Case

Case-1 

Revisiting Fundamentals of Marketing with a Visiting Card 

Sandeep Kumar Mohanty

Ph.D. IIT Kharagpur

Aman Rawat has joined PROMPTSYS, a software manufacturing and servicing company recently. As a software engineer he has nine years of work experience in software development, maintenance and consulting. The most important factor that separates Aman from others is his association with three major competitors of PROMPTSYS. In his previous organization he handled its software marketing segment efficiently. So PROMPTSYS is more interested to put him in corporate selling segment of its profitable software for accounting firms called ACSYtab.

Pune is one of the most profitable client bases of PROMPTSYS. Half a dozen of accounting firms in Hinjewadi had shown preliminary interest to invest in ACSYtab. The corporate marketing team has undertaken two initial rounds of discussions with them to close the accounts. But subsequently the deals couldn’t be materialized as some complaints form the prospective clients hinted at less customization options in the product. But, the actual reason of this failing negotiation is the demo version of the software that allows limited functionality. Even if there is an understanding of an extensive demo session with the technical teams of the clients, the marketing team could not find time and proper method to do so. The marketing team is not well prepared to face such eventualities for some clients who demand specific need satisfaction rather a complete product of least use. The prospective clients have tried to communicate this problem to the Customer Care Center (CCC), but the CCC has expressed its inability to take action as there is no such agreement existing between the company and the prospective clients. So they have written a letter not to precede further negotiations with PROMPTSYS. This is a negative and unavoidable situation for the organization and it could infuriate further client dissatisfaction. Aman has been conferred the responsibility to renegotiate with these unhappy prospective clients.

Pune airport to Hinjewadi is quite a distance. Aman hires a taxi to reach the meeting in time.

“Hello Uncle, please drive little faster. Take me to Resocy Park in Hinjewadi. I hope you can understand my problem. I have an urgent meeting.” Aman expresses his desperation to the taxi driver.

The taxi driver is a man in his sixties. He replies, “Sir, we can select only one, and that has to be safety. Today everyone wants to be fast, but there is a limit to speed. We have to understand ourselves first and then the speed that is an output induced by us.   By the way I am Madhav Sharma. I have been here for more than thirty years. I have seen the growth of the city and specially the growth of Software industry. You seem to be a software engineer. Don’t mind, life has become fast, but we have to decide the definition of fast according to the society not for any individual interests. You remember the turtle and hare story. Always have some patience. Keep faith in me and we will reach on time.”

Aman decides not to react. There is a painful silence prevails inside the taxi. After few moments he breaks the silence and interacts with Madhav.

“Uncle, don’t you feel bored of doing the same job for more than thirty years. See how you have changed according to time. Not all elderly taxi drivers talk about society and individual interest. Life is no more the same that you have experienced in a world where there was no completion and struggle. Everything has changed and we have to think accordingly. You can not understand our generation. Certain things look good in books and sculptures. Real life is something far away from our moral and ethical acceptance.”

There is a divisible silence inside the taxi.

Once again its Aman could not stop his thoughts and pronounces that he is a software engineer, but he has come there as a salesman.

He further adds: “Selling is a difficult task. It is something deals with persuasion and always requires motivation to move on. I have been in sales for the last two years. In this way I know the human behaviour and expectations more than any software engineer in my office. Salesmanship is not everybody’s cup of joy. It is painful when you have clients too demanding and the market too competitive. So uncle we have to be fast and individualistic.”

They have reached the place. Aman pays the bill and starts moving on. Madhav interrupts and iterates few words to the young man. “Sir, I am not an MBA, I have less knowledge about management, but I know my job. Customer satisfaction is the key to successful business; I know what constitutes satisfaction and how I can contribute to it.”

Madhav forwards a business card to Aman. “This is my business card having my phone number and I will be happy to serve you if you give me a call, sir.”

Aman laughs and tells Madhav, “Uncle this is something surprises me that you keep business cards with you. Do you know Salesmen used to follow such minutes? I don’t need it. As you insist I will take this. Thank you for your service.”

They depart and Aman moves to the office of one of the major prospective clients for discussion. There was an appointment for team presentation at 11 o’clock. He is fifteen minutes early and this has given him some confidence to face a dismayed client. At least he can talk about punctuality and sense of responsibility.

There is an emergency meeting going on in the office and the Managing Director can’t avoid this for prior commitments. So Aman has to wait till 2 o’clock for rescheduling of the meeting. Yes, he has to wait otherwise he cannot plan further. He has a very weak case of not handling the prospects better and he is not in a position to take any risk of creating another negative impression in the mind of the client. He gets a message that he can only meet the Decision Team after 9 PM. The day is going to be a waste but, he decides to wait till he meets the competent authority.

