Handle Customer Complaint

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GLOBAL COLLEGE

Marketing and Sales Management

Based on New Curriculum Version

Module Title: - Process Customer Complaint


(Handle customer Compliant)
Module code: - LSA MSM2 M04 11 22
Nominal duration: 4 Crhr
Prepared by: Ministry of Labor and Skill

December, 2023
Ads Ababa, Ethiopia

Page 1 of 16 Author/Copyright : Handle customer complaint Version - II


Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
Course Contents
Acknowledgment ...........................................................................Error! Bookmark not defined.
UNIT ONE RECEIVE COMPLAINTS ....................................................................................4
1.1Assessing customer complaint ............................................................................................... 4
1.2. Informing relevant stakeholders ...........................................................................................7
1.3. Documenting customer complaints ....................................................................................10
Self- check of unit one .............................................................................................................. 16
UNIT TWO:- PROCESS COMPLAINTS ................................... Error! Bookmark not defined.
2.1. Identifying complaints escalation .......................................Error! Bookmark not defined.
2.2 Identifying information to resolve compliant ......................Error! Bookmark not defined.
2.3 Preparing information ..........................................................Error! Bookmark not defined.
Self- check of unit two .............................................................. Error! Bookmark not defined.
UNIT THREE RESOLVING COMPLAINTS ............................ Error! Bookmark not defined.
3.1 Identifying implications of complaint ..................................... Error! Bookmark not defined.
3.2. Analyzing options ...............................................................Error! Bookmark not defined.
3.3. Using effective communication options .............................Error! Bookmark not defined.
3.4. Determining Escalating matters ......................................... Error! Bookmark not defined.
Self- check of unit three ............................................................ Error! Bookmark not defined.
UNIT FOURE: REFERRING COMPLAINTS .............................Error! Bookmark not defined.
4.1 identifying and referring complaints ................................... Error! Bookmark not defined.
4.2. Investigating report document ............................................Error! Bookmark not defined.
4.3 Following personnel ............................................................ Error! Bookmark not defined.
Self- check of unit four ..............................................................Error! Bookmark not defined.
UNIT FIVE EXERCISE JUDGMENT TO RESOLVE CUSTOMER SERVICE ISSUESError!
Bookmark not defined.
5.1. Identifying Implications of customer complaints ...............Error! Bookmark not defined.
5.2. Analyzing and negotiating options for resolving issues .....Error! Bookmark not defined.
5.3 Proposing visible options .................................................... Error! Bookmark not defined.
5.4. Ensuring referring matters ..............................................Error! Bookmark not defined.
Self- check of unit five .............................................................. Error! Bookmark not defined.
References ................................................................................................................................. 16

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
INTRODUCTION: AN OVERVIEW OF CUSTOMER COMPLAINT HANDLING
What is a Customer Complaint?

Customer complaints refer to when a business does not deliver on its commitment and does not
meet customer expectations in terms of the product or services. The vital aspect of every
business is its clients. For greater success, businesses need more satisfied clients. And the best
way to obtain new clients and maintain the existing ones is by providing them with satisfactory
service. But how to understand whether your customers are happy or unhappy?

A customer complaint emphasizes a problem that might be related to an organization’s product,


employees or internal processes, and by hearing these problems directly from customers, an
organization can investigate and improve to avoid additional complaints in the future.

Causes of Customer Dissatisfaction


 Issues with Quality
 Issues with Pricing
 Failure to Meet Specific Expectations
 Failure to Meet Perceived or Implied Expectations
 Issues with Usability
 Problems with Customer Service

 Other Reasons for customer dissatisfaction:

 Your product feels like it’s not fully developed.

 The price is too high compared to the value it delivers.

 The perceived value is different than the experienced value.

 The product or its features aren’t working properly.

How customer dissatisfaction affects your business:

 Unhappy users leave negative comments about your brand in public.

 They also have the highest likelihood of leaving and unsubscribing from your
product.Types of dissatisfied customers:

 An angry customer is convinced that your company neither cares nor listens to them.

