customers 6- 1 nobody is more important to the success of a business than its customers
TRANSCRIPT
Customers 6- 1
Nobody is more important to the success of a business than
its customers.
Customers 6- 2
Case study — Midwest Express Airlines1
• Understanding customers — methods– Conducts in-flight passenger surveys– Makes use of annual telephone interviews
with its frequent flyers– Holds focus groups six times a year with
customers
Customers 6- 3
Case study — Midwest Express Airlines2
• Understanding customers — results– On-time performance– Comfortable accommodation– Good food– Bo be kept informed when problems occur
Customers 6- 4
Case study — Midwest Express Airlines3
• Meeting customers’ needs– Offers a one-class, upscale coach service
• The leather seats are oversized and offer plenty of leg room
• Only four seats per row
– Hot, elegant dinners of salmon and filet mignon on china
– Flights are rarely late or canceled, but if there is a delay, Midwest personnel make it a priority to let customers know what’s happening.
Customers 6- 5
Customer orientation
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Consumer orientation
Determining consumer wants and needs and developing products
to satisfy them
Customers 6- 6
問題討論Consumer
orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• 消費者到 KTV消費,期望獲得什麼?
Customers 6- 7
To exceed customer expectations, to build customer loyalty.
Customers 6- 8
Exceed customer expectations
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Today business tries to exceed customer expectations by:
“ The perceived quality of goods and services relative to the price”
“ What the customer wants,minus what they settle for”
Providing ValueReducing Customer Sacrifice
Customers 6- 9
Examples
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• 我的 Lucy怕黑…• L. L. Bean• Nordstrom• Dell Computer• American Express– … the experience made him a
customer for life.
Customers 6- 10
Relationship marketing
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Establishing and maintaining long-term satisfying relations with both internal and external customers as well as suppliers
Customers 6- 11
External customers and Internal customers
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
External Customers: People who buy a firms products
Internal: Employees whose job performance affects the ability to satisfy external customers
Customers 6- 12
The Customer-Development Process
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
First-time Customers
Repeat Customers
Clients
prospects
Advocates
Customers 6- 13
Converts customers into advocates
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Exceeding customer expectations
• Creating loyalty programs ( Frequency marketing)– Acknowledging and rewarding
repeat customers.
Customers 6- 14
Example of Loyalty Programs
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
LoyaltyPrograms
Airlines:Frequent flyer miles
Saturn Automobiles:Annual picnic for owners
Road Runner Sports:
Customer clubs
Harley-Davidson:Harley owners
group
Customers 6- 15
案例Consumer
orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Escape 車隊定期出遊• 連續 3個月,每月刷 5筆就送…
• 買第 2件打七折…
Customers 6- 16
Customers’ needs change. And some businesses lose sight of
these changes because they fail to listen to their customers.
Customers 6- 17
Listening and responding to the customer — Microsoft
Consumer orientation
Relationship marketing
Customer loyalty
Listening and responding to the customer
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Microsoft’s products → Customers who use them– Corporate systems
customers– Programmers– Knowledge workers– Ordinary Windows
customers– Consumers
Customers 6- 18
Business-to-business buyer vs. Customer buyer
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Consumer Market:Good purchased by individual for personal use
Business-to-businessGoods purchased to produce other goods and services
Customers 6- 19
Difference between business-to-business market and customer market
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Derived demand• Fewer buyers• Larger buyers• Professional purchasing• Multiple decision makers• Ongoing relationships
Customers 6- 20
Most firms can’t serve all segments of a market.
Customers 6- 21
Market segmentation
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Market segmentationFocusing marketing
efforts at specific groups whose members have similar characteristics.
• Target MarketA group of people who
have similar wants and needs and who the organization identifies as a potential market for its goods or services
Customers 6- 22
Base for Segmenting Consumer Market
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Demographic
Geographic
Psychographics
Behavioral
Customers 6- 23
Geographic segmentation
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Dividing a market into homogeneous groups on the basis of population locations.
