Internship report project and marketing part
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3.1 Job Descriptions:
I have been assigned as an intern at Golden Home Design and Development Ltd for 8 weeks to fulfill my academic requirement of Bachelors of Business Administration (BBA) degree. The duration of my Internship program was 8 weeks which started on December 1, 2015 and finished on January 31, 2015. In my internship period I have worked on Sales & marketing department. Now I am going to discuss different aspects of my experience and learning about Golden Home Design and Development Ltd.
3.2 Work Experience at Golden Home Design and Development Ltd:
After joining work I was given different types of activities to perform. I was given the opportunity to implement my academic knowledge in practical life. I worked with marketing department and also in the interior designing dept. regarding implementing strategies to increase sales and keeping record of monthly sales by the Sales representative officers in different regions.
3.3 Daily Work/Job Responsibilities:
When I was in Sales and Marketing department I had to do something these are given bellow:
Receiving mail from the new client of GHDDL..
Analyzing the position of the organization in the market. Then, take the decision that will they be our corporate client or not. Take approval from the General Manager and any associate of the Sales department of the GHDDL. Send the corporate rate to client via mail.
I also search potential buyers who are interested in buying plots. After searching the client I have called them and told them about our project and also have invite them to come to our office. Assist with images for developing a promotional brochure.
Create fliers and print materials.
Post updates on Face book and other social media.
Assist with other tasks.
3.4 Different Aspects of Job Performance:
Job performance depends on many factors like job responsibility, working condition, knowledge and expertise on the work activities; job satisfaction etc. The specific responsibilities of my job were not so tough to do. The working environment GHDDL was very friendly, which helped me to consider myself as a part of my jobs with greater satisfaction. Sometimes the job seems much boring. I could perform well due to the cordial assistance from all of the associates of GHDDL.
3.5 Learning from GHDDL:
At the time of internship period I have gathered some knowledge from GHDDL. These are listed below:
The way of communication with the clients over the phone.
How to convince them to buy plots.
I have learnt how to deal with the customers and negotiate the price. I also learnt how to build up good relation with the customers.
3.6 Limitation of the work
There are some limitations when I work at GHDDL. The first limitation is unfamiliar environment. That means I was not familiar with the corporate field and the corporate person. Sometimes it was quite difficult to cope up with the new environment.
Another limitation is to convince the buyers to buy project. I have less
knowledge in this about this sector. So how can I convince them and what would be the way to convince them. But there are some employees who supported me to do this by maintaining good manner and providing proper information.
4.1 Current Trends in Real Estate/Housing Finance
Over the last few decades, comprehensive studies of housing markets and housing finance systems across the world have created a shared body of knowledge on what constitute effective and non-effective housing policies and housing market regulations. In particular, programs to finance social housing are perceived differently today than a few decades ago, both in developing countries and advanced economies. The focus is on creating well- functioning housing markets and the expansion of a safe and sound housing finance system. Compare to the other countries, Bangladesh is also moving towards a more integrated modern housing finance system. First, there is a trend to increasingly rely on capital markets as sources of funds for primary housing finance lenders rather than on depository institutions alone. Second, it has been shown that, if assistance to low and moderate income households is necessary, subsidy programs are best designed to allow households to participate in the housing market, rather than provide public housing.
Third, support to moderate income borrowers to acquire loans through the private financial sector has proven to be most efficient if it is provided as a direct demand subsidy in combination with other facilitating measures and incentives to the banks rather than as interest-rate subsidies through segregated government lending programs and institutions. This way, mixing subsidized finance with market-based lending is avoided in order not to distort prices and create disincentives for expansion of the private finance sector. Fourth, for those households who cannot use the private sector for their housing finance needs, even with incentive programs, special social housing funds or lending mechanisms are used that provide shorter-term and smaller loans, at concessionary rates if necessary, but which are clearly separated from the rest of the housing finance system. Both types of finance subsidies are set up to be efficient, transparent and well-targeted to those who cannot participate in the formal housing financing sector without such support. 4.2 Macro Environment/ PEST Analysis
Every organization operates in a larger macro environment of forces that shape opportunities and pose threats to the company. The four major forces, that is, Political, Economic, Social and Technological forces that affect the developing and the real estate industry as a whole are discussed below.
