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marketing memo 6 - up customer service Day asked 1...

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Sagar Dedhia 905387447 Marketing Management Memo 7 Chapter 11: Sales Promotion The most popular way to evaluate the effectiveness of sales promotion is to track the goal of the promotion and compare the relevant data before and after the promotion is run. The approach does not control for other marketing factors that affect the data and can be confounded of multiple promotions are being fun simultaneously. Customer focused promotions are most often price related but may also involve the product and special events. Customer promotions are incentives to buy the product, but can also increase purchase volume induce customer to switch brands or use larger size and achieve other purchase related goals. Starbucks Case Day told that they have developed recession proof since it was growing more than 5% for more than 11 years in a row. Day was not satisfied with the service, hance decided to invest $40m more to add 20 hours to speed
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Unformatted text preview: up customer service. Day asked 1 associate to check what customers think about 'excellent' customer service, and if Starbucks deliver then how will their sales and profitability impact. Background: Scultz initially worked in marketing , later took over Starbucks. He made public offer, raised $25m from IPO and opened more new stores. CAGR raised. There was no marketing. CEO Orin Smith ……. .Scultz Chairman. Starbucks Value proposition, Branding : 1. Coffee: Best quality coffee in the world, it controlled the supply chain, distribution, roasting. 2. Customer service: frequent visitors, customizing the drink. 3. Environment, ambiance Channels of Distribution: Locations in retail centers, business offices, colleges Customer satisfaction: was $40m worth investing, since the bottom line was being affected....
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