things, senses, imagination and ultimately understanding or reason(Clemenson 2007,p.78). Having eliminated all the truths that emanating from senses and imagination, many of such things that come in the mind will finally emanate from reasoning. Therefore, Descartes concludes that it is not possible to fall under deception of thinking that he does not exist when in real sense he exists (Clemenson, 2007, p.56). Therefore, unless something existed, there would be nothing that one can deceive. Therefore, this a truth found with absolute certainty. The Descartes method has appealed many philosophers through finding certain foundation where one can base all the claims. The ability to sustain test of time and crucible foundation has made it endure well throughout the twentieth century. However, there are some philosopher who has challenged the theory affirming that it has critical problems of incoherence and skeptical hypotheses. On the other hand, rationalism is a view that takes reason as the main test and source of knowledge. It also backs any view that supports reason as a source of justification. In terms of formal and acceptable definition, rationalism is the methodology of truth where the truth does not depend on the sensory system; rather it depends on the intellectual and deductive reasoning. The rationalists believe in reality and have intrinsically

Biography of Immanuel Kant Essay Example | Topics and Well Written Essays - 500 words

Biography of Immanuel Kant - Essay Example This paper illustrates that one of Kant’s important works include, the critique of Pure Reason, which was aimed at explaining the association between human experiences and reason. By undertaking this project, Kant hoped that he could manage to go past what had been thought as the failures in metaphysics and traditional philosophy. In this project, he had purposed to end what had been long considered as a period of speculative theories regarding human experiences while at the same time, opposing the cynicism of some of the great thinkers. Immanuel was born in Konigsberg town of Prussia in Russia in 1724, is the fourth in a family of nine. After baptism, he changed his name from Emanuel to Immanuel after having been introduced to Hebrew studies. In his early career life, Kant worked as a tutor in the town of Judtschen, which is now Veselovka between 1750 and 1754. His father, George Kant, was a harnessmaker who resided in Memel between 1682 and 1746. In his youthful time, Kant w as sold even though an unspectacular student. He was raised in a pietist family that was devoted to religious devotion, literal reading, and interpretation as well as personal humility, which was based on the teachings of the Bible. In his upbringing, he got a stern kind of education, which was very punitive, strict and full of discipline in which preference was given to religious instructions in Latin as opposed to science and mathematics. Despite the fact that Kant was raised in a Christian background and believed in God, he became skeptical about religion as he grew up later in life. Following this development, many people tagged him agnostic. Kant is renowned for his particular contributions I the fields of metaphysics and ethics, however, he was also helpful in providing important insights into various disciplines as well. Kant was instrumental in developing one of the most important discoveries about the origin of the earth and its rotation. In this discovery, he earned a glob al prize from Berlin Academy in 1754.

John Travolta Takes to the Factory Floor Essay Example | Topics and Well Written Essays - 3500 words

John Travolta Takes to the Factory Floor - Essay Example When we look at ETCs progress there are a number of issues, which need to be resolved. When we bring in any kind of a change within the organization, each change would have its own good and bad attributes attached to it. We need to look at all the issues with great concern and plan out the solutions accordingly. Aysar Philip Sussan  and  William C. Johnson (2003) say in their article "Strategic capabilities of business process: looking for competitive advantage" that the organizations need to become fast, flexible, participative and focused on customers, competition, teams, time and process. Lets proceed with the issues that exist and solutions that are available. There is currently a need of innovation within the company as the current sales have dropped and customers are looking for a fresher look within the product line. The Asian market has commended our product quality. Innovation as we know is a multi-faceted process that is going to incorporate creativity, invention and commercialization. Above all, innovation is a social process, where both individuals and systems are important dynamic elements. Hence we will have to think it seriously. Looking from the perspective of our Australian market, Simon Lloyd in his article "A game for the brave" (June 2004) states that Australians love innovation and in 2004 Grey Advertising/Sweeney Research Eye on Australia study found that the most admired companies were those which went for innovation and tried innovative products and brands.

St. Augustine's election VS free will Essay Example | Topics and Well Written Essays - 3000 words

St. Augustine's election VS free will - Essay Example According to St. Augustine sin is the consequence of free will of human. In the words of Allen (2003), â€Å"According to St. Augustine's free will theodicy (AFWT), moral evil attends free will†. It is also believed that God has created human with the eligibility of enjoying free will. Free will in this sense denotes having the capability to cooperate with God, i.e. to do the right as well as wrong thing. Thus, unlike other beings such as plants and animals, human beings are different as they are free to make their choices. However, the major question concerning this context can be recognized as based on the perplexity that if humans have the capability to make every decision in their life. The passage of Roman 9:16 depicts that God who demonstrates kindness to human is much prevalent rather than human will. Thus, while human hold the ability to enjoy certain free will, they are not entirely free which further indicates that ultimate consequence is not dependent on humans (Kni ght, 2010). The paper intends to describe the election on the free will as explained by St. Augustine based on the religious beliefs affirmed in the Bible. Thus, the objective of the paper is to develop a rational understanding about human free will from a religious point of view. Biblical Criticism St. Augustine is also known as Austin being regarded as one of the greatest ‘Fathers of Church’. He was known as a renowned philosopher who later became familiar as an outstanding leader of Christian conviction (Coptic Church, 2005). His idea of election has been drawn from the ‘doctrine of salvation’. On one hand, his religious opinions about the characteristics of Church and the rites significantly impacted the development of Roman Catholic spirituality. On the other hand, his religious opinions about the characteristics of real sin exhibits the utter requirement of elegance in the salvation of determined preparation of several central policies of Western Chri stendom. St. Augustine’s theodicy stated that the election of God is not unfair. According to him, the offenders are not eligible to enjoy the right of elegance from God. The decision of God as to about extending the elegance is entirely within God’s independent will and privilege. Above all, St. Augustine assumed his thought on election is simply reflecting the rich philosophy of the passage of Roman 9 (Allen, 2003). St. Augustine firmly accepted that God’s elegance was the most prominent basis of salvation. He has termed that if a person is destined, his ‘free choice’ seem to be extracted at best trivial. He further stated that everything which exists is developed by God and yet God cannot be reflected as the origin of sin. St. Augustine’s theodicy of human free will also provides the central and crucial solution by stating that the free will of human is the responsible source of sin. Apparently, it can be depicted that human conduct sinful activities in harmony with the decision condensed by their thoughts and thus are led by their free will. Based on this notion, in his theory, St. Augustine perceives no exclusiveness between free will and celestial support. However, it is often considered that God was negligent by providing will to the human who had brought evil. St. Augustine also depicted that although sin happens by free will, human must not believe that God delivered

Nursing research Essay Example | Topics and Well Written Essays - 1000 words - 1

Nursing research - Essay Example Healthcare practitioners are ill-equipped to manage pain in children as a result of these factors. Despite these challenges, healthcare practitioners identify the important role that they should play in effective management of pain in children. Importantly, effective pain management influences a hospital’s HCAHPS scores with effective management promoting the quality of care offered in a healthcare facility. The American Academy of Pediatrics (AAP) and the American Pain Society (APS) noted, acute pain in children â€Å"is associated with increased anxiety, avoidance, somatic symptoms, and increased parent distress† (p.793). Consequently, these factors underline the importance of implementing intervention programs that enhanced effective management of pain in children. Moreover, effective management of pain will not only improve the quality of care provided by a healthcare facility, but it will also restore the overall health of children. On the other hand, it is the res ponsibility of healthcare practitioners to eliminate or lessen pain and suffering among their patients when possible. Moreover, it is common knowledge that all children deserve to have the best practices that managed their pain in an approach that ensured effective prevention, assessment, and control of the pain. In order to ensure that the healthcare facility managed pain effectively, it is pertinent to come up with an intervention program that was effective in pain management. In line with this, the objective of the program will be the implementation of interventions that ensured the achievement of the best practices to manage, assess, and control pain in children using an approach that was clinically viable and based on research. In this case, the program will involve training nurses in the pediatric ward about detection, assessment, control, and effective management of pain in children. In addition, a pain nurse will be visiting the pediatric ward three times in a day. Moreover, nurses will involve parents in the process of pain management. A pain nurse who will be visiting the pediatric wards each day will be essential in providing support for nurses, which will effectively reduce the stress associated with pain management in children. The pain nurse will assess the approaches that the nurses used to assess, control, and manage pain in children