4.2.1 Political Forces
The political forces include laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society. There are lots of rules and regulations created by the government for several reasons, first of all to protect companies from each other, to protect consumers from unfair business practices and to protect the interest of the society. Political forces heavily affect the real estate industry. The political situation is not stable in this country. Due to unstable political conditions the completion of projects on due time become much more difficult. For being lengthy in construction, overhead expenses of the projects some time becomes twice of budgeted expenses. Which increase overall production cost of the projects? On other hand, whenever a new Government comes, there is a change in interest rates of deposit, loans, etc. The tax situation is affected. There are new policies regarding Export, Import and other activities that might affect the industry negatively.
4.2.2 Economic Focus
Economic forces are the factors the affect the consumer buying power and spending patterns, some countries have subsistence economies where the consumers consume most of their own agricultural and industrial output.
Figure: PEST Analysis
At the other extreme there are industrial economies that constitute rich markets for many different kinds of goods. Real estate industry is directly related to the economic factors, especially the consumer spending and savings pattern. Because purchasing a house or apartment involves higher amount of money. When people have higher income and high level of saving then they can think about to purchase a house or land. There had been much change in the real estate sector due to economic forces. After collapse in share market and business sale in real estate industry has fallen near about 50%, because people have no enough money to effort a new house.
4.2.3 Social Forces
These are the forces related of society’s basic values, perceptions, preferences and behavior. People grow up in a particular society that shapes their basic belief and behavior pattern. These forces affect the survival and success of an industry. Changes in living standard and pattern have also increase the potentiality of real estate business. Now a day people are getting interested in nuclear family. In last three decades, families have emerged as nuclear type from joint type. The average size of family in Dhaka City Corporation area in 2009 was 4.3 (STP, 2009). Such families find it convenient to dwell in apartments with two or three rooms. Land value of Dhaka is too high to afford by most of the middle and higher middle income people. However, on relative scale apartments are within the affordability of this economic class. Sometimes the land percale seems to be unavailable in the suitable locations. At the same times apartments are available in every part of the city. They do not want to live in combine family. For this increasing demand of small houses real estate industry has a huge scope in Bangladesh.
4.2.4 Technological Forces
Technological factors include innovation from research and development, advances in automation, and the rate of technological advances. New technologies can reduce costs or lead to further innovation due to improved quality aspects or new products. By looking at the Real Estate Industry one can see that the majority of materials such as cement and bricks cannot be differentiated effectively. However, the production costs remain high for a majority of construction materials, especially for cement, due to the high energy requirement to produce the high-volume product. Consequently, the industry made great efforts to test and use new material combinations as substitutes for conventional raw materials. Since the Real Estate Industry is highly cost competitive, manufacturers are engaged in developing multi-functional materials and seek for efficient waste recycle and reduction techniques.
In terms of product innovation, companies gear to enhance the durability performance of the products which reduces the maintenance and repair costs of construction works. Industry leaders thus state that even slight alterations in the production process will entail large scale measures to reduce the environmental footprint and costs. Nevertheless, further research approaches need to be undertaken in order to optimize the commercial viability of new substitutes, in order not to lose reputation or even market shares in this volume and cost competitive industry.
4.3 Applying Porter’s Model
Michael E. Porter, an US economist and a faculty of Harvard Business School has produced this model in order to describe the five competitive forces through which a particular market can be analyzed.
Figure: Porter’s Five Forces Model
4.3.1 Bargaining power of suppliers (Real Estate Firms)
This is the power producers of real estate products can exert on the price and volumes of real estate products in the real estate market where producers and customers meet. This is one of the factors determining the total volume in a particular period for real estate products. This bargaining power of producers is affected by different parameters that are in point. Number of producers
This refers to the total number of real estate firms in the market. The greater the number, the lower the bargaining power a producers can exert on the purchasers. The opposite is also true i.e. a small number of producers indicate a high degree of market concentration, and thus a favorable bargaining position for producers. Differentiation of Input mix
Difference in the combination of inputs and the way a firm collects the inputs create a big difference in the market when considered in total costs perspective. It provides the real estate firms to compete towards the costs in the market to influence price and profits. A firm that buys land today with plan to construct houses in five years from now on has an advantage over the firm which buys lands after five years to construct the houses.
Switching costs for customers
If customers have to incur a significant cost to switch the firms, then it’s normal that customers don’t switch unless there is a major mishap. But it also works for the companies who secure quality of products to exert some power on the buyers.
