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B.Com 07-11, Lecture 4
 

B.Com 07-11, Lecture 4

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Subject: Marketing

Subject: Marketing
Teacher: Hafiz Ahsan
Class: Bcom 5th (2007-2011)
Uploaded by: Saad Ahmad (BC07002)

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    B.Com 07-11, Lecture 4 B.Com 07-11, Lecture 4 Presentation Transcript

    • 17 September 2009
    • Outlines
      • Relationship marketing
      • Customer relationship management
      • Changing nature of customer
      • Capturing value from customer
      • The marketing landscape
    • Relationship Marketing
      • Development and maintenance of long term cost effective exchange relationship with customer , suppliers and other partners of organization.
      • Long tem commitment
      • Customer focus
      • Competitive advantage
    • Customer Relationship Management (CRM)
      • The overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction .
      • It deals with
      • Acquiring
      • Retaining
      • Growing customer
    • CRM cont … ..
      • Customer Value
      • The difference between the total customer value and total cost.
      • Customer Satisfaction
      • The extend to which product perceived performance matches a buyer expectation.
      • Performance < Expectation dissatisfied
      • Performance = Expectation satisfied
      • Performance > Expectation highly satisfied
    • Customer Relationship Levels and Tools
      • Companies can build customer relationship at many levels depending on nature of target market.
      • With low margin customer
      • Through sales promotion, advertisement contact phone number and websites.
      • With high level margin customer
      • Develop customer loyalty and retention program beyond offering high level value and satisfaction. They use special tools.
    • Changing Nature Of Customer Relationship
      • Relating with more carefully selected customer
      • Relating for long term
      • Relating directly
      • Partner relationship management
      • Partners inside the company
      • Partners outside the company
    • Relating With More Carefully Selected Customer
      • Most marketers realize that they do not want relationship with every customer instead companies now are targeting fewer more profitable customer.
      • They assess value of customer to firm (Selective Relationship Marketing)
      • Customer profitability analysis.
      • At the same time companies are finding the new ways to deliver more value to customer.
    • Relating For Long Term
      • Today companies are going beyond designing strategies to attract new customer and create transactions with them, they are using CRM to attract, retain and build profitable long term relationship.
      • New view of Marketing is the art and science of finding, retaining and growing profitable customer.
    • Why Companies Emphasis This
      • Increase in competition
      • Overcapacity in many industries
      • Increase in number of sellers
      • On average it cost 5 to 10 times as much to attract a new customer as it does to keep a current customer satisfied.
    • Relating directly
      • Many companies are also connecting more directly.
      • Today customer can buy virtually any product without going to store through
      • Telephone
      • Mail order
      • Online using web
      • Business purchasing agent routinely shop on web for items ranging from standard office supplies to high priced equipment.
    • Partner Relationship Management
      • Marketers realize that they cannot they cannot go alone.
      • They must work with variety of marketing partners in addition to being good at CRM They also must good in Partners relationship management.
      • “ Working closely with partners in other company departments and outside the company to jointly bring greater value to customer ”
    • Partners Inside Company
      • Old Thinking
      • Marketing is done only by marketing, sales and customer support people.
      • New Thinking
      • Every department can interact with customer and today all departments linking together to create customer value.
      • Company is unable to obtain its long term objective until its all departments work together.
    • Partners Outside The Company
      • How marketers connect with supplier, channel partners and competitors.
      • Channel partners are
      • Distributors
      • Wholesaler
      • Retailer
      • Today suppliers are not treated as venders and distributors are not as customers. They all treated as partners in delivering customer value.
    • Capturing value from customer
      • Creating customer loyalty and retention
      • Growing share of customer
      • Building customer equity
      • Building right relationship with right customer
    • Creating Customer Loyalty And Retention
      • Customer lifetime value
      • “ The value of the entire stream of purchases that the customer would make over a life time. ”
      • Highly satisfied customer buy again and also tell other about the product.
      • Companies realize that losing a customer means losing more than a single customer. In means losing the stream of purchases that he would make over a life time.
    • Growing Customer Share
      • Share of customer
      • The portion of the customer ’ s purchasing that a customer gets in its product categories.
      • Market share
      • The % of target market that company is capturing in the industry.
      • Marketers spend less time in thinking to increase market share and spend more time to increase share of customer by
      • Offering greater value
      • Cross selling and up selling
    • Building Customer Equity
      • “ The total combined customer life time value of all the company ’ s customers. ”
      • This is a better measures of performance than current sale and market share.
    • Building Right Relationship With Right Customer
      • Customers are assets and need to be managed and maximized, but not all customer or even not all loyal customer
      • Some loyal customer can be unprofitable
      • Some disloyal customer can be profitable
      • Company can classify customer according to the potential profitability and loyalty and manage relationship accordingly.
    • Building Right Relationship With Right Customer High profitability Low profitability profitability Loyalty Short term customer Long term customer Butterflies Good fit between company’s offering and customer’s need: high profit potential True friends Good fit between Company’s offering and Customer need: highest profit potential Strangers Little fit between Company’s offering and Customer’s need: lowest Profit potential Barnacles limited fit between Company’s offering and Customer need: low profit potential
    • The new Marketing Landscape
      • The new Digital age
      • Internet
      • Globalization
      • Call for more ethics and social Responsibilities