Emi Group Plc In The Music Publishing And Recording Industry Essay Example for Free

Emi Group Plc In The Music Publishing And Recording Industry Essay Music and recording industry present interesting development due to the introduction of new artists and the development of new music genre, to name a few. In addition, the industry also experiences significant challenge due to the advancement in digital technology that drives the industry to find appropriate ways in winning the competition. The challenge occurs since there is a difference circumstances in the competition of media industry where previously the existence of new media does not eliminate the old media. The existence of commercial radio, for example, does not kill the print media like magazines and newspaper. Similarly, the existence of television broadcasting also does not eliminate the existence of radio and newspaper. In many cases, the television broadcaster also owns radio and newspapers companies to complement their media business. However, the situation may be completely different in the digital age where the existence of internet and the development of digital technology like file compression (MP3, mpeg, and file-sharing technologies etc) could completely kill the old model of music distribution such as compact disc. The so-called MP3, often refers to MPEG-1 Audio Layer 3, is an audio encoding format that reduce the file size from tens of megabyte (when using WAV or compact disc format) into less than 5 Megabyte (MB) in MP3 format for one same song. Audio Galaxy and Napster are two companies that employ file-sharing technology that enables their members/customers to exchange their music or video with others members/customers (Karp, 2007). Immediately, the invention of new audio encoding format increases the sales of portable digital music players like iPod. Coupled with the increased international internet bandwidth, the exchange of MP3 files rises significantly. A number of websites that enable users or music lovers to download the desired songs in MP3 format also rises. Despite the attractiveness of MP3 technology for audio, MP4, and MPEG for video, the technologies causes severe violation of copyright as downloading music and video without paying royalties to the owners/singers of the music is considered as piracy in digital world/domains. Concerning the challenges in the music and recording industry, this paper will discuss about Emi Group plc, a giant in music and recording industry. In particular, there are several issues including the identification of strategic choices that EMI performs, EMI and its critical success factors in competing in the industry within the last five years, and the use of appropriate management concepts in evaluating the suitability of EMI’s current strategies to deal with future competition. 2. Aim and Objectives The objectives of this paper are to analyze current and future positions of EMI Group plc in the music publishing and recording industry. Systematically, we can derive the objectives into four points. First is to analyze the strategy of EMI Groups plc that positions the company in the music and recording industry. Second is to use the appropriate research methodology, this paper is to assess EMI Group plc and its critical success factor in the last five years. Third is to use the relationship of research approach, deductive, quantitative to explore key resources and capabilities of EMI in the next five years and assess whether they can create sustainable competitive advantage. And fourth is to use the non-participant observation method, collecting data and analyzing qualitative information from journal, books, magazine and online materials, this paper is to adopt the management concepts to evaluate the appropriateness of EMI’s current strategies for the future. 3. Porter’s Five Forces This section will discuss Porter’s five forces on EMI Group the recording industry which details the threat of new entrants, power of buyers, power of suppliers, rivalry among existing competitors, and the threat of substitute products for market place organizer or transaction service provider industry satisfy following diagram: Figure 1 Diagram of Porter’s Five Forces Source: Porter, 1998 3. 1 Rivalry In music publishing and recording industry, competitive advantage plays a significant role in winning a competition. This is because it represents not only the greater benefits in terms of products but also in other Ps of marketing mix (place, promotion, and price). The possession of specific competitive advantages increasingly important since nowadays, customers use emotional side than rational side when decide which products or services they want to use (Manjoo, 2003). The rivalry in recording industry is quite intense since EMI Group does not only compete with similar company like Universal Music Group, Sony BMG, and Warner Music Group but also illegal distribution both in traditional and web-based distributors through several kinds of file-sharing program like Napster. Napster becomes the catalysts of online music service (Rupley, 2003). In order to prevent the distribution of illegal copy of music, Hodges Shaw and Brian B Shaw (2003) says that government has persuaded users regarding importance of not using file sharing for copyrighted materials over the Internet by considering it as illegal actions. 3. 2 Barriers to Entry One of common barriers to enter a new market is brand loyalty or in terms of multinational business, the main barrier could be the nationalism. In music industry, one significant challenge that continues gains popularity is iTunes, a legal web-based music distribution from Apple Company. In music industry, especially regarding the competition between EMI Music and p2p companies and iTunes, the brand loyalty is obvious since the fever for iPod products has driven the use of iTunes to download legal music (Manjoo, 2003). The entry to some markets like educations gets fiercer as Jason E. Lane and Margaret A Healy (2005) revealed in their article File Sharing, Napster, and Institutional Responses: Educative, Developmental, or Responsive Policy that file sharing (including music, video, and file sharing) has been parts of students activities. They usually use the internet to share their favorite music and movies illegally. In addition, Scott (2001) and Dong et. al (2002) reveals that file sharing remains a popular services due to their offering free downloading music and video. 3. 3 Products Substitution Impact of product substitution is possibly the most overlooked factor although its impact is damaging. Therefore, it is imperative that business must not only look at what the company’s direct competitors are doing, but what other types of products people could buy instead. The products substitution for EMI Group is the introduction of various digital formats like MP3 and MP4 that easily downloadable that enables customers to convert the CD format to MP3 and distribute it by e-mail. This is because EMI Group mostly still relies on the distribution of music in CD format that they believe is still better than others do. Figure 2 Music Format Source: RIAA, 2006 3. 4 Buyer Power In music distribution and recording industry, there are some factors that influence buyer power including size of buyer (larger buyers will have more power over suppliers), number of buyers (when there are a small number of buyers, they will tend to have more power over suppliers), and purchase quantity. 3. 5 Supplier Power Concerning the supplier power in recording industry, we find that digital format developer that invent MP3 and p2p technology continue gain popularity that further drive the customers to increasingly avoid the use of products distributed by recording companies (Manjoo, 2003). 4. EMI Groups plc Strategic Position in Music Publishing and Recording Industry Realizing the fierce competition that occurs in the music and recording industry, EMI Group develops several strategies such as the selection of new talents that will hit the market and develop sustainable distribution strategy to speed up the existence in new market. Among the distributions system, EMI Group appropriately conduct joint venture with foreign companies in order to smooth their distribution. One of them is with EMI Televisa joint venture that helps EMI Group to distribute Celestial and other English language album (EMI Group, 2006). The decision to conduct joint venture is a good strategy to be implemented for EMI Group since it is a model in business that composes of two or more enterprises that join hand-in-hand to increase their competitive advantages. In this scheme, joint venture is somewhat similar to partnership but joint venture is derived from one business transaction. Joint venture is preferred because it can help companies to divide potencies, reduce threats, and raise competitive advantages in the market. Joint ventures can be formed as separate business units or cooperation between businesses (â€Å"Corporate Venture Strategies†, 2001). Developing a joint venture properly can obtain many benefits and advantages, such as dividing expenses and risks, enhancing right of entry to monetary resources, admission to innovative knowledge and consumers, and admission to new decision-making performs. Moreover, companies are able to have some bearing on structural development of the business. Conduction of knowledge and skills are also accomplished easily (â€Å"Corporate Venture Strategies†, 2001). 5. EMI Strategic Choice EMI Group plc is a well-known company in music and recording industry. The company is currently perceived as the fourth largest recording company in the world behind Universal Music Group, Sony BMG, and Warner Music Group. The company main business is the distribution of compact discs, videos, and other formats under the auspices of their subsidiaries and partners including EMI Records, Capitol, and Virgin (Yahoo Inc, 2008). The label company is behind the success of many famous artists such as Norah Jones, Lenny Kravitz, and The Beastie Boys. Currently, the company also handles more than one million songs. The strategic position of the company has attracted many larger companies such as Warner Music Group (WMG) to takeover EMI Group plc. Although many acquisition attempts, the company finally bought by Terra Firma, a private equity firm, for $4. 9 billion in 2007 (Yahoo Inc, 2008). 