4.3.2 Bargaining power of buyers
According to Porter bargaining power of buyers is, “the ability to force prices down, bargaining for higher quality or more service, and playing competitors against each other”. 4.3.3 Threat of new entrants
Threats of new entrants are sometimes the result of abnormal profits in a particular sector. It’s widely argued that the real estate sector in Bangladesh still produces the abnormal profits for the firms though there is not available data to prove that. Related parameters to describe this force are in point 4.3.4 Threat of substitutes
This refers to the extent by which buyers can replace their current products by another one. In the context of this report substitutes does not mean the pure substitutes of the core products. In fact here substitute means the substitutes of different dimensions of core products. The core product is house and different dimensions include among others location, luxury, producers etc. The relevant parameters are the followings.
4.3.5 Rivalry among existing firms
This is all about competition in the market. By nature Bangladesh market is free for all and anyone can invest here. Therefore there are lots of companies in the market who compete among themselves. However competition is much fiercer in the urban areas like Dhaka city compared to the sub urban areas like Savar, an area about 20 kilometers away from the Dhaka city.
4.4 SWOT Analysis of GHDD Limited
SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The SWOT analysis of Golden Home Design And Development Ltd. is given below:
Quality products and services
Long experienced service system
Dedicated and experienced associates
Strong distribution channel
Young and hardworking workforce
Strong relationship with customers
Maintaining good relationship with new and old clients.
Expanding market, expanding sales & profitability
Increasing purchasing power of people
A high profitable investment opportunity for individuals as well as financial
institutions New real estate business is opening day by day.
Improve the service quality then the others
Regulatory environment favoring private sector development
Value addition in products and services
Increasing purchasing power of people
Increasing the population of Bangladesh
Small number of project
Lack of adequate advertising (Print Media) effort.
Lack of full scale automation
Strong competition among the existing players of the industry Increasing the price of raw materials that creates some problems to set price.
Frequent changes of inhabitation rule of Bangladesh Government or RAJUK Market pressure for lowering of lending rate
National and global political unrest
Lack of land of Bangladesh
Political instability and unrest directly or indirectly threats all the business sectors including housing industry Bureaucratic complexity imposed by RAJUK, WASA, DESA, and many other Government and semi Government agencies Higher interest rate of loan
4.5 Market Segmentation and Target Market & Positioning (STP):
It is not possible to select target markets without simultaneously formulating a general marketing Strategy for each segment. A vital criterion in selecting target market is the ability to provide superior value to those market segments. Since customer value is delivered by the marketing strategy, the firm must develop its general marketing strategies it evaluates potential target markets.
4.5.1 Market Segmentation:
Market segmentation is the process of identifying and targeting groups of individuals who are similar to one another. Markets can be segmented in many different ways: by product or service needs, by sensitivity to price, by geographic area, by demographic segment, or by psychographics and lifestyles. They are segmenting our market for our organization which is persona beauty parlor. As we all know that a successful segmentation depends on understanding what consumers need, how groups of consumers differ from one another, and how consumers decide among products.
GHDDL has segmented its target market in many different ways. They segmented their market by the people who are belonging to upper class and upper middle class in society. GHDD has segmented their market by geographically which consists Azimpur, Jatrabari, Demra, Gulshan, Bannani, Panthapath, Eskaton, Baridhara and so on. They charges different price for different place project. Some price is high and some are comparatively lower than others. This is set actually in the basis of the place. GHDD develops this strategy for gaining their client satisfaction.
Target customers are those who are most likely to buy the service or product. In GHDD, they are focusing different group of people as their target market. Different business groups are taking commercial places from this real estate company. On the other hand, upper class and upper middle class general people are taking residential flat and houses. They have targeted those people who are mostly from the upper, upper-middle and middle class income group and also the working class. Their psychographic profile shows that, they are more or less educated but willing to spend for lifestyle products and services. They want to have a status in the society. So, GHDD targeted their potential customer and always concern about their client satisfaction.
220.127.116.11 Target of the customer:
Golden Home Design and Development Limited targets the market on the basis of social class. It concentrates on the on the middle class market. It has been found that segmenting market on the basis of social class may provide several benefits:
Three kind of customer of Golden Home Design and Development Limited
There is a growing tendency in the middle class customer market to buy and live in the apartments. It is more profitable to sell apartments to the upper class. 18.104.22.168Target market Analysis:
Every company tries to predict the demand of its target market and then sets their goals. GHDDL predicts the following: 1 Total demand for apartments of GHDD Limited is approximately 20% every year. 2 Currently around 400 apartments are constructed and offer for sale every year.
