mm 601, ibmp, thammasat university, semester 2/2552 session i : introduction and overview customer...
TRANSCRIPT
MM 601, IBMP, Thammasat University, Semester 2/2552
Session I : Introduction and Overview Customer Value, Satisfaction and Retention
Agenda
• Course Organization
• Course Materials
• Tasks of Marketing
• Major Concepts & Tools of Marketing
• How has marketing management changed?
• What are customer value, satisfaction, and loyalty, and how can company delivers them?
Course Organization
• Part I - Understanding Marketing Management
• Part II - Analyzing Marketing Opportunities• Part III - Developing Marketing Strategies• Part IV – Developing Marketing Offerings
Course Materials
• Text Reading – Marketing Management, Kotler & Keller, 13th Edition
• Mini Cases
• Marketing Plan
What is Marketing? (Social Definition)
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
What is Marketing? (Managerial Definition)
Marketing is an organizational functionand a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its
stakeholders.
Marketing Management
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers throughcreating, delivering, and communicatingsuperior customer value.
What is marketed?
GoodsGoods
ServicesServices
Events & ExperiencesEvents & Experiences
PersonsPersons
Places & PropertiesPlaces & Properties
OrganizationsOrganizations
InformationInformation
IdeasIdeas
Simple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
Structure of Flows
Manufacturermarkets
Resourcemarkets
MoneyMoney MoneyMoney
Consumermarkets
IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services
Services,Services,moneymoney
Governmentmarkets
Services,Services,moneymoney
ServicesServices
Services,Services,moneymoney
ResourcesResources ResourcesResources
MoneyMoney MoneyMoney
TaxesTaxes
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
Company Orientations toward the Marketplace
Production ConceptProduction ConceptConsumers prefer products that are widely available and inexpensive
Mass Production, Cost Leadership, Wide Coverage
Product Concept Product Concept Consumers favor products that offer
the most quality, performance, or innovative features
Best Quality, Performance, Innovative Product
Marketing ConceptMarketing ConceptFocuses on needs/wants of target
markets & delivering valuebetter than competitors
Target Market, Customer’s need, Coordinated Marketing, Profitability
Selling ConceptSelling ConceptConsumers will buy products only if
the company aggressivelypromotes/sells these products
High Sales Volume, Short Term Oriented
Company Orientations toward the Marketplace
Selling & Marketing Concepts
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
MarketIntegratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
Holistic Marketing Concept
Holistic Marketing Concept
Develop, design, implement marketing programs, processes and activities
that recognizes their breadth, and interdependencies.
Relationship Marketing, Internal Marketing, Integrated Marketing, Socially responsible marketing
Company Orientations toward the Marketplace
• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value• Communicating
value• Creating long-term
growth
Marketing Management Tasks
Customer Value
• The customers will buy from the firm
that they perceive offers the highest
customer delivered value.
Determinants of Customer Delivered Value
Image valueImage value
Personnel valuePersonnel value
Services valueServices value
Product valueProduct value
Totalcustomer
value
Totalcustomer
value
Monetary costMonetary cost
Time costTime cost
Energy costEnergy cost
Psychic costPsychic cost
Totalcustomer
cost
Totalcustomer
cost
Customerdelivered
value
Customerdelivered
value
Customer Satisfaction
• Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations
• Satisfaction is a function of perceived performance and expectations
Customer Expectation
• Is based upon the customer’s past buying
experiences, the opinions of friends and
associates, and marketer and competitor
information and promises.
Satisfied Customer
• Are loyal longer
• Buy more (new products & upgrades)
• Spread favorable word-of-mouth
• Are more brand loyal (less price sensitive)
• Offer feedback
• Reduce transaction costs
Customer Loyalty
• A deeply held commitment to re-buy or re-
patronize a preferred product or service in
the future despite situational influences and
marketing efforts having the potential to
cause switching behavior.
Tracking and Measuring Customer Satisfaction
• Complaints and Suggestion Systems
• Periodic Survey
• Ghost Shopping (Mystery shoppers)
• Lost Customer Analysis
• Monitor competitive performance
• Intense competition and maturity of market increase the costs of attracting new customers.
• It costs much less to service an existing customer than to create a new one.
• Acquisition of customers can cost 5 times more than retaining current customers.
• Repeat purchases and loyal customers are the main driver of profitability for most businesses.
Retaining Customers
Forming strong customer bonds
Adding Financial Benefits
- Frequency Marketing Programs
Adding Social Benefits
- Brand Communities
Adding Structural Ties
- Special equipment or computer software, EDI
Customer Profitability
The 80/20/30 rule of customer profitability
• The top 20% of clients generate 80% of total profit
• The bottom 30% of clients consume half of all profits generated by other customers
The Profit Triangle
Valu
e cr
eatio
n
Competitive advantage
Internal operations
ProfitProfitProfitProfit
Marketing Overview
3 C 3 C’’ss 3 C 3 C’’ss
Customer Competitor Company
SS(Segment)
TT(Target)
PP(Position)
Market Research
4 P 4 P’’ss 4 P 4 P’’ssPrice PlaceProduct Promotion