Assume that you are a consultant for an international management strategy consulting firm.
Your firm has been approached by Mr. Hans Wursching, CEO of TransSprech, A.G., a newly
formed cellular phone service and phone provider based in Stuttgart, Germany. TransSprech
has a satellite GSM network with complete coverage in Europe and the United States, as
well as throughout most countries in the world. The company has established some
semblance of a marketing and management strategy, and you have been asked to review
the current strategy and help the company go to the next level by growing its sales.
You recently conducted the initial information-gathering meeting with Mr. Wursching, and
received the following information: TransSprech maintains corporate offices in numerous cities around the world.
However, its customer service outlets and retail sales are conducted through the
company website, as well as through licensed electronic retailers. It does not
maintain its own customer service or retail locations. Its target markets are both companies and individuals wanting cellular phone service
with worldwide coverage and who are willing to pay a premium to get it. It already
has about three thousand customers worldwide and is hoping to grow to ten
thousand by year end. Corporate customers are more valuable customers because they are buying in larger
volumes. Establishing a customer base is very important as this company attempts to
establish itself. No sales force has been established. So far, the company has received many
customers in response to its advertising. It offers individual customers four different cost plans with respect to the cellular
service as well as five different phone options. However, corporate customers can
negotiate variations within the established options. The phones themselves are similar to those used by TransSprech competitors but
the satellite network providing the coverage is far more advanced. The company has retained a Berlin-based advertising and public relations agency to
develop a worldwide advertising campaign. Print and TV advertisements have
recently saturated the European market and will soon be shown in the US market.
The company is currently running several promotions to get its product and name
known; however, its long-term goal is to offer a premium, non-discounted product
that is desired because of its value and quality, not low price. Because the company and its product are in the early stages of development, there
have been technical problems, and the company has had to provide a great deal of
service to its customers. Mr. Wursching understands that it costs more to acquire new customers than to
retain existing ones, so he would like to establish a customer relationship
management plan at some point to improve customer loyalty and retention. He has
a well-trained customer service operator staff in place. Questions: 1. What is the company’s strategy with respect to each of the four elements of the marketing mix (product, distribution, price and promotion)? 6 Marks
2. Based on the current marketing strategy, should the company’s promotion mix focus
be on personal selling or on advertising? 6 Marks
3. What further questions might you ask Mr. Wursching to help his company move
toward a more relationship-based business? What recommendations would you like
to offer to Mr. Wursching to make relationship-based selling a focal point of
TransSprech’s organizational policy and culture? 18 Marks
Criteria Identification of the main
sales Issues/ Problems
raised within in the case Analysis of the sales
Issues Comments on effective
sales solutions/strategies
and providing
Writing and
documentation in
business format and style