The company generally builds apartments in the prime areas of DhakaCity. This is due to the demand of the prospective customers. Its clients generally want to purchase apartments in prime areas. 22.214.171.124 Occupational of the target Market:
The clients of the Golden Home Design And Development Limited have the following occupational characteristics. Occupation
% of total T.M.
Table- showing occupational status of the clients
The above shows the occupational status of the target market of GHDD Limited. Among the customers of GHDD Limited as many as thirty five percent customers are businessmen. 126.96.36.199 Target Market Behavior:
Golden Home Design And Development Limited can differentiate its product on the basis of product features; Producer differentiations have some dimension, which is described below: Features:
Features are characteristics that supplement the product’s basis function. GHDD Limited can offer new and additional features in its products and thereby differentiate with other companies’ products. For example, 24-hour lift facility, central air-conditioning can be some of the features that will attract the buyers of apartment. Performance Quality:
Performance quality refers to the level at which the product’s primary characteristics operate. GHDD Limited must ensure that its apartments have higher value than others. Reliability:
Reliability is a measure of the probability that a product will not malfunction or fail within a specified time limit. This is an important factor for GHDD Limited singe customers want to avoid the high cost of product breakdown and repair time. GHDD Limited should build apartments in the way that customer can have high reliability. Style:
Style describes the product look and feel to the buyer. Buyers are willing to pay a premium price for products that are attractively style. GHDD Limited can develop its product in a way that creates a sophisticated image to the customers. Design:
Design is the totality of features that affect how a product looks and functions in terms in terms of customer requirements. Design is particularly important in making and marketing durable equipment and services. GHDD Limited should develop a distinctive design patterns for its apartment projects. Delivery:
Delivery refers to how well and quickly the product or service is delivered to the customers. It includes the speed, accuracy and care attending the delivery process. GHDD Limited must have some better position in these matters. Maintenance and Repair:
It refers to the company’s service program for helping customers keep their purchased products in good condition. After sales service, thus, play an important factor in differentiating a product. Many apartment builders provide very limited maintenance and repair services in Bangladesh. So GHDD limited must have some good maintenance and repair service. Personnel differentiation:
Companies can gain a strong competitive advantage over their competitors through hiring and training. Having a dedicated and professional personnel play a significant role in all circumstances. Batter trained personnel exhibit six characteristics: i. Competence: The employees possess the required skill and knowledge. ii. Courtesy: The employees are friendly, respectful and considerate. iii. Credibility: The employees are trustworthy.
iv. Reliability: The employees perform the service consistently and accurately. v. Responsiveness: The employees respond quickly to customer’s request and problems. vi. Communication: The employees make an effort to understand the customer and communicate directly.
GHDD Limited has better-trained personnel to differentiate itself in the real estate industry. 4.6Positioning:
Positioning is the process by which marketers try to create an image or identity to their targeted customers. GHDDL is already become brand for its services and people who are used they came to know that. For the positioning of GHDDL they use the 7ps which are product, price, place, promotion, and extended marketing mix are people, process and physical evidence. GHDDL uses this 7p for their positioning in order to deliver the best service and also for the customer satisfaction.
4.7 Marketing Mix Development
4.7.1 Product Strategy
Currently GHDD Ltd. offering variety of features and facilities for apartment holders such as affordable accommodation in desired locations, health club, roof top garden, and arrangement for children playing, European lift, stand by generator, prayer room, loan facility available , 24 hours security system and after sales service. 4.7.2 Price Strategy
GHDD Ltd. sale flat after finish designing from a repotted architecture, they select price strategy. This price strategy is based on some decision. Such as – cost of land develop, cost of raw material, payment of land owner etc. after this they set up a price. This price strategy is two types. One is at a time and another is by installment. If client want at a time payment, he get 10% discount from fixed price. On the other hand, if anyonewants by installment, he has to pay 30% within 30 days. And he paid rest amount with 18 installments. Most of the Real Estate company flexi their installment process.