6. EMI and Its Critical Success Factor The winning strategy of EMI Group exists since the company is suitably conducting several strategies that benefit the company in the long term. One of popular strategy is the decision to outsource their CD manufacturing in Australia. This decision occurred in 2004 where EMI Music and Warner Music conduct agreement with Summit Technology Australia Pty Ltd to own CD Manufacturing business together (EMI Group, 2006). This strategy provides great benefits for EMI Group since the company significantly obtains costs reduction and helps the company to insulate the business from the effects of changing volumes. Figure 3 Reasons of Outsourcing Source: Outsourcing World Summit This is in line with the general benefits of outsourcing where costs reduction becomes the main issues that companies perceive. When discussing the outsourcing business model, the images refer to advantages that organizations obtain, especially refers to costs reduction. However, the benefits of outsourcing do not merely the cost reduction. Figure 3 shows six main reasons of carrying out outsourcing in an organization like EMI Group according to Outsourcing World Summit. Similarly, to costs reduction, outsourcing also provides benefits of helping the company to focus on core competencies. In theory, outsourcing is only used for delegation of non-core activities concerning the mission statement of the company. Nevertheless, many corporations outsource some of their core functions to gain more value in competitive advantage. Furthermore, many if an organization is able to develop a good relationship with its outsourcing partner, the long-term effect would be a sustainable competitive advantage. Another critical success factor is the decision of EMI Group to take benefits of digital technology. Previously, the company relies on tradition supply chain as shown in the Figure 4 below. In traditional supply chain (figure 4), we witness that recording companies make huge revenue and thus the profits from the two elements (in blue boxes). However, this model soon changes considering technology advancement in music like MP3 that immediately spawned illegal peer-to-peer music download over the Internet. Concerning the issue, coupled with wide coverage of high-speed Internet access, recording labels realize that they should change their supply chain to adopt the advancement in information technology as described in the following section. However due to the benefit that digital distribution provides, the company also offers the digital option for the supply chain (Figure 5). By developing the digital distribution, the company starts receiving significant growth on digital revenues. In 2006, digital revenue contributed about 8. 5% of total Group revenues. In addition, digital revenues also experienced significant growth by 78. 2% in 2006, providing more opportunity to receive more revenue from this technology (EMI Group, 2006). In this web-based supply chain model, we witness that recording labels are massively legalize licensing strategy that significantly fire up a legal digital music subscription (in contrast to Napster that was illegal). 7. Key resources and capabilities of EMI in the last Five Years and Suitability, Feasibility, and Acceptability Concepts There are several key advantages and resources the company possessed within the past five years. First is EMI Music keep finding new talents that bear success in UK and North America, in particular, and in the world, in general including Letoya, 30 Seconds to Mars. This strategy represents the feasibility of strategy taken by EMI Group since competitions between recording industries is mainly regarding the artists that the company manages their music creation. Second is the success of current managed artists including popular artist such as All Saints, Keith Urban, Norah Jones, Robbie Williams, and Depeche Mode. This artist management represents the suitability to manage the popular artists and release the unpopular one. Meanwhile, EMI Music Publishing successfully finds songwriting talent that result in the attractive performance revenues that represents the acceptability (EMI Group, 2006) 8. Conclusion In the basic marketing management study, four factors characterize the successful marketing; they are product, place, promotion, and price. In the recording industry while product represented by the artists, distribution or place factor also provides significant contribution to the company. This is in line with O’Brien and Springman (2004) suggestion that say companies should balance supply and demand since focusing entirely on the supply side may result in unnecessary capital expenditures, inventory investments or suboptimal solutions. Concerning the challenges in the music and recording industry, this paper has discussed about Emi Group plc, a giant in music and recording industry. In particular, there are several issues including the identification of strategic choices that EMI performs, EMI and its critical success factors in competing in the industry within the last five years, and the use of appropriate management concepts in evaluating the suitability of EMI’s current strategies to deal with future competition. Reference: Carlson, Scott. (2001). Napter Was Just the Start of the Bandwidth Invasion. Chronicle of Higher Education, v47 Corporate Venture Strategies’, [Online] Available at: http://www. 1000ventures. com/business_guide/venture%20strategies. html Daugherty, Tyson. 2002, ‘Creating a Digital Music Marketplace’, [Online] Available at: elab. insead. edu/publications/mbareports/ Creating%20a%20digital%20music%20marketplace. pdf Elizabeth Scott, M. S. 2008, ‘Music and Your Body: How Music Affects Us and Why Music Therapy Promotes Health’, [Online] Available at: http://stress. about. com/od/tensiontamers/a/music_therapy. htm EMI Group Limited. 2005, ‘EMI Group Overview’, [Online] Available at: http://www. emigroup. com/About/Overview/Default. htm EMI Group. 2004, ‘EMI continues manufacturing outsourcing strategy with agreement to sell Australian CD plant’, [Online] Available at: http://www. emigroup. com/Press/2004/press18. htm . 2006, ‘EMI Group plc results for the six months ended 30 September 2006’, [Online] Available at: http://www. emigroup. com/Press/2006/press70. htm Forness, Megan J, ‘Copyright and Fair Use’, [Online] Available at: http://lrs. ed. uiuc. edu/students/forness/copyright. html Freeman, Jillian S. 2005, ‘The Pros and Cons of Sharing Music on the Internet’, [Online] Available at: http://www. angelfire. com/de3/jfreeman/termpaper. htm Harcourt, Robert H. and Robert W. Hutchinson. 2004, ‘Sup

Effect of Loyalty Cards on Customer Loyalty

Effect of Loyalty Cards on Customer Loyalty Background of the topic: The purpose of this dissertation is to analyze and investigate the effect of the loyalty cards on customer loyalty and how does it helps large organizations to achieve its goals. When shopping in supermarkets there is one experience that everyone has, when customers finish with their shopping and get to a checkout, the assistant will ask the customers, whether they have a clubcard. This will continue every time whenever those customers without a clubcard shops in the future, the assistant will keep on asking them for a clubcard unless they get one for themselves. Now there is a question that will come across every customers mind, what is a clubcard and why does every company insist them and every customer to be a part of the clubcard family? Now people become curious and they want to get a clubcard too. The assistant says to fill up a form with the customers general details like name, address and contact details and the day customer fills the form, next day they will receive a clubca rd. Impressive, now why companies offer clubcards to their customers, how do companies benefit from these schemes they provide for their customers? Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Loyalty cards can significantly boost business profits whilst simultaneously building customer loyalty. Studies show that loyalty cards are one of the most cost effective ways to build brand loyalty and improve customer retention. Loy alty cards are used by all the major retail and supermarket chains as a vital tool to improve profitability, but one does not need to be a national high street store in order to run a profitable reward card scheme. One of the reasons the supermarkets are taking business away from independent retailers are the incentives offered in their loyalty card schemes. The loyalty cards market in the UK is one of the most significant in the world and forms the backbone of marketing and customer retention planning. With over 85% of UK Households possessing loyalty cards it is really a case where companies can afford not to offer a loyalty card service to their customers. There are different companies who offer loyalty schemes for their customer and give customers shopping vouchers after they spend certain amount of money through those loyalty cards. Main objective behind loyalty cards is to keep customer loyal with the company by offering them discounts and gifts on their shopping so they spend more money in their shops and markets. Most common example of loyalty card is Tesco club card, Sainsbury nectar card and other such cards offered by different companies in the country. But most of the people wont understand the idea behind those loyalty cards that how they work. The success of the Tesco Clubcard has been well documented, in 2002 a Market and Opinion Research Poll found that Tescos Clubcard had been more successful than the programmers offered by rival supermarkets (Smith, 2004). Rationale: Why is this study being done Tesco got a huge amount of success with its loyalty schemes unlike its competitors. The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Companies offer such countless schemes for their customers to retain and maintain customer loyalty for their store. There are many other factors behind these loyalty schemes where companies benefit. Loyalty card schemes are not only beneficial for the customers, but are equally beneficial for the companies as well. Significance: How does the study contribute The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. This will contribute to contrast customer perceptions of the Clubcard, staff and â€Å"feeling valued† to identify which factor has the greater impact on customer loyalty to store. The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards. Tesco has succeeded with the strategy of loyalty cards, but its competitors did not. Retailers like Sainsburys and ASDAs who are the competitors of Tesco, did not manage to promote their business using their loyalty cards as Tesco did. Tesco got a huge amount of success with its loyalty schemes unlike its