Posted at 12.15.2018
TATA MOTORS Small previously known as TELCO (TATA Engineering and Locomotive Company) is a multinational company which is a part of the TATA Group with its headquarters situated in Mumbai, India. It was set up in 1945 which is India's largest automobile company; also, this is a leader in Commercial Vehicles and the second largest in passenger vehicles. It's the world's second largest heavy bus maker and fifth largest medium and heavy pick up truck manufacturer. It is also, the artist and maker of the iconic TATA Nano car, which is the world's cheapest car, priced at around INR 1, 00, 000 or USD 2250.
Tata Motors was the first company to be posted in the New York STOCK MARKET (September 2004) from India's Anatomist Sector. It has plans to become global company by means of acquisitions, mergers, alliances, and a strenuous Research and Development to meet the requirements of the international market. The business operates in the UK, South Korea, Thailand, and Spain through its subsidiary and associate companies. In 2008, the company acquired the British isles Jaguar Land Rover (JLR) business, which also includes Daimler, Lanchester and Rover brands. In 2004, it possessed bought, South Korea's Daewoo Commercial Vehicle Company. Also, it acquired purchased Hispano Carrocera, a respected Spanish bus and Mentor Manufacturer in '09 2009.
It is continually facing competition from global companies such as Toyota and other Indian brands such as Maruti Suzuki, Mahindra, etc. to operate in India and overseas. In order to deal up with the constant competition Tata is steadily discovering revised models of its previous autos such as Indica, Indigo Vista, Xenon, Tata World Vehicle, etc. Also, it is bringing up new models of automobiles on lines of market, electricity, and designs to be a market leader.
(www. tatamotors. com)
Relationship Marketing refers to the idea of using methods and methods to develop long-term relationship by providing the customers maximum possible satisfaction to be able to keep them. It really is different from the traditional Transactional Marketing which involves the company focussing on one off sales to customers.
The needs and wishes of customers change overtime, so it's the duty of the organisation to meet the customer's requirements. In order to do that the organisation must keep an eye on the changes in the customer environment. Some useful methods to monitor client satisfaction can be:
The company must keep itself current with the client needs overtime as the needs never stay static and change overtime. In order to build a long-term romance with the customer, the organisation needs to modify and change together corresponding to needs of customers; which would gradually benefit the company in terms of revenue, market show, and brand commitment.
(www. learnmarketing. net)
The review of Relationship Marketing when it comes to consumer behavior shows that there can be an powerful competition among organizations in order to maintain their customers. So, to be able to stay competitive and take a greater market share the business must observe the changes in customer needs from time to time and must change itself accordingly.
The research shows several implications for the design of the relationship marketing approaches for the organizations. This might in exact varieties, would expose the methods which could advantage the organization in keeping long-term relationships using its customers. In today's competitive world, an organization cannot afford to lose its customers if it wants to survive on the market. From an educational point of view, this research seeks to add to the existing knowledge and help as a guiding doc for organizations to review their Relationship Marketing strategies. It would also, form a basis for even more study.
Drawing upon the aforementioned, the research seeks to answer the following questions:
To what level does Romantic relationship Marketing affect Consumer Buying Behaviour?
Is there any hyperlink between Marriage Marketing and Consumer Buying Behavior?
How can Tata Motors build up better relationships using their customer basic?
Relationship Marketing is considered to be a significant change in the traditional marketing concepts and various aspects of it are would have to be considered to avoid an illusion of its ideas as various aspects appear to overlap over one another.
According to Gronross (1984), 'Marriage Marketing is an activity where the aims of the get-togethers involved are satisfied through fulfillment of commitments and bilateral exchange. Whereas, Natural stone and Woodcock (1996) concentrate on the techniques of marketing, customer support techniques and maintaining relationship. Corresponding to them, 'Marriage Marketing includes the use of marketing and customer service techniques by the company to create customers and maintain romance with them, so that it benefits both parties'.
