Ch# 5:<br /> Customer Value, Satisfaction, and Loyalty<br /><ul><li>Customer Perceived Value: Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and perceived alternatives.
Value Proposition: Value proposition is the whole cluster of benefit the company promises to deliver.
Value Delivery System: Value delivery system is a set of core business processes that help to deliver distinctive customer value.
Reactive Marketing: Reactive marketing refers to marketing that is a "reaction" to the marketing of your competitors. For example, if your competitor offers a sale, you decide to have your own sale, maybe even with a slightly sharper discount.
Accountable Marketing: Accountable Marketing is a process of marketing that can be preciselymeasured and that allows the marketer to both project and analyze theReturn On Marketing Investment (ROMI). The disciplines of accountablemarketing are being examined by marketers of all types of goods and services.
Frequency Marketing Program: Frequency marketing program is any marketing plan designed to reward customers who buy on a regular basis or to encourage customers to do so, as in a frequent flyer program
Basic Marketing: Basic Marketing will examine both the character and importance of the marketing process, its essential functions and the institutions performing them in a thorough and balanced manner.
Cross Selling: Cross-selling is defined as "the action or practice of selling among or between established clients, markets, traders, etc." or "that of selling an additional product or service to an existing customer".
Up Selling: Up selling is a sales technique whereby a salesperson induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale Or Up selling implies selling something that is more profitable or otherwise preferable for the seller instead of, or in addition to, the original sale</li></ul>For Example: Suggesting a premium brand of alcohol when a brand is not specified by a customer (such as if a customer simply requests a "rum and Coke").<br /><ul><li>Total Customer Benefit: Total customer benefit is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the products, services, personnel and image involved.
Total Customer Cost: Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using , and disposing of the given market offering, including monetary, time, energy, and psychological costs.
Mass Marketing: Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Suspects: An individual who may or may not meet the minimum qualifications necessary to make him a good prospect.
Advocate: A customer who has favorable perceptions of a brand who will talk favorably about a brand to their acquaintances (Family and close friends) to help generate awareness of the brand or influence purchase intent.
Prospects: Prospects are the suspects that can make a purchase through motivation, ability and opportunity.
Advocates: Advocates are the customers that say to other people to make a purchase of that product.
Leverage able Advantage: A Leverage able advantage is one that a company can use as a springboard to new advantages.</li></ul>In general, any company that hopes to endure must be in the business of continuously inventing new advantages.<br />For example, Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, any company that hopes to endure must be in the business of continuously inventing new advantages.<br /><ul><li>Customer Lifetime Value: customer lifetime value (CLV) is the net present value of the cash flows attributed to the relationship with a customer.
Customer Equity: Customer equity is the total combined customer lifetime values of all of a company’s customers.
Customer Base: The customer base is the group of customers and/or consumers that a business serves.
Service: Service is any activity that is done for meeting customer satisfaction.
Client: Client are the customer to whom the company gives very special and knowledgeable treatment.
Members: Members are the customers that become a member to join a membership program that offers benefits to customers who join.