 An unhappy customer feels that your product failed to meet their expectations.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
 A demanding customer thinks highly of them and wants you to treat them differently.

UNIT ONE RECEIVE COMPLAINTS


How we can receive Complain?

1.1 Assessing customer complaint


A complaint is a statement in which you express your dissatisfaction with a particular
situation.Under the Ombudsman Act 1974 the Ombudsman has wide discretion in deciding
which of the many complaints received about government agencies will be pursued. In all cases,
consideration will also be given to the availability of resources and the public interest.

A. Complaints preference
Preference is generally given to complaints identifying:-
 systemic (structural or procedural) deficiencies in public administration.
 sensitive issues which are unlikely to be (or be seen to be) properly addressed by the agencies
concerned (due to such factors as the seniority of the staff the subject of the allegations,
conflicts of interest on the part of the agency or its senior staff, significant sensitivity, etc), or
 Serious maladministration or detrimental action as defined in the Public Interest Disclosures
Act 1994.

B. Complaints that are declined

Complaints are declined that:are outside jurisdiction contain no evidence of maladministration


or other wrong conduct on the part of the agency or public officials concerned are frivolous,
vexatious, not in good faith or raise trivial matters

Additional factors that can be considered when assessing complaints; include:

 The complainant’s specific circumstances make it unreasonable to expect them to pursue


the matter themselves, particularly where no advocate is able to act on their behalf, (e.g.
inmates, youth, people with a disability, homeless persons)
 The complainant is in immediate need of assistance and our intervention is likely to
clarify if and how the matter may be resolved matter
 There appears to be a misunderstanding or lack of communication that would be easy for
the office to resolve.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
The process we follow when handling contracting complaints made about us or about a
service provider contracted by us

1. Our complaint handling standards


2. Assessing the complaint to determine who handles it
3. Acknowledging receipt
4. Examining the issues raised
5. Taking action to address the issues and resolve the complaint
6. Closing the complaint
7. Information we collect and how we use it
8. For complainants: summary of what to expect

