From Proposition to Implementation Reinder H. Koornstra M.Sc. In Marketing everything starts and ends with the delivery of...
Planning & Feedback Company MARKET FORECASTING SYSTEM I M P L E M E N T A T I ON   BUDGET SYSTEM TARGETS PLANS Feedback po...
Customer Satisfaction The driving force to Profit Customer  satisfaction Complaints  And Claims Costs of  Acquisition and ...
Customer Equity  and Customer Loyalty Very Dissatisfied Dissatisfied Lightly dissatisfied Satisfied Very Satisfied Bron: H...
Added value of loyal customers is growing over time Added Value per customer ©  Reichelt & Sasser
Delivering Quality as the starting point to competitive power “ Market Perceived Quality” “ Conformance Quality” Served Ma...
Grönroos ‘ Quality model’ Quality experienced Service  Expected Service delivered Traditional Marketing: Activities (Custo...
Service Quality Model © 1990 Zeithaml et al Marketing Oriëntation /  Communication upwarts / Management-levels Management ...
Extended Gap Model Word of Mouth External  Communication Personal  Wishes Experiences Service Expected Service Experienced...
Integral Quality Management Production Distribution Sales Design Procurement Marketing Total Quality Management
Quality Management and  Customer Orientation Delivering Quality Binding Excisting Customers Acquisition of New  Customers ...
Value Marketing <ul><li>Meeting Customer Requirements </li></ul><ul><li>Fitness for use </li></ul><ul><li>Process Integrit...
Drivers of Customer Equity Why Customers buy your products, and keep on buying them… <ul><li>Value Equity   </li></ul><ul>...
It’s not enough to satisfy your customers  Customer Equity Brand Equity Value Equity Word of Mouth Retention Equity Rust e...
Ca = (D * V * Cb * Co) / T Ca Capability to change D Dissatisfaction with current situation V Vision company management Cb...
Balanced Scorecard Keeping development in balance Strategy, Targets and  Critical Success factors Financial Indicators Cus...
The positioning grid  (example: Rabobank) Specialization Personal/Interested Quick and Easy Offering Broad palet of servic...
The Proposition is the start of the development of product or service, and the platform of an effective communication stra...
Filling in the proposition:  The Marketing Mix Product Distribution Price Customer Relations The customer wants an integra...
The alternative Marketing Mix to build a shop formula Systems Logistics Suppliers Zize Location Interior & Design Place St...
Expanded Relations within the  Marketing Mix Product Distribution Price Customer Relations C F A Core ,  Fysical ,  Augmen...
Value Map of Dutch Supermarkets Higher Lower Inferior Superior Relative Quality Relative Price Premium Discount Intermedia...
Price Sensitivity: the key to effective pricing <ul><li>The unique value effect </li></ul><ul><li>The substitute awareness...
True Integrated Communication by usage of a suited mix of Instruments and Media Direct marketing E-Bus s © Koornstra Consu...
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Development Of The Offer 2003

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Most marketing books are pretty hazy about the transition from the marketing strategy chosen into a proposition aimed at a certain targetgroep. These slides show you the way to set up the proposition, construct a logical offer from that and communicatie this effectively using an integrated mix of communication instruments and media.

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  • Development Of The Offer 2003

