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1.1 INTRODUCTION
Customer satisfaction, a business term is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a balanced scorecard.
Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
Organizations need to retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate.
Customer satisfaction is the most common form of market research in business-to-business markets and is often connected to quality and production measurement, rather than as straight marketing based research. Before setting up a customer satisfaction programmed, it is necessary to ensure that the organization has the will to actually make changes for improvement; otherwise you will simply be annoying customers by taking their time to collect information, then not doing anything with it.
Customers or buyers are exposed to more of the world than ever before i.e in the changing economy through cable and satellite television, the internet and increased travel and as a result, their tastes and interests have broadened dramatically. Moreover, the long economic dominance of the United States, Europe and Japan is giving way, and economic power is increasingly shared with developing economies.
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Customer satisfaction survey further illuminates the relationship between the customer experience and business performance. Around the world, consumers expect better service quality. It confirms that consumers are more likely to leave a provider because of poor service than for any other reason. It also reveals that service quality is the most powerful factor, more influential than price in choosing providers or to do business with them.
customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers‘ expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction.
In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in 'absolute' terms.
Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold.
Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company‘s goods and services.
Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm‘s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. (A second
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important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction.
The BSNL, which is the Government origination, is successful because of mass survey conducted through the sales force. By following different effective strategies and planning procedures it is running its business successfully. So it is enjoying high customer loyalty as there is high customer satisfaction. Hence customer satisfaction is one of the key elements for achieving good results.
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1.2 NEED FOR THE STUDY
In the modern era building customer satisfaction and loyalty is a key we say to profitable business. The current trend for businesses is to become 'customer-centric', that is, to put the customer at the center of our business in terms of our strategies, actions and processes. Many organizations now approach the 'lifetime value' of customers and seek to increase it.
The importance of customer satisfaction was a hot business topic in the 1980s, as customer satisfaction was considered the best window into loyalty. It seems self-evident that companies should try to satisfy their customers. Satisfied customers usually return and buy more, they tell other people about their experiences.
A market trader has a continuous finger on the pulse of customer satisfaction. Direct contact with customers indicates what he is doing right or where he is going wrong. Such informal feedback is valuable in any company but hard to formalize and control in anything much larger than a corner shop. For this reason surveys are necessary to measure and track customer satisfaction.
In customer satisfaction research we seek the views of respondents on a variety of issues that will show how the company is performing and how it can improve. It is wise to cross check the internal views with a small number of depth interviews with customers. In any customer satisfaction survey there will be quick fixes – actions that can be taken today or tomorrow that will have immediate effect.
The purpose of customer satisfaction research is to improve customer satisfaction and yet so often surveys sit collecting dust. Worse than that, customers have generously given their time to assist in the survey believing that some positive action will take place. Their expectations will have been raised. The process of collecting the data seems easier than taking action to improve satisfaction levels.
The key to customer retention is customer delightment. A highly satisfied customer stays loyal longer, talks favorably about the organization and its products; offers product or service ideas to the organization and costs less to serve the new customers. Today more organizations are recognizing the importance of satisfying and retaining current customers.
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It is not enough to be skillful in attracting new customers, the organization must keep them. Today‘s organization must pay closer attention to the customer defection rate (the rate at which they lose customer).
Here in case of BSNL thus the need for study on customer satisfaction is important since it is highly depending on the customer opinions and expectations there by using that information to change its strategies.
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1.3 OBJECTIVES OF THE STUDY
1. To study the overview of B.S.N.L
2. To determine customer preferences of landline and mobile services.
3. To evaluate the customer satisfaction level for mobile services as well as landline services.
4. To analyze the customer opinion and satisfaction with specific reference to BSNL.
5. To suggest some guidelines for BSNL in order to provide better focused services.
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1.4 METHODOLOGY OF THE STUDY
Marketing research is the ―Systematic design, collection, analysis, and reporting of data and finding relevant to a specific Marketing situation facing the company.‖
Data collection is the most important task for a company to stay in the market for long time. The accuracy of the collected data is of great significance for drawing correct and valid conclusions from the investigation. Data can be collected in territorial sources.
Primary data:
The primary data are collected through the help of the structured questionnaire prepared by the researcher.
Secondary data:
The secondary data are usually of two types internal and external.o Internal records of the company are used as the point of the marketing research. This includes information about the product being researched, its history, company‘s background, market share, and competitors‘ information. These types of information were collected from the marketing department, sales department and corporate cell for marketing intelligence in the company.
o External secondary data contains information available from public sources such as business newspapers, business magazines. A prominent source of data is the CMIE or Centre for Monitoring Indian Economy, which publishes monthly reports on various aspects of Indian economy and Industry.
Sample size:
A sample size of 200 people was taken by the researcher to accomplish the survey.
Allocation of the total sample size
Young people(18yrs to 25yrs)
Middle aged(25yrs to 45yrs)
Middle and old(above 45 yrs)
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Methods used for collection of data:
Survey: This technique of data collection has already been discussed
about above in the report. It was conducted in person that is by meeting the person personally, over telephone, and even my mail. The main disadvantage of conducting surveys over telephone or mail is that the facial expression, body language of the respondent can‘t be observed. Moreover the level of reliability on the results of such surveys is very less and is prone to incorrect results. So approximately 80% of the surveys conducted were by meeting persons personally. The questionnaire used for the survey is in the Annexure part of the report.The field work was done by me at different places like homes, offices, shops, etc. The surveys were done in the office time, so that it is possible to meet every one.
