Rate Card in Various Media

There are FOUR kinds of rate cards were found (outdoor, TV, online, and print media).

Outdoor: KL Sentral Advertising Panels

TV: 8TV

Online: Cinema online Malaysia

Print: The Star Newspaper, Malaysia Canada Business Council Magazine

	Duration	Column	Colour Options	Interactivity	Screen Solution
Outdoor	Days	Yes	Yes	Less	Yes
TV	Second	Yes	Yes	Less	No
Online	Days	Yes	Yes	High	Yes
Print	Insertions	Yes	Yes	Less	No

When it comes to duration of the advertising rate, every media possesses different duration based on the feasibility. For instance, the advertising in print media depends on how many times it appears in the newspaper a week. As for the outdoor and online media, they are given certain period to display their advertisements and the ad will be removed after the given period.

Basically, every media has its respective column. The outdoor media allowed two different company to collaborate their advertisement and place it in a advertisement board. Apart from that, TVC can be advertised in a running shows/drama. Whereas, the online advertising is counted depends on the size of the column in a web page such as banner, skyscraper, text banner and etc… Lastly, the column for newspaper ad is either in full page or some part of the page.

Every media is free to choose what colour they desire to advertise. Logically, colour ad is more effective in grabbing attentions.

Online advertising has much interactivity and promotes two way communications. The audience could click the interested advertisement in order to know or understand about the particular product. Nevertheless, we cannot deny that the other media is not considered as 'interactive', there are contact number and voucher that urge the audience to respond after exposed to the ad.

Outdoor media can choose which sizes of the screen they intend to advertise, most of the outdoor advertising has a variety of screen sizes. Most of the TV advertising doesn’t have the choice of screen solution, they are all in full screen pattern. The Online advertising depends on the format, which are: GIFF, JPEG, Flash and so on.

However, the price of advertising in TV during weekends is lower than the usual price. That is because there will be only a few audiences and most of them went out for family gathering or outing. Most of the media do not display their rate card in the internet and urge the buyer to contact them. From this aspect, we know that the rate is set by the company itself depending on the package they provide.

My Third Journal Article Review: Relationship Marketing

Title: Does Relationship Marketing Improve Customer Relationship Satisfaction and Loyalty?

By: Leverin, A.& Liljander, V.

Source: Journal of Bank Marketing Vol. 24, No. 4, 2006 pp. 232-251

1.0 Introduction

During the previous years, the banks were mainly providing the saving service and investments for the customers, they did not realize that the importance of establishing relationship between bank and customer is essential. Due to the increase number of banks nowadays, banks tend to organize various competitive programmes in order to receive profits and to obtain more customers.

The aim of this study is to investigate the RM strategy of a retail bank, in order to discover whether the implementation of the strategy has had the intended strengthening effect on customer relationships. A survey was conducted on two different profitability segments, collecting data on customer relationship satisfaction, perceived relationship improvement, and loyalty towards the bank. The study examines the RM strategy and investigates whether its implementation has led to customer-perceived improvements in the banking relationship, and to increased loyalty in the targeted segment.

According to O’Malley, and Tyanan (2000), relationship marketing works better if only the customers get themselves involved in the product or service, personal interaction and willing to engage in relation ship building activities. However, it does not mean that all of the customers are characterized as the profitable customers in the context of long-term and short-term customers in the banking service.

1.1 Definition of Relationship Marketing, (RM)

Relationship marketing is the method of gradually turning potential customers into subscribers and leads them from position to position along a planned program to convert them into life time customers (Yahya, 2003). In the context of retail banking setting, Walsh et al. (2004, p. 469) define RM as “the activities carried out by banks in order to attract, interact with, and retain more profitable or high net-worth customers.”

According to O’Malley, and Tyanan (2000), customers who perceived benefits of involving themselves in banking relationships are highly encourage the strategy of relationship marketing by the banks.