    1. 1. From Proposition to Implementation Reinder H. Koornstra M.Sc. In Marketing everything starts and ends with the delivery of quality to the targeted customers.
    2. 2. Planning & Feedback Company MARKET FORECASTING SYSTEM I M P L E M E N T A T I ON BUDGET SYSTEM TARGETS PLANS Feedback position company Feedback market trends Relation Results and Targets Relation Plans and Targets Continued Interaction Competition Strategic Tactical Operational © D.Govaerts, R.H. Koornstra, 1989 L E V E L
    3. 3. Customer Satisfaction The driving force to Profit Customer satisfaction Complaints And Claims Costs of Acquisition and Communication Motivation of Co-workers Repeat Sales Cross selling Word-of-Mouth Costs Sales Profit
    4. 4. Customer Equity and Customer Loyalty Very Dissatisfied Dissatisfied Lightly dissatisfied Satisfied Very Satisfied Bron: Heskett e.a. Customer Loyalty Customer Equity Lost Customers Apathic Customers Loyal Custo- mers Terrorists Apostles
    5. 5. Added value of loyal customers is growing over time Added Value per customer © Reichelt & Sasser
    6. 6. Delivering Quality as the starting point to competitive power “ Market Perceived Quality” “ Conformance Quality” Served Market Design/Technology Customer Value Conformance to Specifications Relative Price (higher or equal) Relative costs (lowered) Improvement on Quality Costs Competitive Power (enhanced) © Gale & Buzzell Relative value to customer Relative Marketshare EoSc/Learning
    7. 7. Grönroos ‘ Quality model’ Quality experienced Service Expected Service delivered Traditional Marketing: Activities (Customer Relations) and external influence by traditions, ideology and Word-of-Mouth Image Company Technical Quality Functional Quality Technical Solutions Knowledge Technical skills co-workers Machines ICT Internal relations Attitude Behaviour Service minded Exposure Client contacts Accessi-bility © 1984, Grönroos
    8. 8. Service Quality Model © 1990 Zeithaml et al Marketing Oriëntation / Communication upwarts / Management-levels Management dedication / Formal Quality standards / Task standardisation/ Feasibility perception Cooperation / Quality staff / Coordination technology-Work / Control / Assesment System/ Conflicting roles / Roles undefined Horizontal Communication / Eagerness to innovate Gap 1 Gap 2 Gap 3 Gap 4 Gap 5 Fysical aspects Service offered Reliability Fastness of response Certainty Empathy to Customers
    9. 9. Extended Gap Model Word of Mouth External Communication Personal Wishes Experiences Service Expected Service Experienced Service Delivered Klantperceptie omgezet in kwaliteit specificatie Management perception of Customers’s Expectations 5 1 3 2 4 Company Consumer © 1990 Zeithaml et al
    10. 10. Integral Quality Management Production Distribution Sales Design Procurement Marketing Total Quality Management
    11. 11. Quality Management and Customer Orientation Delivering Quality Binding Excisting Customers Acquisition of New Customers Growh Market- share Word-of- Mouth
    12. 12. Value Marketing <ul><li>Meeting Customer Requirements </li></ul><ul><li>Fitness for use </li></ul><ul><li>Process Integrity </li></ul><ul><li>Elimination of waste </li></ul><ul><li>Continues Improvement </li></ul><ul><li>Design and Engineering </li></ul><ul><li>Conversion </li></ul><ul><li>Quality Assurance </li></ul><ul><li>Distribution </li></ul><ul><li>Administration </li></ul><ul><li>Inventory </li></ul><ul><li>Materials </li></ul><ul><li>Time to Market </li></ul><ul><li>Response to Market Forces </li></ul><ul><li>Lead time: </li></ul><ul><ul><li>Design and Conversion </li></ul></ul><ul><ul><li>Engineering and Delivery </li></ul></ul><ul><li>Materials </li></ul><ul><li>Inventory </li></ul><ul><li>Customer Support </li></ul><ul><li>Product Service </li></ul><ul><li>Product Support </li></ul><ul><li>Flexibility to meet demand </li></ul><ul><li>Flexibility to meet market changes </li></ul>Value= Quality Cost Cycle Time Service X X
    13. 13. Drivers of Customer Equity Why Customers buy your products, and keep on buying them… <ul><li>Value Equity </li></ul><ul><ul><li>The objective evaluation by the customer of the value of a product or service in line with the proposed usage </li></ul></ul><ul><li>Brand Equity </li></ul><ul><ul><li>The more subjective evaluation of a branded product or service that goes beyond the objective experience of the value in line with the alternatives on the market </li></ul></ul><ul><li>Retention Equity </li></ul><ul><ul><li>Customers tendency to stay with a brand that cannot be explained by the objective or subjective evaluation of the value of the product or service. The brand has become part of the personality of the customer. </li></ul></ul>
    14. 14. It’s not enough to satisfy your customers Customer Equity Brand Equity Value Equity Word of Mouth Retention Equity Rust et al, 2000
    15. 15. Ca = (D * V * Cb * Co) / T Ca Capability to change D Dissatisfaction with current situation V Vision company management Cb Conditions and Boundaries Co Courage T Time to change Knowledge of market or marketing is irrelevant when one does not know where to go, or lacks the courage to ko what one should do.
    16. 16. Balanced Scorecard Keeping development in balance Strategy, Targets and Critical Success factors Financial Indicators Customer Indicators Innovation Indicators Process Indicators Bron Kaplan
    17. 17. The positioning grid (example: Rabobank) Specialization Personal/Interested Quick and Easy Offering Broad palet of services Van Lanschot Directbank Spaarbeleg ING Chosen Positioning Rabobank Motive to buy Targetgroup Rabobank
    18. 18. The Proposition is the start of the development of product or service, and the platform of an effective communication strategy <ul><li>Every proposition is valid for one targetgroup only </li></ul><ul><li>Customers often belong to different targetgroups related to different productclasses </li></ul><ul><li>Customers don’t accept to be treated as an element of a targetgroup, but want to be aknowledged as an individual with individual demands. </li></ul><ul><li>The offer should be individualized by adaptation to individual customers </li></ul><ul><li>Individualization is much more than a personal contact </li></ul>
    19. 19. Filling in the proposition: The Marketing Mix Product Distribution Price Customer Relations The customer wants an integrated offer to cover his demand, not a bundle of Marketing Mix elements!
    20. 20. The alternative Marketing Mix to build a shop formula Systems Logistics Suppliers Zize Location Interior & Design Place Style & Fashion Intensity Assortment Product Price Quality Value Positioning Cust. Relations Communi- cation Service orientation Knowledge Working climate Personel D.J. Tigert, 2001
    21. 21. Expanded Relations within the Marketing Mix Product Distribution Price Customer Relations C F A Core , Fysical , Augmented Product and the effects of the changes at these three levels of the product element will have upon the other Marketing Mix elements
    22. 22. Value Map of Dutch Supermarkets Higher Lower Inferior Superior Relative Quality Relative Price Premium Discount Intermediate Better value Worse Value © Gale & Buzzell Die Grow Aldi/Lidl DvdB Hoogvliet C1000 AH Jumbo Plus
    23. 23. Price Sensitivity: the key to effective pricing <ul><li>The unique value effect </li></ul><ul><li>The substitute awareness effect </li></ul><ul><li>The difficult comparison effect </li></ul><ul><li>The total expenditure effect </li></ul><ul><li>The end-benefit effect </li></ul><ul><li>The shared costs effect </li></ul><ul><li>The sunk investment effect </li></ul><ul><li>The price/quality effect </li></ul><ul><li>The inventory effect </li></ul>Bron: Nagle What does effect Price Sensitivity:
    24. 24. True Integrated Communication by usage of a suited mix of Instruments and Media Direct marketing E-Bus s © Koornstra Consultancy, 2003 Sales S ales Prom. Public Rel. Advertising AANBOD Printed media Ethermedia Mailing POS media ICT Media Salesmen Outdoor Media Evenements Sponsoring

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