competitors. Tesco has been known for their best customer service where as its competitor, Asda have been known for their best value and low competitive prices. Now why has Tesco chosen such a marketi ng strategy to attract customers and increase revenue? The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Tesco has chosen a marketing strategy where they need to gain customers faith and trust to maintain a good relationship with them. Hence they need to know everything about their customers individually. How will they keep a track of each and every customer they have? There are many strategies to know your customers and Tesco uses such strategies to have a good track of their customers. The best way to do this is by the method of loyalty cards. Companies can know much more about their customers through loyalty cards. This study will show how Tesco collects data of t heir customers and use that data to improve their customer service in order to gain customer satisfaction. Aims Objectives: The aim of the research is to investigate the influence of the Tesco Clubcard on customer store loyalty. In 1995, Tesco introduced the loyalty Clubcard that was to offer, â€Å"Benefits to regular shoppers whilst helping the company discover more about its Customer needs†. The main aim of this research will be to compare the Loyalty schemes of Tesco Clubcards with its competitors like Sainsburys and ASDA, and find out why Tescos Clubcards were a huge success unlike Sainsburys Nectar and Asda loyalty cards did not succeed in promoting their business. The study also focuses on the need of customer loyalty and what steps were taken by Tesco to retain and maintain its customer loyalty. (www.tescocorporate.com) Sign Posting: A glance at the major and successful organizations around the globe shows that their success is partly due to their ability to apply the theory of relationship marketing. In the contemporary business arena, all organizations, large or small improve their effectiveness and efficiency by applying this theory, thus improving their customer service and customer relations which play a very important role for any business organization. This study shows the brief idea of the Relationship Marketing and how it has been used by the retail giant, Tesco to gain their customers loyalty and retain it for a long time. Tesco is the company on which this whole study has been based on. At the first there is some information and idea has been explained about Relationship Marketing and how is plays a vital role in companys marketing strategies. It also discusses about the benefits of the relationship marketing and how it is used by the company to achieve its aims and objectives. This will later on conti nue with the main topic, that is, the success of Tescos loyalty cards other than its competitors. It will discuss the concept of the loyalty cards and the different strategies used by Tesco and even its competitors to get a competitive edge in the surviving market. The later part of the study also shows how Clubcards are beneficial for the customers as well as the company. Then research methodology is identified that how the research will be conducted, it includes that how the research will designed means the ways through effective data can be find out. Literature Review In this discussion outcomes from the previous research will be demonstrate to provide the clear understanding to the topic. In this chapter views of different authors and researches will be quoted to support the research. It will include the work of researchers who have worked on this matter and have reached to some conclusion. As a literature review chapter it will consist of basic definitions of customer loyalty, customer relationship, loyalty cards and the most important one relationship marketing. This chapter will also explain these theories and how are they applicable for the strategies used by the companies to achieve their goals and success. Customer Relationship: What does it mean for an organisation and its customer to have a relationship with each other? What kind of a relationship would they have with each other? Do customers have relationships with enterprises that do not know them? Is it necessary that the companies know their customers or the other way around? What kind of a relationship would that be if both the parties are unaware of the relationship they have? Can the enterprise be said to have a relationship with a customer it does not know? Is it possible for a customer to have a relationship with a brand? It can be said that customers would know the products but not the company. Experts have studied the nature of relationships in business for many years, and there are many different perspectives on the fundamental purpose of relationships in business strategies. It can be said that the only aim of the company is not only to gain maximum profits out of their customers or having the greatest market share or the rank the company is. Instead, to be successful in the era of interactivity, when it is possible to deal individually with separate customers, the business objective must include establishing meaningful and profitable relationships at least with the most valuable customers, and making the overall customer base more valuable. Technology plays a very crucial role in maintaining this relationship between companies and customers. In short, the company strives to get a customer, keep that customer for a lifetime, and grow the value of the customer to the organisation. Relationships are the crux of the customer-strategy enterprise. Relationships between customers and enterprises provide the framework for everything else connected to the customer-value business model. This is the same model used by Tesco in order to gain a competitive advantage in the most competitive markets in the world. The exchange between a customer and the enterprise becomes mutually beneficial, as customers give information in return for personalized service that meets their individual needs. Because we are talking about relationships between businesses and their customers, it is important that we agree on a few of the elements that make up a genuine relationship. And while dictionary definitions are not bad as starting points, the most important issue for us to consider is how well our own definition of relationship helps companies succeed in the â€Å"customer dimension† of competition. Lets list some of the distinct qualities that should characterize a relationship between an enterprise and a customer. First, a relationship implies mutuality. In order for anyone to consider a relationship, both the company and its customer have to participate in and be aware of the existence of the relationship. This is the most common factor which is needed to be realized by both the parties. This means that relationships must inherently be two-way in nature. Second, relationships are driven by interaction. When the company and the customer interact, they exchange information, and this information exchange is a best tool for building the relationship. This, of course, also implies mutuality. But interactions dont have to take place by phone or in person or on the Web. An interaction takes place when a customer buys a product from the company that sells it. This is where the customer and the company are in face to face for a reason which builds up this relationship. Every interaction adds to the total information content possible in the relationship. This leads to the third characteristic of a relationship: It is iterative in nature. That is, since both the customer and the company are interacting mutually, the interactions themselves build up a history, over time—a context. This context gives a relationships future interactions greater and greater efficiency, because every successive interaction represents that the company and the customer is growing into a healthy relationship than before by communication and a benefit for both the parties. The mo re that company communicates with its customer, the less they need to say the next time around to get their point across. Another characteristic of a customer relationship is that it will be driven by an ongoing benefit to the customer and the company. The customers convenience is one type of benefit, for the customer, but not the only one. Participating in a relationship will involve a cost in money, time, or effort, and no customer will engage for long in any relationship the company wont be more beneficial for that customer, of it that customer is not getting more benefits that before. However, precisely because of the context of the relationship and its continuing benefit for the customer and the company, each party in a relationship has an incentive to recover from mistakes. Relationships also require a change in behavior on the part of both, the customer as well as the company, in order to continue. After all, what drives the ongoing benefit of a relationship is not only its c ontext, its history of interactions, developed over time, but also the fact that the customers and the companys current and future actions reflect that previous context. This is an important characteristic, because companies sometimes mistakenly believe that interactions with a customer need is always the same, the communication from the companys side, cannot deliver same behavior pattern to every customer. In other words companies need to have relationships with their customer individually because the behavior of every customer is not always the same, which can result in different kind of relationship pattern with the company. But unless the companys actions toward a particular customer are somehow different, there is a possibility of miscommunication and can ruin the relation between that customer and the company, which will be no ongoing benefit for the customer, and as a result the customer might not continue the relationship. Every relationship is different. Relationships are c onstituted with individuals, not with populations. This means relationships are with the individual customer and not the whole segment of the customer population of the company. As a result, a company who wants to engage its customers in relationships must be prepared to participate in different interactions, remember different customers and their behavior or spending habits, and engage in different behaviors toward different customers.