At 9.30, Mr. Sagar Mohite, the Managing Director finds some time to interact with Aman. As per Mr. Mohite, the Decision Team is meeting another software company to finalize the deal tomorrow. He advises Aman to meet the Decision Team tomorrow to convince them for a better deal. He adds that things are still not very clear and there is a chance PROMPTSYS can get the deal. Sagar further reiterates that it depends on Aman to present something special to get the confidence of his team back.

Aman could find a twist to this tale. Yes, he has to come back for the meeting tomorrow. He has the last chance to present his points before the clients and the task doesn’t seem very easy to complete.

It is already 10 o’clock and Aman is in a place where he could find nothing interesting now. He is frustrated but the expectation of getting a chance to renegotiate is giving him a glimmer of hope to stay there and struggle. He needs to return back to Lohegaon, where he has booked his hotel for the night stay. Now he finds no taxi on the road. There is hardly anything he can pick to come back to the hotel. Waiting seems to be a futile exercise there.

Aman could remember the business card given by Madhav for his taxi service. But, how can he call that old man whom he insults by some strong comments. How can that old man be so polite to avoid his insult? When his marketing team is not picking calls after the office hour how can this old man pick his call in this odd hour? A taxi driver can’t be so professional. But as there is no other option Aman has to call Madhav for help. This call is more of a test of the integrity and professionalism of an old taxi driver.

“Uncle, I am the customer whom you have given your business card today and I need your service. Can you pick me from Resocy Park where you have dropped me today? ”

Madhav honestly responds to Aman.

“I am extremely sorry not to identify you sir. I have given my business cards to all the three customers in the Resocy Park today. Any way I am glad to provide you my service. Please wait for fifteen minutes at least.”

Aman is happy that Madhav has committed to his service and his words. At the same time he is extremely sorry for his comments aimed at the old man in general. Now he can articulate that he is one of the privileged customers of an unknown professional.  The old man has been a true professional. The salesmanship in him recognizes the importance of the feelings of becoming an exclusive client. Now he feels that every customer wants be treated as special and life is all about this feeling of being especial.

Yes, Madhav takes exactly fifteen minutes to reach there to take Aman to the hotel. He shows the commitment to his words.  This is called punctuality or professionalism, yet we can put this in two ways or even we can not consider them at all.

There are so many questions hovering in the mind of Aman. How can be an old taxi driver act as a sheer professional? How can he be so sincere in his work? How can he keep his words? Does business management preach this or this is just a coincidence? So many questions have started to block his mind and he is curious enough to ask there questions to the old taxi driver.

Aman has a terrible day full of wastage of time and energy. He has got nothing right in the last almost twelve hours. But, the only positive sign among all these negativity is a taxi driver and his sense of professionalism.

“Uncle, Can I ask something?” Aman seeks permission to Madhav.

“Yes sir, is there any problem?” Madhav remains expectant.

Aman could not figure out what he would ask to this old man. A lots of questions striking his mind and he seems to be anxious to get all those answers. In fact all his questions are part of a comprehensive and complicated question. All his questions are fundamentals or basics of business management, so those are to be answered immediately. It is also his established mind set and preconceived knowledge forcing him to think beyond his understanding of certain ideas to ask few questions to this old man. He is not sure whether he will get an answer or not. For him an expected answer is nothing but the negation of his preoccupied mind and established thoughts. Yes, this is the situation every human being faces when the fundamentals or basics of a certain discipline is questioned or the discipline remains so strong that we have to change ourselves to understand its  distinct facets under different situations.

Here, Aman is more confused about marketing and selling. It is not that with a close association with IIM Bangalore he couldn’t understand the first lines of marketing. He knows the definition postulated by all the big authorities of marketing management. He asks many times this question to many candidates while selecting for a job. He feels it is not he, who should be asking further questions related to this fundamental of business management. If Aman does not understand these questions then probably he is lost in a familiar territory and immediately discovers everything surrounding him unfamiliar.

He has decided to ask Madhav.

“Uncle, tell me why did you give me this business Card? Did you know that I will call you? Actually I am surprised; I was telling I will not require this. Do you feel for me? It is your professionalism or duty or something beyond that compelled you to give me this card. Really I feel that you have more knowledge about business, market and sales than me. You are a true salesman. I accept that at least you know more marketing than any business management graduate.”

