The Dynamic Business Environment Marketing Essay
Green card can be applied by normal customers, but to upgrade to the silver, gold and platinum card is only by the invitation of GMB (Resort World Genting, 2009). Green card holders are regarded as client, silver card holders are supporter, gold card holders are advocate and platinum card holders are partner (Peck et al., 1999).
GMB is using the combination of point system, rewards and special privileges in its loyalty cards. Genting Rewards Gallery is established exclusively for World Card members only, to award its existing customers (Resort World Genting, 2009). Rewards such as redeem rooms, show tickets or theme park tickets is used to encourage customers to spend more and accumulate more points. (Resort World Genting, 2009)
Further, privileges such as special membership rates are also used by GMB to encourage its theme park customers to apply such membership. Customers can enjoy unlimited access to the selected Theme Parks for 365 days by paying only a certain amount of money which is cheaper than the normal rate (WorldCard, 2009).
Additionally, GMB is using personalization as their RM strategy to communicate with their customers. Personalization is applied when GMB mail letter to inform their customers regarding the membership promotion, and members of Awana WorldCard get free buffet dinner for 1 person and 50% discount on cakes for their birthday (Awana Hotels and Resorts, 1999-2009). The advancement of information technology such as internet enables GMB to establish customer database and use such information to offer services based on consumers’ personal data and preferences (Wen Li, 2009).
The influence of information technology is not only limited to GMB’s loyalty card program. Customer relationship is also enhanced through the implementation of Siebel eBusiness Applications which include Siebel Call Center and Siebel Sales (Mateo, 2002). Siebel eBusiness Applications enable GMB to standardize the process for keeping and managing its customer data for loyalty members and non-members; therefore, GMB can accurately track and analyze the data, as well as effectively execute targeted marketing campaigns through Siebel Sales (Mateo, 2002).
With the Siebel Call Center, customers inquiries and complains can be handled effectively as it eliminate the needs for customers to complete their own details manually on the accommodation registration card because the details are automatically preregistered (Mateo, 2002). GMB were able to analyse customers’ details and behaviour by using the Siebel eBusiness Applications as they recognize and react more quickly to sales opportunities and this enable GMB to deliver high quality service, enhance customer satisfaction and loyalty, as well as to maximize their relationship with each customer (Mateo, 2002).
Siebel Sales enables GMB to manage existing orders, react immediately to sales opportunities, speed up closing and monitor individual sales force performance because it captures the entire sales process from product development to customer details (Schijns, 2005). According to Justin Tan Wah Joo, CEO eCommerce division of Genting Group, such application provides an integrated view of the customers across the company which helps GMB to enhance its customer relationship management.(Mateo, 2002, pg 1). It helps GMB to form an integrated or aligned service encounter as they deliver value to customers based on quality, marketing and customer service in order to enhance customer satisfaction (Christopher et al., 1991).
Besides, GMB also implemented the SAS (business analytics and business intelligence software) which consist of SAS Customer Intelligence and SAS enterprise to improve customer insights as to understand their needs better and build a stronger customer loyalty base, as well as further optimise its marketing campaign (Teo, n.d.). Further, enormous amounts of demographic and behavioural data from several sources can be integrated to establish a single output by using SAS Customer Intelligence whereas SAS Enterprise reporting facilitate faster decision making because it provides timely key performance index(KPI) information required for effective summary on performance (Teo, n.d.).
The SAS analyses allowed GMB to better manage the resources by channelling them into the right programs and services, increase operational efficiencies as well as enhance their marketing campaigns whereby relevant data provided enable GMB to make better decisions because it helps to identify key success drivers of the campaigns, therefore, they are able to save time and cost (Teo, n.d.). With the advancement of technology, GMB is able to implement SAS to enhance relationship with its customers through mass customization.