(Peppers .D, Rogers. M 2004) During the last few years there has been a growing interest in studying the economics and markets of long-lasting customer relationships where customer relationships play a vital role for every company. This kind of relationship can help to increase revenue for the company which can be a long term process and a continuous growth of the relationship between the organization and the customer. Heskett introduced the concept of market economies, which means achieving results by understanding the customers behavior instead of by concentrating on developing scale economies. (Heskett, J.L., 1987) A mutually satisfactory relationship between the company and its customers makes it possible for customers to avoid significant transaction costs involved in shifting from one company or a service provider which can be beneficial for both, the customer and the company. However, customer retention is not enough. Some long-lasting customer relationships, where the customers are obviously satisfied with what they get, are not profitable even in the long run, as Storbacka says. There is clear evidence that from a profitability point of view intelligent relationship building where company can be beneficial to the customer as well as themselves in the long run, then only such a management make sense. (Storbacka, K., 1993) Customer Loyalty: The whole point of a relationship is to keep your customers, and simultaneously grow new customers. So what is customer loyalty? Those whove tried to answer that question have approached it from two different directions: attitudinal (what Barnes calls â€Å"emotional†) and behavioral (what Barnes calls â€Å"functional†). Although each of these two definitions of loyalty is valid, they have different implications and lead to very different prescriptions for businesses. The attitudinal definition of loyalty implies that loyalty is a state of mind. Customers are loyal to a brand or a company if they have a positive, preferential attitude toward it. They like the company, its products, or its brands, and they therefore prefer to buy from it, rather than from the companys competitors. In purely commercial terms, the attitudinal definition of customer loyalty would mean that someone who is willing to pay a premium for Brand A over Brand B, even when the products they represe nt are virtually equivalent, is loyal to Brand A. But the emphasis is on willingness, rather than on actual behavior, per se. In terms of attitudes, then, increasing a customers loyalty is virtually equivalent to increasing the customers preference for the brand. It is closely tied to product quality and customer satisfaction. Any company wanting to increase loyalty, in attitudinal terms, will concentrate on improving its product, its image, or other elements of the customer experience, relative to its competitors. The behavioral definition of loyalty would mean that someone is willing to pay a premium for Brand A over Brand B, even without respect to the attitudes or preferences that underlie that conduct. By this definition, customers are loyal to a company if they buy from it and then continue to buy from it. Loyalty is concerned with repurchase activity, regardless of any internally held attitudes or preferences. In the behavioral definition, loyalty is not the cause, but the re sult of brand preference. A company wanting to increase customer loyalty will focus on whatever tactics will in fact increase the amount of repurchase behavior— tactics that can easily include, without being limited to, raising consumers general preference for the brand or their level of satisfaction with it. (Peppers .D, Rogers. M 2004) Customer loyalty could be termed a â€Å"customers commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates†. It is a term which is neither easy to gain nor maintain, rather it is vulnerable, where â€Å"even if its customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere†. (McIlroy, A. and Barnett, S. (2000) In order to investigate the concept of loyalty, we see the framework of Sopanen (1996) to reveal six different types of loyalty: (1) Monopoly loyalty, where there are no available choices. (2) Inertia loyalty, where customers do not actively seek substitutes. (3) Convenience loyalty, where loyalty is solely defined by location. (4) Price loyalty: where customers are influenced by the lowest price. (5) Incentivized loyalty, where loyalty relates to the benefits gained from reward cards and programmers. (6) Emotional loyalty, where customers are influenced by factors such as brand. From this we can observe that loyalty programs such as Tesco Clubcard can be considered an incentivized type of loyalty, which can be exhibited by customers, but the strength of this loyalty is often questioned. â€Å"As organizations become increasingly customer focused and driven by customer demands, the need to meet the customers expectations and retain their loyalty becomes more critical† (Disney, 1999, p. 491). Customer loyalty is one of the fundamental goals of marketing (Selnes, 1993). Not only does it guarantee repeat customers, but it also decreases the need for companies to spend large portions of their budgets on advertising and promotion in order to attract new customers. Mittal and Lassar (1998) identified that customer loyalty is very often thought of as an outcome of customer satisfaction. This explains why customer satisfaction has become an essential concept in marketing and its quest is one of the most important goals for businesses (Webster, 1994) Relationship Marketing: Relationship marketing is very much interlinked with the notion and practice of customer care. There is no doubt that the development of relationship marketing has had and will continue to have major implications for the marketing managers. Comprehensive accounts of the development, meaning and implications of relationship marketing for the contemporary marketer are given by Lancaster and Massingham. As so often, there are many different views as to the precise nature and hence definition of relationship marketing. So, for example, Groonroos stressed the element of mutual exchange ad trust in relationship marketing as follows. â€Å"Relationship marketing is a process including several parties or actors, the objective of which has to be met. This is done by mutual exchange and fulfillment of promises, a fact that makes trust an important aspect of marketing†. Stone and Woodcock on the other hand put more emphasis on the traditional tool of sales, communication and customer care techniques. Again we see overlap between these two areas. â€Å"Relationship marketing involves the use of a wide range of marketing, sales, communications and customer care techniques and processes to: identify named individual customers, create a relationship between the company and these customers, and manage that relationship to the benefit of both the customer and the company†. Perhaps one of the simplest and yet the most powerful summaries of what relationship marketing is however, is that provided by Buttle. â€Å"At its best, RM (relationship management) is characterized by a genuine concern to meet or exceed the expectations of the customers and to provide excellent service in an environment of trust and commitment to the relationship†. Buttle goes on to indicate what is involved in successful relationship marketing and the commitment of the company required to generate this success. â€Å"To be successful relationship marketers, companies must develop a supportive organizational culture, market the RM idea internally, intimately understand customers expectations, create and maintain a detailed customer database, and organize and reward employees in such a way that the objective of RM, customer retention, is achieved†. This illustrates that relationship marketing has major implications for both how we think about marketing and our approach to the practice of marketing. It affects and includes the provision of marketing information, organizational systems and procedures, and the elements of marketing strategy. Relationship Marketing refers to Promotional and needs and maintain the relationship. This proposal is concerned with Relationship management and marketing at how it is been used by companies to maintain existing customers, retain lost customers and attract new customers. (http://www.businessdictionary.com/definition/relationship-marketing.html) Relationship marketing is systems-oriented, yet it includes managerial aspects. A systems approach is well suited as a basis for a general theory of marketing, because it makes it possible to include all relevant actors, environmental influence, and even the process nature of marketing. (Kuhn, T.S. (1957) The concept of relationship marketing has emerged within the fields of service marketing and industrial marketing. The phenomenon described by this concept is strongly supported by ongoing trends in modern business. Grà ¶nroos defines relationship marketing in the following way: Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. Such relationships are usually but not necessarily always long-term. Establishing a relationship, for example with a customer, can be divided into two parts: to attract the customer and to build the relationship with that customer so that the economic goals of that relationship are achieved. (Grà ¶nroos, C. (1990) More businesses are moving toward relationship marketing in dealing with their customers as more customers expect a personalized experience. Considering relationship marketing vs. transactional marketing for http://searchcrm.techtarget.com/generic/0,295582,sid11_gci1253633_mem1,00.html) Relationship marketing is a marketing strategy that emphasizes customer loyalty, customer retention and long-term customer engagement. Using the relationship marketing approach, an organization aims to develop strong, long-term connections with customers by providing them with information directly suited to their needs and interests. This approach often results in increased word-of-mouth activity, long-term purchasing behavior and a willingness to provide information. The goal of every enterprise, once you strip away all the activities that keep everybody busy every day, is simply to get, keep, and grow customers. Whether a business focuses its efforts on product innovation, operational efficiency and low price, or customer intimacy, for that firm must have customers or the enterprise isnt a business—its a hobby. This is true for nonprofits (where the â€Å"customers† may be donors or volunteers) as well as for-profits, for firms large and small, for public as well as private enterprise. What does it mean for an enterprise to focus on its customers as the key to competitive advantage? Obviously, it does not mean giving up the product edge, or the operational efficiencies, that have been successful in the past. It does mean using new strategies, nearly always requiring new technologies, to focus on growing the value of the company by deliberately and strategically growing the value of the customer base. Companies needed to build compr ehensive customer databases. Companies had been maintaining product databases, sales force databases, and dealer databases. Now they needed to build, maintain, mine, and manage a customer database that could be used by company personnel in sales, marketing, credit, accounting, and other company functions. As customer database marketing grew, several different names came to describe it, including individualized marketing, customer intimacy, technology enabled marketing, dialogue marketing, interactive marketing, permission marketing, and one-to-one marketing. Modern technology makes it possible for enterprises to learn more about individual customers, remember those needs, and shape the companys offerings, services, messages and interactions to each valued customer. The new technologies make mass-customization (otherwise an oxymoron) possible. At the same time, technology is only a partial factor in helping companies do genuine one-to-one marketing. The following quotes about custome r relationship management (CRM) make this point vividly: â€Å"CRM is not a software package. Its not a database. Its not a call center or a Web site. Its not a loyalty program, a customer service program, a customer acquisition program or a win-back program. CRM is an entire philosophy.