Types of complaints
(1) Public Multi-Media Complaint:
Public multimedia has the reach of millions of people. If your customer takes his/her
complaint to say Facebook, Twitter these platforms have the reachability to all those who are
following your social media accounts.
Failure to address such complaints put a negative impression on the current as well as on the
potential customers of the company.A company should have enough trained people to handle
their social media accounts and complaints should be sent to the related departments.
To do so, first of all, the customer should be asked to provide contact information and
contacted to get more details about the problem. secondly, the customer should be asked
politely to take down the complaint after solving it. Public media has given the power in the
hands of customers, now, the management has to, listen to the complaints and solve them
quickly to run a successful business.
2) Serial Complaint:
A customer loses his trust in the company if his complaint is not addressed when asked
repeatedly. Therefore, serial complaints must be handled quickly. Fixing such problems
reduces the work for the future altogether. However, working on such complaints is good for
the company because these complaints help to make the service better and also gives room to
the management for introspection and improvement.
On the other hand, a company should narrow down customers who complaints frequently
about every other thing and find smart ways to deal with them.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
3) First-time complaint:
Usually, customer care providers tend to ignore the complaints of a new customer or a customer
who is complaining for the first time. If they do so, they make a big mistake and increase the
chances of losing a loyal customer. On the contrary, such customers such be paid extra attention
and helped to fix their problem instantly.
In the scenarios where there is actually a fault in the product or service, management should
offer something such as a discount or a free service to please him.
4) Good Customer Complaint:
Good customers also are known as loyal customers are the segment of customers who bring
maximum revenue for the company. No company can ever afford to lose good customers. Good
customers have given you a lot of business in the past and are mostly satisfied with your services.
But there are times when such customers also feel dissatisfied.
These customers had good experiences with you in the past and you can still retain them by
providing the right solution when they are cross with the services of the company.
5) Personnel Complaint:
These types of complaints made by the customers when executives behave rudely or
inappropriately with them. Few of the most common personnel complaints made by customers
are “you don’t seem to care.” Or “Nobody bothers to solve my issue.”
A human takes an extreme decision when angry or hurt. These customers can make a resolution
to never buy anything from
you which is very bad for the
company.
It is advisable to deal with
these types of customers with
empathy and provide them
with better services.
Figure 1.2 personnel complaint
6) Product Specific Complaint:
Product specific complaints are made when a product or a service is faulty. When a customer
makes such a complaint, he should be asked to hand over the faulty product or provide a
detailed description of the faulty service. The faulty product must to replaced with a
similar new product and he should be given some compensation for the poor service.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
7) Wait – Times Complaint:
These types of customer complaints are common and recurring on phone calls or in lengthy
queues at a store or delay for food delivery at a restaurant or waiting too long to get the
delivery of a product. Long waiting time irritates people and gives an impression of the
inefficiency of the service. Time is precious to everyone and they prefer instant services.
These complaints can be solved by confronting the customer and apologizing for the delay.
However, it is a short time solution. To reduce wait times complaints, a company should plan
and use the various methods by consulting with their team and management.
8) Complaints because of misunderstanding:
Misunderstanding takes place because of miscommunication. Miscommunication is
inevitable when dealing with people. A customer can misunderstand or misinterpret what you
say. Sometimes they can get annoyed also and accuse you of lying.
It is suggested that you should treat the customer with respect even when he is clearly
misunderstood. To avoid such complaints requires knowledgeable and experienced staff and
precise advertising material.
9) Delivery – related Complaint:
This is a common example of customers’ complaint about online business. As the growth in
the trend of online shopping, chances of delivery-related blunder increase. Customers lose
patience when delivery gets delayed by the expected date and complains about it. Such
problems can be dealt with by discussing the issues with the shippers and providing online
tracking details of the product. So that if there is a real issue with the delivery of the product,
it can be resolved.
10) Quality of service-related complaint:
Quality of service-related complaints is types of complaint that no business would want to
have. Great investments in the quality of products and service do not guarantee zero quality
of service related complaint.

1.2. Informing relevant stakeholders

A stakeholder is a party that has an interest in a company and can either affect or be affected
by the business. The primary stakeholders in a typical corporation are its investors,
employees, customers, and suppliers.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
 Business stakeholder

Business stakeholders any person, group of people or other organization that has an interest
in the activities of a business. Businesses need to be aware of their stakeholders, as many of
them will be affected by its activities. Stakeholders can also influence the decisions that a
business makes. A stakeholder is any person or entity that has an interest in a business or
project.

Types of Business stakeholders

 Customers  Government.
 Investors  Consider expectations.
 Employees  Manage
 Local community  expectation
 Suppliers and partners
Ways to effectively communicate with your stakeholders

1. Identify key stakeholders and 5. Project Summary Reports.


plan communications. 6. Group video call or 'screen to
2. Email and e-newsletters. screen' meetings.
3. Communication automation. 7. Leverage informal stakeholder
4. Presentations. communications.
Effective communication with stakeholders not only aims to ensure they are aware of the
objectives and finer points of a project, it also serves to help the organization understand
those who will be affected by the project, how they will access and interpret information
from the organization and allows the organization.

 Stakeholder management

Stakeholder management is the effective management of all participants in a project, be it


external or internal contributors. Arguably, the most important element in stakeholder
management is communication where a manager has to spend his 99% time in doing meetings,
checking and replying e-mails and updating and distributing reports,

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
Process of Stakeholder management

1 Stakeholder identification 3 .Stakeholders planning

2 .Stakeholder analyses 4 .Stakeholder engagements


 The Key Types of Stakeholders

Internal Stakeholders are all the people (or groups of people) who are involved in the project
and are influenced by the company’s operations. Such examples of stakeholders include
employees, managers, board members, and company owners.

