Transcript Document
The Four Ps The Four Cs Marketing Mix Place Product Price Promotion 1.2 Confidence The lack of doubt concerning the value one is going to receive from a transaction Risk and uncertainty are discomforting to buyers Buyer develops expectations based on: 1. Past experiences with former or comparable purchases 2. Brand images conveyed through the execution of marketing efforts 2 Market Orientations Supply side – concerns all of the factors necessary in bringing product to market Production Manufacturing and distribution effectiveness Cost Relentless focus on cost cutting Product Innovativeness for high performance and quality Market Orientations (cont) Demand side – expanding the customer base either in the total market, for market share, or among core customers Selling Aggressive promotion and selling Marketing Responding to customer needs and wants Relationship Building long-term interaction between the buyer and seller 1.5 High Cost of Losing a Customer 1. In the average business, for every customer who bothers to complain, there are _____ others who remain silent. 2. The average wronged customer will tell _____to ____ people (Over ____ percent will tell more than 20 people.) 5 1.6 High Cost of Losing a Customer 3. ______ percent of unhappy customers will never purchase goods or services from you again. 4. If you make an effort to remedy customers’ complaints, _____ percent to _____ percent of them will stay with you. 6 1.7 High Cost of Losing a Customer 5. It costs about ___ times as much to attract a new customer as it costs to keep an old one. 7 1.8 Satisfied Customers Meeting Expectations Remain loyal longer Buy more (new products and upgrades) Spread favorable word-of-mouth Exhibit more brand loyalty (less price sensitive) Offer feedback Reduce transaction costs 8 1.9 Customer Retention Produce greater levels of purchases per customer Elicit customer recommendations to others, with enthusiastic endorsements from the most committed Decrease the proportion of efforts on less profitable customers 9 1.10 Customer Lifetime Value Source: Roger Best 2004 10 Performance Measures 1.11 Organization-Focused Metrics Sales Return on Sales Return on Assets Inventory Turnover Market Share Gross Profits Product Defects Billing Errors 11 Performance Measures 1.12 Customer-Focused Metrics Customer Satisfaction Customer Retention Customer Perceived Relative Product Quality Customer Perceived Relative Service Quality Brand Awareness Intentions to Purchase Customer Attitudes 12 1.13 Traditional Approach to Marketing Expenditures Customer Segment Customer Base Marketing Expenditures Loyal Secondary Convenience/ Deal -Seekers 13 1.14 Green-Hills Approach to Marketing Expenditures Customer Segment Customer Base Marketing Expenditures Loyal Secondary Convenience/ Deal -Seekers 14 1.15 Green-Hill Results Increase in the most valued customer segment Increased customer spending Four-percentage point increase in gross profits Customer retention rate ten percentage points above the past. 15