Observation: Observation is a technique where the consumer‘s behavior
is recorded, usually without his/ her knowledge. So according to the definition it is clear that in this technique of data collection they are more inclined towards BSNL or any other like the main competitors of BSNL like the bharti Airtel , Vodafone, TATA, Reliance, etc. Qualitative technique: This technique included word association where the respondent was asked for a word that comes to his / her mind after thinking of the brand BSNL.
Experimentation: In this I measured the effect of one or more variables
by changing the level of some variables, and measuring the effects.9
1.5 LIMITATIONS OF THE STUDY
1. We have collected only 200 samples due to shortage of time. 2. We weren‘t able to get proper response from some samples.
3. Some of the information are difficult to gather due to professional obligations.
4. Sample result may not resemble with population.
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2.1 History of Telecom Industry in India
The Indian Telecommunications industry is the world's fastest growing telecommunications industry, with 962.82 Million telephone (landlines and mobile) subscribers and 929.37 Million mobile phone connections as of May 2012. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The Indian Mobile subscriber base has increased in size by a factor of more than one hundred since 2001 when the number of subscribers in the country was approximately 5 million to 962.82 million as on 30th
June, 2012.
As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013. The industry is expected to reach a size of 344,921 crore (US$74.85 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. In 2008-09 the overall telecom equipments revenue in India stood at 136,833 crore (US$29.69 billion) during the fiscal, as against 115,382 crore (US$25.04 billion) a year before. Indian telecom operators added a staggering 227.27 million wireless subscribers in the 12 months between Mar 2010 and Mar 2011 averaging at 18.94 million subscribers every month. To put this into perspective, China which currently possesses the world's largest telecommunications network added 119.2 million wireless subscribers during the same period (March 2010 - March 2011).
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Evolution of the industry-Important Milestones:
Year Milestones
1851 First operational land lines were laid by the government near
Calcutta (seat of British power) 1881 Telephone service introduced in India 1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT) 1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. 1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National Telecom Policy is adopted.
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MAJOR PLAYERS:
There are three types of players in telecom services: State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices)
Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, and Spice Communication
Telecommunications Regulatory Environment in India:
LIRNEasia‘ Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders‘ perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors.
Modern growth:
A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. The first operator is the state-owned incumbent BSNL. BSNL was created by corporatization of the erstwhile Indian Telecommunication Service, a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Vodafone, Bharti Airtel, Tata Indicom, Idea Cellular, Aircel and Loop Mobile have entered the space. See mobile operators in India. In 2008-09, rural India outpaced urban India in mobile growth rate. Bharti Airtel now is the largest telecom company in India.
India's mobile phone market is the fastest growing in the world, with companies adding some 18.98 million new customers in June 2012.
The total number of telephones in the country crossed the 962.82 million mark in June 2012. The overall tele-density has increased to 78.55% by June 2012. In the wireless segment, 0.56 million subscribers were added in June 2012. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 931.42
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million now. The wireline segment subscriber base stood at 35.43 million with a decline of 0.14 million as of June 2012.
HISTORY:
Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph.
INTRODUCTION OF TELEGRAPH:
The postal and telecom sectors had a slow and uneasy start in India. In 1850, the first experimental electric telegraph Line was started between Kolkata and Diamond Harbor. In 1851, it was opened for the British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department, at that time. Construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (Calcutta) and Peshawar in the north along with Agra, Mumbai (Bombay) through Sandra Ghats, and Chennai in the south, as well as Ootacamund and Bangalore was started in November 1853. Dr. William O'Shaughnessy, who pioneered telegraph and telephone in India, belonged to the Public Works Department. He worked towards the development of telecom throughout this period.
A separate department was opened in 1854 when telegraph facilities were opened to the public.
INTRODUCTION OF THE TELEPHONE:
In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. In 1881, the Government later reversed its earlier decision and a license was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Calcutta, Bombay, Madras and Ahmadabad and the first formal telephone service was established in the country. 28 January 1882, is a Red Letter Day in the history
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of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named "Central Exchange" was opened at third floor of the building at 7, Council House Street.
FURTHER DEVELOPMENTS
A Mobile Phone Tower:
1902 - First wireless telegraph station established between Sagar Islands and Sand heads.
1907 - First Central Battery of telephones introduced in Kanpur.
1913-1914 - First Automatic Exchange installed in Shimla.
23 July 1927 - Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam stations at Khadki and Daund, inaugurated by Lord Irwin by exchanging greetings with King George
1933 - Radiotelephone system inaugurated between the UK and India.
1953 - 12 channel carrier system introduced.
1960 - First subscriber trunk dialing route commissioned between Lucknow and Kanpur.
1975 - First PCM system commissioned between Mumbai City and Andheri telephone exchanges.
1976 - First digital microwave junction introduced.
1979 - First optical fibre system for local junction commissioned at Pune.
1980 - First satellite earth station for domestic communications established at Secunderabad, A.P..
1983 - First analog Stored Program Control exchange for trunk lines commissioned at Mumbai.
1984 - C-DOT established for indigenous development and production of digital exchanges.
1985 - First mobile telephone service started on non-commercial basis in Delhi.
While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948 was only around 80,000. Even after independence, growth was extremely slow. The telephone was a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country.
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Emergence as a major player:
In 1975, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Accounts and Finance Service. DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalization-Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing from its operations wing. The Government of India corporatized the operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance Communications, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom market.
