Scribd Logo
Upload

Welcome to Scribd!

  • 109 views

    Chapter5 MARKETING

    Uploaded by

    Danao Kristine Joy

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Chapter5 MARKETING

    Uploaded by

    Danao Kristine Joy
    109 views22 pages

    Original Title

    Chapter5.MARKETING.ppt

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    109 views22 pages

    Chapter5 MARKETING

    Uploaded by

    Danao Kristine Joy

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 22

    1

    5
    Creating Long-Term
    Loyalty Relationships
    Chapter Questions
     What are customer value, satisfaction, and
    loyalty, and how can companies deliver them?
     What is the lifetime value of customers and
    how can marketers maximize it?
     How can companies attract and retain
    customers and cultivate strong customer
    relationships?
     What are the pros and cons of database
    marketing?

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-2


    Figure 5.1 Customer-Orientations

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-3


    What is
    Customer Perceived Value?
     Customer perceived value is the
    difference between the prospective
    customer’s evaluation of all the benefits
    and all the costs of an offering and the
    perceived alternatives.

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-4


    Figure 5.2 Determinants of
    Customer Perceived Value
    Total customer benefit Total customer cost

    Product benefit Monetary cost

    Services benefit Time cost

    Personal benefit Energy cost

    Image benefit Psychological cost

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-5


    Steps in a
    Customer Value Analysis
     Identify major attributes and benefits that
    customers value
     Assess the qualitative importance of different
    attributes and benefits
     Assess the company’s and competitor’s
    performances on the different customer values
    against rated importance
     Examine ratings of specific segments
     Monitor customer values over time

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-6


    What is Loyalty?

    Loyalty is a deeply held commitment to re-


    buy or re-patronize a preferred product or
    service in the future despite situational
    influences and marketing efforts having the
    potential to cause switching behavior.

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-7


    Top Brands in Customer Loyalty
     Apple iPhone  Google
     Clairol  Amazon
     Samsung  Bing
     Mary Kay  J.Crew
     Grey Goose  AT&T Wireless
     Clinique  Discover Card
     Avis  Verizon Wireless
     Wal-Mart  Cheerios

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-8


    Measuring Satisfaction
     Periodic surveys
     Customer loss rate
     Mystery shoppers
     Monitor competitive performance

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-9


    Managing Customers

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-10


    What is Quality?

    Quality is the totality of features and


    characteristics of a product or
    service that bear on its
    ability to satisfy
    stated or implied needs.

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-11


    Maximizing Customer Lifetime Value

    Customer Profitability

    Customer Equity

    Lifetime Value

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-12


    Figure 5.3 Customer-Product
    Profitability Analysis

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-13


    What is
    Customer Relationship Management?

    CRM is the process of carefully managing


    detailed information about individual
    customers and all customer touch points to
    maximize customer loyalty.

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-14


    Framework for CRM
     Identify prospects and customers
     Differentiate customers by needs and value to
    company
     Interact to improve knowledge
     Customize for each customer

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-15


    Attracting and
    Retaining Customers
     Reduce the rate of defection
     Increase longevity
     Enhance share of wallet
     Terminate low-profit customers
     Focus more effort on high-profit customers

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-16


    Figure 5.4 The Marketing Funnel

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-17


    Loyalty Programs

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-18


    Database Key Concepts
     Customer database  Business database
     Database marketing  Data warehouse
     Mailing list  Data mining

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-19


    Using the Database
     To identify prospects
     To target offers
     To deepen loyalty
     To reactivate customers
     To avoid mistakes

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-20


    Don’t Build a Database When
     The product is a once-in-a-lifetime purchase
     Customers do not show loyalty
     The unit sale is very small
     The cost of gathering information is too high

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-21


    For Review
     What are customer value, satisfaction, and
    loyalty, and how can companies deliver them?
     What is the lifetime value of customers and
    how can marketers maximize it?
     How can companies attract and retain
    customers and cultivate strong customer
    relationships?
     What are the pros and cons of database
    marketing?

    Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 5-22

    You might also like