Fundamentals Of Marketing Customer Service


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Fundamentals Of Marketing Customer Service

  1. 1. <li>Fundamentals of Marketing &amp; Customer Service By MRJ References: Business Today Book, 10 th Edition by M-&gt;Mescon -&gt; C-&gt;Bovee-&gt; J-&gt;Thill </li><li>What is Marketing? </li><li>What is Marketing? <ul><li>Process of planning &amp; executing the conception , pricing , promotion , &amp; distribution of ideas , goods , &amp; services to create exchanges that satisfy individual &amp; organizational objectives </li></ul></li><li>Core Marketing Concepts <ul><li>Needs </li></ul><ul><li>Wants </li></ul><ul><li>Demands </li></ul><ul><li>Products </li></ul><ul><li>Services </li></ul><ul><li>Values </li></ul><ul><li>Satisfaction </li></ul><ul><li>Quality </li></ul><ul><li>Exchanges </li></ul><ul><li>Transactions </li></ul><ul><li>Relationships </li></ul><ul><li>Markets </li></ul>Products &amp; Services Markets Needs, wants, &amp; demands Value, Satisfaction, &amp; quality Exchanges, Transactions, &amp; relationships </li><li>Fundamental Marketing Goal <ul><li>To direct customer’s basics needs into the desire to purchase specific brands </li></ul></li><li>What is customer Service? <ul><li>Efforts a company makes to satisfy its customers to help them realize the greatest possible value from the products they are purchasing-&gt; </li></ul></li><li>Marketing Applications <ul><li>Products </li></ul><ul><li>Services </li></ul><ul><li>Non-profit Organizations </li></ul><ul><li>People (People Marketing) </li></ul><ul><li>Places (Place Marketing) </li></ul><ul><li>Causes (Cause Related Marketing) </li></ul></li><li>Role of Marketing in Society <ul><li>Helping People satisfy their Needs &amp; Wants by helping organizations determine what to produce-&gt; </li></ul></li><li>Customer Needs <ul><li>Difference between a person’s actual &amp; idea states; provides the basic motivation to make a purchase </li></ul><ul><li>Basic human needs: </li></ul><ul><ul><li>Food </li></ul></ul><ul><ul><li>Water </li></ul></ul><ul><ul><li>Air </li></ul></ul><ul><ul><li>Shelter </li></ul></ul><ul><ul><li>Clothing </li></ul></ul></li><li>Customer Wants <ul><li>Things that are desirable in light of a person’s experiences, culture, &amp; personality </li></ul><ul><li>Producers shape Wants by exposing customers to alternatives </li></ul></li><li>How to enhance the appeal of products or services <ul><li>By adding a utility (power of a good or service to satisfy a human need) </li></ul></li><li>The four utilities <ul><ul><li>Form utility (consumer value created by converting raw materials and other inputs into finished goods &amp; services) </li></ul></ul><ul><ul><li>Time utility (consumer value added by making a product available at convenient time) </li></ul></ul><ul><ul><li>Place utility (consumer value added by making a product available in a convenient location) </li></ul></ul><ul><ul><li>Possession utility (consumer value added when someone takes ownership of a product) </li></ul></ul></li><li>Technology &amp; evolution of Marketing <ul><li>Production Era </li></ul><ul><li>Sales Era </li></ul><ul><li>Marketing Era </li></ul></li><li>Factory Existing Selling &amp; Profits through Products Promoting sale volume Market Customer integrated profits through needs marketing customer satisfaction The Sales Era The Marketing Era Starting Point Focus Means Ends </li><li>Production Era (until 1930s) <ul><li>Characteristics: </li></ul><ul><ul><li>Demand for Products Exceed Supply </li></ul></ul><ul><ul><li>Manufacturers able to sell whatever produced </li></ul></ul><ul><ul><li>Seller’s Market (market place characterized by a shortage of products) </li></ul></ul><ul><ul><li>Marketing Role to take orders &amp; ship goods </li></ul></ul></li><li>Sales Era (1930s-1950s) <ul><li>Characteristics: </li></ul><ul><ul><li>Supply for Products Exceed Demand </li></ul></ul><ul><ul><li>Firms spend more on advertising </li></ul></ul><ul><ul><li>Firms still focused on selling whatever produced </li></ul></ul><ul><ul><li>Buyer’s market (marketplace characterized by an abundance of products) </li></ul></ul></li><li>Marketing Era &amp; Relationship Era <ul><li>Characteristics: </li></ul><ul><ul><li>Marketing Concept adopting: </li></ul></ul><ul><ul><ul><li>Stressing customers needs &amp; wants </li></ul></ul></ul><ul><ul><ul><li>Concentrating on specific target markets </li></ul></ul></ul><ul><ul><ul><li>Seeking long term profitability </li></ul></ul></ul><ul><ul><ul><li>Coordinating with marketing efforts </li></ul></ul></ul><ul><ul><ul><li>Maintaining long-term relationships with customers </li></ul></ul></ul></li><li>Relationship Marketing <ul><li>Focus on developing &amp; maintaining long-term relationships with customers, suppliers, &amp; distributers for mutual benefit </li></ul></li><li>Internet &amp; Customer relations <ul><li>Brings the outside world closer </li></ul><ul><li>Allows businesses to reach out </li></ul><ul><li>Establish relationships with customers </li></ul><ul><li>Market to the world </li></ul><ul><li>Answer customers questions </li></ul><ul><li>Better understand of customers “who &amp; what they want” </li></ul></li><li>The Importance Of Understanding Customers </li><li><ul><li>“ The aim of marketing is to know &amp; to understand the customer so well that the product or service fits him &amp; sells itself” </li></ul></li><li>Today’s customers <ul><li>Sophisticated </li></ul><ul><li>Price sensitive </li></ul><ul><li>Demanding </li></ul></li><li>Why to satisfy customers? <ul><li>Acquiring new customer cost up to 5 times as much as keeping existing one </li></ul><ul><li>Long-term customers (buy more, take less time, bring new customers, less price sensitive) </li></ul><ul><li>Satisfied customers are best advertisement </li></ul><ul><li>With Superior customer service you can charge customers as much as 10% more than competitor </li></ul><ul><li>Dissatisfied customers tell 20 other people about bad experience </li></ul></li><li>How to measure customers satisfaction? <ul><li>Analyze customer base: </li></ul><ul><ul><li>Are you getting new customer? </li></ul></ul><ul><ul><li>Are you losing good customers? </li></ul></ul><ul><ul><li>What is your customer retention rate? </li></ul></ul><ul><ul><li>What are you doing to keep customer loyalty? </li></ul></ul></li><li>Why are today customers less loyal today? <ul><li>They have more (choices, styles, options, services, products) </li></ul><ul><li>Have more information from (brochures, consumer publications, internet) </li></ul><ul><li>Empowered &amp; raised expectations </li></ul><ul><li>Products start to look the same </li></ul><ul><li>Time is scarce </li></ul><ul><li>Needs &amp; buying habits change constantly </li></ul></li><li>Not every customer is worth keeping… <ul><li>“ we’ve gotten a lot smarter about separating the customers we do want from the customers we don’t want” says C-&gt; Michael Armstrong </li></ul></li><li>Beyond Customer Satisfaction Price, Product Quality, Service quality, Innovation, Image Customer Perceived Value Loyalty Market Share &amp; Profitability Shareholder Value </li><li>How to learn about customers <ul><li>Consumer buying behavior </li></ul><ul><li>Marketing Research </li></ul><ul><li>Database Marketing </li></ul><ul><li>Relationship marketing </li></ul><ul><li>One-to-one marketing </li></ul></li><li>Consumer Buying Behavior <ul><li>Definition: </li></ul><ul><li>Behavior exhibited by consumers as they consider &amp; purchase various products </li></ul><ul><li>Consider: </li></ul><ul><ul><li>Difference between organizational &amp; consumer markets </li></ul></ul><ul><ul><li>Buyers decision process </li></ul></ul><ul><ul><li>Factors influence buyer decision process </li></ul></ul></li><li>Organizational market <ul><li>Customers who buy goods or services for resale or for use in conducting their own operations </li></ul><ul><li>3 main subgroups: </li></ul><ul><ul><li>Industrial/Commercial Market (buy to produce) </li></ul></ul><ul><ul><li>Reseller Market (wholesalers/retailers) </li></ul></ul><ul><ul><li>Government Market (federal, states, local agencies) </li></ul></ul></li><li>Organizational market (cont-&gt;) <ul><li>Buy raw materials </li></ul><ul><li>Buy highly technical products </li></ul><ul><li>Complex products </li></ul><ul><li>Buy consumer products </li></ul><ul><li>Larger Quantities </li></ul><ul><li>Complex buying process </li></ul></li><li>Consumer Market <ul><li>Individuals of households that buy goods or services for personal use </li></ul><ul><li>Purchase smaller