Revenue and growth:
The total revenue in the telecom service sector was 86,720 crore (US$18.8 billion) in 2005-06 as against 71,674 crore (US$15.6 billion) in 2004-2005, registering a growth of 21%. The total investment in the telecom services sector reached 200,660 crore (US$43.5 billion) in 2005-06, up from 178,831 crore (US$38.8 billion) in the previous fiscal.
Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to 100 million in 2010. Out of this 10.52 million were broadband connections. More than a billion people use the internet globally.
Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country.
It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 up from 2.3 million in December 2004.
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The value added services (VAS) market within the mobile industry in India has the potential to grow from US$500 million in 2006 to a whopping US$10 billion by 2009.
Next generation networks:
In the Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fiber optics or coaxial cable networks connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks – both fixed and mobile users will access services through a single core network.
Indian telecom networks are not so intensive as developed country‘s telecom networks and India's teledensity is low only in rural areas. 670,000 route kilometers (419,000 miles) of optical fibres has been laid in India by the major operators, even in remote areas and the process continues. BSNL alone has laid optical fibre to 30,000 Telephone Exchanges out of their 36 Exchanges. Keeping in mind the viability of providing services in rural areas, an attractive solution appears to be one which offers multiple service facility at low costs. A rural network based on the extensive optical fibre network, using Internet Protocol and offering a variety of services and the availability of open platforms for service development, viz. the Next Generation Network, appears to be an attractive proposition. Fibre network can be easily converted to Next Generation network and then used for delivering multiple services at cheap cost.
Mobile Number Portability (MNP):
TRAI announced the rules and regulations to be followed for the Mobile Number Portability in their draft release on 23 September 2009. Mobile Number Portability (MNP) allows users to retain their numbers, while shifting to a different service provider provided they follow the guidelines set by TRAI. Once a customer changes his/her service provider & retaining the same mobile number they are expected to hold Thiele number with a given provider for at least 90 days, before they decide to move to another service provider. This restriction is set in
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place to keep a check on exploitation of MNP services provided by the service providers.
As per news reports, Government of India decided to implement MNP from December 31, 2009 in Metros & category ‗A‘ service areas and by March 20, 2010 in rest of the country.
It has been postponed to March 31, 2010 in Metros & category 'A' service areas. However, time and time again, lobbying by the state-run firms, BSNL and MTNL has resulted in innumerable delays in the implementation of Mobile Number portability. The latest reports suggest BSNL and MTNL are finally ready to implement the Mobile Number Portability by October 31, 2010.
A press release by the Department of Telecommunications on 30 June 2010 said "Keeping the complexity and enormity of the testing involved before MNP is implemented and keeping in view the present status of implementation by various operators, it has now been decided to extend the time line for implementation of MNP to 31st October 2010."
The latest official report is that Mobile Number Portability will be phased in slowly, starting with Haryana which will have MNP on or soon after November 1, 2010.
A news report on 25 November 2010 said Mobile Number Portability (MNP) was finally launched in Haryana. The MNP service inaugurate by the Union Minister of Communications & IT Mr. Kapil Sibal by making the inaugural call to Shri Bhupindrer Singh Hooda, the Chief Minister of Haryana from a ported mobile number in function held at Rohtak city.
International:
Nine satellite earth stations - 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region).
Nine gateway exchanges operating from Mumbai, New Delhi, Kolkata, Chennai, Jalandhar, Kanpur, Gandhinagar, Hyderabad and Ernakulam
Submarine cables:
LOCOM linking Chennai to Penang, Malaysia.
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SEA-ME-WE 2 (South East Asia-Middle East-Western Europe 2)
SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) - Landing sites at Cochin and Mumbai. Capacity of 960 Gbit/s.
SEA-ME-WE 4 (South East Asia-Middle East-Western Europe 4) - Landing sites at Mumbai and Chennai. Capacity of 1.28 Tbit/s.
TIISCS (Tata Indicom India-Singapore Cable System), also known as TIC (Tata Indicom Cable), Chennai to Singapore. Capacity of 5.12 Tbit/s.
i2i - Chennai to Singapore. Capacity of 8.4 Tbit/s.
SEACOM from Mumbai to the Mediterranean, via South Africa. It currently joins with SEA-ME-WE 4 off the west coast of Spain to carry traffic onward to London (2009). Capacity of 1.28 Tbit/s.
I-ME-WE (India-Middle East-Western Europe) with two landing sites at Mumbai (2009). Capacity of 3.84 Tbit/s.
EIG (Europe-India Gateway), landing at Mumbai (due Q2 2010).
MENA (Middle East North Africa).
TGN-Eurasia (Announced) Landing at Mumbai (due 2010?), Capacity of 1.28 Tbit/s
TGN-Gulf (Announced) Landing at Mumbai (due 2011?), Capacity Unknown.
Telephone statistics:
Telephone subscribers (wireless and landline): 995.9 million
(May 2012)
Land lines: 31.53 million (May 2012)
Cell phones: 929.37 million (May 2012)
Monthly cell phone addition: 8.35 million (May 2012)
Teledensity: 79.28% (May 2012)
Annual cell phone addition: 227.27 million (March 2010 - 2011)
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ORGANIZATION PROFILE
Type
Communication service provider
Availability
Countrywide except Delhi& Mumbai
Owner
The government of India
Key people
S.D. Saxena (CFO);Dr. Ajay Data (CEO)
Founded
19th century, incorporated 2000
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2.2 GENESIS AND GROWTH
BSNL
Type State-owned
Industry Telecommunications
Founded 19th century, incorporated 2000
Headquarters New Delhi, India
Key people R.K.Upadhyay (Chairman &MD)
Products
Wireless Telephone Internet Television
Revenue ▼ US$ 5.8 billion (2011-12)
Owner(s) Government of India
Employees 276,306 – August, 2011
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INTRODUCTION
BSNL is one of the largest Indian cellular service providers, with over 119.99 million subscribers as of June 2012, and the largest land line telephone provider in India. However, in recent years the company's revenue and profit plunged into heavy losses due to intense competition in the Indian telecommunications sector.
BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 90 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam Limited (MTNL). As of June, 2012, BSNL had a customer base of 40.60 million wireline and 98.28 million wireless subscribers.
BSNL provides almost every telecom service, however following are the main Telecom Services being provided by BSNL in India:-
1) BSNL Landline:
BSNL is the largest telecom operator in India and is known to everybody for Basic Telephony Services for over 100 years. Presently the Plain old, Countrywide telephone service is being provided through 32,000 electronic exchanges, 326 Digital Trunk Automatic Exchanges (TAX), Digitalized Public Switched Telephone Network (PSTN) all interlinked by over 2.4 lakh km of Optical Fiber Cable, with a host of Phone Plus value additions to our valued Customers. BSNL's telephony network expands throughout the vast expanses of the country reaching to the remotest part of the country.2) BSNL Mobile: India's fastest growing cellular service, along with postpaid and prepaid services brings cellular telephony to the masses, through innovative technology and strategic pricing. This ambitious service uses state-of-the-art GSM technology to attain global excellence and leadership in business. Our entry into this sector has brought GSM cellular service at an affordable cost to the common man. All serving a single objective, to provide better communication to millions across India. Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh Cellular customers within ten months of launch of Cellular service, an unprecedented mark in Indian Cellular Market.
3) BSNL WLL-M:
BSNL WLL-M is a communication system that connects customers to the The BSNL Landline network using radio frequency signals instead of conventional copper wires, for the full or part connection between the subscriber and22
the exchange This comes with superior voice quality and high speed data capabilities. CDMA is popular with more than 100 million subscribers worldwide, and the number keeps on increasing exponentially.
4) Internet Services:
BSNL is India's no. 1 Internet service provider with more than 17 lakh subscribers, providing Internet service throughout the entire country (except in New Delhi and Mumbai) under the brand name of "Sancharnet". Sancharnet provides free all India roaming and enables it's users to access their accounts, using the same access code (172233) and user ID from anywhere in the Country. In order to make Internet available throughout the length and breadth of the Country Internet Dhabas are being commissioned at all the Block Headquarters. BSNL has also started DIAS and Account free internet access (CLI based) facility on few select cities recently.5) BSNL Broadband:
BSNL is in the process of commissioning of a world class, multi-gigabit, multi-protocol, convergent IP infrastructure through National Internet Backbone-II (NIB-II), that will provide convergent services through the same backbone and broadband access network. The Broadband service will be available on DSL technology (on the same copper cable that is used for connecting telephone), on a countrywide basis spanning 198 cities. In terms of infrastructure for broadband services NIB-II would put India at par with more advanced nations. The services that would be supported includes always-on broadband access to the Internet for residential and business customers, Content based services, Video multicasting, Video-on-demand and Interactive gaming, Audio and Video conferencing, IP Telephony, Distance learning, Messaging: plain and feature rich, Multi-site MPLS VPNs with Quality of Service (QoS) guarantees. The subscribe will be able to access the above services through Subscriber Service Selection System (SSSS) portal.6) Intelligent Network (IN):
BSNL provides IN services offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN) and more.7) 3G:
BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc.
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8) FTTH:
Fibre To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009.9) Helpdesk:
BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services.Future Plans:
Connect villages having 1,000 and above population
During the next 2 years (2010 – 2012), BSNL plans to provide large number of phone connections and Broadband connections on ADSL as well as Wireless technology. It also plans to increase its existing Optical Fibre Cable network and TAX capacity.
Aggressive marketing to tap the demand for the 3G technology to enable high speed data transfer applications.
Extending the coverage of 3G and WiMAX.
Introduce new value added services such as Mobile TV, E-Banking, Mobile Broadband, MMS etc using new technology such as WiMAX.
Introduction of new services like FTTH, VOIP etc.
Upgradation of existing network to NGN
Contribute towards:
National Plan Target of 500 million subscriber base for the country by December 2010.
Broadband customers base of 20 million in the country by 2010 as per Broadband Policy 2004.
Providing telephone connection in villages as per government policy. Implementation of Triple play as a regular commercial proposition.
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Market share of BSNL:
Total Telecom Share Up to 31/03/2011 Sl.
