Total No. of Questions 08] [Total No. of Pages 03
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
A-MARKETING
Services Marketing CRM
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Goods Vs services.
Branding.
Packaging.
CRM.
Financial services.
Recovery management.
SECTION B
Answer any three questions. x 15 45)
Q2) Explain the marketing framework for service business.
Q3) What is relationship marketing? Explain its advantages.
Q4) Explain the classification of services in detail.
Q5) Discuss the customer relationship management cycle.
Q6) Explain the emerging impact of e-commerce on CRM.
Q7) Describe market potential of e-CRM in India.
SECTION C
(Compulsory)
Q8) Case Study:
Although Master card's advertising has advised customers and potential
customers to "Mastering the Possibilities" many observers say that Master card
International has been unable to master its own possibilities. The Company,
which is controlled by about 150 large banks, has had a host of problem areas.
Master card incurred a loss of $5.3 million in 1987, when bad-debts totaled 2.9
percent of receivables (versus Visa's bad-debts of 2.4 per cent). Because of this
loss, Master card cut back on customer solicitations through mass mailings
(which could have bad-debt rates exceeding 10 per cent).
It attracted criticism from retailers and others after announcing an increase in the
fees that card-issuing banks would charge retailers for each customer transaction
made with master card. The rate increase was viewed as excessive by firms such
as Wel-Mart and Toys "R". Us and had to be rolled back.
The fee rollback helped retailers, but it cost master card in terms of lost
profitability. The firm also suffered because the higher fee was intended to
provide member banks with an incentive to push Master card rather than Visa.
According to an executive at one of the largest card-issuing banks: 'The fee was
very important to us. If Master card had remained committed to the higher fee,
we definitely would issue more master cards'.
Master card has experienced a decline in market share. Until the late 1970s, it
had the Number One position in worldwide credit card charge volume. However,
in 1979, Visa passed Master card and became the market-leader which it remains
today. The market share between Visa and Master Card has steadily widened.
The relatively new American Express Optima card (which, unlike American
Express other cards that require full payment each month is true credit card and
allows customers to pay their bills over an extended time period) is encroaching
on Master card's market share. In less than two years on the market, Optima
became one of the top ten credit cards in the united states.
Both Master card and Visa are owned by member banks that support them with
dues. Bankers are increasingly questioning the rationale of supporting two
competing organizations. As one banker says. "The infighting between Master
Card and Visa is hurting us all. We should be fighting AmEx".
Although Master card developed the first premium bank credit card in 1983, Visa
is pressing master card with heavy promotion. In 1998, within six months after
introducing its premium card, Visa was able to equal Master card in members.
In order to remedy this situation, and to capitalize on its powerful name (one
study found master card to be the fourteenth most powerful brand name in the
united states), the company began a new advertising campaign with a$20 million
budget and the theme of "Master the Moment" (to replace the "Master the
Possibilities" slogan) in 1989.
The new campaign's "Strength is that is breaks through and defines Master card
in a way people are not used to thinking about it".
For the first time, Master card's advertising now stresses the card's cash-advance
features and the ability of a cardholder to obtain funds from Master card's
nationwide cirrus Teller machine network. The new ads are also designed to
change the public's preception of Master Card as a "Woman's shopping card".
As the editor of Credit-Card Management observes, it is imperative for Master
card to enhance its image "Credit-Card marketing now focuses on what the card
can do for you. (Referring to American Express' "Membership Has Its Privileges
Campaign" and Visa's aggressive comparative advertising). But Master-Card has
been out there with a very fuzzy image and neglected to explain what the card
can actually do".
Part of Master card's fuzzy image has been due to its past practice of frequently
changing advertising campaigns. For example, in 1989, Master card devoted part
of its advertising budget to a short lived fourth-quarter. "Choose to Make a
Difference" promotion.
Questions:
Comment on the difficulties in marketing Master card because of its
intangibility. How would you address this issue?
How should Master card position itself against Visa and American Express?
How can Master card industrialize its services?
Present a comprehensive marketing plan to increase Master Card's market
share?