quantities than organizations </li></ul><ul><li>Simple buying process (identify problem, look for solution, gather information, select alternatives, buy, reassure purchase) </li></ul></li><li>Consumer Decision Process Need Recognition Information search Evaluation of alternatives Purchase Post purchase evaluation </li><li>Cognitive Dissonance <ul><li>Anxiety following a purchase that prompts buyers to seek reassurance about the purchase, commonly known as buyer’s remorse </li></ul><ul><li>Used to enforce sales by: </li></ul><ul><li>Guarantees, phone calls, hotlines, follow-up letters </li></ul></li><li>Factors influence buyer’s decision process <ul><li>Culture (values, attitudes, beliefs) </li></ul><ul><li>Social Class (upper, middle, lower) different in (activities, goals, shopping places) </li></ul><ul><li>Reference groups (Family, friends, co-workers, sport enthusiasts, music lovers, computer buffs) </li></ul><ul><li>Self-Image “you are what you buy” </li></ul><ul><li>Situational factors (having coupon, being in hurry, celebrating holiday, be in bad mod) </li></ul></li><li>Marketing research <ul><li>Definition: The collection &amp; analysis of information for making marketing decisions </li></ul></li><li>When to conduct Marketing Research <ul><ul><li>Set product goals </li></ul></ul><ul><ul><li>Develop new products </li></ul></ul><ul><ul><li>Plan future marketing programs </li></ul></ul><ul><ul><li>Monitor a program effectiveness </li></ul></ul><ul><ul><li>Keep eye on competition </li></ul></ul><ul><ul><li>Track industry trends </li></ul></ul><ul><ul><li>Measure customer satisfaction </li></ul></ul></li><li>Marketing Research Tools <ul><li>Used for probing customers wants &amp; needs </li></ul><ul><li>Tools: </li></ul><ul><ul><li>Personal observations </li></ul></ul><ul><ul><li>Customer surveys </li></ul></ul><ul><ul><li>Questionnaires </li></ul></ul><ul><ul><li>Experiments </li></ul></ul><ul><ul><li>Telephone or personal interviews </li></ul></ul><ul><ul><li>Studies of small groups of population </li></ul></ul><ul><ul><li>Focused interviews of 6 to 10 people (focus groups) </li></ul></ul><ul><ul><li>Virtual reality </li></ul></ul></li><li>Limitations of marketing research Source of expensive mistakes - Not a substitute for good judgment - misleading If not carefully worded &amp; administered Poor indicator of future buying behavior - Not good predictor of what will excite consumers in the future Suggest what people might prefer or dislike Doesn’t identify ways beyond current states Measures the level of service currently provided Not accurately represent marketplace Administered in artificial settings Surveys Limitations Design Tool </li><li>Database marketing <ul><li>Process of building, maintaining &amp; using customer databases for the purpose of contacting customers &amp; transacting business </li></ul><ul><li>How? </li></ul><ul><ul><li>Recording &amp; analyzing (customer interactions, preferences, &amp; buying behavior) </li></ul></ul><ul><ul><li>Gathering data about customers transactions, requests, &amp; preferences </li></ul></ul><ul><ul><li>Determine target customers </li></ul></ul><ul><ul><li>Customize marketing offers for the best response </li></ul></ul></li><li>Customer relationship management software <ul><li>Used to: </li></ul><ul><li>Interact with customers </li></ul><ul><li>Remember customer preferences &amp; priorities </li></ul><ul><li>Capture insights about customers in great detail </li></ul><ul><li>Calculate customers profitability &amp; future potential </li></ul><ul><li>Build sophisticated but easily accessible customer profiles </li></ul><ul><li>Share data throughout the organization </li></ul></li><li>Relationship marketing <ul><li>Focus on conducting two-way communication between company &amp; customer </li></ul><ul><li>Used for building long-term relationships </li></ul></li><li>One-to-one marketing <ul><li>Individualizing firm’s marketing efforts for a single customer to accommodate specific customer’s need </li></ul><ul><li>Key Steps: </li></ul><ul><ul><li>Identifying your customers </li></ul></ul><ul><ul><li>Differentiating among them </li></ul></ul><ul><ul><li>Interacting with them </li></ul></ul><ul><ul><li>Customize your product or service to fit each individual customer needs </li></ul></ul></li>