5-29. Examine PE Table 5-1. Are there any requirements or constraints that you can think of that were overlooked? List them. 5-28. What do you think are the sources of the information Jim and his teamcollected? How do you think they collected all of that information?PE TABLE 5-1:Requirements and Constraints for Petrie's Customer Loyalty ProjectRequirements· Effective customer incentives-System should be able to effectively store customeractivity and convert to rewards and other incentivesEasy for customers to use-Interface should be intuitive for customer use· Proven performance-System as proposed should have been used successfully byother clientsEasy to implement-Implementation should not require outside consultants orextraordinary skills on the part of our staff or require specialized hardwareScalable-System should be easily expandable as the number of participatingcustomers grows• Vendor support-Vendor should have proven track record of reliable support andinfrastructure in place to provide itConstraints• Cost to buy-Licenses for one year should be under $500,000• Cost to operate- Total operating costs should be no more than $1 million per year• Time to implement- Duration of implementation should not exceed three months· Staff to implement-Implementation should be successful with the staff we have andwith the skills they already possess Although the customer loyalty project at Petrie's Electronics had gone slowly at first, thepast few weeks had been fast paced and busy, Jim Watanabe, the project manager,thought to himself. He had spent much of his time planning and conducting interviewswith key stakeholders inside the company. He had also worked with the marketing groupto put together some focus groups made up of loyal customers, to get some ideas aboutwhat they would value in a customer loyalty program. Jim had also spent some timestudying customer loyalty programs at other big retail chains and those in otherindustries as well, such as the airlines, known for their extensive customer loyaltyprograms. As project manager, he had also supervised the efforts of his team members.Together, they had collected a great deal of data. Jim had just finished creating a high-level summary of the information into a table he could send to his team members (PETable 5-1 D).From the list of requirements, it was clear that he and his team did not favor building asystem from scratch in-house. Jim was glad that the team felt that way. Not only wasbuilding a system like this in-house an antiquated practice, it was expensive and timeconsuming. As nice as it might have been to develop a unique system just for Petrie's,there was little point in reinventing the wheel. The IT staff would customize the systeminterface, and there would be lots of work for Sanjay's staff in integrating the new systemand its related components with Petrie's existing systems, but the core of the systemwould have already been developed by someone else.Just as he was finishing the e-mail he would send to his team about the new system'srequirements and constraints, he received a new message from Sanjay. He had askedSanjay to take the lead in scouting out existing customer loyalty systems that Petrie'scould license. Sanjay had conducted a preliminary investigation that was now complete.His e-mail contained the descriptions of three of the systems he had found and studied(PE Table 5-2 L). Obviously, Jim and his team would need to have a lot moreinformation about these alternatives, but Jim was intrigued by the possibilities. He sent areply to Sanjay, asking him to pass the alternatives on to the team, and also asking himto prepare a briefing for the team that would include more detailed information abouteach alternative.

5-28) In the given scenario Jim, The Project Manger of Petrie's Electronic carried out a market…

Answered: 5-28. What do you think are the sources…

5-28. What do you think are the sources of the information Jim and his team collected? How do you think they collected all of that information?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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