• Examples– 扁帽台南賣得比較好…– 日本人冬天喜歡滑雪…
Customers 6- 24
DEMOGRAPHIC SEGMENTATION
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Distinguishing consumer groups according to characteristics such as gender, nationality, race and ethnicity, age, income, occupation, education, household size, or stage in the family life cycle.
Customers 6- 25
Example of demographic segmentation for VW’s Bug
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Gender: Female• Age: 22-45• Marital Status: Single • Ethnicity: Any• Education: College• Income: $30-45 thousand
per year
Customers 6- 26
Psychographic segmentation
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Dividing a population into homogeneous groups on the basis of personality or lifestyle.
• Example– 新光三越 A11 vs. A8 vs. A9
Customers 6- 27
Behavioral segmentation
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Grouping buyers on the basis of their relationship to a product or service.
• Example– High users
– Brand loyalty
Customers 6- 28
Primary influences on consumer behavior
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
The process by which customers decide to
select, buy, and use goods and services
Social
Personal
Cultural
Psychological
Customers 6- 29
The consumer buying process
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Recognition of need Recognition of need
Research alternatives Research alternatives
Purchase decision Purchase decision
Post purchase evaluation Post purchase evaluation
Customers 6- 30
The consumer buying process
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Most low-cost, frequently purchased products are habitual purchases. But “high-involvement” purchases are complex decisions.
• High-involvement– Expensive– Infrequently bought– Personally relevant to the
consumer
Customers 6- 31
Highly satisfied customers tend to engage in minimal
additional search for information.
Customers 6- 32
Using information technology to better serve customers1
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Market Databases: Information developed by statistical sampling and projection
Customers 6- 33
Using information technology to better serve customers2
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
Customer Databases: Information developed by a company that offers specific profiles on customers and their buying behavior.
Customers 6- 34
The cost of attracting a new customer is estimated to be
five times the cost of keeping a current customer happy!
Customers 6- 35
A company can improve profits by 25 to 85 percent when they reduce customer defections by just 5 percent.
Customers 6- 36
Attracting vs. retaining Customers
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Attracting vs. retaining Customers
Consumerism
• The traditional emphasis in marketing has been on making sales rather than building relationships. This has meant focusing on acquiring new customers rather than retaining existing ones.
• Forward-thinking companies now are focusing on keeping wisely which customers they’re going to have relationships with and working hard to keep the selected set satisfied.
Customers 6- 37
Customer defection rate management
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Attracting vs. retaining Customers
Consumerism
• Define and measure your retention rate.
• Distinguish the causes of customer attrition and identify those that can be managed better.
• Estimate how much profit was lost from the customer’s defection.
• Calculate the cost to reduce the defection rate.
Customers 6- 38
Consumerism: A social movement that seeks to strengthen the rights of buyers
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
To be
safe
To be inform
ed
To Choose To be
heard
Four rights of consumers identified by John F. Kennedy in 1962
Customers 6- 39
ExamplesConsumer
orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• 盛香珍果凍… (To be safe)• TARA TV…(To be safe)• 飲酒過量有害健康… (To be
informed)• Windows系統內建瀏灠器… (to
Choose)• Complaint department (To be
heard)
Customers 6- 40
Internal mechanisms to stimulate customer
responsibility1
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Creating a customer-oriented culture– The company has only two
rules: “Rule 1—The customer is always right. Rule 2—If the customer is ever wrong, reread Rule 1.” (Stew Leonards)
Customers 6- 41
Internal mechanisms to stimulate customer
responsibility2
Consumer orientation
Relationship marketing
Customer loyalty
Business-to-business
Market segmentation
Consumer behavior
Using technology
Consumerism
• Seeking customer feedback– On-site, phone, mail surveys,
toll-free telephone numbers, and hiring outside firms to contact customers…
• Test Sampling– Mystery