These can be further categorized by the following roles:

 Marketing stakeholders  Impacted Employees


 Technical stakeholders  Executive Stakeholders
 Sales stakeholders
External Stakeholders are entities that are not part of your organization, but still, have an
interest in a project. The most commonly identified external stakeholders are investors, lenders,
suppliers and customers (to some extent). But you can provide enough information and updates
so that marketing and sales departments can pass on pertinent info about a project to interested
customers if they deem it appropriate.

 Create a Stakeholder Management Strategy

They often need to possess top communication and relationship management skills to ensure that:

 Every stakeholder’s objective is clear.


 Any possible conflict between two stakeholders is resolved or mitigated before it impacts
the operations.
 Overall stakeholder engagement (interest and support for the project) remains high.
 The stakeholders receive timely project updates and respond to authorization requests and
other queries on time.

The stakeholders will vary depending on the organization and the type of project to be
undertaken. Identifying all of them will be the first key task on your agenda.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
1.3. Documenting customer complaints

 Documenting means showing where you got source information that's not your own.
Remember, a research paper blends your ideas with ideas and information from other
sources. It means backing it up with as much provable fact or information -
documentation - as possible.

Documentation shows the reader what ideas are yours and what information and ideas
you've taken from a source to support your point of view.

Some of the things you may have to document are:

 That the action or condition or policy you're complaining about actually happened or
exists
 That the action or condition or policy in question was intentional, or at least that those
responsible for it knew, or should have known, its consequences, or known that it was
illegal or unethical
 That a particular individual or entity was or is responsible for the action or condition or
policy in question
 That you or others actually had particular experiences or conversations
 That someone was actually harmed or otherwise negatively affected by the action or
condition or policy in question
 The particular physical, social, economic, health, psychological, environmental, or other
results of the action or condition or policy in question
 Your own credentials, or those of any experts you consult or cite

 The importance of Complaint document

The most important reason to document a complaint is that already mentioned: regulatory
agencies, courts, and ombuds persons need evidence in order to sort out the reality of a situation.
(That's why we have trials - so that the judge or jury can figure out who's telling the truth.)

There are other compelling reasons to provide careful documentation for any complaint, such as:

 It establishes you as a credible witness. In other words, it shows you're telling the truth.
 It establishes that you were concerned enough to pay attention .
 It may determine whether or not your complaint is taken seriously.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
 Having the proper documentation may make a difference as to whether or not the
complaint can be acted on by a regulator or court.
 Proper documentation can protect you against libel or slander charges if you make public
accusations. You can't lose a libel or slander suit - and may be able to dismiss one - if you
can prove that you're telling the truth.
 Libel and slander are the legal terms for damaging someone's reputation by publicly
making untrue statements about her. The difference between the two is that libel refers to
written statements, and slander to those that are only spoken.
 In most cases, proof of your complaint automatically gives you the moral advantage.

Responsibility of handling document complaints

As should be obvious by now, anyone who wants to file or register a complaint should document
it. If you think there's a problem, you need evidence to convince others that that's the case. There
are some people, however, whose documentation may be particularly important.

 Experts in the field. If you're worried about practices.


 People on the inside. Whistleblowers or others who are willing to document practices or
actions within the entity you're complaining about may have access to information you'd
never have found otherwise.
 People directly affected by the issue. Those who have been harmed, endangered, or
otherwise negatively affected by the subject of the complaint, should be documenting
every detail of their experience.
 Community leaders or other respected individuals.

Time for documenting complaints

The great approach about documenting complaints is that - as you often find out later - you
should start before you realize you have a complaint. In fact, there are some specific times when
it makes sense to gather evidence.

 When you're seeking evidence to bring before a regulatory body or court. This is
perhaps the situation in which there is the clearest need for documentation.
 When you're looking for facts to back up advocacy for or against legislation or policy.