Figure: Marketing mix
4.7.3 Place Strategy
The company GHDD Ltd. is conscious about their placing strategy. GHDD Ltd. targets a significance customer. GHDD LTD. also target middle upper class client. So these types of people want middle flat size in residential area. So think matter the company select price strategy. Most of the project of this company’s is Azimpur, Jartabari, Gandaria. mohammadpur, Kalabagan,and Dhanmondi. 4.7.4 Promotional Strategy:
The company GHDD Ltd. is very conscious how to promote their product. Because today the real estate business is flourishing and the competition is increasing day by day. So the promotional strategy is crucial for this sector. For the promotion of company’s product they use some media. In their promotional mix print media advertising, personal selling and direct marketing are significant. The promotional activities of GHDD Ltd will be discussed broadly in The Promotional Mix: The Tools for IMC part. 4.8The Promotional Mix: The Tools for IMC
Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. The basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix. 4.8.1 Advertising
Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. There are normally two types of advertising such as i. Electronic media: Electronic media means to give add on TV, radio etc. But this kind of advertising is costly. So the GHDD Ltd does not use electronic media as they are the new company. ii. Print media: The Print media means to give add on printed paper such as newspaper, magazine. The GHDD Ltd use some printed media. Such as: Newspaper
4.8.2 Direct marketing:
One of the fastest-growing sectors directs marketing, in which organizations communicate directly with target customers to generate a response and/or a transaction. Direct marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing, and direct response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. Now a day because of internet direct marketing is easy to apply. As a result the customer of GHDDL can order by mail or phone or via internet. Marketers also send out direct mail pieces ranging from simple letters and flyers to detailed brochures, catalogs, and videotapes to give potential customers information about their products or services. Company also uses these techniques to distribute product samples or target users of a competing brand.
4.8.3 Sales Promotion
It is one of the important tools that is applied by the GHDD Ltd is sales promotion. It is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. GHDD Ltd use sales promotion in two ways: Consumer-oriented sales promotion: GHDD Ltd targets to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various points-of- purchase materials. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short term sales. Trade-oriented sales promotion: It is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s products. 4.8.4 Publicity/Public relation
Publicity refers to non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Like advertising, publicity involves non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company. The GHDD ltd attempts to get the media to cover or run a favorable story on a product, service, cause, or event to affect awareness, knowledge, and opinions. They also use these techniques to gain publicity include news releases, press conferences, feature articles, photographs, films, and videotapes.
On the other hand, Public relations are defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.” Public relations uses publicity and a variety of other tools—including special publications, participation in community activities, fund-raising, sponsorship of special events, and various public affairs activities—to enhance an organization’s image. The GHHD Ltd also participates at REHAB fair and some other activities to create public relation brand image. 4.8.5 Personal selling
The final element of an organization’s promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to- face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility; the seller can see or hear the potential buyers. The personal selling plays vital role for the GHDD Ltd. There are some people under the company who act as media on the basis of commission. They are called broker. If any apartment can sell the broker then they will be paid a hum sum amount which is mutually disclosed between the buyer and seller. The commission of upcoming project at Mirhajirbag is shown below: Apartment size
Price of Apartments
Commission on sales
This commission is paid not only for the brokers but also the internal employees. The internal employees can buy the product as well as sell the product on commission beside their responsibilities. As the GHDD Ltd is a new company, so they mainly focus on personal selling rather than other promotional mix. 4.9 Sales planning
4.9.1 Sales strategy:
Sales in GHDD Ltd’s business are based on providing customers with a living concept fitting of their needs. GHDD Ltd must be in touch with the needs and desires of the customers in order to best attract a reliable flow of incoming residents. 4.9.2 Sales Forecast:
GHDD Ltd follows their own estimated survey information of people living patterns and that is applying for measuring the current and future forecasted earnings for GHDDL. GHDD Ltd perceives a continuing increase in total number of apartments over the next year. The annually sales piece should slowly rise as time goes on, joined by the decline in cost over the time. Producing and increased per apartment profit. 4.9.3 Sales program
GHDDL’s sales program is including sales awards for number apartment purchased, maintaining a full capacity status and customer service awards for those best demonstrate GHDDL’s commitment to customers. 4.9.4 Future service
In the future, GHDDL will look to give each department within a company the opportunity to become a more independent unit. This will make expansion efforts more efficient and will provide specialists in their department the chance to become more focused in their field. GHDDL is in the process of conducting surveys in order to determine the best possible markets for its expansion. 4.10 Determinants of Client Satisfaction:
Customer satisfaction is the element to measure the successfulness of a business. Obviously, one of the challenges in severely marketing competitive environment is bringing to customer the satisfaction.