† (Steve Silver) â€Å"A CRM program is typically 45 percent dependent on the right executive leadership, 40 percent on project management implementation and 15 percent on technology.† (Edmund Thompson, Gartner Group) (Peppers .D, Rogers. M 2004) Loyalty Card: Any retailer running a loyalty card scheme could call up customer details and purchase history from incoming phone numbers. In many firms, loyalty cards are used for direct marketing and not much else. Using them to dramatically improve customer service seems a fitting reward for loyalty. Marketing program designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related purchases on that brand. Most loyalty programs offer perks for membership in a club or program and reward purchases. Rewards may be based on the dollar value of purchases made or on the frequency of purchases. The most well-known loyalty programs are airline frequent-flyer programs that offer discounts against future travel called award miles. Most large supermarket chains now have frequent-buyer clubs that offer no-coupon discounts as well as newsletters and http://www.answers.com/topic/loyalty-program) A loyalty card program is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card program is to build repeat business by offering participating customers something that isnt available to non-participating customers. Loyalty cards often resemble plastic credit cards but they can also be keychain fobs or stickers. Typically a loyalty card has a barcode or magnetic stripe thats scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers buying habits. According to research carried out by Boston Universitys College of Communication, eighty-six percent of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy. Loyalty schemes are necessary for the retailers because it helps them in attracting the customers and when they came to them they try to retain them by offering their services on discounted rates and by offering them further discounts and services. Smith states the importance of loyalty cards and schemes in the following sta tement â€Å"if Effect of Loyalty Cards on Customer Loyalty Effect of Loyalty Cards on Customer Loyalty Background of the topic: The purpose of this dissertation is to analyze and investigate the effect of the loyalty cards on customer loyalty and how does it helps large organizations to achieve its goals. When shopping in supermarkets there is one experience that everyone has, when customers finish with their shopping and get to a checkout, the assistant will ask the customers, whether they have a clubcard. This will continue every time whenever those customers without a clubcard shops in the future, the assistant will keep on asking them for a clubcard unless they get one for themselves. Now there is a question that will come across every customers mind, what is a clubcard and why does every company insist them and every customer to be a part of the clubcard family? Now people become curious and they want to get a clubcard too. The assistant says to fill up a form with the customers general details like name, address and contact details and the day customer fills the form, next day they will receive a clubca rd. Impressive, now why companies offer clubcards to their customers, how do companies benefit from these schemes they provide for their customers? Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Loyalty cards can significantly boost business profits whilst simultaneously building customer loyalty. Studies show that loyalty cards are one of the most cost effective ways to build brand loyalty and improve customer retention. Loy alty cards are used by all the major retail and supermarket chains as a vital tool to improve profitability, but one does not need to be a national high street store in order to run a profitable reward card scheme. One of the reasons the supermarkets are taking business away from independent retailers are the incentives offered in their loyalty card schemes. The loyalty cards market in the UK is one of the most significant in the world and forms the backbone of marketing and customer retention planning. With over 85% of UK Households possessing loyalty cards it is really a case where companies can afford not to offer a loyalty card service to their customers. There are different companies who offer loyalty schemes for their customer and give customers shopping vouchers after they spend certain amount of money through those loyalty cards. Main objective behind loyalty cards is to keep customer loyal with the company by offering them discounts and gifts on their shopping so they spend more money in their shops and markets. Most common example of loyalty card is Tesco club card, Sainsbury nectar card and other such cards offered by different companies in the country. But most of the people wont understand the idea behind those loyalty cards that how they work. The success of the Tesco Clubcard has been well documented, in 2002 a Market and Opinion Research Poll found that Tescos Clubcard had been more successful than the programmers offered by rival supermarkets (Smith, 2004). Rationale: Why is this study being done Tesco got a huge amount of success with its loyalty schemes unlike its competitors. The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Companies offer such countless schemes for their customers to retain and maintain customer loyalty for their store. There are many other factors behind these loyalty schemes where companies benefit. Loyalty card schemes are not only beneficial for the customers, but are equally beneficial for the companies as well. Significance: How does the study contribute The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. This will contribute to contrast customer perceptions of the Clubcard, staff and â€Å"feeling valued† to identify which factor has the greater impact on customer loyalty to store. The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards. Tesco has succeeded with the strategy of loyalty cards, but its competitors did not. Retailers like Sainsburys and ASDAs who are the competitors of Tesco, did not manage to promote their business using their loyalty cards as Tesco did. Tesco got a huge amount of success with its loyalty schemes unlike its competitors. Tesco has been known for their best customer service where as its competitor, Asda have been known for their best value and low competitive prices. Now why has Tesco chosen such a marketi ng strategy to attract customers and increase revenue? The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Tesco has chosen a marketing strategy where they need to gain customers faith and trust to maintain a good relationship with them. Hence they need to know everything about their customers individually. How will they keep a track of each and every customer they have? There are many strategies to know your customers and Tesco uses such strategies to have a good track of their customers. The best way to do this is by the method of loyalty cards. Companies can know much more about their customers through loyalty cards. This study will show how Tesco collects data of t heir customers and use that data to improve their customer service in order to gain customer satisfaction. Aims Objectives: The aim of the research is to investigate the influence of the Tesco Clubcard on customer store loyalty. In 1995, Tesco introduced the loyalty Clubcard that was to offer, â€Å"Benefits to regular shoppers whilst helping the company discover more about its Customer needs†. The main aim of this research will be to compare the Loyalty schemes of Tesco Clubcards with its competitors like Sainsburys and ASDA, and find out why Tescos Clubcards were a huge success unlike Sainsburys Nectar and Asda loyalty cards did not succeed in promoting their business. The study also focuses on the need of customer loyalty and what steps were taken by Tesco to retain and maintain its customer loyalty. (www.tescocorporate.com) Sign Posting: A glance at the major and successful organizations around the globe shows that their success is partly due to their ability to apply the theory of relationship marketing. In the contemporary business arena, all organizations, large or small improve their effectiveness and efficiency by applying this theory, thus improving their customer service and customer relations which play a very important role for any business organization. This study shows the brief idea of the Relationship Marketing and how it has been used by the retail giant, Tesco to gain their customers loyalty and retain it for a long time. Tesco is the company on which this whole study has been based on. At the first there is some information and idea has been explained about Relationship Marketing and how is plays a vital role in companys marketing strategies. It also discusses about the benefits of the relationship marketing and how it is used by the company to achieve its aims and objectives. This will later on conti nue with the main topic, that is, the success of Tescos loyalty cards other than its competitors. It will discuss the concept of the loyalty cards and the different strategies used by Tesco and even its competitors to get a competitive edge in the surviving market. The later part of the study also shows how Clubcards are beneficial for the customers as well as the company. Then research methodology is identified that how the research will be conducted, it includes that how the research will designed means the ways through effective data can be find out. Literature Review In this discussion