stated or implied needs
MKTM003 Marketing: Principles and Management
Value-based marketing (Piercy,2009)
Customer loyaltyHigh来自LowHigh
Customer Sophistication
MKTM003 Marketing: Principles and Management
Brand marketing
• Branding is central to conventional marketing thinking – brand the product/service, company, person, country, etc. Brands bring important benefits to customers (reduced search time) and companies (brand equity or value)
Year
Company A
Company B
(5% churn)
(10% churn)
Existing
New
Total
Existing
New
Total
customers customers customers customers customers customers
2003 1000 100 1100 1000 100 1100
or recompense for something • Worth or importance: • the worth, importance, or usefulness
of something to somebody
MKTM003 Marketing: Principles and Management
Relationship marketing is seductive
• “Customer loyalty is a much desired thing. Everyone accepts without question that it’s more profitable to sell to an existing customer than it is to recruit a new one.
A Simple Marketing System
Information
Goods, services
Company
Money
Buyers
Communication
MKTM003 Marketing: Principles and Management
Value
• Full recovered worth: • the adequate or satisfactory return on
• Often the dominant thinking in sales management in particular
• Reinforced by paying people volumebased commission/bonus
• BUT – maybe all some customers want from us is efficiently-managed transactions
Low
MKTM003 Marketing: Principles and Management
Transactional marketing and selling
• Focuses on immediate revenue and profit – the deal, the sale, the contract
• Get the customer on your side, cross-sell them some other products, build a relationship.
• Before long, you’ve got £-signs in your eyes as you start to calculate the lifetime value of this partnership
MKTM003 Marketing: Principles and Management
Satisfaction
Satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance in relation to his or her expectations
of an offering and the perceived alternatives
MKTM003 Marketing: Principles and Management
Determinants of Customer-Delivered Value
Kotler and Keller (2008)
Long-term
Short-term/ transactional
Close
relationship Relationship Relationship
Closeness wanted
seekers
exploiters
by customer in
supplier relationship
Distant
MKTM003 Marketing: Principles and Management
Product and Service Quality
Quality is the totality of features and characteristics of a product
or service that bear on its ability to satisfy
Manage
Customer portfolio analysis
Value
Customer Network proposition intimacy development development
the customer lifecycle
MKTM003 Marketing: Principles and Management
reliability
• A larger customer base delivers better business performance
MKTM003 Marketing: Principles and Management
Customer retention and customer volume
MKTM003 Marketing: Principles and Management
Brand marketing
• Branding can transform markets • Cool brands often win • BUT – brands do not make you
unbeatable
Artois, Burberry
MKTM003 Marketing: Principles and Management
So what’s in it for the company?
• Customer retention:
– marketing costs reduced – better customer insight – revenue and profit stream
MKTM003 Marketing: Principles and Management
Loyalty
Loyalty is a deeply held commitment to rebuy or repatronise
a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behaviour
• And what does the customer say to this?
MKTM003 Marketing: Principles and Management
Segmenting markets by customer relationship requirements
Type of relationship customer wants with supplier
Determining Customer Value and Satisfaction
Customer perceived value (CPV) is the difference between the
prospective customer’s evaluation of all the benefits and costs
The CRM Value Chain (Buttle, 2004)
The four support activities
Leadership and culture Data and information technology People Processes
The five primary activities
– Coca-Cola – Levi-Strauss – Marlboro
MKTM003 Marketing: Principles and Management
Brand marketing