Customer Centricity PPT shown in Dec 2014
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[email protected] +9821046013 Axis Bank – Max New York Life – MDP – Nov 2011 Novartis – Next Destination MDP – July 2012 Pfizer MDP – Feb 2013 Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013 Introduction to Marketing by Prof S K Palekar Marketing has two parts : (1) knowing the customer (2) Acting based on this knowledge. This presentation is about the first part . What is Customer Centricity
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Transcript of Customer Centricity PPT shown in Dec 2014
[email protected] +9821046013 Axis Bank – Max New York Life – MDP – Nov 2011 Novartis – Next Destination MDP – July 2012 Pfizer MDP – Feb 2013 Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013
Introduction to Marketing by Prof S K Palekar
Marketing has two parts :
(1) knowing the customer (2) Acting based on this knowledge.
This presentation is about the first part .
What is Customer Centricity
[email protected] +9821046013 Axis Bank – Max New York Life – MDP – Nov 2011 Novartis – Next Destination MDP – July 2012 Pfizer MDP – Feb 2013 Pfizer MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046-13 Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013
Customer Centric Thinking
Means “Outside-In” view
Helps take better decisions.
Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013
Competitor’s sale was growing very high but the company’s was not. The quality and price was the same. Rs Crores Year 1 Year 2 Year 3 Company X 50 60 70 Competitor Y 40 70 110 Market Size 130 180 250 Market Share 38% 33% 28% The company considered dropping the price to regain the market
Rs Crores Year 1 Year 2 Year 3 INDIA Company X 50 60 70 Competitor Y 40 45 50 DUBAI Company X 0 0 0 Competitor Y 0 25 60 The competitor was growing in an entirely different market. The answer to increased sales was in international expansion.
[email protected] +9821046013 Axis Bank – Max New York Life – MDP – Nov 2011 Novartis – Next Destination MDP – July 2012 Pfizer MDP – Feb 2013 Pfizer MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046-13 Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013
First step in customer centricity
Is the external view.
The main technique : 5Cs analysis
Company, Customer, Competitors,
Collaborators and the Context.
It enables you to do right things
And avoid doing wrong things.
Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013
The Marketing Objective
Value
Price
Cost
Customer’s
Profit / Sat
Company’s
Profit
Value
Cost
Generating
Max Value
Within a given cost
Every Major Company Action Impacts Costs and Value.
Let’s try “Product Improvement” and let’s improve this Galvanized Steel Sheet
Gauge
Bending Strength
Corrosion Coating
3rd Party Certificate
Local Availability
Price
Credit
On-site tech Advice
Low Medium High
Who competes with us
for these customers / applications?
Define your “Target Segment “
Customer / application
An “Attractive Market” should be decided based on
• Size
• Growth rate
• Access
• Your company’s ability to make a difference to the market
• The ability of the market to make a difference to you
Siemens MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046013 Axis Bank – Max New York Life – MDP – Nov 2011 Novartis – Next Destination MDP – July 2012 Pfizer MDP – Feb 2013 Pfizer MDP – Feb 2013 – Confidential Material – Please do not copy – Contact Prof S K Palekar – [email protected] - 9821046-13
What value to create
for your target customers?
Need : Strength and urgency of the need
Fit : How well your offer will fit this need
Competition : How will you be better than your competitors
Price : Will the target customers see value for money?
This is called POSITIONING the product in the mind
of the target customers vis-à-vis your competitors ?
Good Positioning : finds the right customer Avoids incurring costs that don’t create willingness to pay among your customers
And incurs costs which create willingness to pay among your customers
Premium seeker ?
Price seeker ?
Good Positioning incurs cost competitively Avoids incurring costs that don’t create willingness to pay among your customers
And incurs costs which create willingness to pay among your customers
Good Positioning : focuses on what is valued Avoids incurring costs that don’t create willingness to pay among your customers
And incurs costs which create willingness to pay among your customers
B u y e r
P R O C E S S O F M A R K E T I N G
H O W S E L L E R E N G A G E S W I T H T H E M A R K E T
S e l l e r
Advertising
Promotion
Public Relations
Trade Commissions
Sales Force
Market Travel
Market Research
Customer Feedback
Customer Complaints Analysis
Marketing Planning
) )
)
STRATEGY
OPERATIONS
OUTCOMES
- Discover 5 Cs
- Diagnose Target Customer
- Design Positioning
- Designing Market Connection
- Deploy Resources
- Deliver Goals
P L A N N I N G O F M A R K E T I N G
