TABLE OF CONTENT

NO. TITLE PAGE PAGE

1. Introduction/summary 3

2. Content 4 – 12

4. Reference 13

5. Appendix 14

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 SUMMARY
Marketing according to charted institute of marketing, Marketing is defined
as management process of anticipating, identifying and satisfying customer
requirements profitability. Marketing is all about identifying human and social needs.
Stuffs which can be marketed include goods, services, events, experiences,
persons, places, properties, organization, information and ideas. Marketing consist
of several objectives including increase sales volume, increase growth rate,
increase market share, increase market penetration, maximize return on
investment, promote social responsibility and promoting positive company image.
Marketing management is defined as the art and science of choosing targets
markets and getting, keeping and growing customers through creating, delivering
and communicating superior customer value A good marketing is no accident but a
result of careful planning and execution using state-of- the-art tools and techniques.
Financial success often depends on marketing ability.

The case study is about Argos company a catalog retailer operating in

United Kingdom and Ireland, and a subsidiary of Sainsbury’s. Argos, the leading UK
digital retailer, was established in July 1973 as the United Kingdom’s first catalog
that retailer with only 17 stores but now has over 750 stores, serving over 130
million customers annually. This case study about to know the result in delivering
superior value to customer after the acquisition of Argos by Sainsbury’s. Second, to
know about the concept of share of customer, marketing management orientation,
the key actions taken by Argos that following the changing marketing landscape
and to suggest the various way by which Argos could continue to provide better
value to its customers.

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DISCUSSION

1-18. To what extent do you think the acquisition of Argos by Sainsbury’s

resulted in delivering superior value to customer?

Customer relationships management is the overall process of building and

maintaining profitable customer relationships by delivering superior customer value
and satisfaction. It deals with all aspect of acquiring, engaging, and growing
customers. The key to building lasting customers relationships is to create superior
customer value and satisfaction. Satisfied customers are more likely to be loyal
customers and give the company a larger share of their business. That stated in
case study about building relationship block in perceived customer value and
customer satisfaction. Argos core hallmark is its consistent focus on the satisfaction
of the needs and wants of its target customers. Argos’s focus on catalog retailing is
based on its quest to satisfy customer through convenience. The idea is to make it
easier for customer to meet their needs focus on the company deals in variety of
products.

The company now targets all demographics because of the issue of keeping
those customers satisfied with seasoned products and excellent customer service.
The new CEO of Argos, John Rogers strategically identified the core objective to
ensure that not only that the customers are encouraged to shop at Argos but that
they are motivated to stay loyal even when the competition tries to entice them.
Argos introduced a striking and daring policy is “Same-Day Delivery” to make easier
to customer to make purchasing. This strategy considered as a good gesture
among the customer and not only reinforced loyalty among the organization’s
current clientele but also support others keen on efficiency in the marketplace.
Customer relationships levels and tools. Beyond offering consistently high value and
satisfaction, marketers can use specific marketing tools to develop stronger bond
with customers. Companies can build customer relationships at many levels,
depending of the nature of the target market. Transforming business in various
sectors and retailing is no exception in developments in the world of technology.
Argos to existing loyal customer through the Argos loyalty card scheme while others
are to attract new customers. It sends its customer various promotional offers,
money-off vouchers, and other financing offers. And interactively.

Next, customer engagement and today’s digital and social media. Today’s
companies are using online, mobile and social media to refine their targeting and to
engage customer more deeply and interactively. The new marketing is customer

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engagement marketing is fostering direct and continuous customer involvement in
shaping brand conversations, brand experiences and brand community. For this
company case, the organization is noted for offering a wide range of products that
are categorized on its websites to make shopping easy for its online visitors. For
example, customers who are interested in products such as TVs, telephones, or
computers would simply need to click on the “technology” link to be ushered into the
world of these gadgets.