Buttle (1996) provides better perspective on the subject as regarding to him 'Romance Management is symbolized by the concern of the business in getting together with customer's anticipations by giving high requirements of service and develop beliefs of trust and dedication to customers, in that way, maintaining the marriage'.
Relationship marketing is a significant development and a recommended new paradigm in the field of marketing, from the last approach to traditional marketing which is now known as 'Transactional Marketing'. It really is all about quantities and nothing at all else. They are more exactly transactional relationships and focus on moving sales or services through its syndication channels. The key of each action and decision is 'Money' or even to be more specific a one -off exchange of money and commodity.
Whereas 'Relationship Marketing' or 'One-to-One Marketing' is a totally different approach to marketing focusing on customer's wishes, needs and goals. In this case, the priority for each decision and action is to keep up a long and a successful relationship with the customer which would generate profits for the business. (Schneider. M, 2003).
Lancaster (1993) also facilitates the above simple fact that, and gives the idea, that romance marketing accentuates on a comparatively extending term and a distinctive set of relationships between the marketing organization and its customers but, financial concerns and definite gratification of both engaged parties is still important and really should benefit both the get-togethers through bilateral willingness.
(Lancaster et al, 2002)
In order to maintain a gratifying and long-term romance, the marketing consultancy must assess the buying behaviour of existing and potential customers. This is attained by understanding the factors related consumer buying behavior that provides an insight of what makes them buy a product or what makes them reject something.
The vehicle industry comes with an increasingly complex and combative environment where the challenges are when it comes to lower profit margins and after sales services one of the big players in the auto industry. New technology allow one auto company to gain competitive advantages over the others. But, this should be considered as an important proven fact that, creating a new technology alone cannot develop the trust of the client in its vehicles. Trust is the outcome of sense of security and self-confidence, a customer has in a firm. This is achieved by a corporation by keeping effective associations with the clients. Today's motor vehicle customers are quite well-informed about the marketplace changes.
(www. gtm. sap. com)
According to Liam Alvey (1983), the best application of marriage marketing shows immediate effects whenever there are rivaling product options or customers hold the opportunity to choose from many choices; and also, there is a continuous and increasing passion for this product or service. (B. Leonard, 1983)
The role of relationship marketing in the auto industry is increasing at an tremendous rate. Thus, they follow a common strategy of 'Expanding new customers and retaining the old customers'. The companies are focusing on the various techniques to meet up with the customer needs mainly through increasing brand commitment, reducing costs, getting competitive benefit by technological improvements and effective marketing and customer support strategies. Incapability to meet the conditions of understanding customer needs may lead to higher costs, and cutting down brand image.
Nowadays, there are many tools to review the buying behavior of customers that enables an motor vehicle company to understand the customer choices. Also, there are numerous software available for sale which enable an organization to investigate every customer's choices, tastes, needs and wants, etc. by means of maintaining a databases of products purchased, and kind of options for funding and upgrades taken up by the customer. This helps the business in producing sales approaches for market.
(www. gtm. sap. com)
In the global competitive times, the purpose of the business is to keep life-time customers that provides long-term benefits to the company. A number of the positive implications of Romantic relationship Marketing can be-
Relationship marketing enables a two-way communication between your company and its own customers.
Relationship Marketing permits a firm to react and better understand the customer's varying requirements as time passes and make effective strategies.
It also enables a company to maintain customer commitment, which is one of the key concerns of the business.
Loyal customers may generate more business by word of mouth.
A higher percentage of retention would imply that fewer customers need be seduced further and the price for attracting them would be a significant cost, i. e. more cheaper.
Existing and Loyal customers would be happy to pay more because of inculcated rely upon them for the company's services if there are any benefits given to them for his or her loyalty.
Finally, the producing profit out of romance marketing would be a rise in sales, profits and market share; also, there would be reduced chances for the company's market talk about to be invaded or overtaken by others.