According to Piller and Kumar (2006), identification and satisfaction of customers’ wants are central of one to one marketing and mass customization. Therefore, the employment of SAS analytic is to create customize and personalize campaigns to different segments of customers based on the analysis of data and information derived from GMB’s customers such as customers spending patterns, which then translates to enhance services and higher customer satisfaction (Egan, 2008).
3.0 Employees Commitment
Another important market in the Six Market Model is the Internal Market, where its importance is often being neglected in transactional marketing. According to Gummesson (1987), each employee in an organization is the internal customer for each other. The quality of internal service will affects job satisfaction of employees and ultimately, customer satisfaction (Gummesson, 1987). Customers’ perception of quality and satisfaction is formed during the “Moment of Truth”, the moment where customers interact face-to-face with the service personnel (Carlzon, 1987 in Kale et al., n.d.). Thus, employees, especially those at the front-line, can be said as the key to customer satisfaction.
Internal Marketing (IM) is essential to service-based companies like GMB. According to RWB annual report 2008, the company has about 12,800 employees at the year end 31 December 2008. In pursuit of its vision to become a professional, efficient and reliable entertainment city, attracting, developing, motivating and most importantly, retaining a competent workforce become a crucial task for GMB. There are many concepts in IM that can be used to describe how GMB build and maintain loyalty of its employees. The relevant concepts which will be discussed here are empowerment and rewards.
Empowerment can be used as a tool to build commitment and loyalty of employees. According to Bowen & Lawler (in Payne et al., 1999), empowerment is sharing of information, knowledge, decision-making power and performance-based reward with employees. There is evidence showing that empowered employees have greater job satisfaction, motivation and loyalty as they feel more involvement in the achievement of the company (Mullins and Peacock, 1991 cited in Greasley et al., 2004).
Nycodym et al., 1994 (in Greasley et al., 2004) found that employees who are being empowered can reduce job conflict and ambiguity as they are able to control their environment and hence, help reduce their emotional strain. Knowing the benefits of empowerment, GMB practices decentralization where responsibilities for performance appraisal, training, coaching, discipline and succession planning is passed to line managers (www.hrdnet.com.my, 2006). This enables line managers to have more autonomy and involvement in their job and thus, increase their job satisfaction, commitment and ultimately loyalty towards GMB.
Reward is considered as an important element in IM (Foreman and Money, 1995 cited in Malhotra et al., 2006). It serves as a tool to motivate and achieve employee satisfaction (Ahmed et al., 2003 cited in Che Ha et al., n.d.). For reward to be successful in motivating employees, acknowledging employees how they are being appraised and rewarded is important because it can give employees a sense of achievement and help to increase their self-esteem level (Che Ha et al., n.d.). Malhotra et al., in a research done has identified two main categories of reward: extrinsic reward and intrinsic reward.
3.2.1 Extrinsic Reward
Extrinsic reward refers to reward which result from non-job-related factors (Malhotra et al., n.d.). It can be further divided into organizational reward and social reward (Malhotra et al., 2006). Organizational rewards comprise elements such as working condition, remuneration and promotion opportunity (Malhotra et al., 2006). GMB has organized various conferences such as the one which themed “Leading the Business Tomorrow” that held in Manila (Resort World Berhad, 2008). Such conferences provide employees a channel to provide feedback and enhance mutual understanding in order to create a better working condition. Besides, relevant health, safety and environmental training were held to inculcate safety consciousness among employees (Resort World Berhad, 2008). This was aimed to create a safe working environment for its workforce.
In term of remuneration or compensation, GMB is concern about the welfare of their employees beside monetary rewards. For instance, to provide its employees with appropriate accommodations, GMB has spent RM140 million to built a 24-storey high staff quarter which equipped with launderette, cardex security system and other facilities for its executives (www.mohr.gov.my). Besides, GMB also provides good performers with development opportunity. There are 25 scholarships being awarded during year 2008 to deserving employee for them to pursue their studies and they are being offered employment after they graduate (Resort World Berhad, 2008).