1.2 Principles of Relationship Marketing (RM)

Paynne, 2006 suggests three main principles of RM. The first is an emphasis on customer retention and extending the ‘lifetime value’ of customers through strategies that focus on retaining targeted customers. The second is a recognition that companies need to develop relationship with a number of stakeholders, or ‘market domains’, if they are to achieve long term success in the final marketplace. The third is that marketing is seen as a pan-company or cross-functional responsibility and not solely the concern of the marketing department.

On the other hand, Hennig-Thuau & Hansen (2000) suggest that there are “6 i’s of RM.”

1. Intention

- of a unique relationship

2. Interaction

- with customer

3. Integration

- of customers

4. Information

- about customers

5. Investment

- in customers

6. Individuality

- of customers

2.0 Literature Review

2.1 Customer Relationship Satisfaction

According to Ennew and Binks, 1999; Jamal and Naser, 2002; Hooi Ting, 2004, A positive relationship between service quality and satisfaction has been well established in the banking sector.

2.2 Customer Loyalty

Customer loyalty is defined as:

… a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour (Oliver, 1999, p. 34).

That implies, customer loyalty is a customer who shows positive attitude or preference toward one of the particular service or product rather than the other.

According to Nordman (2004) even satisfied customers switch banks and move to another while they were showing satisfaction to the bank service. The main factor that contributes to this problem is pricing. Therefore the banks carry out customer loyalty programmes that provide economic incentives.

2.3 The Link Between Loyalty and Profitability

Not all loyal customers are profitable (Storbacka, 1994, 1997). According to Reinartz and Kumar (2002), the overall link between loyalty and profitability in many industries is questionable for two reasons:

(a) a relatively large percentage of long-term customers are only marginally profitable;

(b) a relatively large percentage of short-term customers are highly profitable.

2.4 Profitability Segmentation in Banks

Customer profitability segmentation has been implemented in order to fulfill the RM strategy. Storbacka (1997) suggests applying the principles of segmentation in an RM context. The segmentation criteria are:

- relationship revenue and relationship cost;

- relationship volume;

- relationship profitability; or

- relationship volume and profitability.

3.0 Method

This study was conducted in 2003 and the bank which had fully carried out RM strategy that was launched in 1998 was chosen that is, OP bank in Finland. Segment 1 & 2 has been chosen as the respondents for this study.

4.0 Relationship Marketing and Profitability Segmentation at the Bank

4.1 Implementing the RM strategy

a) Bonus point given to the customer through loyalty programme.

b) 2003, allowed customers to receive cash of collected bonus points

c) Divided customers into three segments. The main criteria for segmenting customers are rate of profitability, loans, deposits, and investment.

i) Segment 1: Most profitable customers and highest business volume or wealth.

- Use customer oriented strategy towards these customers.

- Map the needs of 80 percent and a bonus system to motivate the staff to reach the objective.

- Customers that visit the bank at least twice a year are asked by contact employees how satisfied they are with the bank and its services.

- Customers that seldom visit the bank office are contacted by telephone.

ii) Segment 2: Possess certain volume or profitability (less than Segment1), younger than 26 years old.

- Exposed to a sales oriented strategy to increase the long-term savings.

- Contacted by telephone and offered different types of long-term savings, such as mutual funds.

- Not offered personal appointments and no continuous contact is kept with these customers in order to map their needs.

iii) Segment 3: At least 26 years old, smaller volume and less profitable.

- To increase their profitability

- Directs a transaction oriented strategy towards these customers, minimizing the amount of time spent on them and encouraging them to use self-service options, such as online banking, thus aiming to reduce the relationship costs.

5.0 Results

- Customers had perceived improvements in their relationship with the bank over the past 4-5 years.

- The findings indicate that loyalty in both segments depend on the current level of relationship satisfaction than on perceived relationship improvements.

- The intention of a customer oriented focus on Segment 1 customers, did not lead to higher loyalty in Segment 1 customers compared with Segment 2 customers.

- No differences between the two groups on any of the relationship strength items: relationship satisfaction, relationship improvement or loyalty.