Madhav has to reply. He can not go on thinking for more. Are these queries posed by the young man worth answering? He asks to his conscience whether his action has been misinterpreted or he has hurt the man more than his action.

“I am extremely sorry, if I have done anything wrong. I am not so educated to answer you about business, market and sales. These are technical terms. I believe in my duty, mutual respect and sound relationship. This is what Business is all about. My father has taught me these simple fundamentals and I have no other ideas to add this.  Yes I gave you that card because it is business.”

Madhav continues. “The question of business card is a story in itself. I am the first taxi driver in this city who thought about having business cards. Actually I liked this because I came across a businessman who inspired me to do something special. He has given me his business card. I have hesitated to take that and expressed my denial in the first instance to have a card that is least useful to me. But that man insisted me to have that card as a token of friendship, relationship and respect. Then I have decided to have my own card to cater these good qualities to my dear customers. A card can’t bring my customers back to my business every time. But a card can do wonder when you least expect it. I feel proud of delivering my business cards to my customers. Some read it and feel for me. Some read it and keep for them. Some not even read and throw it away in front of me. Some return to me by writing their name and number. Some accept and some reject my cards but, they all know I have given them the service they require and that fulfills my commitment. You cannot believe, I get calls at midnight and customers in real need get my service. Can you imagine, I have taken people to hospitals to save their lives? I have brought happiness in somebody’s the family because my timely help could save the life of an expectant mother and her new born baby. I feel your business terminologies don’t permit me to do this. In the relationship of business you can not say where to start and where to end. My dear, I gave you the card because it is not business. It has something more than business.”

Aman pays utmost attention to this old man. Madhav has to continue to answer the rest of the questions posed to him.

“Sir, I never thought that you would call me for another chance to serve you. You are a customer for me like all other customers, whom I serve without any discrimination. Yes, for me my customers are special. So you are special. When I drop you there in front of the office my service is over. But as I extend a card to you I feel you may still need my service. Because as you have gone there you have to return back and of course that is not fixed. The return time is not certain. Even you hardly know with whom you will return. I know the roads here. I know the taxi drivers here. I know this city better than you. I have experience of life and that experience has thought me to think for you and have a concern for your return. When you find no other taxi you call me. You have no other alternatives so you call me. This is not coincidence. This is life at its best, full of incidences those are least expected and we are businessmen and we can not understand this.”

Aman has to listen as he feels this is a chance to know something called life and business management.

Madhav keeps on talking.

“I can say that I feel for you. The moment I get your call I have to respond. I never ask my conscience about your position because I could imagine that well before I drop you there. This in something comes with experience and feeling. A customer always asks for some kind of concerns from the service provider. The customer never knows what he wants. How well prepared he might be, how experienced he might be, still he expects an implicit concern from the service provider. He always looks to the service provider for his honesty and integrity. For a moment he believes in the man standing in front of him completely from the core of his heart. Customer is more interested to tell you that please try to understand him. He needs to be understood more than providing explanations and logical conclusions.   Even if he is not able to express his needs better, then help him, guide him and feel for him so that he can know his position better and get a higher satisfaction. It is a marketer who can understand the customer better than a sales man. A salesman does sell but he is not a man if he sells only.”

Aman has to correct his words. “Uncle you are not a sales man, you are a professional who know what profession is. You have more understanding of marketing than business management graduates like me. You have inspired me to think something about relationship, customer and implicit concern for fellow human beings.”

The hotel lights can be seen now. They have reached the place and it is time to say good bye again to this old taxi driver. This time Aman asks for the business card and Madhav could laugh and provide it with a sense of relief and satisfaction.

“Can we talk few more minutes?” Aman requests the old man to spare few minutes so that he can possibly ask something that bothers him for the whole day. But there is a disturbing sound, yes it is a phone call for Madhav and he picks it immediately and responds.

“I am sorry, sir, I have to rush for my customer now. Hope we will meet tomorrow. Just tell me the time when I will come to pick you. ” Madhav expects a reply from Aman.

After few seconds of deep thinking Aman replies, “Uncle, please come to Resocy Park to pick me to the airport at 5 PM tomorrow. I will be waiting for you after finishing my assignment.”

Madhav smiles with a positive nod.

“OK sir, I will be there for your service.”

He starts the taxi, and within few seconds he disappears from the scene.

