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CHAPTER 2 DISCUSSION QUESTIONS
1) What does the author mean by, "the customer is in the driver's
seat"?
2) In your opinion, what company does a great job at satisfying its
customers' needs? Why?
3) What does Medtronic do? The author states that Medtronic is a
company that personifies Drucker's ideal of customer focus.
How?
4) What are the 4 Drucker questions that a company should
answer when connecting with its customer?
5) Drucker believes that there is never only one customer. What
does he mean? How do the Girl Scouts of America fit this?
6) What is the online payment business owned by eBay? What is
the Internet phone service owned by eBay?
7) Why is it important/helpful for organizations to identify
noncustomers?
8) How did Apple figure out that its customers wanted a car
charger for the iPod?
COMPANIES THAT EFFECTIVELY SATISFY THEIR
           CUSTOMERS’ NEEDS?
THE CUSTOMER IS IN THE DRIVER’S SEAT




            WHY? HOW?
1) COMPETITION
CONSUMERS HAVE MORE CHOICES TODAY.
2) TECHNOLOGY
CONSUMERS HAVE MORE KNOWLEDGE TODAY.
3) DEMAND FOR QUALITY
THE CONSUMER KNOWS WHAT THE CONSUMER WANTS.
THE RESULTS OF ANY INSTITUTION ONLY EXIST ON THE
                    OUTSIDE




  -THE RESULT OF A HOSPITAL IS A HEALED PATIENT
-THE RESULT OF A SCHOOL IS AN EDUCATED STUDENT
-THE RESULT OF A BUSINESS IS A SATISFIED CUSTOMER
HOW TO REACH THE CUSTOMER
-PRE-SILENT REVOLUTION: PUSH STRATEGY
-NOW: PULL STRATEGY
-THE CUSTOMER CAN NOW BE REACHED EASIER, & FASTER


                           PUSH MARKETING
-COMPANY “PUSHES” PRODUCT ON CONSUMER WHO MAY NOT BE AWARE OF IT
-USED TO CREATE CONSUMER DEMAND


                           PULL MARKETING
-THE CONSUMER “PULLS” THE PRODUCT TOWARDS THEMSELVES BECAUSE THEY
ARE INTERESTED
-USED TO BUILD UP CONSUMER DEMAND
EXAMPLES OF PUSH MARKETING




   PRODUCT SAMPLING
EXAMPLES OF PULL MARKETING




PRODUCT PLACEMENT    WORD OF MOUTH
SELLING THE BRAND FIRST & THEN THE
            PRODUCTS
HOW DOES MEDTRONIC PERSONIFY DRUCKER’S IDEAL OF
               CUSTOMER FOCUS?




-MISSION: TO ALLEVIATE PAIN, RESTORE HEALTH, & EXTEND
LIFE
-DOCTORS HELP MEDTRONIC DECIDE WHAT PRODUCTS TO
INVENT BY UNDERSTANDING PATIENTS PROBLEMS & THE
DEVICES NEEDED TO ADDRESS THEM
CONNECTING WITH YOUR CUSTOMER:
             4 DRUCKER QUESTIONS


1) WHO IS YOUR CUSTOMER?
2) WHAT DOES YOUR CUSTOMER CONSIDER VALUE?
3) WHAT ARE YOUR RESULTS WITH CUSTOMERS?
4) DOES YOUR CUSTOMER STRATEGY WORK WELL WITH
   YOUR BUSINESS STRATEGY?
SO….WHO SHOULD BE CONSIDERED A CUSTOMER?
THE END USER?
THE BUYER/DECISION MAKER?
CRITICAL INFLUENCERS/INNOVATORS?
            PRODUCT DIFFUSION CURVE
CUSTOMERS ARE GROUPED ACCORDING TO HOW
      QUICKLY THEY ADOPT A NEW PRODUCT


INNOVATORS: WELL-INFORMED RISK TAKERS THAT WILL
TAKE A RISK ON AN UNPROVEN PRODUCT
EARLY ADOPTERS: BASED ON THE POSITIVE RESPONSE OF
INNOVATORS
EARLY MAJORITY: CAREFUL CONSUMERS WHO TEND TO
AVOID RISK THAT RELY ON OPINIONS OF OTHERS
LATE MAJORITY: SKEPTICAL CONSUMERS WHO
PURCHASE AFTER PRODUCT HAS BECOME
COMMONPLACE
LAGGARDS: AVOID CHANGE & WON’T PURCHASE A
PRODUCT UNTIL TRADITIONAL ALTERNATIVES NO
LONGER EXIST
THERE IS NEVER ONLY ONE CUSTOMER


        2 WAYS TO GROUP PEOPLE TOGETHER
DEMOGRAPHICS
-CHARACTERISTICS OF A SELECTED POPULATION BASED
ON STATISTICAL DATA (QUANTIFIABLE)
-RACE, AGE, GENDER, INCOME


PSYCHOGRAPHICS
-CHARACTERISTICS OF A SELECTED POPULATION BASED
ON PERSONALITY TRAITS (NOT QUANTIFIABLE)
-INTERESTS, LIFESTYLES, VALUES
THERE IS NEVER ONLY ONE CUSTOMER

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CHAPTER 2 DISCUSSION QUESTIONS EXAMINED

