Marketing Crises

8/7/2019 Marketing Crises

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MARKETINGSTRATEGIES

اترايجي التسوقية



MANAGEMENTةرادلا

Marketingقيوستا

Salesعبا



The Selling and Marketing The Selling and Marketing

ConceptsConcepts عععع ععععع ععع ععععععععع ععععع ععع ععععع

عععععععععععععععع



All of the people in the company aim allefforts to satisfy the customer.

1. Customer satisfaction

2. A total company effort

3. Profit (value added ) as an objective

Marketing as Customersatisfaction Concept



Marketing is hard.



The Marketing ConceptThe Marketing Concept• To be successful, a company must

determine the needs and wants of specifictarget markets and deliver the desiredsatisfactions better than the competition.





Tell me more about

your company

• How do you know that there are somemarketing crises ??

• Who in your organization is responsible for

marketing crises ??



How do you see your customer??

يف ترى عميلك



• Tangible

– touch– see

– taste

– smell– Feel

• Intangible

– can’t see– can’t touch

– can’t smell

– can’t taste– Cant feel

Tangible / Intangiblemarketing crises



Product marketing crisesProduct marketing crises GoodsGoods - crises you can touch -

ServicesServices - crises you can’t touch -but you can see their effect



• Product has no physicalcharacteristics;

• Design of produce doesn’t meet theconsumer want satisfaction.

Service Crises



“َ Quality Crises : A product’s ability to

satisfy a customer’s needs or requirements…”

الجو عته لقدعى بية

يملا يتحا



فضما ما ةدوجا

Quality And Value Added

Quality is often tied in to comparison

with what the competitor does at thesame price



What is a Product?• “Most customers think aboutproduct in terms of the total

satisfaction …”

• “we don’t sell cars, we sell safety ! “

• we don’t sell houses, we sell homes



Who is your customer ??

ى مك احى

Define and specify your customer



Service Providers

service providers have product lines andservice providers have product lines andproduct mixes as wellproduct mixes as wellexamplesexamples

• MasterCardMasterCard

• insuranceinsurance• telephone servicestelephone services

• cable servicescable services

• internet service providersinternet service providers• airlines, first class, economy classairlines, first class, economy class

• banksbanks



Characteristics of Crises

Marketing Strategies

Crises

4Ps•



The Four Ps of the Marketing Mix The Four Ps of the Marketing Mix



Maslow’s Hierarchy of Needs



Brand NameCrises

Words, letters, or symbols that make up aname used to identify and distinguish thefirm’s offerings from those of itscompetitors.



A brand that has been given legal protectionand has been granted solely to its owner.

Trademark



Customer Satisfaction Crises

• Product’s performance

• Relative to buyer’s

expectations

• Basis for expectations

• past experience

• friends and associates

• seller’s information

• competitor’s concern

What is customer satisfaction?

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario



Understanding the Customer





CUSTOMER SATISFACTIONOBJECTICES

Setting Your Organization

Apart from the Competition



CUSTOMER PERCEPTION

Customers perceive service intheir own unique, emotional, and

totally human terms.

Perception is all there is!

Tom Peters





S.W.O.T. ANALYSIS

• S for strengthsةوا طن• W for weaknesses ضا طن

• O for opportunities اص

• T for threats ايهتا



h CG G h h i



The BCG Growth-share Matrix The BCG Growth-share Matrix







It is not importantIt is not important

to increase theto increase the

Sophistication of Sophistication of

a microscope if aa microscope if a

monkey ismonkey is

looking into it.looking into it.





FIVE TIMES TO AVOID

CUSTOMER'S CRISES 1. When they do business with you, every time.

2. When they compliment you or your organization.

3. When they offer suggestions or comments.

4. When they recommend you to a friend.

5. When they try a new product or service.



6. When they are patient and when they are not sopatient.

7. When they help you to serve them better.

8. When they complain to you.

9. When they make you smile.

FIVE TIMES TO AVOIDCUSTOMER‘S CRISES



ATTRACTING AND

RETAINING CUSTOMERS

• Attracting Customers

• Cost of lost customers• Customer retention



CUSTOMER PROFITABILITY

• Customer sigmentation• Classify your customers :

large, small and mid-size customers• Customer profitability analysis

• Creation high value with low cost:

• Create Competitive advantages



T Q M• Total quality management• Total quality Marketing



TOTAL QUALITY MARKETING

Quality Improvement Program Requirements:

• identifying needs and wants

• communicating with R&D• timing

• instruction and training

• handle the complains• listen the advise for improvements.



Crises Type - 1Customer & Company expectations of service

Expected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap

1



Expected service

Perceived service

Service delivery

Customer-driven




to customers

Company

Customer

Gap 2

Crises Type - 2

Customer & Company standards



Crises Type- 3

Customer standards & delivered serviceExpected service

Perceived service

Service delivery

Customer-driven




to customers

Company

Customer

Gap 3



Crises Type - 4MISCOMMUNICATION

Source: Zeithaml(1996)

Expected service

Perceived service

Service delivery

Customer-driven




to customers

Company

Customer

Gap 4



Crises Type - 5Expected and perceived service

Expected service

Perceived service

Service delivery

Customer-driven




to customers

Company

Customer

Gap 5

© 1999 Prentice-Hall Canada Inc Scarborough Ontario



Productvalue

Servicesvalue

Personnelvalue

Imagevalue

Psychic

cost

Energy

cost

Time

cost

Monetary

cost

Customer delivered

value

Total customer

value

Total customer

cost

Customer Delivered Value


© 1999 Prentice-Hall Canada Inc Scarborough Ontario



Customer Satisfaction and Loyalty

• In highly competitive

markets …

• A huge difference exists• Between the loyalty of

• Satisfied customers and

• Completely satisfiedcustomers

• Customer delight creates

an emotional affinity!