outcomes from the previous research will be demonstrate to provide the clear understanding to the topic. In this chapter views of different authors and researches will be quoted to support the research. It will include the work of researchers who have worked on this matter and have reached to some conclusion. As a literature review chapter it will consist of basic definitions of customer loyalty, customer relationship, loyalty cards and the most important one relationship marketing. This chapter will also explain these theories and how are they applicable for the strategies used by the companies to achieve their goals and success. Customer Relationship: What does it mean for an organisation and its customer to have a relationship with each other? What kind of a relationship would they have with each other? Do customers have relationships with enterprises that do not know them? Is it necessary that the companies know their customers or the other way around? What kind of a relationship would that be if both the parties are unaware of the relationship they have? Can the enterprise be said to have a relationship with a customer it does not know? Is it possible for a customer to have a relationship with a brand? It can be said that customers would know the products but not the company. Experts have studied the nature of relationships in business for many years, and there are many different perspectives on the fundamental purpose of relationships in business strategies. It can be said that the only aim of the company is not only to gain maximum profits out of their customers or having the greatest market share or the rank the company is. Instead, to be successful in the era of interactivity, when it is possible to deal individually with separate customers, the business objective must include establishing meaningful and profitable relationships at least with the most valuable customers, and making the overall customer base more valuable. Technology plays a very crucial role in maintaining this relationship between companies and customers. In short, the company strives to get a customer, keep that customer for a lifetime, and grow the value of the customer to the organisation. Relationships are the crux of the customer-strategy enterprise. Relationships between customers and enterprises provide the framework for everything else connected to the customer-value business model. This is the same model used by Tesco in order to gain a competitive advantage in the most competitive markets in the world. The exchange between a customer and the enterprise becomes mutually beneficial, as customers give information in return for personalized service that meets their individual needs. Because we are talking about relationships between businesses and their customers, it is important that we agree on a few of the elements that make up a genuine relationship. And while dictionary definitions are not bad as starting points, the most important issue for us to consider is how well our own definition of relationship helps companies succeed in the â€Å"customer dimension† of competition. Lets list some of the distinct qualities that should characterize a relationship between an enterprise and a customer. First, a relationship implies mutuality. In order for anyone to consider a relationship, both the company and its customer have to participate in and be aware of the existence of the relationship. This is the most common factor which is needed to be realized by both the parties. This means that relationships must inherently be two-way in nature. Second, relationships are driven by interaction. When the company and the customer interact, they exchange information, and this information exchange is a best tool for building the relationship. This, of course, also implies mutuality. But interactions dont have to take place by phone or in person or on the Web. An interaction takes place when a customer buys a product from the company that sells it. This is where the customer and the company are in face to face for a reason which builds up this relationship. Every interaction adds to the total information content possible in the relationship. This leads to the third characteristic of a relationship: It is iterative in nature. That is, since both the customer and the company are interacting mutually, the interactions themselves build up a history, over time—a context. This context gives a relationships future interactions greater and greater efficiency, because every successive interaction represents that the company and the customer is growing into a healthy relationship than before by communication and a benefit for both the parties. The mo re that company communicates with its customer, the less they need to say the next time around to get their point across. Another characteristic of a customer relationship is that it will be driven by an ongoing benefit to the customer and the company. The customers convenience is one type of benefit, for the customer, but not the only one. Participating in a relationship will involve a cost in money, time, or effort, and no customer will engage for long in any relationship the company wont be more beneficial for that customer, of it that customer is not getting more benefits that before. However, precisely because of the context of the relationship and its continuing benefit for the customer and the company, each party in a relationship has an incentive to recover from mistakes. Relationships also require a change in behavior on the part of both, the customer as well as the company, in order to continue. After all, what drives the ongoing benefit of a relationship is not only its c ontext, its history of interactions, developed over time, but also the fact that the customers and the companys current and future actions reflect that previous context. This is an important characteristic, because companies sometimes mistakenly believe that interactions with a customer need is always the same, the communication from the companys side, cannot deliver same behavior pattern to every customer. In other words companies need to have relationships with their customer individually because the behavior of every customer is not always the same, which can result in different kind of relationship pattern with the company. But unless the companys actions toward a particular customer are somehow different, there is a possibility of miscommunication and can ruin the relation between that customer and the company, which will be no ongoing benefit for the customer, and as a result the customer might not continue the relationship. Every relationship is different. Relationships are c onstituted with individuals, not with populations. This means relationships are with the individual customer and not the whole segment of the customer population of the company. As a result, a company who wants to engage its customers in relationships must be prepared to participate in different interactions, remember different customers and their behavior or spending habits, and engage in different behaviors toward different customers.(Peppers .D, Rogers. M 2004) During the last few years there has been a growing interest in studying the economics and markets of long-lasting customer relationships where customer relationships play a vital role for every company. This kind of relationship can help to increase revenue for the company which can be a long term process and a continuous growth of the relationship between the organization and the customer. Heskett introduced the concept of market economies, which means achieving results by understanding the customers behavior instead of by concentrating on developing scale economies. (Heskett, J.L., 1987) A mutually satisfactory relationship between the company and its customers makes it possible for customers to avoid significant transaction costs involved in shifting from one company or a service provider which can be beneficial for both, the customer and the company. However, customer retention is not enough. Some long-lasting customer relationships, where the customers are obviously satisfied with what they get, are not profitable even in the long run, as Storbacka says. There is clear evidence that from a profitability point of view intelligent relationship building where company can be beneficial to the customer as well as themselves in the long run, then only such a management make sense. (Storbacka, K., 1993) Customer Loyalty: The whole point of a relationship is to keep your customers, and simultaneously grow new customers. So what is customer loyalty? Those whove tried to answer that question have approached it from two different directions: attitudinal (what Barnes calls â€Å"emotional†) and behavioral (what Barnes calls â€Å"functional†). Although each of these two definitions of loyalty is valid, they have different implications and lead to very different prescriptions for businesses. The attitudinal definition of loyalty implies that loyalty is a state of mind. Customers are loyal to a brand or a company if they have a positive, preferential attitude toward it. They like the company, its products, or its brands, and they therefore prefer to buy from it, rather than from the companys competitors. In purely commercial terms, the attitudinal definition of customer loyalty would mean that someone who is willing to pay a premium for Brand A over Brand B, even when the products they represe nt are virtually equivalent, is loyal to Brand A. But the emphasis is on willingness, rather than on actual behavior, per se. In terms of attitudes, then, increasing a customers loyalty is virtually equivalent to increasing the customers preference for the brand. It is closely tied to product quality and customer satisfaction. Any company wanting to increase loyalty, in attitudinal terms, will concentrate on improving its product, its image, or other elements of the customer experience, relative to its competitors. The behavioral definition of loyalty would mean that someone is willing to pay a premium for Brand A over Brand B, even without respect to the attitudes or preferences that underlie that conduct. By this definition, customers are loyal to a company if they buy from it and then continue to buy from it. Loyalty is concerned with repurchase activity, regardless of any internally held attitudes or preferences. In the behavioral definition, loyalty is not the cause, but the re sult of brand preference. A company wanting to increase customer loyalty will focus on whatever tactics will in fact increase the amount of repurchase behavior— tactics that can easily include, without being limited to, raising consumers general preference for the brand or their level of satisfaction with it. (Peppers .D, Rogers. M 2004) Customer loyalty could