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B.Com 07-11, Lecture 4
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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)

Published in Technology , Education
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Transcript

  • 1. 17 September 2009
  • 2. Outlines
    • Relationship marketing
    • Customer relationship management
    • Changing nature of customer
    • Capturing value from customer
    • The marketing landscape
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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.
  • 7. 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
  • 8. 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.
  • 9. 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.
  • 10. 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.
  • 11. 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.
  • 12. 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 ”
  • 13. 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.
  • 14. 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.
  • 15. Capturing value from customer
    • Creating customer loyalty and retention
    • Growing share of customer
    • Building customer equity
    • Building right relationship with right customer
  • 16. 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.
  • 17. 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
  • 18. 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.
  • 19. 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.
  • 20. 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
  • 21. The new Marketing Landscape
    • The new Digital age
    • Internet
    • Globalization
    • Call for more ethics and social Responsibilities