MARKETING MANAGEMENT 5 Creating Customer Value Satisfaction and

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MARKETING MANAGEMENT 5 Creating Customer Value, Satisfaction, and Loyalty

MARKETING MANAGEMENT 5 Creating Customer Value, Satisfaction, and Loyalty

Building Customer Value, Satisfaction, and Loyalty Figure 5. 1 Organizational Charts

Building Customer Value, Satisfaction, and Loyalty Figure 5. 1 Organizational Charts

Figure 5. 2 Determinants of Customer Perceived Value

Figure 5. 2 Determinants of Customer Perceived Value

Steps in a Customer Value Analysis Identify major attributes and benefits that customers value

Steps in a Customer Value Analysis Identify major attributes and benefits that customers value Assess the qualitative importance of different attributes and benefits Assess the company’s and competitor’s performances on the different customer values against rated importance Examine ratings of specific segments Monitor customer values over time

Measuring Satisfaction Periodic Surveys Customer Loss Rate Mystery Shoppers Monitor competitive performance

Measuring Satisfaction Periodic Surveys Customer Loss Rate Mystery Shoppers Monitor competitive performance

Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value

Maximizing Customer Lifetime Value Customer Profitability Customer Equity Lifetime Value

Figure 5. 4 Customer-Product Profitability Analysis

Figure 5. 4 Customer-Product Profitability Analysis

Framework for CRM Identify prospects and customers Differentiate customers by needs and value to

Framework for CRM Identify prospects and customers Differentiate customers by needs and value to company Interact to improve knowledge Customize for each customer

CRM Strategies Reduce the rate of defection Increase longevity Enhance “share of wallet” Terminate

CRM Strategies Reduce the rate of defection Increase longevity Enhance “share of wallet” Terminate low-profit customers Focus more effort on high -profit customers

Figure 5. 5 The Customer Development Process Suspects Prospects Disqualified First-time customers Repeat customers

Figure 5. 5 The Customer Development Process Suspects Prospects Disqualified First-time customers Repeat customers Ex-customers Clients Members Partners

Loyalty A commitment to re-buy or re-patronize a product or service in the future.

Loyalty A commitment to re-buy or re-patronize a product or service in the future.

Building Loyalty Partnership Proactive Accountable Reactive Basic

Building Loyalty Partnership Proactive Accountable Reactive Basic

Top Brands in Customer Loyalty Avis Google L. L. Bean Samsung (mobile phones) Yahoo!

Top Brands in Customer Loyalty Avis Google L. L. Bean Samsung (mobile phones) Yahoo! Canon (office copiers) Land’s End Coors Hyatt Marriott Verizon Key. Span Energy Miller Genuine Draft Amazon

Using the Database To identify prospects To target offers To deepen loyalty To reactivate

Using the Database To identify prospects To target offers To deepen loyalty To reactivate customers To avoid mistakes

e t p 6 r a Ch Analyzing Consumer Markets

e t p 6 r a Ch Analyzing Consumer Markets

d e n i f e D Consumer Behavior The study of how individuals,

d e n i f e D Consumer Behavior The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs or wants. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 31

Consumer Behavior Personal Factors Cultural Factors Social Factors

Consumer Behavior Personal Factors Cultural Factors Social Factors

Cultural Factors Culture Subculture Social Class

Cultural Factors Culture Subculture Social Class

Social Factors Reference Groups Family Role and Status

Social Factors Reference Groups Family Role and Status

Personal Factors Personality Age Life Cycle Stage

Personal Factors Personality Age Life Cycle Stage

Personal Factors Occupation Values Lifestyle Economic situation

Personal Factors Occupation Values Lifestyle Economic situation

g i F e r u 1. 6 Psychological Factors

g i F e r u 1. 6 Psychological Factors

Motivation Freud Maslow Herzberg

Motivation Freud Maslow Herzberg

g i F e r u 2. 6 Maslow’s Hierarchy of Needs

g i F e r u 2. 6 Maslow’s Hierarchy of Needs

Perception Selective Attention Selective Retention Selective Distortion

Perception Selective Attention Selective Retention Selective Distortion

Learning Driver Cues Discrimination

Learning Driver Cues Discrimination

e r u g i F 6. 4 The Buying Decision Process

e r u g i F 6. 4 The Buying Decision Process

Buying Decision Process

Buying Decision Process

Problem Recognition “I’m Hungry” Stimulus • Internal • External

Problem Recognition “I’m Hungry” Stimulus • Internal • External

Information Search Commercial Personal Public Experiential

Information Search Commercial Personal Public Experiential

Fi e r gu 5. 6 Successive Sets Involved in Consumer Decision Making

Fi e r gu 5. 6 Successive Sets Involved in Consumer Decision Making

Evaluation of Alternatives Beliefs Attitudes

Evaluation of Alternatives Beliefs Attitudes

e r u g i F 6. 6 Steps between Evaluation of Alternatives and

e r u g i F 6. 6 Steps between Evaluation of Alternatives and Purchase Decision

Purchase Decision A Brand B Dealer Purchase subdecisions Quantity Timing Payment method

Purchase Decision A Brand B Dealer Purchase subdecisions Quantity Timing Payment method

Postpurchase Behavior Postpurchase Satisfaction Delighted Satisfied Dissatisfied Loyal Stay or Go Defect Postpurchase Actions

Postpurchase Behavior Postpurchase Satisfaction Delighted Satisfied Dissatisfied Loyal Stay or Go Defect Postpurchase Actions

F ig e r u 7. 6 How Customers Use or Dispose of Products

F ig e r u 7. 6 How Customers Use or Dispose of Products