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Ministry of Labor and Skills Level- II
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 When you're trying to convince an organization to change its procedures or policies. If
the staff of the welfare office often humiliates welfare recipients.
 When you're accusing an organization, business, or government body of wrongdoing,
malpractice, or incompetence.
 When you suspect a pattern of consumer fraud. When elders in the area receive phone
calls offering spectacular deals or investment possibilities too good to be true, they
usually are too good to be true.
 When you suspect that the target of your complaint might accuse you of slander or libel,
or might falsely accuse you of some other wrongdoing.

 Method of documenting complaints

The first step in documenting a complaint understands what kind of documentation you'll need. It
will vary, depending upon whom you're registering the complaint with. Once you've settled that
question, you then have to make a plan for collecting the documentation, and actually do it.

 Determine what kind of documentation you'll need

You may be complaining to an official body - a regulatory agency, a labor union, the personnel
department of a company - or you may be taking your complaint public in some way.

 Complaining to an official body

Most regulatory bodies, businesses, institutions, and organizations have some sort of official
complaint or grievance procedure. If you're using such a procedure, make sure you know it cold,
and follow it carefully.

 Submit the complaint to the proper entity, and to the proper department or individual
within the entity.
 Submit the complaint within the time limits imposed by the procedure. There may be
time limits involved (the statute of limitations, for instance, or fiscal year considerations).
 Submit the complaint in the proper form. You may have to record the complaint on an
actual form generated by the oversight body, or the complaint may have to be notarized.
 Find out exactly what documentation is necessary for the official body to act on the
complaint, and make sure you have it.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
 Complaining to the entity that's the object of the complaint

Unless you're going through something like an official corporate or organizational grievance
procedure - in which case, you should follow the instructions above - you'll need documentation
that's both specific enough and powerful enough to convince the entity to change its ways. That
may mean proof that it's been doing something illegal, or close to illegal, or simply enough
evidence that what it's doing is harmful that it would prefer not to have to face public pressure on
the issue. In either case, your documentation will need to include specifics - dates, times, places,
people involved, exactly what happened - to make it clear that there's really no room to slide out
of the situation.

In order to gain cooperation in this circumstance, your initial approach should probably be low-
key and cooperative in itself. Rather than "We've caught you red-handed," a friendlier "We all
want to make sure this situation is corrected; let's work together on it" might be more effective.
You can always get tough later, if it becomes clear that the entity doesn't want to cooperate.

 Using the media to make the complaint public

Just as in the two instances above, the media will want documentation of the specifics of the
complaint, but they'll need some other support as well.

When you approach the media, remember the three C's:

 Coherence. Your story has to be understandable, and able to be told in a not-overly-


complicated way. The media will be interested if they feel that your complaint is one that
the public can or should understand and be moved by.
 Consequences. Your complaint will be most compelling to the media if it has some
general effects that the audience can see as relevant to themselves. Therefore, your
documentation should refer to consequences that touch the general public. A complaint
based on threats to public health, economic stability, or political conniving, for instance,
is likely to be more newsworthy than one relating to a single person's experience.
 Confirmation. Most reputable news organizations won't publish anything - especially
anything accusatory, controversial, or potentially libelous - without having the facts of
the story confirmed by at least one source other than the original. Important stories, or
stories that are particularly controversial, usually require corroboration by several sources.

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Ministry of Labor and Skills Level- II
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There are three other important points to consider when working with the media. The first is that
you should never embroider, exaggerate, or lie for effect to a reporter or columnist. If she can't
trust you completely, she won't deal with you, or - worse - will expose you as a liar, and discredit
your complaint.

The second is that, while a reporter can be of help to you, there's no guarantee that she will be.
Her job is to get the whole story, and she may be convinced by your opponents' arguments.
Whenever you work with the media, that's a chance you have to take. That's all the more reason
to make sure that your documentation is complete, correct, and convincing.

Finally, find out the appropriate person to bring your story to. In the words of a New York Times
reporter, "I would recommend that people read/watch local newspapers and news shows
carefully enough to know WHO would be most interested in their stories. Selling an educational
outrage story to the reporter who covers retail marketing is a waste of time for all concerned. (I
get a lot of this - when flacks call now, I ask, before they can start their pitch, if they know what
I cover. Ifthey don't know, and they then ask 'Well, who does cover widgets?' I know that they
are mindlessly cold-calling reporters from some list they have been given.)"