Introduction of romantic relationship marketing entails an investment by the business, but its come back cannot be guaranteed. As, it depends on the choice of the client to accept the company or not.
It would also require investment into new systems to maintain databases of customer tastes, etc.
The companies which used to give attention to traditional ways of business would need to bring in regards to a change in their culture before going for a newer prospect towards marriage marketing.
(www. goliath. ecnext. com)
Inspite of all the above listed cons, the study still supports romance marketing because of the reason that, marriage marketing is the demand of your time. The company which changes with time flourishes, while the others perish.
THE SIX Marketplaces MODEL- This style of relationship marketing was presented with by Christopher et al in 1991 and analyzes stakeholders on the market as six market segments operating near the central central of marriage marketing accompanied by the organisation.
(Followed from - www. auhy69. dsl. pipex. com)
The success of your relationship marketing program in a company or organisation is determined by how best a company manages the aforementioned shown six marketplaces, which are all inter-related with one another. If these key market segments operating surrounding the core of the company are supervised properly, it can maintain its value proposition in the market along with decreasing the risks of being attacked by way of a rival company.
The key factors that require to be analysed about Tata Motors in the study by the use of this model are shown below through a table-
What methodology can be used by Tata Motors to look at to build up new customer base and the wthhold the old ones?
Are the internal employees in a position and ready to impart quality services to the clients which are relating to the approach taken by the business?
Has the business carefully selected, stimulated and trained the employees to deliver quality service with regards to the approach for attaining and retaining customers?
How can the connections of the business with its suppliers and vendors be effectively maintained so that quality service can be taken care of?
Does the business own a reputed brand? The type of strategy are implemented to keep effective relationships with the Mass media, experts, etc. that promotes person to person publicity?
Is the company having good communication links with specialists in public who make suggestions on purchasing decisions of customers? How can the company enhance the customer's devotion towards it s products?
(www. openlearn. open. ac. uk)
Cultural aspects accompanied by a customer
Social characteristics of customers by which they form a group related to education, profession, pursuits, etc.
Influences by family and friends
Situational influences which stimulates or demotes company sales depending upon customer's situation. This also includes his monetary situation.
Influence of marketing work to purchase the company brands.
Influence of Psychological factors that are the customer's perception, inspiration, frame of mind, etc. towards a company's brand.
Influence of demographic factors which split individuals regarding to age, gender, monthly income, requirements, job, etc.
(Parsons. E and Maclaran. P, 2009)
In the exploratory research, Positivism will be adopted as a study methodology. It's been assumed that relationship marketing influences the buyer buying tendencies. The research study research strategy would be adopted in the study that will provide the insights of the impact of marriage marketing on the automobile industry.
Tata motors had been focussing on Six Sigma online marketing strategy previously, but it failed credited to some reasons. Presently, they are simply focussing on Siebel CRM ways to maintain their connections with the customers and generate more customers but the competition by Multi-national car giants such as Toyota, General motors, etc. is very extreme. Previously, the business was considerably behind other car manufacturers because its cars were based on 3rd and 4th technology models, but now after the take-over of land-rover and jaguar brands, it offers entered the luxury segment of cars. To gain the market-share, Tata would now have to develop a far more competitive strategy which would tools up the appeal of customers towards Tata. As, it now owns cars to meet the needs of customers from all segments and financial backgrounds; Thus, a differential relationship marketing strategy must be developed to fully capture prospects from all segments which would end up being fruitful to the business.
The methodology utilized to understand the relationship marketing's impact on consumer behavior will be the Case-Study Research which can be an empirical inquiry that investigates a existent event in the condition of its natural condition; and in the case, where in fact the outlines of the event and its conditions are not clearly distinctive; and when this happens, several resources of indicators for facts are employed. (Yin, 1984).
Thus, this research would add a detailed contextual analysis of the prior researches and taking with an in-depth examination of the factors which impact as well as promote the relation between a customer and a service-provider, through interviews, questionnaires, casual discussions with consumers and management of Tata Motors, India.