- Profitable customers are likely to be aware of their worth to the bank, and less tolerance for the service. They are more demanding has high expectations on the bank service.

- Customers in segment 2 show that they concern on price issues related to fees and interest rates.

- Customer in segment 1 complaint about the things in bonus programmes such as complexity and inadequacy.

6.0 Conslusion

The effects of Relationship marketing strategy on customer-perceived relationship satisfaction and loyalty have not confirmed in this study. Customers would perceive the improvements in banking relationship once the RM strategy was launched. The researcher suggested the bank to review its current strategy to improve its customer relationship in segment 1 and implement more efficient and sufficient RM strategy to cope with the relationship issues.

My Second Journal Article Review: Positioning

Title: Positioning your service to target key buying influences: the case of referring physicians and hospitals

By: Rajshekhar (Raj) G. Javalgi, W. Benoy Joseph and

William R. Gombeski Jr

Source: Journal of Services Marketing Vol. 9, No, 5 1995 pp.42-52, MCB University Press. 0887-6045

1.0 Introduction

In the modern era today, not only the commercial products can implement the positioning strategy, but the hospital nowadays in USA are trying to carry out the positioning strategy in order to obtain more patients among the competition. The objective of this research is to:

a) Explore the positioning implications of referring physicians’ perceptions and evaluations of tertiary care hospitals.

- Perceptual map is used to examine positioning options and strategies for several tertiary care hospitals in the USA.

b) Highlight the importance of correspondence analysis in assessing a business’ image.

- The physician’s expectations are playing a crucial role in making decision for the patients to undergo certain treatments. Therefore, the particular hospitals are able to position their services by referring to the strength/weakness and improve their service by knowing competitor’s position.

This research focuses on tertiary care hospitals. According to this journal, tertiary care hospitals are those that provide specialized medical services and depend extensively on referrals from physicians or from community hospitals. In this case, physicians play an important role in deciding the hospital for the patients for further treatment. Positioning strategy must be imposed on the physician in order to influence their decision making in choosing hospitals.

In this research, physicians are assigned to fill in the evaluation form when making decision for the patients. They filled in the form with expectations of the hospitals and did not rate the hospitals.

According to this research, evidence suggests that the physician is important to hospitals for at least three major reasons:

- Physicians decide the patient’s length of hospital stay.

- Physicians decide whether to admit their patients to a particular hospital based on past experiences and perceptions of the hospital and its offerings.

- Physicians’ decisions to admit patients to a hospital affect that hospital’s cost per patient-day (Mackay and Lamb Jr, 1988).

1.2 Terms of positioning

The purpose of market positioning is to have potential customer perceive your product or service in a particular way that not only differentiates it from the competition but also makes them more likely to want to buy from you. (Alpha, E.P, 2003) From the book named “The complete idiot’s guide to starting your own business.”

2.0 Suggestions after the Research by Using Positioning Strategy

There are four suggestions by the author after the analysis is done:

a) Strengthening the hospital’s marketing position through effective communications

- For instance, Hospital E’s strengths in organ transplant should be reinforced with communications such as advertising, publicity, personal or telephone contact.

- They should attract physicians who have not made referrals in the past and promote its strength or competitive advantages in credible campaigns and promotions. These efforts are to create awareness of the physicians and induce their loyalty in choosing the hospital.

b) Creating a differentiated position or niche

- Every hospital can be differentiated by its quality and reputation among the competitions, which are the facilities, equipments, and the environment of the hospital.

- In the competitive situation, this is one of the methods to compare or differentiate its special features. Physicians are more likely to evaluate the hospitals by comparing the uniqueness or strength of a hospital.

- Niche means limit their service to concentrate on a narrow service line, distribution channel or target market. For example, since hospital E is dominant in organ transplant, it can become the local or regional benchmark for organ transplant.

c) Establishing ongoing physician relationship

- This suggestion’s objective is to promote physician’s bonding and loyalty on certain service. The stronger the perceived image of the hospital and its offerings, the easier it is to establish networking programs and relationships with the referring physician market.