 Collections of the actual data documentation have the following procedure

1. Try to anticipate the need for documentation

As we discussed earlier, any time you're involved in an advocacy situation that may develop into
a complaint, you should be collecting documentation from the very beginning. It's not always
possible to anticipate, but if you have any inkling that a complaint is possible, act on it.

2. Do the research to get the background information you need

Know any relevant laws or regulations inside out. Learn as much as you can about the science,
sociology, psychology, economics, or politics involved, as well as the history of the issue.

3. Get the basic facts

After background, you'll need specifics. These are the nitty-gritty facts of the situation that may,
in fact, be extremely important in getting your complaint resolved.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
They include:

 Time and date  The individual(s) or group(s) involved


 Place
4 .Describe as clearly as possible exactly what the complaint is about

If the complaint concerns the violation of a law or regulation, for instance, be sure to explain
which law or regulation is at issue, and exactly what elements of it were violated. (And be sure
you know and understand the details of the law or regulation.) If there’s no specific violation,
then define and explain your complaint as fully as possible. Your complaint should state both
what is occurring that you think is unacceptable, and what you think would be acceptable.

5. Document exactly what happened

Be specific, including as much detail as possible, and for as many incidents as possible. The
step-by-step sequence of events for each incident (as well as the sequence of incidents) may be
important.

6. Document conversations with the target of the complaint

It's important to document exchanges with everyone involved - this includes not only the target
of the complaint, but also regulators and officials, those affected by the actions or policies you're
complaining about, and anyone else related to the issue. If you can, get conversations, or at least
the important parts of them, word-for-word.

7. Document the effects of each incident, or of the overall pattern of events

There are several types of consequences you might be concerned with, and consequences might
come from a single policy or action, from repeated actions over time, or from an unrelated series
of careless or intentionally harmful policies or actions by the same entity over time.

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Ministry of Labor and Skills Level- II
Compiled by:- Seifu S.(Marketing
Department)
Self- check of unit one
I. CHOOSE THE BEST ANSWER FROM THE GIVEN ALTERNATIVE
1. From the following which one is key stakeholders
A. Local community B. manager C. Marketing stakeholder D. All
2. Ways to effectively communicate with your stakeholders are
A. Ask question B. Use email C .Active listening D. All
3. How you can collect the actual data?
A. By doing research C. Documenting exactly what happened
B. By getting the basic fact D. None
4. One of the following is not internal stakeholder
A. Manager B. employee C. Supervisor D .Local community
5. Which one of the following are the sources of complaint
A. product quality B. services delivery C. online services D. All E. none
II. GIVE SHORT ANSWER FOR THE FOLLOWING QUESTION
6. Write the process we follow when handling customer complaints
7. Define what is complaint?
8. Write the types of complaints
9. List the key stakeholders
10. Who should document the customer complaints?

References
1. (Blithe,J (2001) Essentials of Marketing 2nd bed, Ashefoldcolor press, Hampsire).
2. Bennet, A. (2010). The Big Book of Marketing. New York, NY, USA: McGraw Hill.
3. Boone, L., Kurtz, D. (1992). "Contemporary Marketing". Fort Worth, TX: Dryden Press.
4. Kenneth E. Clow, (2003). Integrated Advertising Promotion and Marketing. 2nd Edition,
New Delhi.
5. Kotler, P. (1997), Marketing Management: Analysis, Planning, Implementation and
Control, 9th ed., Prentice-Hall, Upper Saddle River, NJ, .
6. Kotler, P. and Armstrong, G. (2006) Principles of Marketing (Version 12/E) Pearson
Education Inc. New Jersey
7. McCarthy, E.J. (1960), "Basic Marketing: A Managerial Approach", Richard D. Irwin,
Homewood, IL.

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