(Bryman. A and Bell. E, 2007)
There are mainly two types of data made from a research, namely, main and secondary. Key research is a kind of research that involves collection of data through questionnaires, interviews, target teams, etc. whereas, Supplementary data is the literary data gathered from the works done by other analysts previously and includes the data being collected from options such as, books, journals, articles, magazines, etc. (Walliman, 2001)
The main data in the research would be collected through questionnaires and telephonic interviews with the employees of Tata Motors in India, by utilizing public networking sites such as Facebook and Orkut to know the strategies applied by the company to promote marriage marketing. And in addition, in order to learn the factors which promote consumer buying tendencies through romance marketing, distinct data would be collected by means of questionnaires and telephonic interviews. This would reveal what exactly are the consumer needs and goals; also, how far is Tata Motors able to deliver them. Aside from this, the secondary data would be accumulated from sources such as books, journals, articles, sites, company reviews, etc. which would form the foundation of research through gaining in-depth knowledge about relationship marketing and its own implications in the real world, by studying recently researched knowledge.
Sampling can be an statistical process relating to the selection of people from a selected segment of population and then making general inferences about research from these preferred individuals by studying them (Stuart. A, 1962). On this research the targeted theoretical populace for main research would be from the central part of India (Madhya Pradesh) and Delhi. Samples of twenty-five Tata Motors Marketing employees which includes Middle-level and lower level employees would be examined for getting data related to the business and then, fifty examples of customers would be researched from the targeted parts of India. The examples would be attracted made by the easy random sampling method so that all the components of relationship marketing get an equal possibility of selection. This would reduce bias and also make it easy to investigate the variety of results. For this an example of selected individuals would be looked at that could truly represent the complete inhabitants which would give accurate results for your population.
In order to support the above mentioned hypothesis, the data gathered through interviews and questionnaires would be studied through descriptive ways of analysis. Also, information of the samples would be analyzed by descriptive reports such as graphs and percentages.
The proposed technique is supposed to incorporate the overview of literature on marriage marketing with the evaluation of derived data through extra research. The data hence from the supplementary research would be analyzed on following lines: conceptual types of relationship marketing, services provided by the business to customers, customer support, extent of preserving relations with the clients for the business, analyzing customers to maintain relationship with, examining the tendencies of staff with customers and activities involved with retention of dissatisfied customers, etc.
The level of customer satisfaction along with the volume of long-time customers achieved by a company would be a measure of marriage marketing in a firm. This pertains to every company including Tata motors in India. As relationship marketing is assumed to give benefits to a corporation, so it needs to be evaluated where and exactly how does it give desired profits to Tata Motors
Relationship Marketing and Mass Marketing or transactional connections are very different that has already been established. But it depends on business to business when and how to adopt a procedure for relationship marketing. For instance, many small businesses such as newsagent shops do not require any way of romance marketing. Nonetheless it develops on the time period with regular customers. In case of big businesses in Vehicle Industry, Aviation Industry, Telecommunications, etc. romance marketing plays an essential role and this would backed by the research along with its implications. As per the research conclusions, judgments would be shown to take up a more strategic methodology for supervision of customer expectations. From the present literature review it can be suggested that, relationship marketing is important on customer buying decisions and it could be good source of profits in a typical online marketing strategy of Multi-National Companies, where 'they want to preserve old customers and gain new customers'. However the approach adopted to control customer expectations effectively is still not so clear and can mess up a company or can lead to its overall success.
Dec 2009 - Jan 2010
Identifying a research topic
Analyze research study for research and derive steps to be taken for accumulating key data
Feb 2010 - March 2010
Submission of Research proposal
Critical analyzing of related literature
Concluding a research methodology
Distribution of related questionnaire, compilation of accumulated data.
Writing the survey of the carried-out research
Concluding the research and submitting the final report.