No
Name of service
Landline CDMA GSM Total Mkt
Share(%) 1 Airtel 30,66,859 --- 12,76,19,314 13,06,86,173 20.50 2 Reliance 11,77,412 10,24,22,145 1,63,11,206 11,99,10,763 18.81 3 Vodafone --- --- 10,08,58,358 10,08,58,358 15.82 4 BSNL 2,78,30,560 59,63,673 6,34,86,339 9,72,80,572 12.46 5 TATA 11,62,276 6,59,42,255 --- 6,71,04,531 10.53 6 IDEA --- --- 6,38,24,688 6,38,24,688 10.01 7 Aircel --- --- 3,68,61,174 3,68,61,174 5.78 8 MTNL 34,96,754 3,10,103 47,84,453 85,91,310 1.35 9 Uninor --- --- 42,64,036 42,64,036 0.67 10 Sistema 49,416 37,75,144 --- 38,24,560 0.60 11 LOOP --- --- 28,44,583 28,44,583 0.45 12 S-tel --- --- 10,06,827 10,06,827 0.16 13 CONNECT 1,73,407 3,28,146 --- 5,01,553 0.08 Total 3,69,56,684 178741466 42,18,60,978 63,75,59,128 100.00
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Market Share of Telephone Operators in India as on 31.05.2011
:
Note: Others means HFCL Infotel 0.55% and Shyam Telelinks 0.11% BSNL 72% Bharti Airtel 10% Reliance Telecom 3% Tata Indicom 4% MTNL 10% Others 1% Wireline Market Share
Wireline Market Share
BSNL 72.24 Bharti Airtel 9.64 Reliance Telecom 3.60 Tata Indicom 3.79 MTNL 10.05 Others 0.68
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Note:
Others means BPL 0.38%, HFCL Infotel 0.18%, Shyam Telelinks 1.29%, Uninor 2.95%, Stel 0.36%, Etisalat DB 0.15% and Vidiocon 0.88%BSNL 11% Bharti Airtel 21% Reliance Telecom 17% Vodaphone Essar 17% Tata Indicom 11% Idea 12% Aircel 7% MTNL 1% Others 3% Wireless Market Share Wireless Market Share
BSNL 11.05 Bharti Airtel 19.88 Reliance Telecom 16.80 Vodaphone Essar 16.59 Tata Indicom 10.80 Idea 11.16 Aircel 6.79 MTNL 0.66 Others 2.83
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Note:
Others means BPL 0.36%, HFCL Infotel 0.19%, Shyam Telelinks 1.24%, Uninor 2.81%, Stel 0.35%, Etisalat DB 0.14% and Vidiocon 0.84%BSNL 14% Bharti Airtel 20% Reliance Telecom 17% Vodaphone Essar 16% Tata Indicom 11% Idea 11% Aircel 7% MTNL 1% Others 3%
Total Telephone Market Share Total Telephone Market Share
BSNL 13.45 Bharti Airtel 19.48 Reliance Telecom 16.28 Vodaphone Essar 15.94 Tata Indicom 10.53 Idea 10.72 Aircel 6.52 MTNL 1.03 Others 2.71
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Telecom Circles of BSNL in India:
Andaman & Nicobar Telecom Circle
Dobaspet
Tamilnadu Telecom Circle
Jharkhand Telecom Circle
Bihar Telecom Circle
Andhra Pradesh Telecom Circle
Assam Telecom Circle
Chhattisgarh Telecom Circle
Gujarat Telecom Circle
Haryana Telecom Circle
Himachal Pradesh Telecom Circle
Jammu & Kashmir Telecom Circle
Jharkhand Telecom Circle
Karnataka Telecom Circle
Kerala Telecom Circle
Madhya Pradesh Telecom Circle
Maharashtra Telecom Circle
North East-I Telecom Circle
North East-II Telecom Circle
Orissa Telecom Circle, Rajasthan Telecom Circle
Punjab Telecom Circle, Uttranchal Telecom Circle
Metro Districts:
Kolkata Chennai Delhi MumbaiProject Circles:
Eastern Telecom Project Circle
Western Telecom Project Circle
Northern Telecom Project Circle
Southern Telecom Project Circle
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Maintenance Regions:
Eastern Telecom Maintenance Region
Western Telecom Maintenance Region
Northern Telecom Maintenance Region
Southern Telecom Maintenance Region
Specialized Telecom Units:
Broad Band Networks (Data Networks)
National Centre For Electronic Switching
Technical & Development Circle
Production Units:
Telecom Factory, Mumbai
Telecom Factory, Jabalpur
Telecom Factory, Richhai
Telecom Factory, Kolkata
Present and future:
BSNL then known as Department of Telecom had been a near monopoly during the socialist period of the Indian economy. During this period, BSNL was the only telecom service provider in the country MTNL was present only in Mumbai and New Delhi). During this period BSNL operated as a typical state-run organization, inefficient, slow, bureaucratic, and heavily unionised. As a result subscribers had to wait for as long as five years to get a telephone connection. The corporation tasted competition for the first time after the liberalisation of Indian economy in 1991. Faced with stiff competition from the private telecom service providers, BSNL has subsequently tried to increase efficiencies itself. DoT veterans, however, put the onus for the sorry state of affairs on the Government policies, where in all state-owned service providers were required to function as mediums for achieving egalitarian growth across all segments of the society.
The corporation (then DoT), however, failed miserably to achieve this and India languished among the most poorly connected countries in the world. BSNL was born in 2000 after the corporatisation of DoT. The efficiency of the company
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has since improved little a bit. However, the performance level is nowhere near the private players.
INDIA BROADBAND:
Year of Broadband 2007:
2007 has been declared as "Year of Broadband" in India and BSNL is in the process of providing 5 million Broadband connectivity by the end of 2007. BSNL has upgraded existing Data one (Broadband) connections for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 11.7 per month (as of 21 July 2008 and at a limit of 2.5GB monthly limit with 0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadband. BSNL is planning to increase its customer base to 108 million customers by 2010. With the frantic activity in the communication sector in India, the target appears achievable. BSNL is a pioneer of rural telephony in India. BSNL has recently bagged 80% of US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India.
On the 20th of March, 2009, BSNL advertised the launch of BlackBerry services across its Telecom circles in India. The corporation has also launched 3G services in select cities across the country. Presently, BSNL and MTNL are the only players to provide 3G services, as the Government of India has completed auction of 3G services for private players. BSNL shall get 3G bandwidth at lowest bidder prices of Rs 18,500 crore, which includes Rs 10,186 crore for 3G and Rs 8313crore for BWA.[One crore is 10 million.]BSNL management has paid this money under protest seeking refund.