  • 1. CHAPTER 2 DISCUSSION QUESTIONS 1) What does the author mean by, "the customer is in the driver's seat"? 2) In your opinion, what company does a great job at satisfying its customers' needs? Why? 3) What does Medtronic do? The author states that Medtronic is a company that personifies Drucker's ideal of customer focus. How? 4) What are the 4 Drucker questions that a company should answer when connecting with its customer? 5) Drucker believes that there is never only one customer. What does he mean? How do the Girl Scouts of America fit this? 6) What is the online payment business owned by eBay? What is the Internet phone service owned by eBay? 7) Why is it important/helpful for organizations to identify noncustomers? 8) How did Apple figure out that its customers wanted a car charger for the iPod?
  • 2. COMPANIES THAT EFFECTIVELY SATISFY THEIR CUSTOMERS’ NEEDS?
  • 3. THE CUSTOMER IS IN THE DRIVER’S SEAT WHY? HOW?
  • 4. 1) COMPETITION CONSUMERS HAVE MORE CHOICES TODAY.
  • 5. 2) TECHNOLOGY CONSUMERS HAVE MORE KNOWLEDGE TODAY.
  • 6. 3) DEMAND FOR QUALITY THE CONSUMER KNOWS WHAT THE CONSUMER WANTS.
  • 7. THE RESULTS OF ANY INSTITUTION ONLY EXIST ON THE OUTSIDE -THE RESULT OF A HOSPITAL IS A HEALED PATIENT -THE RESULT OF A SCHOOL IS AN EDUCATED STUDENT -THE RESULT OF A BUSINESS IS A SATISFIED CUSTOMER
  • 8. HOW TO REACH THE CUSTOMER -PRE-SILENT REVOLUTION: PUSH STRATEGY -NOW: PULL STRATEGY -THE CUSTOMER CAN NOW BE REACHED EASIER, & FASTER PUSH MARKETING -COMPANY “PUSHES” PRODUCT ON CONSUMER WHO MAY NOT BE AWARE OF IT -USED TO CREATE CONSUMER DEMAND PULL MARKETING -THE CONSUMER “PULLS” THE PRODUCT TOWARDS THEMSELVES BECAUSE THEY ARE INTERESTED -USED TO BUILD UP CONSUMER DEMAND
  • 9. EXAMPLES OF PUSH MARKETING PRODUCT SAMPLING
  • 10. EXAMPLES OF PULL MARKETING PRODUCT PLACEMENT WORD OF MOUTH
  • 11. SELLING THE BRAND FIRST & THEN THE PRODUCTS
  • 12. HOW DOES MEDTRONIC PERSONIFY DRUCKER’S IDEAL OF CUSTOMER FOCUS? -MISSION: TO ALLEVIATE PAIN, RESTORE HEALTH, & EXTEND LIFE -DOCTORS HELP MEDTRONIC DECIDE WHAT PRODUCTS TO INVENT BY UNDERSTANDING PATIENTS PROBLEMS & THE DEVICES NEEDED TO ADDRESS THEM
  • 13. CONNECTING WITH YOUR CUSTOMER: 4 DRUCKER QUESTIONS 1) WHO IS YOUR CUSTOMER? 2) WHAT DOES YOUR CUSTOMER CONSIDER VALUE? 3) WHAT ARE YOUR RESULTS WITH CUSTOMERS? 4) DOES YOUR CUSTOMER STRATEGY WORK WELL WITH YOUR BUSINESS STRATEGY?
  • 14. SO….WHO SHOULD BE CONSIDERED A CUSTOMER? THE END USER? THE BUYER/DECISION MAKER? CRITICAL INFLUENCERS/INNOVATORS? PRODUCT DIFFUSION CURVE
  • 15. CUSTOMERS ARE GROUPED ACCORDING TO HOW QUICKLY THEY ADOPT A NEW PRODUCT INNOVATORS: WELL-INFORMED RISK TAKERS THAT WILL TAKE A RISK ON AN UNPROVEN PRODUCT EARLY ADOPTERS: BASED ON THE POSITIVE RESPONSE OF INNOVATORS EARLY MAJORITY: CAREFUL CONSUMERS WHO TEND TO AVOID RISK THAT RELY ON OPINIONS OF OTHERS LATE MAJORITY: SKEPTICAL CONSUMERS WHO PURCHASE AFTER PRODUCT HAS BECOME COMMONPLACE LAGGARDS: AVOID CHANGE & WON’T PURCHASE A PRODUCT UNTIL TRADITIONAL ALTERNATIVES NO LONGER EXIST
  • 16. THERE IS NEVER ONLY ONE CUSTOMER 2 WAYS TO GROUP PEOPLE TOGETHER DEMOGRAPHICS -CHARACTERISTICS OF A SELECTED POPULATION BASED ON STATISTICAL DATA (QUANTIFIABLE) -RACE, AGE, GENDER, INCOME PSYCHOGRAPHICS -CHARACTERISTICS OF A SELECTED POPULATION BASED ON PERSONALITY TRAITS (NOT QUANTIFIABLE) -INTERESTS, LIFESTYLES, VALUES
  • 17. THERE IS NEVER ONLY ONE CUSTOMER