- They have to organize a program that not only to strengthen the existing relationship between hospital’s staff physicians and referring physicians, but also to foster new relationships.

d) Strengthening hospital reputation through sponsorship of tutorial, educational, and CME programs.

- This effort is to promote the reputation of the hospital and publicity in order to compete among the hospitals.

- Normally, the sponsor’s name will be mentioned during a program and this is the time for the hospital to promote their service more effectively.

2.0 Conclusion

This journal indicates the competition of the hospital and suggests the way to promote their service. It also tells us not only a product or service needs positioning, but hospital service also needs positioning and it is getting more commercialize nowadays.

3.0 Application

In Malaysia, the hospitals are not as competitive as in USA. However, most of the Malaysians rely on public hospital and the private competition is not so apparent and significant. Therefore, I would like to discuss about the positioning strategy by the telecommunication company in Malaysia.

There are three major telecommunication providers in Malaysia. Which are; Maxis, Celcom(TM), and Digi. They mainly differentiate their service by offering special features to the customers.

3.1 Maxis

- Provides 3G service

- Campus zone activation for the students

- Maxis broadband

- Active10

- Hotlink Reward

- Reload bonus

- Promotions from time to time

3.2 Celcom (TM)

- Provides 3G service

- Widest network coverage even in remote places

- Lowest rate in making calls.

- Reload machine which operates 24 hours.

- Celcom broadband

- Collaborate the promotion with Telekom Malaysia

- Promotions from time to time

3.3 Digi

- Friends and Family (11)

- Colour text messaging

- Digi broadband

- Birthday reload bonus 50%

- Promotions from time to time

4.0 Positioning Strategies

There are seven positioning strategies that can be pursued:

Product Attributes: What is the specific product attributes?

Benefits: What are the benefits to the customers?

Usage Occasions: When / how can the product be used?

Users: Identify a class of users.

Against a Competitor: Positioned directly against a competitor.

Away from a Competitor: Positioned away from competitor.

Product Classes: Compared to different classes of products

Source: http://www.determan.net/Michele/mposition.htm

Author: Michele

My First Journal Article Review: Target Market

Title: Nontarget Markets and Viewers Distinctiveness: The Impact of Target Marketing on Advertising Attitudes

By: Aaker, J. L., Brumbaugh, A. M., Grier., S.A.

Source: Journal of Consumer Psychology, Vol. 9, No. 3, (2000), pp. 127-140

1.0 Introduction

This research examines the effect of target and nontarget marketing on members of the advertiser by involving nondistinctive groups (e.g., Caucasian, heterosexual) and distinctive groups (e.g., African American, homosexual). On the other hand, it examines the response of audience in particular advertisements. Generally, this research intends to:

a) investigate the effects of target marketing on consumers not intended target market. (Aaker, et. al., 2000)

- Researchers proposed that particular audience (e.g., Caucasian when watching an ad in Black American Channel) has negative effects towards an ad associated with feeling being excluded from the ad have consequences for advertising reactions. These negative consequences called nontarget market effects.

b) demonstrate the process by which target marketing operates is driven by consumers’ inference of similarity between some characteristics of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g., reality or desire of having the represented lifestyle; Grounhaug & Rostvig , 1978)

- Negative nontarget markets effects may happen when the elements in an ad are incongruent with some demographic or psychographic of the customer. This implies an ad may induce negative effects if it did not contain any interest of the particular audience. The audience may feel ignored, neglected, become alienated or offended if viewing an ad that has not been designed to appeal to their market segment.

c) distinguish between target marketing from the marketers’ (actual target market) vs. the consumers’ (perceived as being in the target market) perspective. (Aaker, et. al., 2000)

- Researchers focus on negative nontarget market effects (or the decreased preference for an ad by nontarget market vs. target market members).