Furthermore, GMB also introduced the Hotel Management Trainee Program where selected middle management were given a chance to participate in advanced management programs under Malaysian Association of Hotel Training and Education Center (MAHTEC), while senior management were given the opportunity to partook courses in Cornel University in the USA ( Resort World Berhad, 2008).
Social rewards on the other hand, include good relationship with co-workers and superior as well as teamwork (Malhotra et al., 2006). To achieve that, various teambuilding activities were organized to strengthen teamwork and enhance relationship between workers (Resort World Berhad, 2008). Besides, family days were also held by departments within the company to foster team-spirit and collective brand-knowledge between executives and staffs (Resort World Berhad, 2008).
3.2.2 Intrinsic Reward
Intrinsic reward is the reward inherent in the job itself (Malhotra et al., 2006). Zeithaml, Parasuraman and Berry, 1990 (in Malhotra et al., 2006) suggested that role ambiguity is the cause to performance gap. To avoid performance gap, GMB constantly organizing training programs for its employees. According to RWB Annual Report 2008, there are 11,000 employees receiving training during the year. The training programs were aimed to improve service quality and to provide job-related skills and knowledge. Enabling employee to perform better and achieve organization goal will increase their self-esteem, which according to Maslow’s Hierarchy of Needs (1954), is the higher level of needs or motivators (Borkowski, 2005).
4.0 Relationship with its Supplier
All businesses are interdependent of each other (Hakansson & Snehota 1989 in Egan 2008). Forging good relationship with suppliers is crucial for the success of a business (Miller, n.d.). Good Relationships with suppliers is important because suppliers can directly impact the profitability and financial performance of the buying enterprise by influencing the cost of product development, manufacturing schedules, inventory levels and the timeliness of the delivery of goods and services (Labidi, 2009).
GMB has many suppliers since it is involved in many areas of businesses including hospitality, entertainment and gambling. A prominent supplier is the Mikohn Gaming Corporation. Mikohn supply Casino de Genting with TableLink system- a table game management system that enables the casino management to calculate the win/loss of player using a microchip embedded in each gaming chip (Dalton, 2000).
Other suppliers that are important to GMB include Unibrite Electrical Engineering Sdn. Bhd. which responsible for supplying, installation, testing and maintenance of electrical, communications, SMATV and firemen intercom system in GMB and Sum Poh Sdn. Bhd which responsible for the maintenance of the cable car.
According to terms and conditions of GMB’s online supplier registration (refer to appendix 2), Genting Malaysia has an internet portal - http://rwb.supplier.riba.com, which allow supplier to communicate with them regarding supply of goods, product and services. The site serves as the communication channel to enhance collaborative communication between GMB and its suppliers.
According to Joshi (2009), collaborative communication can enhance suppliers’ effective commitment towards the company, hence motivating supplier to take necessary action to grow and sustain relationship with the company. According to terms and conditions of GMB’s online supplier registration (refer to appendix 2), suppliers are bound to the terms and conditions once their applications are approved. Suppliers are obligate to enclose honest information and to keep information available from the suppliers’ website confidential from the access of third party.
Although the trust developed from such contract is regarded as “contractual trust” by Sako (1991), researchers such as Lane and Backman 1996; Sitkin and Roth 1993 (cited in Sako et al, 1996) has argued that laws are necessary to strengthen the foundation where trust is to be developed. Thus, GMB-suppliers agreements to some extent help to enhance trust and ultimately, build and maintain commitment and loyalty of its suppliers.
5.0 Relationship with the Influencer Markets
According to the Payne’s Six Markets Model (1991), influencer markets include those individuals who might have the ability to positively or negatively influence the activities of the company. To be successful, organizations including GMB must develop good relationship with the sources of ‘influence’ markets based on the industry sector that an organization is in (Payne, 1992).