(The real names and the organizations identity has been changed due to concerned persons’ request)

 Few questions to be discussed:

1. How the interaction with an old taxi driver and the magical visiting card incident can inspire Aman to assess the scenario and plan for a better negotiation in his assignment?
2. Can a changed Aman convince the unhappy prospective clients to accept his deal for PROMPTSYS and close the accounts? If yes, give proper justifications.
3. Do you think this case point out strong evidences of differences between selling and marketing? If yes, then explain how marketing can be more beautiful with your understanding?
4. What are the concepts the visiting can represent in marketing?

Case-2

Case : HMT

Hindustan Machine Tools (HMT) was incorporated in 1953 by the Government of India as a machine tool manufacturing company. The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan. HMT Limited, the first company to start watch manufacturing in India; has incorporated “HMT WATCHES LIMITED” as its fully owned subsidiary on 9th August 1999.  It manufactures Mechanical and Quartz Analog watches. HMT WATCHES LIMITED comprises of three manufacturing units at Bangalore, Tumkur and Ranibagh. All its manufacturing units have obtained the ISO 9001 certification.

Recently HMT observed the demand for its mechanical watches go down, largely because it focused more on competition from Quartz, instead of going for their own strength i.e. Mechanical watches it began to focus on quartz. But in the world market, still Mechanical watches hold a good position. A recent study shows that the Swiss watch industry exports of mechanical watches accounts for two-third of their total export value. While the Swiss watch industry did not accepted Quartz technology, they were able to make a point with mechanical watches in the watch industry. Some of the decisions made by HMT were unreasonable.

To meet requirements of the quartz market, company outsourced the production of various parts such as dial, cases etc. It got large volume of parts from Tennmax India Ltd, while its own production capacity of dials and cases remained under-utilized.

In year 2006, the expenditure was around Rs. 0.1 Cr. as against Rs. 4.5 Cr. in 2001. This puts a big question mark on the awareness level of the customers about HMT watches caused by lack of advertisement. On the other hand Titan tripled its expenditure from Rs. 40 Cr. in 2001 to Rs. 133 Cr. in 2007. It engaged major celebrities like Amir Khan, Kapil Dev etc. for its advertisement, HMT advertisements went almost missing from print & electronic media.

HMT hardly looked into their stores or took any big steps towards renovation of their stores. While Titan kept investing into renovation of its stores, similar efforts were missing from HMT.

Few Designs as compared to competitors. HMT has only 40 odd variants of four basic designs compared to competitor line, Titan which has 70 watches in its ranges with better looks & designs.

There is less emphasis on product research and development.

The retailer margins provided by HMT were 2% less than what its most prominent competitor, Titan, was offering to the retailers.

HMT positioned the quartz watches as the space age generation watches & charged high prices for this category which means that only the affluent middle aged consumer could afford it. In less than a year the company had to reduce the price and followed lifestyle advertising to justify the still higher price of the quartz, however even this backfired as consumers were not convinced of the differentiation between the quartz and other HMT watches.

Because of centralized decision making even the decisions on the campaigns for specific products were delayed leading to the time lag and responding to market changes.

 

Few Questions to discuss.

Q1. What are the five most atractive features of your product? List them in order of improtance.

Q2. What needs of your prospective customers do these product features satisfy? What behnefit do they offfer?

Q3. List five reasons why your customer should purchase the product or service from your company?

write three questions you ask to get the prospect’s attention for yor product.

Q4. List five factors that must be apparent to a prpspect before he will listen to your presentaion.

 

Case-3

1. List five aspects of selling that you enjoy?

2. List any areas of your self-concept that should be improved. how could you increase your self esteem.

3. Explain how you would conduct a need analysis to connect the benefits of your product with a prospect’s need.

4. List several ways in which you can improve your appearance.

5. Write question you would use during the hot-button close to uncover the prospect’s major reason for not buying your product.

6. What are the five most atractive features of your product? List them in order of improtance.

7. What needs of your prospective customers do these product features satisfy? What behnefit do they offfer?

8. List five reasons why your customer should purchase the product or service from your company?

9. write three questions you ask to get the prospect’s attention for yor product.

10. List five factors that must be apparent to a prpspect before he will listen to your presentaion.

11. List several ways in which you could improve your voice, apperance, and attitude to create a better selling enevironmenet.

12. List three ways in which you could improve your listening skills.

13. Write two open-ended and two close ended questions you could ask a prospect about his needs in relationship to your product

14. List any aspect of closing that might be difficult for you., and explain how you might overcome the problem

15. Explain how you overcome your fear of rejection

16. List the five objections to buying your product that you frequently encounter.

17. What is your answer to each of the objections?

18. Give five reasons why your product is worth the price.

19. Give examples of three techniques you use to handle price and money objections.

20. List how you could increase your ratio of closes to presentations.