Firstly, all decisions of these companies consider the customers first and they share the common value of superior quality of the products, secondly, their organizational structure has very few layers and their policies are not very difficult. Thirdly, the strategy of a market oriented organizations is long term, flexible and participative. Finally, they consider the expectations of the stakeholders before making any important decisions.
In the case Citibank, the company was built to create a highly diversified financial services company that could act as one to deliver solutions to client, Citibank has variety of brands with diverse array of products and the greatest distribution capacity. In fact, Citibank has certain characteristics of a market orientated organizations in their business functions. Firstly, Citibank sees the needs of customers as vital by identifying and delivering them in just one-stop shop.
Citibank is considered as the first true “global financial supermarket” that provides all products and services in financial market from checking accounts to mergers and acquisitions, from credit cards to cash management, from leveraged finance to life insurance. Citibank had interacted well with all customers, understood all products and services the customers need. Annually, Citibank issue the Citi’s Global Transaction Services Client Casebook with hundred pages of case studies gathered from across the globe, this is a testimony to the innovative spirit of the company clients.
The Business plan on Customer Service Essay
Excellence in customer service is the objective of all organisations wishing to be successful. However, there is often a gap between customer expectations and management perceptions of customer expectations. Organisations often fail to get close to their customers and correctly read their expectations. Customers expect certain things when they walk into a business, and those with the highest level ...
Also, Citibank had analysed and provides optimal solutions to satisfy customers’ requirement and sought customer feedback to improve products and services provide in all the segments of the group, from accelerating cash inflow, risk mitigation and supply chain optimization, to partnering for productivity with clients, from improving cash outflow to enabling effective interaction with capital markets. Citibank also had implemented system to record customer feedback and communicate ideas at all branches and offices
Secondly, Citibank brings together that incredible diversity of products and services in multiple distribution channels. Citibank who has a global orientation, are organised into five groups which are Global Banking, Global Markets, Citi Capital Advisors, Citi Investment Research & Analysis and Global Transaction Services. This structure enables them to leverage their product breadth and geographic scope. In deep local roots in every market where they operate, their workforces are coordinated inter-functional by sharing the information across departments.
Furthermore, in order to ensure that Citibank can focus more on the company’s core business, Citibank had proposed the realignment which makes the company to be comprised of two main businesses which is Citi Corp and Citi Holdings. In January 2009, given the economic and market environment, Citibank announced the acceleration of the implementation of the company strategy to focus on its core businesses. As a result of its proposed realignment, Citibank will be comprised of two businesses which known as Citicorp and Citi Holdings.
Citibank believes that the realignment will optimized the company global businesses for future profitable growth and opportunities and will assist in the company ongoing efforts to reduce the company balance sheet and simplify the company organization. Citibank plan is to transition to this structure as quickly as possible, taking into account the interests of all stakeholders, including customers and clients, debt holders, preferred and common stockholders, employees, and the communities it serves.
The company recognizes that legal vehicle restructuring changes such as the realignment will require regulatory approvals and the resolution of tax and other issues. However, Citibank has managed the company consistent with this structure. Furthermore, in June 2010, 78 high-potential leaders from Citibank Malaysia completed a short coaching skills training program, The Art of Coaching: building commitment and engagement in teams, run by Results Coaching Systems.
The Business plan on Parcel Service Ups Company Customer
"United Parcel Service: Basic management structure." The United Parcel Service known also as the "Brown Giant" is the powerhouse in the air delivery, freight and parcel service industry. The United Parcel Service is based in Atlanta and is the world's largest package-delivery firm. UPS delivers more than 3 billion parcels and documents per year. United Parcel Service operates 150, 000 vehicles and ...
The Art of Coaching is part of a wider leadership development initiative called LEAD, in which top leaders engage in a series of training, mentoring and other learning initiatives over a 12-month period. The objective of The Art of Coaching program is to help leaders learn how to be less directive and subsequently more effective when leading others to solutions. Our hypothesis is that helping people to find their own solutions to problems is a highly effective way of increasing their commitment and engagement. The experience of finding a solution to a difficult problem is often experienced as one of insight.
