chapter5

Principles of MarketingChapter 5

Value for Customers

Principles of Marketing Chapter 5Value for Customers

Customer Value

Customer Satisfaction

Relationship Marketing

Customer Relationship Management

(CRM)

Customers are the reason to be for Markekting. No customers, no marketing.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

1. What is consumer value, and how it’s used to make decisions

2. Benefits of having satisfied customers

3. How companies develop relationships with customers

4. Activities that develop and maintain sales

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer Value us the difference between the benefits a customer receives and the total cost incurred from acquiring, using, and disposing of a product.

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Principles of Marketing Chapter 5Value for Customers

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Principles of Marketing Chapter 5Value for Customers

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Perceived value

Perceived Benefits

Perceived Costs

What will this product deliver for me?

For the money I’m paying, what am I getting

It’s worth paying certain amount for what I am getting

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Principles of Marketing Chapter 5Value for Customers

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Customer perceived value

Functional benefits

Brand benefits

Other benefits

Customer perceived

value

Purchase price

Other costs

Benefits Costs

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Principles of Marketing Chapter 5Value for Customers

How was the experience with the product?

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Level of satisfaction

Emotional experience

Negative

Neutral

Positive

Dissatisfied

Defect

Satisfied

switchable

Delighted

Loyal

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Loyalty

Product Champions

Reduced Costs

Larger share of wallet

Satisfaction= buy again same brand

Share the good experience

Brands with good customer satisfaction spend less money in other things!

Happy customers are willing to buy other products same brand.

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Measuring Customer Satisfaction

Private studies

Own studies

National Studies

etc

THINK!Why no info?

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Attachment to a brand

Profit

Customer service

Customer Loyalty: the degree to which a customer will prefer a brand in particular. The rebuy.

JOE’sPresentation

All customers were created equal. No, not really…

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

The Value of the Customer

THE PARETO RULE.

80% Profits generated by 20% of customers

60% remaining profits

20% losses

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer Lifetime Value (CLV): is the present value of all profits to be earned from a

customer

Average purchases

Profit margin

Costs to service that customer

Retention rate

Firm discount rate

Customer satisfaction: the degree to which a product meets or exceeds customer expectations.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer retention: Companies need to find ways to keep customers, attract new

customers, replace customers or get them back

RESEARCH:

United Airlines Loyalty programs

United Airlines measure to solve the issue with “the guitar”

No more than 2 pages.

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Relationship Marketing: Organizational commitment to develop and enhance long term, mutually beneficial relationships with

profitable customers

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers

Cash flow

Increase Retention

Increase

customer

loyalty

Purchase

history

Customer

relations

It’s more expensive to loose a customer than to keep it

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers

Focus your marketing on your current customer and the rest will follow

Turn your customers into fans

Traditional marketing expend money convincing new customers.

Relationship marketing expend money keeping the ones already have

Know who your customer is

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer Relationship Management: all the activities to establish, develop and maintain

customer sales.

Customer: one who purchases or receives a product or service from a business or merchant, or plans to

Technology

Loyalty Programs

Customization

Interaction

Differentiation

Identification

CRM

Who is your customer

Know who brings profit

Have a conversation

Give a customer what they need

Create loyalty programs

Special software for CRM

Goals

Concepts

Key words

Case Studies

Practical examples

Q&A

Customer ValueCustomer SatisfactionRelationship MarketingCustomer Relationship Management(CRM)

Principles of Marketing Chapter 5Value for Customers

Customer retention: Organizational commitment to develop and enhance long term, mutually beneficial relationships with profitable customers

Customers perceive a value

Loyalty is a two way thing

Relationship marketing is the key

Successful companies have a CRM Department

Pag 55

Application Exercises

Elaborate on Question #3