Challenges:
During the financial year 2008-2009 (from April 1, 2009 to March 31, 2009) BSNL has added 8.1 million new customers in various telephone services taking its customer base to 75.9 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 62.3 million. However, despite impressive growth shown by BSNL in recent times, the fixed line customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling rate under One India plan, however, the success of the scheme is not known. However, BSNL faces bleak fiscal 2009-2010 as users flee.
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Presently there is an intense competition in Indian Telecom sector and various Telco‘s are rolling out attractive schemes and are providing good customer services.
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide service in non-lucrative areas especially rural areas) has been slashed by 20% by Telecom Regulatory Authority of India (TRAI), w.e.f. April 1, 2009. The reduction in ADC may hit the bottomlines of BSNL.
BSNL has started 3G services in 290 cities and acquired more than 6 Lakh customers. It has planned to roll out 3G services in 760 cities across the country in 2010-11.
Broadband services: The shift in demand from voice to data has revolutionized the very nature of the network. BSNL is poised to cash on this opportunity and has planned for extensive expansion of the Broadband services. The Broadband customer base of 3.56 Million customers in March'2009 is planned to be increased to 16.00 million by March 2014. Now BSNL is the under top five telecom service provider company in India.
Major developments after formation of BSNL
Launching of Cellular services : 01-12-2002 Launching of WLL Services : 12-03-2004 Commissioning of OAN (Optical Fibre) network : 2005 Commission of Broadband services : March 2005 Commissioning of Cell MSC : 11-11-2005 Complete conversion of Landline connections to new technology 2006
Commissioning of Optical Fiber Ring routes : 2006
Commissioning of WLL MSC : 08-06-2007
Commissioning of Wimax services : February 2009 PRBT Services commissioned : 22-04- 2009 Commissioning of 3G services (With 60 BTSs) : 31-03-2010
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BSNL IN VISHAKAPATNAM
Visakhapatnam District comprises an area of 11,161 Sq.KMs.
Total Population of the District is 38, 32,336.(Urban: 15, 30,899; Rural: 23, 01,437).
The Visakhapatnam telecom division office telegraphs was formed during 1976 under the control of Divisional Engineer telegraphs, Visakhapatnam with a less than 100 telephone connections in Visakhapatnam District. The DE telegraphs had maintained the entire telegraph and telecom network including Defense Lines from Visakhapatnam to Ichapuram. Later many telephone Exchanges were commissioned at several places in the district and number of connections increased to more than 1000 and Divisional Engineer, telegraphs was formed and separated as Vizianagaram and Srikakulam divisions during 1981. The office of Divisional Engineer, Visakhapatnam is remained as Telecom. District Engineer, Visakhapatnam and it is upgraded to the level of telecom district manager during 1993 after reaching its capacity 10,000 connections and a Junior Administrative Grade Officers from Indian Telecom. Service has been posted as Head of this Telecom District. 1996-1999 is the golden period for history of telecommunications and its connectivity is increased. During this period the telephone connections were increased to more than 10 times and many new electronic exchanges were installed and the old technology was removed and provided some more additional facilities to customers. The telecom wing higher to under the department of telecommunications has been formed as Bharat Sanchar Nigam Limited with effect from 01-10-2000 as a Corporate Sector. Due to the vase development during this period, the status of this telecom district is upgraded to the level of General Manager and a Senior Administrative Grade Officer from Indian Telecom. Service has been posted as Head of this Telecom District in September 2000. Now the telephone connections are more than 1,50,000 the General Manager is looking after development activities of the entire district. Engineering Officers and Finance Officers is one Engineering Officer from Indian Telecom. Service is working as Deputy General Manager looking after the Administration and Planning and one Finance officer advisor. These two officers are assisting to the General Manager for Development activities and to run the administration in smooth. Divisional Engineers, Sub-Divisional Engineers and Chief Accounts Officers and Accounts Officers are working under the control of above mentioned officers respectively. It is very difficult to maintain the entire district at one point, for easy mice of the entire telecom district has been divided into sub-divisions. The heads of sub divisions will look after the development activities relate to that sub-division. Though the telephone density is comparatively less than other developed districts, the
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department is providing good services through out the district. Through services provided in the rural areas is not economical to the department. It is still continued the services in the public interest. One more happiest news to the Visakhapatnam District customers that the Bharat Sanchar Nigam Limited,Visakhapatnam providing cell one services, WLL Services and value added services to the public.
BSNL, Visakhapatnam is serving many Major Industries in
Visakhapatnam like……
HPCL (Hindusthan Petroleum). Coromandel Fertilizers.
Hindustan Zinc Ltd. Hindustan Ship Yard, Ship Building Centre. Visakha Dairy.
Indian Oil Corporation. BHPV.
Essar Steel Pellatisation Plant. L.G Polymers.
NALCO (National Aluminum Company). DCI (Dredging Corporation of India). INDIAN NAVY.
Educational Institutions like AU, GITAM etc., APEPDCL, GVMC etc., and many more ………
Visakhapatnam Telecom District is
Having 10 SDCAs consisting of 42 Mandals.
Having the New Technology switches like OCB and EWSD along with CDOT technology.
Having 98 exchanges and 4 DLCs in the SSA
Urban exchanges : 28
Rural : 70
Working Lines as on 30-11-2010
:
Land Line : 107725 (98 exges+4 DLCs). WLL : 9160 (WLL BTSs: 59). Cellular Connections :( Cell BTSs: 194). Prepaid : 232539.