Our results show that using a specific type of questioning approach is a faster method of helping people achieve insight, and find solutions, than techniques such as advice giving. Third and last, Citibank has competitive advantage remain global presence, which is rich both in history and in client relationships, at the heart of Citibank is an irreplaceable franchise built over nearly 200 years, with more than 200 million customer accounts in over 100 countries providing the quality of products and services and above all, providing value to their clients and shareholders.
Citibank works to handle issues that are considered as most important and urgent to customer by tracking, reporting and recording each issue until it is done. The company also had forms strategic and diverse partnership to improve service. Citibank facilitates of collaborative innovation with the clients, committed to be an embedded enabler and trusted partner, delivering interoperable solutions that serve multi bank, multi-functional purpose than any other provider in the marketplace. Citibank differentiated itself from competitors by deploying the e-business model.
The mission was to connect customers with Citibank online products, plus to conduct full transactions anywhere around the world with distinct needs. Due to the massive customer reach, the operational nature of Citibank has changed promptly. E-Citibank developed programs with aim to allow the transition from old style processing to focus on transforming workflow automation, therefore its performance had gradually improved. There are several elements that can be seen improving after the developed programs is implemented by the Citibank.
The Term Paper on Marketing Concept and Marketing Segmentation: Haagen-Daaz
Marketing Concept and Marketing Segmentation in Practice: Haagen-DaazINTRODUCTION Haagen-Dazs were the pioneers in the market for creating distinctive and indulgent taste experiences by marketing to an untapped segment - the adult ice cream lovers. The Haagen-Dazs brand quickly developed a loyal following. Its early success was created by word of mouth and praise. Without the benefit of ...
The first element that can be seen improving is the quality of the service of the Citibank itself. E-banking systems offers a wide range of transaction services including in payments and collections, foreign exchange dealing and clearing, securities trading and clearing, sub-custody and agency treasury. Many of these services break new ground. For example, the new Single Nostro account allows banks to make payments and collections in more than 45 currencies through a single account in the base currency of their choice, available in 22 languages. The second element is the speed of the service.
The e-business presence in the industry emphasized on customer service with full transaction everywhere around the world regardless distance and time zone, the opportunity exists for Citibank to deliver e-products at scale more quickly and more efficiently to customers. The third element that can be seen improving is the dependability of the company. E-Citibank provided latest informative technology supported by a world-class infrastructure with response time, highly security and 24/7 support. The motto ‘Citibank never sleeps’ sounds meaningful. Next, the fourth element is the flexibility of the service offered.
Citibank’s network extension service effectively delivers banks the benefits of a local presence without the investment in bricks, mortar and staff. The flexibility with their product development allows the company to create different e-business products for different industries and offer requirement for changing markets. The fifth element is the cost itself. The ability to save time and cost are the most advantages of the E-Citibank model in market orientation, customer with access to Internet can have all services at their fingertips and in the convenience at their home or office.
By referring to the given advantages of the E-Citibank, it can be conclude that e-business gives the company cheaper, faster, more efficient and sophisticated transaction processing power. All supported by Citigroup’s service excellence and global network. E-banking model helped Citibank consecutively won award-winning web-based banking platform in many years since 2000 till now. One of the most important responsibilities of operations function in the internal process is working effectively with the other parts of the organisation.
The Essay on Transportation Industry Business Companies Service
To any industry, the challenge is clear: you must deliver unparalleled service and value to your customers. In industry, continuous change has become the norm and the challenge to management is to create a flexible and dynamic e-Business infrastructure that promises to accelerate speed-to-market, satisfy customers' demands, and deliver profitable growth. Comparison of an Industry The evolution of ...
It is like the operations management who is responsible for managing the activities that involve in the production of goods and services. The direct responsibilities include managing the operations process, planning, control, performance improvement, and operations strategy. The indirect responsibilities include interacting with other support functions which enable the core functions to operate effectively, these include the accounting and finance function, human resources function.
However, the basic principal for interacting of operations function is integration with other two core functional areas which is the sale and marketing function and the product or service development function. With reference to the internal process of Citibank, the important role of its business orientation in purpose to enhance Citibank ability to deliver the key operational components necessary for the company survival and the crucial role of new product or service development process for the growth of Citibank in order to fulfil the objectives of the broad stakeholder.