4.10.1 Product or Service Features:
Customer satisfaction is influenced significantly by specific product or service features, perceptions of product and service quality and price. It is the relative value to customer of what is supplied compared with the satisfaction of purchases from other companies. GHDD Ltd is very much concern in this factor. Their first priority is always the products feature.
4.10.2 Client’s Emotion:
Personal factors such as the customer’s mood or emotional state and situational factors such as family member options will also influence satisfaction. In order to gain the satisfaction from Client effectively, it is necessary to understand their needs, demands which are very important for GHDD Ltd and while constructing their buildings they always focus on that point.
4.10.3 Attributions for Service Success or Failure:
Attributions are the perceived causes of events which influence perception of satisfaction. When they have been surprised by an outcome clients tend to look for the reasons and their assessments of the reasons can influence their satisfaction. GHDD Ltd should focus on this.
4.10.4 Perception of Equity and Fairness:
Loyal customers often expect to be fairness or equity which sometimes dissatisfied client of GHDD Ltd because of their high product and service prices. An appropriate price level while still requiring values from the relationship like appreciated, recognized as regular customers as soon as initially entering business transaction with company, company’s staff with clear understanding their expectations and creating their benefits during the relationship. GHDD Ltd has to more work on that to satisfy their clients.
4.10.5 Other Clients, Family Members and Coworkers:
High level of customer satisfaction is the primary goal which all companies try to approach. This is the best way to attract and maintain relationship with customers. Loyal customers with high satisfaction are less sensitive and aware of finding an alternative service/product. Consequently, current customer’s friends, partners and relative will also get perception of company’s business via their daily usual talks.
4.11 Service Recovery
It cannot be expected that, customers will be always satisfied with the service of any service organization even though that particular organization provides relatively high quality service rather than its nearer competitors. In some aspects, customers may get displeasures in term of service encounters. Golden Home Design and Development Ltd is achieving its current market position by providing its consistent quality performance to its customers. But the high price of their products clients is somewhat dissatisfied. For middle class or sometimes upper middle class clients are losses their interest to buy from them. So competitors are targeting this advantage and snatching the clients from them. So they have to minimize their product prices anyhow. To recover the quality of their products has been maximized. The interior and exterior of their apartments and commercial places are more unique and sophisticated than their competitors. So service recovery is really very important to keep and enhance their client satisfaction.
4.12 Gap between Customer and Company Models
To satisfy clients it is very important to minimize and try to close the gap between the companies and clients. The central focus of the gaps model is the client gap which is the difference between client expectation and perception. There have determined four gaps:
Figure: The Integrated Gaps Model of Service Quality
The five gaps that organizations should measure manage and minimize:
Gap 1 is the distance between what customers expect and what think they expect clearly survey research is a key way to narrow this gap.
Gap 2 is between management perception and the actual specification of the customer experience – Managers need to make sure the organization is defining the level of service they believe is needed.
Gap 3 is from the experience specification to the delivery of the experience – Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the spec.
Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers – All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions. So if Golden Home Design and Development can minimize these gaps successfully then they can easily satisfy their clients.
4.13Building Customer Relationships
Effective communication is known as a method of sharing information between customers and company. A good communication includes transferring of understanding, offering and meeting customers’ needs and demands promptly.
4.13.1 Relationship marketing
Relationship marketing is a philosophy of doing a strategic orientation that focuses on keeping and improving current customers rather than acquiring new customers which is a secret of the success of Golden Home Design and Development Ltd. A clear understanding of provided services/products also maintains and rears the customer company relationship. Moreover, social ties, or in other words, social relationships in life outside of business can lead to a strong commitment. Exchanging information during the social life creates and builds relationship between the customers and company. This helps to set up a long time commitment in customer.
4.13.2 Goal of relationship marketing
The primary goal of relationship marketing of GHDD Ltd is to build and maintain a base of committed customers who are profitable for them.
4.13.3 Customer profitability segment
Golden Home Design and Development Ltd wants to provide all customers with superior service but they find it neither practical nor profitable to meet all customers’ expectations. So GHDD Ltd now tries to identify segments more appropriately tiers of customers which goes beyond usage or volume segmentation because it tracks costs and revenues for segments of customers.