Postpaid : 8126. Total : 240665.
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Facilities offered to Customers
Year Facility offered
March 2003 Mobile van collections May 2005 ECS facility
July 2005 Collection of bills by banks May 2008 e-seva
October 2008 BSNL PORTAL & online transfer (e-payment) July2009 AP online services
Penetration of Broadband connections against Landline connections:
Year Land Line Brand Band Penetration %ge
2005 151208 4110 2.72 2006 146114 5439 3.72 2007 132335 14096 10.65 2008 118974 20609 17.32 2009 110202 27274 24.75 2010 107725 30829 28.62
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Developments in Lands & Buildings
Year Lands Acquisition
Construction of buildings Cell sites acquired 2000 --- --- --- 2001 --- Vempadu --- 2002 Seethammadhara Seethammadhara 4 2003 --- Pendurthy 3 2004 Parawava --- 10 2005 Rambilli, Sabbavaram, Atchutapuram, Tagarapuvalasa, Anandapuram, Madhurawada, Narsipatnam --- 24 2006 Kasimkota, Nathavaram --- 3 2007 Rolugunta --- 15 2008 --- Dabagardens building vertical expansion 13 2009 --- ---- 4 2010 ---
Mindi Tele exge bldg horizontal expansion, Dabagardens Admn bldg, Narsipatnam Tele exge
bldg.
72 sites under Phase V.I
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2.3 ORGANIZATION STRUCTURE (CENTRAL)
Chairman & Managing Director (Central) Chief General Manager (Circle) Chief General Manager (Circle) Chief General Manager (Circle) Chief General Manager (Circle)
HRD Operations Planning Marketing Finance
Director Director Director Director Director
Chief General Manager (Circle) DGM General Manager (District) DGM DGM DGM DGM General Manager (District) General Manager (District) General Manager (District) General Manager (District)
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2.3 ORGANIZATION STRUCTURE (STATE)
Head of the Circle Chief General Manager (A.P.) Head of Visakhapatnam SSA Dy. General Manager (Planning and Marketing) Divisonal Engineers Sub-Divisonal Engineers Junior Telecom Officers General Manager Dy. General Manager (Finance) Chief Accounts Officer Accounts Officer Junior Accounts Officer
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2.4 Marketing Functions
Marketing & Sales and often use it interchangeably without understanding the difference in it. Marketing is everything we do to get and leverage a client relationship.
Marketing process is broad and includes all of the following
: -
Discovering what product, service or idea customers want.
Producing a product with the appropriate features and quality.
Pricing the product correctly.
Promoting the product; spreading the word about why customers should buy it
Selling and delivering the product into the hands of the customer. Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service
.
Marketing functions includes
Estimate the customer tastes and preferences Advertisements and promotional activities Sales and distribution
Providing services to customers Identifying the new market New product development Market segmentation
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. ‗delighting‘ the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with.
Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organisation. Successful Marketing focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of business by
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integrating them with the organization strategy, people, technology and business processes. At its most basic, Marketing involves customers, organizations and relationships and the combination creates the need for the management.
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2.5 FINANCE FUNCTION
Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is certainly on a financial ground that's sound. The Company has a net worth of Rs. 86,476 crores, Authorized Equity capital of Rs. 10,000 crores, Paid up Equity Share Capital of Rs. 5,000 crores and Revenue is Rs. 32,045 crores in 2009-10
.
Revenue
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Capital outlay
Gross investment in fixed assets:
The BSNL is making substantial investment year to year for its network expansion and modernization. During the current financial year BSNL has made the gross investment of Rs. 28,227 crore (US $ 6.28 billion) in Fixed Assets.
BSNL has Gross Fixed Assets of over Rs. 132243 Crores as on 31.03.2009.
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Corporate assets
Bharat Sanchar Nigam Limited has got net fixed assets valuing more than Rs. 54,321 Cores, which are in the form of Land, Buildings Cables, Apparatus & Plants etc. as on 31.03.2009.
Financial functions are includes
Raising funds and investing them in assets Share holders wealth maximization
Working capital management and estimation of working capital Profit maximization
Tax payments Cash management Inventory management Capital budgeting decision Investment decisions Assets management Hu
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2.6 Human Resources Functions
HR development:
With a corporate philosophy that considers Human Resource as the most prized assets of the organization, it's natural for BSNL to continually hone employee skills, enhance their knowledge and their expertise and their aspirations to fruition. Even as BSNL goes about conducting its business activities, it lays emphasis on constant enhancement of knowledge and skills through regular traininprogrammes.
Human resources functions includes
HR planning Recruitment Selection
Training & Development Promotions & Depromotions Transfers
Salary & Wage administration Disciplinary activities
Attendance & Leave Welfare
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Staff strength of BSNL, Visakhapatnam
SWOT Analysis:
Strengths:
Experienced telecom service provider
Huge Resources (financial & technical pool)
Most trusted telecom brand
Transparency in billing
Year Staff strength
2000 2041 2001 2041 2002 2008 2003 1997 2004 1982 2005 1955 2006 1903 2007 1843 2008 1805 2009 1682 2010 1640
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Weaknesses:
Non-optimization of network capabilities
Poor marketing strategy
Bureaucratic organizational set up
Limited number of value added services
Opportunities:
Tremendous market growing at 20 lac customers per month
Untapped broadband services
Untouched international market
Can capitalize on public sector image to grab government‘s ICT initiatives
Threats:
Competition from private operators
Keeping pace with fast technological changes
Market maturity in basic telephone segment
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2.7 VISION AND MISSION 0F THE COMPANY
Vision:
To become the largest telecom Service Provider in Asia.
