Marketing management-by-philip-kotler-719-slides-1234238345990514-2 untitled3-3


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Marketing management-by-philip-kotler-719-slides-1234238345990514-2 untitled3-3

  1. 1. Chapter 3Building CustomerSatisfaction, Value, andRetentionby PowerPoint by Milton M. Pressley University of New Orleans 1-62
  2. 2. Kotler onMarketingIt is no longerenough to satisfycustomers. You mustdelight them. 1-63
  3. 3. Chapter ObjectivesIn this chapter, we will address thefollowing questions: What are customer value and satisfaction, and how can companies deliver them? What makes a high-performance business? high- How can companies both attract and retain customers? How can companies improve both customer and company profitability? How can companies deliver total quality? 1-64
  4. 4. Defining Customer Value and Satisfaction Customer Perceived Value (CPV) Total customer value Total customer cost 1-65
  5. 5. Figure 3-1:Determinantsof CustomerDeliveredValue 1-66
  6. 6. Defining Customer Value and Satisfaction Total Customer Satisfaction Satisfaction Customer Expectations Delivering High Customer Value Value proposition Value- Value-delivery system Measuring Satisfaction 1-67
  7. 7. Table 3-1: Tools for Tracking and Measuring Customer SatisfactionComplaint A customer-centered organization makes it easy for customer-and customers to register suggestions and complaints.suggestion Some customer-centered companies-P&G, General customer- companies- Electric, Whirlpool—establish hot lines with toll-free Whirlpool— toll-systems: numbers. Companies are also using Web sites and e-mail for quick, two-way communication. two- Studies show that although customers are dissatisfiedCustomer with one out of every four purchases, less than 5 percent will complain. Most customers will buy less orsatisfaction switch suppliers. Responsive companies measuresurveys: customer satisfaction directly by conducting periodic surveys. While collecting customer satisfaction data, it is also useful to ask additional questions to measure repurchase intention and to measure the likelihood or willingness to recommend the company and brand to others. See text for complete table 1-68
  8. 8. Would you feel more brand loyalty for acompany that tried to immediately resolvea complaint via E-mail, or a company that E-had a customer service representative callwithin two business days toresolve the problem overthe phone? 1-69
  9. 9. Premier is a special business-oriented part of the business-Dell Web site that allows customers to interact with Dell and customize all phases of doing business with Dell. 1-70
  10. 10. The Nature of HighPerformance Business High- High-performance business 1-71
  11. 11. Figure 3-2: The High Performance Business 1-72
  12. 12. The Nature of HighPerformance BusinessStakeholdersProcessesResources Core competency Distinctive capabilitiesOrganization and Organizational Culture Organization Corporate culture Scenario analysis 1-73
  13. 13. Can you name a company that haschanged the public’s perception oftheir corporate culture? Has thiseffectively rehabilitated thatcompany’s image? 1-74
  14. 14. Delivering Customer Value and Satisfaction Value Chain Value chain 1-75
  15. 15. Figure 3-3: The Generic Value Chain 1-76
  16. 16. Delivering Customer Value and Satisfaction BenchmarksCore Business Processes The market sensing process The new offering realization process The customer acquisition process The customer relationship management process The fulfillment management process 1-77
  17. 17. Delivering Customer Value and Satisfaction The Value Delivery Network (Supply Chain) 1-78
  18. 18. Figure 3-4:LeviStrauss’sValue-DeliveryNetwork 1-79
  19. 19. Attracting and Retaining Customers Partner relationship management (PRM) Customer relationship management (CRM) 1-80
  20. 20. Saturn has gained a customer loyalty rateof more than 60% by fundamentallychanging the buyer-seller relationship. buyer-Can you think of another company thathas made a change of similarmagnitude? Have theyhad similar results? 1-81
  21. 21. Attracting and Retaining Customers Attracting Customers Computing the Cost of Lost Customers Customer churn Lifetime value 1-82
  22. 22. On the Lands’ End Web site, customers can click abutton to talk with a customer service representative 1-83
  23. 23. Attracting and Retaining CustomersThe Need for Customer RetentionMeasuring CustomerLifetime Value (CLV)Customer Relationship Management(CRM): The Key Customer equity Three drivers of customer equity Value equity Brand equity Relationship equity 1-84
  24. 24. Figure 3-5:TheCustomer-DevelopmentProcess 1-85
  25. 25. Attracting and Retaining Customers Five levels of investment in customer relationship building Basic marketing Reactive marketing Accountable marketing Proactive marketing Partnership marketing 1-86
  26. 26. Figure 3-6: Levels of Relationship Marketing 1-87
  27. 27. Attracting and Retaining Customers Forming Strong Customer Bonds: The Basics Cross- Cross-departmental participation Integrate the Voice of the Customer into all business decisions Create superior offering for the target market 1-88
  28. 28. Attracting and Retaining Customers Organize and make accessible a database of customer information Make it easy for customers to reach the appropriate personnel Reward outstanding employees Adding Financial Benefits Frequency programs (FPs) 1-89
  29. 29. The H.O.G. Web site presents the benefits of joining. 1-90
  30. 30. Attracting and Retaining Customers Adding Social Benefits 1-91
  31. 31. Good Things Bad ThingsTable 3-2: Initiate positive phone calls Make only callbacksSocial Actions Make recommendations Make justificationsAffecting Candor in language Accommodative languageBuyer-Seller Use phone Use correspondenceRelationships Show appreciation Wait for misunderstandings Make service suggestions Wait for service requests Use “we” problem-solving problem- Use “owe-us” legal language “owe- language Only respond to problems Get to problems Use long-winded long- Use jargon or shorthand communications Personality problems aired Personality problems hidden Talk of “our future together” Talk about making good on Routinize responses the past Accept responsibility Fire drill and emergency Plan the future responsiveness Shift blame Rehash the past 1-92
  32. 32. Attracting and Retaining Customers Adding Structural Ties Create long-term contracts long- Charge lower price to high volume customers Turn product into long- long-term service 1-93
  33. 33. Customer Profitability,Company Profitability, andTotal Quality Management Measuring Profitability Profitable customer 1-94
  34. 34. Figure 3-7: Customer-Product Profitability Analysis 1-95
  35. 35. Figure 3-8: Allocating marketing investment according to customer value 1-96
  36. 36. Customer Profitability,Company Profitability, andTotal Quality Management Increasing Company Profitability Competitive advantage Implementing TQM Total Quality Management Quality 1-97