Fundamentals Of Marketing & Customer Service

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Transcript of Fundamentals Of Marketing & Customer Service

  • Fundamentals of Marketing & Customer Service By Ashraf Ayoub 31 st Mar09 References: Business Today Book, 10 th Edition by M.Mescon . C.Bovee. J.Thill
  • What is Marketing?
  • What is Marketing?
    • Process of planning & executing the conception , pricing , promotion , & distribution of ideas , goods , & services to create exchanges that satisfy individual & organizational objectives
  • Core Marketing Concepts
    • Needs
    • Wants
    • Demands
    • Products
    • Services
    • Values
    • Satisfaction
    • Quality
    • Exchanges
    • Transactions
    • Relationships
    • Markets
    Products & Services Markets Needs, wants, & demands Value, Satisfaction, & quality Exchanges, Transactions, & relationships
  • Fundamental Marketing Goal
    • To direct customers basics needs into the desire to purchase specific brands
  • What is customer Service?
    • Efforts a company makes to satisfy its customers to help them realize the greatest possible value from the products they are purchasing.
  • Marketing Applications
    • Products
    • Services
    • Non-profit Organizations
    • People (People Marketing)
    • Places (Place Marketing)
    • Causes (Cause Related Marketing)
  • Role of Marketing in Society
    • Helping People satisfy their Needs & Wants by helping organizations determine what to produce.
  • Customer Needs
    • Difference between a persons actual & idea states; provides the basic motivation to make a purchase
    • Basic human needs:
      • Food
      • Water
      • Air
      • Shelter
      • Clothing
  • Customer Wants
    • Things that are desirable in light of a persons experiences, culture, & personality
    • Producers shape Wants by exposing customers to alternatives
  • How to enhance the appeal of products or services
    • By adding a utility (power of a good or service to satisfy a human need)
  • The four utilities
      • Form utility (consumer value created by converting raw materials and other inputs into finished goods & services)
      • Time utility (consumer value added by making a product available at convenient time)
      • Place utility (consumer value added by making a product available in a convenient location)
      • Possession utility (consumer value added when someone takes ownership of a product)
  • Technology & evolution of Marketing
    • Production Era
    • Sales Era
    • Marketing Era
  • Factory Existing Selling & Profits through Products Promoting sale volume Market Customer integrated profits through needs marketing customer satisfaction The Sales Era The Marketing Era Starting Point Focus Means Ends
  • Production Era (until 1930s)
    • Characteristics:
      • Demand for Products Exceed Supply
      • Manufacturers able to sell whatever produced
      • Sellers Market (market place characterized by a shortage of products)
      • Marketing Role to take orders & ship goods
  • Sales Era (1930s-1950s)
    • Characteristics:
      • Supply for Products Exceed Demand
      • Firms spend more on advertising
      • Firms still focused on selling whatever produced
      • Buyers market (marketplace characterized by an abundance of products)
  • Marketing Era & Relationship Era
    • Characteristics:
      • Marketing Concept adopting:
        • Stressing customers needs & wants
        • Concentrating on specific target markets
        • Seeking long term profitability
        • Coordinating with marketing efforts
        • Maintaining long-term relationships with customers
  • Relationship Marketing
    • Focus on developing & maintaining long-term relationships with customers, suppliers, & distributers for mutual benefit
  • Internet & Customer relations
    • Brings the outside world closer
    • Allows businesses to reach out
    • Establish relationships with customers
    • Market to the world
    • Answer customers questions
    • Better understand of customers who & what they want
  • The Importance Of Understanding Customers
    • The aim of marketing is to know & to understand the customer so well that the product or service fits him & sells itself
  • Todays customers
    • Sophisticated
    • Price sensitive
    • Demanding
  • Why to satisfy customers?
    • Acquiring new customer cost up to 5 times as much as keeping existing one
    • Long-term customers (buy more, take less time, bring new customers, less price sensitive)
    • Satisfied customers are best advertisement
    • With Superior customer service you can charge customers as much as 10% more than competitor
    • Dissatisfied customers tell 20 other people about bad experience
  • How to measure customers satisfaction?
    • Analyze customer base:
      • Are you getting new customer?
      • Are you losing good customers?
      • What is your customer retention rate?
      • What are you doing to keep customer loyalty?
  • Why are today customers less loyal today?
    • They have more (choices, styles, options, services, products)
    • Have more information from (brochures, consumer publications, internet)
    • Empowered & raised expectations
    • Products start to look the same
    • Time is scarce
    • Needs & buying habits change constantly
  • Not every customer is worth keeping
    • weve gotten a lot smarter about separating the customers we do want from the customers we dont want says C. Michael Armstrong
  • Beyond Customer Satisfaction Price, Product Quality, Service quality, Innovation, Image Customer Perceived Value Loyalty Market Share & Profitability Shareholder Value
  • How to learn about customers
    • Consumer buying behavior
    • Marketing Research
    • Virtual reality
    • Database Marketing
    • Relationship marketing
    • One-to-one marketing
  • Consumer Buying Behavior
    • Definition:
    • Behavior exhibited by consumers as they consider & purchase various products
    • Consider:
      • Difference between organizational & consumer markets
      • Buyers decision process
      • Factors influence buyer decision process
  • Organizational market
    • Customers who buy goods or services for resale or for use in conducting their own operations
    • 3 main subgroups:
      • Industrial/Commercial Market (buy to produce)
      • Reseller Market (wholesalers/retailers)
      • Government Market (federal, states, local agencies)
  • Organizational market (cont.)
    • Buy raw materials
    • Buy highly technical products
    • Complex products
    • Buy consumer products
    • Larger Quantities