Setting Strategy Of Product Essay

926 words - 4 pages

Kotler • Keller
Marketing Management • 14e

Phillip

Kevin Lane

Creating Long-term Loyalty Relationships

Discussion Questions
1. What are customer value, satisfaction, and loyalty, and how can companies deliver them? 2. What is the lifetime value of customers, and how can marketers maximize it? 3. How can companies attract and retain the right customers and cultivate strong customer relationships? 4. What are the pros and cons of database marketing?
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Customer Value, Satisfaction, and Loyalty
Holistic Marketing
• Inform • Engage • Energize

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Slide 9 of 34

Customer Loyalty
“A deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.”
-- Oliver

Value Proposition Volvo
Core positioning: • Safety

Other benefits: • Good performance • Design • Environmentally friendly

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Slide 11 of 34

Satisfaction
A person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance to (or outcome) to expectations.

Customer Satisfaction

Expectations

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Slide 13 of 34

Customer Expectations
Previous purchases Friends advice Marketers’ / competitors
Expectations

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Monitoring Satisfaction
Influence of Customer Satisfaction

Measurement Techniques

Customer Complaints
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Measurement Techniques
Customer Loss Rate Surveys

Mystery Shopper
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Influence of Customer Satisfaction

Customer satisfaction

Speed of communication
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Customer Complaints
5%
Buy again if resolved

54% - 70%
If resolved quickly

Complain

Dissatisfied

25%

95%

Tell 5 people

Stop buying

95%

Tell 11 people

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Product and Service Quality
Performance Conformance

Quality

Satisfaction
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Profitability
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Maximizing Customer Lifetime Value

20% of Customers

80% of Profits

Customers
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Customer Profitability

Customer Profitability Analysis Profitable

Unprofitable

Customer Lifetime Value

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Slide 21 of 34

A Profitable Customer
A person, household, or company that over time...

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