Thirdly, consumer generated marketing is brand exchanges created by

consumers themselves are both invited and uninvited by which consumers are
playing an increasing role in shaping their own brand experiences and those of
other consumers. Companies try to inviting consumers to a more active role in
shaping products and brand content. However, harnessing consumer-generated
content can be a time consuming and costly process, and company may find it
difficult to mine. Related to this company case, one critic noted that Argos’s focus is
on being a “working class” brand, implying that their customer are mainly less well-
off. Former CEO John Walden disagrees with this customer stereotype and insist
that while this may have been true five years earlier but now things have changed at
Argos because the company now targets all demographics. Besides, the Argos gift
voucher promotions, which are managed by the company’s affiliates, offer its
customer something to fall back on during their various subsequent purchases. The
periodic product-specific special offers on certain products like furniture, computers,
and TVs also constitute part of the package that keeps Argos’ stores busy over the
years, and with this, it generates customer value profitably.

In addition, partner relationship management. Marketers must be good at

working closely with other inside and outside the company to jointly engage and
bring more value to customer. Marketers must also partner with outside the
company to interact with customer and delivering customer value to perform well
against competitors. Argos specifically chose Macmillan Cancer Support as its
charity of the year from 2015 to 2017. Argos’s impacts in local community to support
various charity and other related organizations. It is shown that it is quite possible to
create value for customers and still build relationships with stakeholders.

For suggestion and opinion, we suggest that Argos companies be more

focused on the latest social media to help in promoting the product and bond with
customers on the improvement of a product or lack of company. It is because the

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customer always want to find something new to try and something that can give
them more value.

1-19. How is the concept of share of customer illustrated in the case study ?

Concept of share is the portion of customer’s purchasing that a company

gets in its product categories. The share that they get of the customer’s purchasing
in their product categories. To increase share of customer, organizations can offer
greater variety to current customer. The organizations also can create more
program to market more products and services. For this company case, Argos has
undergone remarkable changes by design makeover has turned the tatty faux-
wooden floorboards and display cabinets into tiled floors and LED display boards for
easy shopping. The company maintain the in-stores catalogs that use at Argos
stores but with a new transformation is into hi-tech outlets and “digital” stores. The
catalog had been replaced by iPad-style terminals from hefty to facilitate order
processing. All of this helped Argos make a seamless entry into digital world in retail
business. Around 60 percent of Argos’s sales are now done as online transaction,
which is also closely linked to the fact that the organization is the first retailer in the
United Kingdom to make over £1 billion through mobile payments.

Argos was quick to explore the opportunities through various special price-
cut offers that also attract a responses from many new and existing customers.
About 12 million customers reportedly visited company’s website on the 2015 Black
Friday, resulting in 18 purchases in a second. The periodic product-specific special
offers on certain product like furniture and TVs also constitute part of the package
that generates customer value profitably. It is tempting to conclude that Argos’s
focus on maximizing customer value driven by profit but also focus in taking
responsibility for the environment, improving the local communities, and pursuing a
number initiatives that revolve around a long-run benefit for customer and society.
This situation can create value for customer, build relationship with people outside
the company but at the same time can increase the share of profit. The customer
always want to make some kind of this as a role model to people. Customers now is
more informed and deserved the best from any retailer that their choose.

For the suggestion, we hope that Argos will keep all the promotional and
increase the share of profit that happen in company. We suggest that Argos always
serve the best quality of product and service to make sure customer will keep the
loyalty with the company. We believes that responsibility to keep our environment

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with the best condition can make our community keep to stay with the company
because the company always think about customer and society.

1-20. To what extent would you agree with the claim that Argos’ s marketing
management orientation is a marketing concept? Justify your standpoint with
relevant points from the case study.