Mission:
1. To provide world class state-of-art technology telecom services to its
customers on demand at competitive prices. 2. To provide world class telecom infrastructure in its area of operation and to
contribute to the growth of the country's economy
.
Objectives:
1. To be a Lead Telecom Services Provider.
2. To provide quality and reliable fixed telecom service to our customer and 3. There by increase customer's confidence.
4. To provide mobile telephone service of high quality and become no. 1 GSM 5. Operator in its area of operation.
6. To provide point of interconnection to other service provider as per their Requirement promptly.
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3.1 INTRODUCTION
Customer is the king; this is all the more apt for today business environment where, all other factors remaining more or less constant, it is the value addition to the customer that is making all the difference. Customer satisfaction depends on the performance relative to a expectations.
A key premise in customer satisfaction is understanding the needs and meeting or exceeding the expectations of customers. Furthermore, this is done while optimally using resources. While most companies have developed strategies to improve quality and external customer service, internal customer satisfaction is a much neglected component of quality improvement. To this end, it is important to emphasize that total customer satisfaction can be attained only if all employees devoted to external customer satisfaction can work together and assist each other to achieve the common objective, when the internal customer isn‘t satisfied; Relationships with the external customer suffer. So, it suggested to adopt customer oriented approach to keep the internal customer satisfied and motivated, who in turn will focus their attention and energy upon meeting the requirements of their customers, thereby maximizing the customer, thereby maximizing the customer satisfaction.
Customer satisfaction survey is the process to monitor the satisfaction quotient of their people. In internal satisfaction surveys therefore tracks the return on your investments in keeping your people happy, high salaries, a quality culture, a healthy work environment. Last, but not the least internal customer satisfaction survey helps in finding the critical areas, which need further improvement.
Today‘s companies are facing their toughest competition ever. These companies can outdo their competition if they can move from product and sales philosophy to a marketing philosophy. We spell out in detail how companies can go about winning customers and outperforming competitors. The answer lies in doing a better job of meeting and satisfying customers‘ needs. Only customer- centered companies are adept at building customers, not just building product. They are skilled in market engineering, not just product engineering.
Too many companies think that it is the marketing/sales department‘s job to procure customers. If that department cannot, the company draws the conclusion that its marketing people aren‘t very good. But in fact, marketing is only one factor
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in attracting and keeping customers. The best marketing department in the world cannot spell products that are poorly made or fail to meet anyone‘s need. The marketing department can be effective only in companies whose various departments and employees have designed and implemented a competitively superior customer, value-delivery system.
Although the customer oriented firms seek to create high customer satisfaction, its main goal is to maximize customer satisfaction, first the company can increase customer satisfaction by lowering its prices, but results may be lower profits second the company might be able to increase prices. Third the company has many stake-holders including employees, dealers,
Suppliers and stock holders spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partner. Estimate the company must operate on the philosophy that it is trying to deliver a high level of satisfaction to the other stake- holder within the constrains of its, Resources. From the past studies of last three decades we observed that the company‘s first task is to create and satisfy customers. But today‘s customers face a vast array of product and brand choice prices and suppliers.
It is generally believed that customers estimate which offer will deliver the most value customers are like value maximizes, within the bounds of search costs and limited knowledge, mobility income, they form an expectation of value and act on it, whether or not the offer lives up to the value expectations affects customer‘s satisfaction and their repurchase probability.
When we talk about customer satisfaction, we talk about creativity. Creativity allows us to handle or diffuse problems at hand or later on in the process of conducting the everyday We talk about how, or rather what, does the organization have to do to gain not only the sale but also the loyalty of the customer. We want to know the payoff of the transaction both in the short and long term. We want to know what our customers want. We want to know if our customers are satisfied. Satisfaction, of course, means that what we delivered to a customer met the customer‘s approval. We want to know if customers are delighted and willing to comeback, and so on. Fleiss and Feldman present examples of that delightfulness in their writings.
Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed excellence in a cab ride. As important as delightfulness is, some of us minimize it,
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or even totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in sales.
3.2 ROLE OF CUSTOMER SATISFACTION IN MARKETING
Customer satisfaction plays a huge role in the success (or failure) of your marketing campaign. Creating a successful marketing strategy begins and ends with knowing your target audience. If your target audience is leaving messages like the one to the left - well no viral marketing messages can overcome a lack of customer service.
In the days prior to the World Wide Web and the ensuing social media explosion - the holy grail of marketing was advertising. In a nutshell, word of mouth marketing depends upon customer satisfaction to generate ―buzz‖ in the community. One satisfied customer tells another and suddenly, a business would find its sales growing without spending precious dollars on traditional advertising.
3.3 NEED OF INTERNAL CUSTOMER SATISFACTION:
o Rapidly growing organization o High or growing turnover rate. o Excessive rumor‘s
o Highly competitive industry.
o Planned and recent organizational changes.
BENEFITS OF INTERNAL CUSTOMER SATISFACTION:
o It creates better teamwork and n improved work process. o It leads to higher output and superior quality product. o It decreases the turnover.o Reduced overheads, and increase customer satisfaction level‘s inter departmental.
o It enhances communication and hence helped in team building, hence there is less wasted effort caused by lack of common purpose and poor communication.
o A good employee feedback survey improves employee attitude and boosts morals.