Although 2010 will likely remain a challenging year, believing that as the economic environment begins to recover, Citibank will be well positioned to enhance shareholder value of which it is to be known by all how capable Citibank really is. Finally, with the right operations management in place, the three core business functions are strong, including the marketing function, the product or service development function and the operations function, with the top team of employees in the industry, Citibank will be able to turn their attention to the next stage of their growth strategy.
QUESTION 3: Explain four (4) elements of the marketing concepts and relate your answer with Citibank case study. “What philosophy should guide a company marketing and selling efforts? What relative weights should be given to the interests of the organization, the customers, and society? ” (Marketing Study Module, 2012) These are the questions that often being asked when speaking about an organization’s marketing and selling activities. That is why an organization’s marketing and selling activities should be carried out under a well-thought-out philosophy of efficiency, effectiveness and socially responsibility.
The Essay on Traditional Marketing Information Customer Companies
Like dusting powder on fingerprints, new e-marketing tracking tools are out now that make vital information visible. Certain tools and feedback loops can show e-marketers which content customer segments are interested in by disclosing viewing patterns, which are then automatically turned into rich, detailed reports that clearly define customer trends and preferences. Placing value on learning is ...
In the philosophical concepts to the marketplace that had been guiding the organizational activities, there exist five (5) main orientations. There are the Production Concepts, the Product Concepts, the Selling Concepts, the Marketing Concepts and the Societal Marketing Concepts. The production concept The production concept is referred as the oldest of the concepts in business. The concept itself holds that the consumers will prefer product that are easy to found and inexpensive. That is why, managers who are focusing on this concept concentrate on achieving high production efficiency, low cost and mass distribution.
They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product that it’s features. By referring to the definition of Production Concept given earlier, it can be said that the Production Concept is a concept where goods are produced without taking into consideration the choices or tastes of the customers. It is one of the earliest marketing concepts where goods were just produced on the belief that they will be sold because consumers need them.
This marketing concept is first practiced by earlier industrials and it soon became a standardized practice. However, with the continuous industrialization and more players entered into the market, the space available to sell the product have squeezed because too many people were selling the same product that is why it became too obvious that the mass production of goods which is the heart and soul of production concept can no longer work because of too many similar products had been produced. This concept fairly best fit the companies producing products for masses not for any specific or niche market.
Concept Of The Product Cycle For Business Planning And Budgeting
The product cycle concept states that all products have a life span. Since the desirability and sales of a product changes at different stages of a product’s life, product concept and strategy always need constant revision. Product cycle can apply to both a category of a product or a brand and underlines most business planning models because of sales and profitability. It has a number of ...
Need based products are more demanding compare to other products, that is why an organization meeting the demand by producing maximum quantity will have the opportunity to reduce per unit cost and increase profits. For example, in the case of the Citibank case study, it is well known that a credit card holder for Citibank Credit Card can own more than one Citibank Credit Card at one time. This situation happened because Citibank always produces more credit cards in other to meets the needs and demands of the company customers.
As a result for the more production of the credit cards, Citibank afford to provide two types of credit cards as the starter pack for new customer. This starter pack consists of one regular sized card and one mini sized card. The product concept The Production Concept is a concept that holds that the consumers will favour those products that offer the most quality, performance or innovative features. That is why for managers who are focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance.
However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the “better-mousetrap” fallacy, believing that a better mouse trap will lead people to beat a path to its door. By referring to the definition of the Product Concept, it can be concluded that the Product Concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is truly applicable in some niches such as electronics and mobile handsets.
One problem which has been associated with the product concept is that it might also lead to looking more to the market than the company itself. Thus companies need to take innovations and features seriously and provide only those which the customer needs. The customer needs should be given priority. On the other hand, innovating too soon becomes a problem. Several innovative products are marked as experimental in the market instead of being adopted as a result of which these products have less shelf life and might have to be taken off the market.