be termed a â€Å"customers commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates†. It is a term which is neither easy to gain nor maintain, rather it is vulnerable, where â€Å"even if its customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere†. (McIlroy, A. and Barnett, S. (2000) In order to investigate the concept of loyalty, we see the framework of Sopanen (1996) to reveal six different types of loyalty: (1) Monopoly loyalty, where there are no available choices. (2) Inertia loyalty, where customers do not actively seek substitutes. (3) Convenience loyalty, where loyalty is solely defined by location. (4) Price loyalty: where customers are influenced by the lowest price. (5) Incentivized loyalty, where loyalty relates to the benefits gained from reward cards and programmers. (6) Emotional loyalty, where customers are influenced by factors such as brand. From this we can observe that loyalty programs such as Tesco Clubcard can be considered an incentivized type of loyalty, which can be exhibited by customers, but the strength of this loyalty is often questioned. â€Å"As organizations become increasingly customer focused and driven by customer demands, the need to meet the customers expectations and retain their loyalty becomes more critical† (Disney, 1999, p. 491). Customer loyalty is one of the fundamental goals of marketing (Selnes, 1993). Not only does it guarantee repeat customers, but it also decreases the need for companies to spend large portions of their budgets on advertising and promotion in order to attract new customers. Mittal and Lassar (1998) identified that customer loyalty is very often thought of as an outcome of customer satisfaction. This explains why customer satisfaction has become an essential concept in marketing and its quest is one of the most important goals for businesses (Webster, 1994) Relationship Marketing: Relationship marketing is very much interlinked with the notion and practice of customer care. There is no doubt that the development of relationship marketing has had and will continue to have major implications for the marketing managers. Comprehensive accounts of the development, meaning and implications of relationship marketing for the contemporary marketer are given by Lancaster and Massingham. As so often, there are many different views as to the precise nature and hence definition of relationship marketing. So, for example, Groonroos stressed the element of mutual exchange ad trust in relationship marketing as follows. â€Å"Relationship marketing is a process including several parties or actors, the objective of which has to be met. This is done by mutual exchange and fulfillment of promises, a fact that makes trust an important aspect of marketing†. Stone and Woodcock on the other hand put more emphasis on the traditional tool of sales, communication and customer care techniques. Again we see overlap between these two areas. â€Å"Relationship marketing involves the use of a wide range of marketing, sales, communications and customer care techniques and processes to: identify named individual customers, create a relationship between the company and these customers, and manage that relationship to the benefit of both the customer and the company†. Perhaps one of the simplest and yet the most powerful summaries of what relationship marketing is however, is that provided by Buttle. â€Å"At its best, RM (relationship management) is characterized by a genuine concern to meet or exceed the expectations of the customers and to provide excellent service in an environment of trust and commitment to the relationship†. Buttle goes on to indicate what is involved in successful relationship marketing and the commitment of the company required to generate this success. â€Å"To be successful relationship marketers, companies must develop a supportive organizational culture, market the RM idea internally, intimately understand customers expectations, create and maintain a detailed customer database, and organize and reward employees in such a way that the objective of RM, customer retention, is achieved†. This illustrates that relationship marketing has major implications for both how we think about marketing and our approach to the practice of marketing. It affects and includes the provision of marketing information, organizational systems and procedures, and the elements of marketing strategy. Relationship Marketing refers to Promotional and needs and maintain the relationship. This proposal is concerned with Relationship management and marketing at how it is been used by companies to maintain existing customers, retain lost customers and attract new customers. (http://www.businessdictionary.com/definition/relationship-marketing.html) Relationship marketing is systems-oriented, yet it includes managerial aspects. A systems approach is well suited as a basis for a general theory of marketing, because it makes it possible to include all relevant actors, environmental influence, and even the process nature of marketing. (Kuhn, T.S. (1957) The concept of relationship marketing has emerged within the fields of service marketing and industrial marketing. The phenomenon described by this concept is strongly supported by ongoing trends in modern business. Grà ¶nroos defines relationship marketing in the following way: Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. Such relationships are usually but not necessarily always long-term. Establishing a relationship, for example with a customer, can be divided into two parts: to attract the customer and to build the relationship with that customer so that the economic goals of that relationship are achieved. (Grà ¶nroos, C. (1990) More businesses are moving toward relationship marketing in dealing with their customers as more customers expect a personalized experience. Considering relationship marketing vs. transactional marketing for http://searchcrm.techtarget.com/generic/0,295582,sid11_gci1253633_mem1,00.html) Relationship marketing is a marketing strategy that emphasizes customer loyalty, customer retention and long-term customer engagement. Using the relationship marketing approach, an organization aims to develop strong, long-term connections with customers by providing them with information directly suited to their needs and interests. This approach often results in increased word-of-mouth activity, long-term purchasing behavior and a willingness to provide information. The goal of every enterprise, once you strip away all the activities that keep everybody busy every day, is simply to get, keep, and grow customers. Whether a business focuses its efforts on product innovation, operational efficiency and low price, or customer intimacy, for that firm must have customers or the enterprise isnt a business—its a hobby. This is true for nonprofits (where the â€Å"customers† may be donors or volunteers) as well as for-profits, for firms large and small, for public as well as private enterprise. What does it mean for an enterprise to focus on its customers as the key to competitive advantage? Obviously, it does not mean giving up the product edge, or the operational efficiencies, that have been successful in the past. It does mean using new strategies, nearly always requiring new technologies, to focus on growing the value of the company by deliberately and strategically growing the value of the customer base. Companies needed to build compr ehensive customer databases. Companies had been maintaining product databases, sales force databases, and dealer databases. Now they needed to build, maintain, mine, and manage a customer database that could be used by company personnel in sales, marketing, credit, accounting, and other company functions. As customer database marketing grew, several different names came to describe it, including individualized marketing, customer intimacy, technology enabled marketing, dialogue marketing, interactive marketing, permission marketing, and one-to-one marketing. Modern technology makes it possible for enterprises to learn more about individual customers, remember those needs, and shape the companys offerings, services, messages and interactions to each valued customer. The new technologies make mass-customization (otherwise an oxymoron) possible. At the same time, technology is only a partial factor in helping companies do genuine one-to-one marketing. The following quotes about custome r relationship management (CRM) make this point vividly: â€Å"CRM is not a software package. Its not a database. Its not a call center or a Web site. Its not a loyalty program, a customer service program, a customer acquisition program or a win-back program. CRM is an entire philosophy.† (Steve Silver) â€Å"A CRM program is typically 45 percent dependent on the right executive leadership, 40 percent on project management implementation and 15 percent on technology.† (Edmund Thompson, Gartner Group) (Peppers .D, Rogers. M 2004) Loyalty Card: Any retailer running a loyalty card scheme could call up customer details and purchase history from incoming phone numbers. In many firms, loyalty cards are used for direct marketing and not much else. Using them to dramatically improve customer service seems a fitting reward for loyalty. Marketing program designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related purchases on that brand. Most loyalty programs offer perks for membership in a club or program and reward purchases. Rewards may be based on the dollar value of purchases made or on the frequency of purchases. The most well-known loyalty programs are airline frequent-flyer programs that offer discounts against future travel called award miles. Most large supermarket chains now have frequent-buyer clubs that offer no-coupon discounts as well as newsletters and http://www.answers.com/topic/loyalty-program) A loyalty card program is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card program is to build repeat business by offering participating customers something that isnt available to non-participating customers. Loyalty cards often resemble plastic credit cards but they can also be keychain fobs or stickers. Typically a loyalty card has a barcode or magnetic stripe thats scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers buying habits. According to research carried out by Boston Universitys College of Communication, eighty-six percent of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy. Loyalty schemes are necessary for the retailers because it helps them in attracting the customers and when they came to them they try to retain them by offering their services on discounted rates and by offering them further discounts and services. Smith states the importance of loyalty cards and schemes in the following sta tement â€Å"if