There are five marketing management orientations that related with Argos
Company. The first one production concept. This production concept means is the
idea that consumer will favor products that are available or highly affordable. Based
on the case study, Argos’ s focus on catalogue retailing is based on its quest to
satisfy customers through convenience. The idea is to make easier for customers to
meet their needs, especially as the company deals in a variety of products. Second,
product concept. This product concept means the idea that consumer will favor
product that offer the most quality, performance and futures. Organization should
therefore devote its energy to making continuous product improvement. Based on
the case study, the Argos company is noted for offering a wide range of products
that are categorized on its website to make shopping easy for it online visitors. Third
is selling concept. It means is the idea that consumers will not buy enough of the
firm’s products unless it undertake a large scale selling and promotion effort. Based
on the case study, Argos’ s commitment to delighting its customers is not only
evident in the increasing range of products it offers its customers and the sleek
distribution system, but also in the various promotional programs it offers and the
Argos gift voucher promotions, which are managed by the company affiliates, offer
its customers something to fall back on during their various subsequent purchases.
Fourth is marketing concept. It means is the idea that achieving organizational goals
depends on knowing the needs and wants of the target markets and delivery the
desired satisfactions better than competitors do. Based on the case study, Argos is
noted for a number things in the British retail sector, its core hallmark it is consistent
focus on the satisfaction of the needs and wants of its target customer. Fifth is
selling concept. It means is the ides that consumers will not buy enough of the firm’s
products unless it undertakes a large scale selling and promotion effort. Based on
the case study, Argos commitment to delighting its customers is not only evident in
the increasing range of products it offers its customers and the sleek distribution
system, but also in the various promotional programs it offers. The Argos gift

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voucher promotions, which are managed by the company’s affiliates, offer its
customers something to fall back on during their various subsequent purchases.

For the suggestion, we suggest to the Argos company to analyze their

competition. Competition breeds the best results. To be successful, they cannot be
afraid to study and learn from their competitors. After all, they may be doing
something right that they can implement in their business to make more money.
Besides that, they also must understand the risks and rewards. The key to being
successful is taking calculated risk to help the business grow. A good question to
ask is "What's the downside?" If they can answer this question, then they know what
the worst-case scenario is. This knowledge will allow they to take the kinds of
calculated risks that can generate tremendous rewards. Last but not least, be
creative, the company always be looking for ways to improve the business and to
make it stand out from the competition. Recognize that they don't know everything
and be open to new ideas and new approaches to their business. 

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1-21 What are the key actions taken by Argos that show that the organization
is following the changing marketing landscape?

We examine the major trends and forces that are changing the marketing
landscape and challenging marketing strategy. We look at five major development
which is digital age, the changing economic environment, the growth of not-for-profit
marketing, rapid globalization, and the call for sustainable marketing practices.
Based on this case study for the digital age, this is not only ensured through the
thousands of product that it offers its customers both online and across its various
stores in the country, but also in all the phases that encapsulate the customers’
experience in their transaction, from placing the order to receiving the items. Argos’
s focus on catalog retailing is based on its quest to satisfy customers through
convenience. The shopper checks the catalog, places the order, and receives it
shortly afterwards. So, its twice-yearly catalog and internet site aid the way the
establishment creates value for its customers. Other than that, the organization is
noted for offering a wide range of products that are categorized on its websites to
make shopping easy for its online visitors. For example, customers who are
interested in products such as TVs, telephones, or computers would simply need to
click on the “Technology” link to be ushered into the world of these gadgets.
Similarly, there are categories for “Home and Garden”, “Sports and Leisure”,
“Clothing”, “Health and Beauty”, “Toys” and many more. Furthermore, as the retail
environment in the United Kingdom becomes more competitive, Argos also
continues to explore various means of maintaining and improving its market share.
In 2015, Argos introduced a striking and daring policy its “Same-Day Delivery”
service. As the name suggests, a customer could now order the desired products
and get them immediately in the store or delivered at home on the same day
through a “fast tracked” option. In addition, development in the world of technology
are transforming businesses in various sectors, and retailing is no exception. Based
on data from the food and grocery research charity IGD, 5 percent of grocery sales
in the United Kingdom are done online. As key organization in retail sector in the
digital age, Argos is also working toward transforming itself into a “click and collect”
business. Toward the end of 2012, Argos announced its mission to rediscover itself
as a digital retail leader. John Coombe, the chairman of Home Retail, Argos ‘s
parent organization, remarked that Argos is not only an icon of the British high street
but also a leading player in the digital transformation of UK retailing business.
Lastly, around 60 percent of Argos’ s sales are now done as online transactions,
which is also closely linked to the act that the organization is the first retailer in the

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United Kingdom to make over Ƹ1 billion through mobile payments. Its hefty catalogs
are being replaced by iPad-style terminals to facilitate order processing. All of this
has helped Argos make a seamless entry into the digital world in retail business.