Thus companies following the product concept need to concentrate on their technology such that they provide with excellent feature rich and innovative products for optimum customer satisfaction. By referring to the Citibank case study, the product concept had been implemented in the company whereby the Citibank Credit Card is generally a system for those who want to make payment in credit term. However, people find that the uses of the credit card are too expensive for them unless there are from the group of people who afford to use the credit card.
After doing some research and studies, Citibank had come out with the idea to categorize their credit card which is for example Citibank had introduced the Citibank Premier Miles card for the purpose of fuel only and the Air-Asia Citibank gold for the purpose of ticketing payment. This new idea had attract more people to be one of the Citibank Credit Card holder. The selling concept The Selling Concept is another common business orientation. It holds that consumers and business, if left alone, will ordinarily not buy enough of the selling company’s products.
The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be encourage into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.
Based on the definition of the Selling Concept given earlier, it can be said that the Selling Concept is typically practiced with unsought goods those that buyers do not normally think of buying such as insurances or blood donations. These industries must track down prospects and sell them on product benefits. Such aggressive selling, however, carries high risks. It focuses on creating sales transactions rather than on building long-term, profitable customer relationships. The aim often is to sell what the company makes rather than making what the market wants.
It assumes that customers who are coaxed into buying the product will like it. Or if they don’t like it, they will possibly forget their disappointment and buy it again later. These are usually poor assumptions. In the case of the Citibank company, in order to persuade consumers to be the company customer, Citibank had created and launched the best promotional strategy throughout the nations by using the world wide web service, the electronic media such as television and radio and also printed advertisement such as billboard, posters and many more.
By implementing the promotional strategy, Citibank had exposed the company value of the product throughout the nations attracting more customer than before. The Marketing Concept The Marketing Concept is a business philosophy that challenges the other three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals which is the goals of the selling company consists of the company being more effective than competitors in creating, delivering and communicating customer value to its selected target customers.
The marketing concept rests on four pillar; target market, customer needs, integrated marketing and profitability. The distinction between the Sales Concept and the Marketing Concept is that the Sales Concept focuses more on the needs of the seller. The Marketing Concept focuses more on the needs of the buyer. Moreover, the Sales Concept is preoccupied with the seller’s need to convert his o her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem or needs.
The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve competitive advantage. This philosophy is the foundation of consulting selling. It can be concluded that the Marketing Concept is a fundamental idea of marketing that organisations survive and prosper through meeting the needs and wants of customers. This important perspective is commonly known as the marketing concept. The marketing concept is about matching a company’s capabilities with customer wants. This matching process takes place in what is called the marketing environment.
Businesses do not undertake marketing activities alone. They face threats from competitors, and changes in the political, economic, social and technological environment. All these factors have to be taken into account as a business tries to match its capabilities with the needs and wants of its target customers. An organisation that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer needs. For examples, nowadays consumers had been exposed to the value lies within the Islamic banking system.
Citibank when knowing about this new occasion, studied the Islamic banking and launched the new Citibank Islamic Banking System consist of saving account, loan application, credit card and many more. Al of this new product is based on Islamic Syaria’-compliant financial services. This new introduced banking system had attracted more consumers to become the Citibank customer. What happened in the Citibank is the best example to show the Marketing Concept, where the theory of Marketing Concept state that it is a concept where the organisation produced product or services based on the customer needs and wants.
Societal Marketing Concept The Societal Marketing Concept holds that the organization’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors. Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being. This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortage, explosive population growth, world hunger and poverty, and neglected social services.
The popular question asked regarding the concept is “are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interest in consumers and society? ” The Marketing Concept possibly sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Based on the given definition of the Societal Marketing Concept earlier, it can be said that the Societal Marketing concept was an evolution of the marketing concept where in an organization believes in giving back to the society by producing better products targeted towards society welfare.
The marketing concept sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Yet some firms and industries are criticized for satisfying consumer wants at society’s expense. Such situations call for a new term that enlarges the marketing concept. It is to be known as the societal marketing concept, which holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Some companies practice a form of the societal marketing concept called cause related marketing. Smart companies will respond by adding higher order image attributes than simply rational and emotional benefits.
