Post on 21-May-2015
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CHAPTER 5 MARKETING CONCEPTS:
Creating Customer Value, Satisfaction and Loyalty
as applied to
By Nicole Laya A. Alunan
www.nicolealunan.blogspot.com MARKETING
1. Customer Perceived Value
CPV = total customer benefit – total customer cost
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1. Customer Perceived ValueCPV = total customer benefit – total customer cost
where:
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1. Customer Perceived ValueTOTAL CUSTOMER VALUE TOTAL CUSTOMER COSTProduct Value- High quality beers
Monetary Cost- More malt content = fuller body and mouthfeel = more expensive
Image Value- SMB = best beer brand
Energy Cost- More processing = more expensive
Service Value- Fast delivery to outlets
Time Cost- Longer fermentation = more costly
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2. Steps in Customer Value AnalysisSet performance
levels
Rate performance levels
Assess against competitors
Assess performance levels
Monitor performance levels
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2. Steps in Customer Value Analysis
Performance Level WeightSMBI ABI
Rating Score Rating Score
Price 0.1 3 0.3 4 0.4Branding 0.1 4 0.4 3 0.3New product development 0.2 2 0.2 3 0.3Advertisement 0.1 3 0.3 3 0.3Taste and flavor 0.1 4 0.4 2 0.2Product Distribution 0.2 4 0.8 2 0.4Product & Process Quality 0.2 4 0.8 2 0.4Process Efficiency 0.1 3 0.3 3 0.3 1.0 3.5 2.6
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3. Customer-Product Profitability AnalysisWhat costs? = Which customers?
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3. Customer-Product Profitability Analysis
Product with higher cost for high-end market
Product with lower cost for bigger volume
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4. Quality
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
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4. QualityCorrective and preventive quality functions lead to higher profitability!
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5. Customer Relationship Management Strategies
= How to Manage Customer Base
1. Reduce rate of defection
2. Increase longevity
3. Enhance “share of wallet”
4. Focus on high-profit customers
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5. Customer Relationship Management Strategies
SMBI continues to be the number 1 manufacturer and distributor of local beers by:
• Putting quality first• Has different packaging to cater to various
needs• Invests on R&D
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6. Database Marketing
to contact,
to transact,
to create relationships
Build/maintain/use info
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6. Database Marketing
www.nicolealunan.blogspot.com MARKETINGwww.nicolealunan.blogspot.com
CHAPTER 5 MARKETING CONCEPTS:
Creating Customer Value, Satisfaction and Loyalty
as applied to
By Nicole Laya A. Alunan