© 1999 Prentice Hall Canada Inc., Scarborough, Ontario



Customer Satisfaction and Loyalty

• Building Value with

QualityHow??




Customer Retention Crises

Costs five timesmore to attracta new customer

vs. retaining anexisting





Steps in Analyzing CompetitorsAssessing

competitors’

objectives,strategies,

strengths,

weaknesses,

and reactionpatterns

Identifyingthe

company’s

competitors

Selecting

whichcompetitors

to

attack or

avoid





Competitor Analysis

• Who are our competitors?

• Selling similar products and services to same

customers at same prices?

• All firms making the same product or class of

products?

• All companies making products that supply thesame service?

• All competing for same consumer dollars?

, g ,




Assessing Competitors

• Firms in an industry

• following the same or similar strategy in

• a given target market

• Competition increases

as firms strategies

become more similar

• Benchmarking

Strategic Group

, g ,




Selecting Competitors

to Attack and Avoid

• Help increase total demand• Share costs of market and product

development

• Help legitimize new technologies• May serve less attractive segments

• Less antitrust risk - more bargaining power

Strategic Benefits of Competition

g




Selecting Competitors

to Attack and Avoid• Well-behaved Competitors

• Stable and healthy industry

• Set reasonable prices in relation to costs

• Motivate to lower costs and differentiate

• Accept reasonable market share and profits

• BAD Competitors• Take large risks - Buy share rather than earn




Basic Strategies

Michael Porter’s Three Winning Strategies

Focus

Overall cost

leadership

Differentiation




Market leader

40%

Market nichers

10%

Market follower

20%Market challenger

30%

HypotheticalMarket

Structure




Evolving Company Orientations

Product orientation

Competitor orientation

Customer orientation

Market orientation

No Yes

Customer - centred

No

Yes

C o m

p e t it io n-C e nt re d



http://www.ebay.com/

E- MARKETING &

TECHNOLOGICALCRISES



Delighting CustomersDelighting Customers

TechnologyCustomer

value

Quality

RelationshipsSatisfaction Loyalty



Satisfaction & LoyaltySatisfaction & Loyalty

Outcomes:

– Growing business to increase revenues

– Less price sensitivity

– Lower organization’s costs

Satisfaction:

Feelings from experienceLoyalty:

Choice of brandover others



Think About It!Think About It!

Why is it important to achieve both satisfaction and loyalty to avoidcustomer crises ?

CASE STUDY



Customer Defections

15%

20%

65%

TreatmentProduct

Other

Anderson, Fornell, Lehman (1994)

Reasons for Defection:

Factors Influencing Company Marketing StrategyFactors Influencing Company Marketing Strategy



Microenvironment ForcesMicroenvironment Forces



Microenvironment ForcesMicroenvironment Forces



Major Macroenvironment ForcesMajor Macroenvironment Forces



Loyalty1. Product capability and quality

2. Customer service experience

3. Ease of doing business

4. Price versus value

5. Company reputation



Customer Satisfaction Measuring

CRISES• Most Service providers have a survey process to measure

customer satisfaction

– Periodic surveys

– Event/Transactional surveys

• Establish required sample size, target response rates andconfidence level

• Quantitative results and verbatim feedback gathered• Results are analyzed and communicated

• Avoid averaging monthly Satisfaction percentages – will produceinvalid result



Customer Satisfaction Rating Scales

Example from seven point scale

ExtremelyDissatisfie

d

VeryDissatisfied

VerySatisfied

ExtremelySatisfiedSatisfied



Four Categories of Customer loyalty



Customer- Crises Segmentation

• Segmentation of customers forloyalty analysis

– Top revenue accounts – 80/20 rule– Geography

– Products and Services

– Markets



Complaint is one way to avoid Crises

• Company wide process that will expedite theresolution of all customer complaints

• Follow up on negative comments fromsurveys

• Complaints are opportunities to increase

loyalty



Scorecard Crises Employee Satisfaction Accountability

Customer Satisfaction &

Loyalty

Financial Results



Conclusion

Lake of Loyalty and commitment could be theLake of Loyalty and commitment could be the

main reason of missing your customersmain reason of missing your customersongoing profitable relationshipongoing profitable relationship




How does a company find outdefects?CASE STUDY




Should companies encourage

customers to complain?



FREIGHT AND LOGISTICSMANAGEMENT

ااة خد اق و اشحنيسجلاو







قيسا زا ع خط



ي ز • Rank and position your company ح ارد

(analyze, BCG, SWOT,classify ,rank….)

• Define and specify objectives. امشل بد(market-share,profit,penetration,..others)

• Study possible scenarios. مما وحا ومج ردا

(local,global,capability,resources, environments…….)

• Select optimum solution.ثا حا وأ تخا(easy,cost,time,strategic,feasible,….)

• Put your plan. اتسويع ازخ ع ار ود (flexible,clear,specific,matching…..)

• Implement (plan-do-check-react) اأ فى اتذ امى امى(organize,lead,control,motivate,……..)

ئتا رظتنا د لً أءخا رسما ح ى مئاد صا

ئها

Marketing Crises

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