5.1 Relationship with the Government and the Local Authorities
GMB is the only organization which is awarded the gaming license in Malaysia. Gaming activity in Malaysia is strictly controlled by the government; therefore, GMB must comply with the guideline of the legal practices. According to James (2009), casino of GMB win from non-VIP players will be taxed at 25% in Malaysia and the VIP players will be taxed at 10%. According to Raj (2008), the corporate tax rate of the GMB is 25% and HwangDBS Vickers Research had estimated that the annual income of government from gaming is about RM2.6 billion in year 2007 or 2% of the total revenue of the government. By paying a higher gaming tax, price payout of Number Forecast Operators switching to illegal operators will be reduced. (Raj, 2008)
Besides, Tun Mohammed Hanif bin Omar who serves as GMB Deputy Chairman was the former Inspector-General of The Royal Malaysian Police for 20 years before retiring in January 1994. (RWB Annual Report, 2003) He is a well-known corporate figure and knowledgeable about the laws and legal practices of Malaysia. Furthermore, Tun Mohammed Hanif has good relationship with government personnel, thus, he serves as an influential figure for GMB particularly in the aspect of maintaining the gaming license from the government.
On the other hand, GMB was involved in the planning of celebration when Malaysia government launched the Visit Malaysia Year 2007 to celebrate Malaysia’s 50 years of independence. For a display of the famous Chinese lion dance, the World Lion Dance Invitation was held in Genting Highlands (Web Master, 2008). Such collaboration helps to build good relationship between GMB and various governmental departments and ministries; it has the advantage of spreading the good name of Malaysia.
According to the United Nations World Tourism Organization (UNWTO), 2007, President and COO of GMB, Mr Lee Choong Yan, Minister of Tourism Malaysia and Deputy Prime Minister are the members of UNWTO. The UNWTO had collaborated with the government of Malaysia to organize a 3-day World Tourism Conference in Kuala Lumpur which happens to coincide with the 50th Anniversary of independence of Malaysia. This cooperation with the government of Malaysia has helped solidify their relationship.
5.2 Relationship with Local Communities
GMB is dedicated to being a socially responsible corporation in attentive to the long-term interest of its stakeholders including the local communities. Its effort to build positive relationship with local communities including preserving the environment in terms of minimize waste and pollution, infrastructure support and services, as well as underprivileged and disability groups (Genting Berhad, 2008).
Insufficiencies in the handling of municipal solid waste (MSW) will threaten human health; dampen human spirits and the quality of life (Hossain and Siwar, 2002). Therefore, GMB’s waste management effort includes replacing conventional lights with the smaller long-life energy-saving lights, using recycled paper in back offices, and collecting recyclables such as aluminum cans and plastic wastes to send to recycling centre (Genting Berhad, 2008).
Besides, to fulfill its responsibilities for reducing global warming and be concerned about the health of local community, GMB installed the equipments to treat flue gas before it is discharged to the environment and regularly monitor the flue gas quality to prevent air pollution (Genting Berhad, 2008).
In infrastructure support and services, GMB has donated RM60,000 to St John Ambulance for its 24 hours expressway emergency ambulance service during festive seasons (Dourado, 2009). This is done to provide accident victims with immediate aid, aim to reduce accident casualties during festive season. For underprivileged and disability groups, GMB has hosted 2,174 children and senior citizens from 49 companies and schools for festive celebrations at Genting Highlands Resort in 2008 (Genting Berhad, 2008). Therefore, the wellbeing of those groups is taken care of by GMB.
Through the activities of green marketing, GMB is able to build relationship with the local communities while ensure the wellbeing of the society (Li and Cai, 2008). This was proven when GMB received the Societe Award for Best Brands in Humanitarian- Philanthropy, awarded by Asia Pacific Brands Foundations (Genting Berhad, 2008).
Maintaining the relationship with all the stakeholders requires a consistent effort from the part of GMB. According to Gummesson (2000), the relationship build with each of the stakeholders is known as network of relationship because it is inter-related. All the efforts of GMB is to deliver better services to customers and increase their satisfaction.
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