Nicolealunan.ch05 kotler

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

www.nicolealunan.blogspot.com MARKETING

1. Customer Perceived Value

CPV = total customer benefit – total customer cost


1. Customer Perceived ValueCPV = total customer benefit – total customer cost

where:


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


2. Steps in Customer Value AnalysisSet performance

levels

Rate performance levels

Assess against competitors

Assess performance levels

Monitor performance levels


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


3. Customer-Product Profitability AnalysisWhat costs? = Which customers?


3. Customer-Product Profitability Analysis

Product with higher cost for high-end market

Product with lower cost for bigger volume


4. Quality

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.


4. QualityCorrective and preventive quality functions lead to higher profitability!


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


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


6. Database Marketing

to contact,

to transact,

to create relationships

Build/maintain/use info


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

Nicolealunan.ch05 kotler

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