Copyright © 2007 McGraw-Hill Ryerson Limited. Objectives To be able to understand: The focus of marketing on customer satisfaction. Marketing’s emphasis.

Copyright © 2007 McGraw-Hill Ryerson Limited


Objectives

To be able to understand:

• The focus of marketing on customer satisfaction.

• Marketing’s emphasis on creating customer loyalty and relationships.

• How marketing applies to business and non-business situations.

• The factors that drive customer satisfaction.


Objectives

To be able to understand:• The difference between selling and

marketing.• The evolution of marketing thinking.• The modern marketing concept.• The creation of value, the value

proposition, and brand equity.• The customer’s role at the centre of

marketing thinking.


Customer Satisfaction is the Focus

Marketing… • refers to anything that a company or

organization does that has an impact on the satisfaction of its customers.

• is the most customer-focused part of a company.

• involves activities and programs that will contribute to high levels of customer satisfaction by addressing customer needs and wants at a profit.


Customer Satisfaction is the Focus

• Customer satisfaction is a long-term marketing objective.

• Long-term customer satisfaction is considered a valued asset to a business.


The Give and Get of Marketing


Customer Expectations and Value

• Customer satisfaction:• Meeting or exceeding customer expectations

during the exchange.• Exchange = Value

• Marketing is about adding value through a broadly-defined value proposition, thereby creating customer satisfaction.


What is Marketing?

• A series of activities and experiences designed to create, plan, price, promote, and distribute need-satisfying products, services, and ideas to selected customer groups in order to achieve the objectives of both the customer and the organization.


What’s Involved in Marketing?

• All activities which have the potential to influence the customer’s long-term satisfaction with the organization and its value proposition.


Successful Marketing

• Must be customer-oriented and focused on the quality of the customer relationship.

• Should be understood and applied by everyone in the organization.

• A marketing program starts with an idea for a product or service and does not end until the customer’s wants and needs are satisfied.


Successful Marketing

Results in:

• Brand equity

• Customer loyalty – the creation of long-term customers

• Relationships with customers


The Marketing Mix

Conventional View• Product• Price• Distribution• Promotion

Too narrow!

Today’s View• Now includes service,

processes, technology and employees.

• Is focused on all aspects of the firm’s operations which affect customer satisfaction.

• Builds relationships and loyalty.


Drivers of Customer Satisfaction

• Factors which drive customer satisfaction:• The core product or service offered• Support services and systems• The technical performance of the firm• Interaction with the firm and its employees• The emotional connection with customers

• Customer satisfaction results in relationships.

• Relationships reduce the threat of brand switching.


Customer Satisfaction


Evolution of Marketing Thinking

Marketing has evolved through five stages:1. Product-Focus Stage: Emphasizes producing

more and better products.2. Sales-Orientation Stage: Focus shifts to

selling.3. Customer-Interest Stage: Emphasis shifts to

the satisfaction of customer needs.4. Customer-Service Stage: Highlights customer

service as well as good products.5. Customer-Relationship Stage: Sees a much

longer-term focus on building relationships with customers.


Evolution of Marketing Thinking


The Modern Marketing Concept

• Emphasizes:• A customer orientation • The co-ordination of marketing activities

• Aims to achieve the mutual long-term objectives of the customer and the organization.


The Modern Marketing Concept

• All planning and operations should be focused on creating long-term customer satisfaction.

• All marketing activities should be co-ordinated.

• Customer-oriented, co-ordinated marketing is essential to achieve performance objectives, while meeting customers’ needs.

• Focused on the long-term.

• Designed to create an emotional connection with the customer.


Scope of Marketing Today

• Marketers are focused on stimulating exchanges with markets – B2C or B2B.

• Markets are made up of customers who play a series of roles: decision makers, consumers, purchasers, and influencers.

• Marketers must have have a detailed understanding of consumers and their needs and wants.

• Much happens before, during and after the customer interaction to affect customer satisfaction


Stages of Customer Interaction


Customer Value Drives Shareholder Value


How to Create Value

• Create the Value Proposition:• The sum total of what a company offers the

customer, including much more than product and price.

• Marketing thinking drives a more broadly-defined value proposition.


Marketing Thinking Drives the Value Proposition


Customer Relationship Thinking

The customer-relationship view of marketing is characterized by 4 concepts:

1. It is very much a long-term strategy

2. Requires that management take the customer’s view

3. The value proposition must be defined very broadly

4. Different measures of success are needed


Customer Relationship Thinking

• Will result in a redefinition of the business the company is in:• Levi’s We make blue jeans.• Levi’s We make you look good.


Getting and Keeping Customers

• Has led to a new strategic view of marketing.

• Components of this new view:

Retention

Referral

Relationships

Recovery

Copyright © 2007 McGraw-Hill Ryerson Limited. Objectives To be able to understand: The focus of marketing on customer satisfaction. Marketing’s emphasis.

Documents

satisfaction of customer

customer relationship

customer groups

customerservice stage

customerrelationship

highlights customer

focuscustomer satisfaction

valuecustomer satisfaction