1.1 Terms of Target Market

A target market is a group of potential clients who share certain characteristics, tend to behave in similar ways, and are likely to be attracted to a specific combination of products and services. A target market represents a defined market segment that contains identifiable clients who demand or represent a potential demand for microfinance service. (Ledgerwood, J 1999) From the book of Microfinance Handbook: "An Institutional and Financial Perspective."

2.0 Experiments

2.1 Experiment 1

It indicates nontarget market members respond less favourably to targeted marketing efforts and highlights the moderating condition of viewer distinctiveness. This shows minority groups have negative attitude toward target marketing effects, whereas individuals in a majority group are more likely to exhibit nontarget market effects.

Viewers’ interpretations of targeting cues involve their response of whether they are feeling similar to an advertisement.

The feeling of similarity toward an ad by an audience may be induced by creative cues, such as music type, slang, or tone of appeal, are frequently used by marketers to indicate the intended target.

In addition, the feeling of similarity with an advertisement shows the process underlying target and nontarget market effects may differ for distinctive versus nondistinctive viewers resulting in the observed asymmetric responses.

2.2 Experiment 2

It investigates target and nontarget market effects may occur and illustrates the distinctiveness of both consumers and advertisement sources influence the specific processes driving target and nontarget market effects.

The experiment shows again that target and nontarget market effects will be affected by the viewer distinctiveness. According to the result of the experiment, individuals in the nontarget market of an advertisement respond unfavourable attitudes than individuals in the target market. This implies again that viewers could not feel the similarity in an ad. Whereas, individuals in the target market of an advertisement had more favourable attitudes toward that advertisement than individuals in the nontarget market, and this effect was stronger for distinctive viewers.

2.3 Experiment 3

The final experiment confirms that these processes cause target and nontarget market effects to be more significant. According to their theoretical and practical understanding of consumer response to targeted marketing efforts, these implications of the existence of nontarget market effects and the psychological processes that underlie these effects are discussed.

Internalization happens when the attitude advocated is consistent with one’s value system and one finds it internally satisfying to accept the product or service.

Mackie (1987, p. 51) suggested that “the operation of factors such as majority endorsement illustrate difficulties of maintaining such distinctions as those between internalization and identification (Kelman 1958)” and highlights conditions under which internalization and identification can jointly occur.

3.0 Conclusion

a) In the context of consumer behaviour, viewer distinctiveness is an important element of source effects.

b) Target marketing operates through different mechanisms for distinctive and nondistinctive individuals. That is, the elements of an ad influence the positive and negative response by the particular group (e.g., Caucasian and Black American). Audience may be favourably when exposed to the targeted market, whereas they will be unfavourably when exposed to a untargeted market.

c) The feelings of similarity with the source drive favourable target market effects for distinctive viewers, advertisers courting minority segments may consider paying certain attention to the sources in advertisements that have the most impact on the intended target segment.

4.0 Application

In the context of Malaysia, the target market phenomenon happens in every TV channels too. There are several TV channels mainly playing different kinds of shows and drama to cater for different races in Malaysia. For instance, RTM1, RTM2, TV3, 9TV, 8TV, NTV7 are showing various shows for the Malays, RTM2, TV3, and NTV7 are showing Chinese shows for the Chinese and Indians too.

As for the period of Chinese shows, the TV commercials are mostly related to Chinese needs and necessities. For example, there will be an advertisement about the promotion of mooncake during the Chinese mid-autumn festival, promotions of packed drinks during New Year and so on. Whereas, as for the Malays’ festival, there will be promotions for the New Year and Hari Raya Puasa preparations.

Target market strategy should be imposed on certain audience to ensure that the message can be delivered to them in more effective way. According to the journal article, an ad must be able to induce the feeling of similarity and create a positive attitude towards the ad among the audience. For example; it is not appropriate to advertise mooncake in Malay channel and the audience may feel alienated toward the ad. Whereas, we can advertise an ad that caters for every category of audience in TV such as drinks, shampoo, snacks in every channel.