Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
Uploaded bysilindilenkonyane435
PPTX, PDF19 views

Comprehensive Overview of Marketing Concepts and Customer Satisfaction Strategies

Explore marketing definitions, customer satisfaction models, marketing orientations, and competitive advantage essentials for effective business strategies and customer relationship management.

Marketing◦
Download to read offline
Chapter 01 An overview of marketing
Marketing defined: Marketing = the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services, to create exchanges that satisfy individual and organisational goals
What is marketing? Marketing has 2 facets: 1. Philosophy and management orientation (customer satisfaction) 2. Set of activities to implement philosophy
Customer satisfaction Customer satisfaction = the feeling that a product has met or exceeded the customer’s expectations Can be explained by “Disconfirmation paradigm”
Disconfirmation paradigm Performance Expectations Comparison p>e p=e p<e Positive confirmation Confirmation Negative confirmation Satisfaction Satisfaction Dissatisfaction Satisfaction Satisfaction
Measuring customer satisfaction (CS) • Should be permanent on-going to provide information for senior managers (perceptions of quality / price / service / brand) • Formal research surveys (mail, phone, interview, internet, in- store cards / machines) • Analyse customer complaints or interview staff • Collect information from customers and intermediaries.
Herzberg’s two-factor model of customer service (CS) Hygiene factors Satisfiers   “prerequisites” WOW!! When measuring CS, both sets of factors should be identified and evaluated. Once hygiene factors have been met, then satisfiers can create higher levels of satisfaction
Examples Product Hygiene Factors (Prevent dissatisfaction) Motivators/Satisfiers (Create satisfaction) Smartphone (e.g., Samsung Galaxy) Good battery life, clear display, fast performance Advanced camera features, foldable design, stylus pen, custom UI Car (e.g., Toyota Corolla) Reliability, safety features, fuel efficiency Wireless Apple CarPlay, auto-parking assist, premium audio system Airline (e.g., Emirates) On-time flights, clean seats, basic in- flight service Personal entertainment system, lie-flat seats, gourmet meals Streaming Service (e.g., Netflix) Stable streaming, HD quality, no interruptions Original content (e.g., Stranger Things), personalized recommendations
Benefits of CS 1. Lower acquisition costs (cost of acquiring new customers) 2. Base profit (the longer you keep the customer, the longer you earn the profit) 3. Revenue growth (customer spending accelerates over time) 4. Cost savings (existing customers need less hand-holding) 5. Referrals (you tell your friends) 6. Price premium (loyal customers are less price sensitive)
The Exchange- Wants vs. needs
Concept of exchange Seller Buyer
Five conditions of exchange 1. At least two parties 2. Have something of value 3. Be able to communicate and deliver 4. Free to accept or reject 5. Want to deal with other party.
Marketing management philosophies: 1. Production orientation 2. Product orientation 3. Sales orientation 4. Consumer orientation 5. Societal marketing orientation 6. Relationship marketing orientation
1. Product orientation Focuses on developing and improving the product itself, assuming that customers will prefer high-quality, well- designed products. Real-world example: Apple Inc. — Apple emphasizes sleek, innovative product design (e.g., iPhone, MacBook) and assumes that customers will be drawn to superior features and performance.
2. Production orientation Focuses on efficient production and wide distribution. The belief is that customers favor readily available and affordable products. Standardised products. Real-world example: Ford Motor Company (early 1900s) — Henry Ford’s Model T was mass-produced efficiently and offered at a low price, making cars accessible to the masses
3. Sales orientation Focuses on aggressively selling what the company produces, regardless of whether it meets customer needs. Heavy promotion is key. Real-world example: Insurance companies — Often rely on hard-selling tactics to convince customers to buy services they didn’t initially seek out.
4. Consumer orientation Focuses on understanding and satisfying customer needs and wants better than competitors. Customer research drives product decisions. Real-world example: Amazon — Uses customer data and feedback to personalize recommendations and improve the user experience, ensuring high customer satisfaction.
5. Societal orientation Goes beyond customer satisfaction to consider society’s well-being. Balances company profits, customer needs, and societal interests. Real-world example: The Body Shop — Promotes ethically sourced products and environmental sustainability while still meeting customer expectations.
6. Relationship orientation Focuses on building long-term relationships with customers rather than one-time transactions. Emphasizes loyalty and trust. Real-world example: Starbucks Rewards Program — Encourages repeat purchases through personalized rewards and a sense of community, fostering customer loyalty.
Combination of orientations • Firms can and often do use several marketing philosophies simultaneously or adaptively, depending on their goals, target markets, and product life cycle stage. Example: Unilever 1. Societal orientation: Promotes sustainable brands like Dove and Lifebuoy. 2. Consumer orientation: Conducts market research to meet local preferences. 3. Sales orientation: Runs frequent marketing campaigns in competitive markets.
Contrasting sales & marketing Sales orientation Marketing orientation Firm’s focus Inward Outward What business are you in? Selling goods and services Satisfying consumer wants and needs Primary goal? Maximum Sales volume Customer satisfaction Which tools? Intensive advertising and promotion Co-ordinated marketing activities Direct product at whom? Everybody Specific groups
3. The importance of a competitive advantage (or unique selling proposition- USP): Service quality Customer value Customer satisfaction Customer-oriented personnel Well-trained employees Employee empowerment Teamwork.
Competitive advantage: quality
Competitive advantage: Design