Critics, however, complain that cause related marketing might make consumers feel that they have fulfilled their philanthropic duties by buying products instead of donating to causes directly. Thus societal marketing concept as related to cause related marketing differs mainly because here, the company makes a proactive effort to give back to the society. The societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver superior value to customers in a way that maintains or improves the consumer’s and the society’s well being.
The societal marketing concept is the newest of the five marketing management philosophies. Citibank in order to show to the consumer how much the company care about the society well-being had participate in many occasion that is not a profit based occasion. The participation of the Citibank is a proof that the company is looking forward to have a good long term of relationship with their consumers. For example Citibank had launched “Citi Environment Month” in response to the “Earth Day”.
Next, Citibank had introduced New Cancer Society Affinity Credit cards where in this occasion the Citibank had commits million of money in order to fight the cancer. All the five marketing concept had been explained. So, let’s move to the case study, the Citibank case study. In this case study Citibank is more likely to be perceived as using the fourth concept of marketing which the Marketing Concept. It is the best marketing concept that defines the philosophical concept that had been used by the Citibank. Prove is given below showing that Citibank used the Marketing concept as the philosophical concept that guided the company.
QUESTION 4: Provide an indication of the likely costs and benefits to Citibank case study in adopting a marketing approach Market Approach is a general way of determining a value indication of a business, business ownership interest, security, or intangible asset by using one or more methods that compare the subject to similar businesses, business ownership interests, securities, or intangible assets that have been sold. When referring to the Citibank case study, several advantages and disadvantages had been identified. The first element in advantages or benefits of the market approach mplemented by Citibank is Customer Satisfaction. The customer satisfaction is referred to the extent to which a product’s perceived performance matches a buyer’s expectation. An outstanding marketing company will go out of their ways to keep their customer satisfaction because a satisfied customer will makes a repeat purchase and they tell others about their good experiences with the product. For example, when a customer of Citibank lost their credit card, Citibank will ensure that within 30 minutes, that customer will get a new Citibank Credit Card.
The best part of this service is that the customer who lost the credit card did not need to go nearest Citibank branch, they just need to state where they were at that time. This service offered by Citibank had satisfied the customer even though in Malaysia the Citibank Automated Teller Machine (ATM) provided is less in number compared to other bank. The second element in advantages or benefits of the market approach implemented by Citibank is Customer Care. This element proves that Citibank put the company concern regarding the consumer needs and wants.
A good marketer should be aware of several trends in natural environment. They are responding to consumer demands with ecologically safer products, recyclable, better pollution control and more energy efficient operations. In Citibank here in Malaysia, the company provided a very establish customer services in order to ensure that the company always concern about the existing customer. For example, Citibank had come out with a complete database regarding the company customers and Citibank also recorded any transaction made by the company existing customer.
In any cases, if there is a customer lost their credit card, Citibank can retrieve the information regarding the last place where the card is used. The third element in advantages or benefits of the market approach implemented by Citibank is quality of services and product. Citibank had to ensure that the company services and products are designed to constantly improve the quality of their products, services, and marketing process because quality has a direct impact on a product performance and hence on customer satisfaction.
When referring relationship marketing, in order to succeed, the companies must be customer centred, winning customers from competitors, then keeping and growing them by delivering greater value. Marketer wants to build strong economic and social connection by promising and consistently delivering superior value. By referring the Citibank Case study, it is to be indicated that there is one element which is the easiness of applying for the store credit. The Citibank put a high expectancy in this product because the company believes that a sum of profit can be gained through this product.
The interest charged on store cards, as compared to bank credit cards, is at least several percentage points higher and often as much as 10-15% higher. As well, annual fees or sign-up fees may run twice as much as those of standard credit cards. As a result, Citibank is currently Malaysia’s number 1one bank that has charges which is higher than the other banks in Malaysia. That is why only businessman uses Citibank because it involved high cost in retaining the customers.
Furthermore, because Citibank only targeting the group of businessmen among the consumer, Citibank target market is considered to be higher than other banks. Lastly, it is to be well known that Citibank had produced and introduced almost eleven different types of credit card for the purpose of meeting the needs and wants of the selected customer. This occasion shows that the products and services offered by Citibank are not universal where all type of customer can have it. This is also the cost that needs Citibank to bear with.