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1-22 In view of the stiff competition in the UK retail sector, suggest various
ways by which Argos’ s could continue to provide better value to its
customers?

Added value is an important strategy that can be used by businesses to

acquire and retain customers, increase brand awareness, and differentiate one’s
place in the marketplace. There are a few ways to create added value that can be
easily implemented into the business. Firstly, always consider your customers’
perspective. The art of creating added value starts with the ability to see the
business through the eyes of the customers. Consider what’s important to the target
market and how the product or service will give benefit. What problem does it solve,
how will it help to overcome obstacles or do their jobs better. Many businesses
missed the boat by focusing on features instead of benefits. By shifting your focus to
providing content that focuses on the customers’ needs that can start helping and
stop selling. Helpful to provide insights about the current and future customers,
what’s meaningful to them, and gives the company a roadmap of the kind of content
that can create and share to provide added value.

Second, consistently work to improve customer satisfaction. Although the

debate over whether the customer is always right (or not), lack of customer
satisfaction is a sure-fire way to keep people from coming back. Soliciting honest
feedback through surveys on a regular basis allows to keep finger on the pulse of
the customers’ needs in their journey with your business and is also an opportunity
to monitor the company brand’s identity in the marketplace. Other than that, free
survey tools like that offer easy-to-use templates and unlimited responses to ensure
can collect feedback and create an action plan based on the results. Implement
marketing models into the company strategy. As searching for ways to create added
value, the use of popular marketing models can help the strategy take shape. For
small and medium businesses, ‘SWOT' Analysis tool will help you develop your
brand’s value statement, define the unique selling point, and even forecast
customer demands based on market trends. Furthermore, develop a memorable
customer experience. Businesses with unforgettable customer experiences are
more likely to benefit from word-of-mouth referrals, positive online reviews, and
higher retention rates. When getting started, the company need to consider all touch
points of the business, from initial lead capture to post-purchase communication and
how to properly maximize the added value for the customer throughout the process.
Building a customer experience also allows to develop relationships with the
customers so that can connect on levels that go past simply getting the sale. Most

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importantly, memorable customer experience models aim to deliver unexpected
intangible value that cannot be packaged or sold. This includes personalized
service, attention to detail, and showing a sense of urgency to address concerns as
they arise.

Last but not least, never underestimate the value of free resources.
Whether it’s a free guide, a printable PDF, or a company branded calendar, free
resources are a great way to create added value and showcase the company
brand’s ability to offer ‘a little something extra’ to the customers. The free resources
can also serve as useful tools to help grow a small business’s brand awareness and
expose the target market to various products and services. For brick and mortar
stores, consider promotional materials featuring the company’s logo that can be
given out in-store. Businesses with an online presence can use a customized sign
up form to encourage visitors to sign up to hear more about special offers and
promotions. Although, may be offering something for free, it still needs to have
relevance to the market and should always be consistent with the brand’s overall
purpose. These few suggestion will help to think about a few ways that can add
value to the businesses in the future in the company prospects and customers.

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REFERENCES

Kotler, P. & Armstrong G. (2018). Principles of Marketing. (17 th ed).United

Kingdom: Pearson Education Limited.

Suleiman Ally. (2014). Retreived from

https://www.slideshare.net/suleymans19/marketing-management-
orientati ons. [Accessed 26 November 2018]

Powers, K. (2015). Retreived from

https://www.verticalresponse.com/blog/5-ways-to-create-added-value-
for- customers/. [Accessed 26 November 2018]

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