Transcript mkt304-Part18 - Brand Luxury Index

Chapter 18
Competitive Strategies: Attracting,
Retaining, and Growing
Customers
1
What is Relationship
Marketing?
Relationship Marketing is the
Process of Creating, Maintaining,
and Enhancing Strong, Value-Laden
Relationships With Customers and
Other Stakeholders.
2
Customer Relationship
Marketing
Why the new emphasis on retaining and
growing customers?

Losing a customer means losing the entire
stream of purchases over a lifetime of patronage
- the customer lifetime value.
3
Customer Satisfaction
Expectations are Based on
Customer’s Past Buying Experiences,
the Opinions of Friends, & Marketer
and Competitor Information and
Promises.
Product Falls
Short of
Expectations
Product
Matches
Expectations
Customer is
Dissatisfied
Customer is
Satisfied
Product
Exceeds
Expectations
Customer is
Highly
Satisfied
or
Delighted!
4
Customer Satisfaction
Purpose of marketing is to generate
customer value profitably – offer customer
satisfaction without sacrificing profits.
5
Customer Loyalty and
Retention
Highly satisfied (delighted) customers produce
benefits:




They are less price sensitive,
They remain customers longer,
They talk favorably about the company and products to
others.
Tremendous difference between the loyalty of satisfied
customers and completely satisfied customers.
Delighted customers have emotional and rational
preferences for products, and this creates high
customer loyalty.
6
Building Lasting Customer
Relationships
Financial Benefits, i.e. Frequency Marketing
Programs
Social Benefits, i.e. Learning Individual Customer’s
Needs & Wants
Structural Ties, i.e. Supply Customers With Special
Equipment
7
Customer Value-Delivery
Network
Customer
Delivery
Order
Retailer
Producer
Vendor
Raw Material Supplier
8
Total Quality Marketing
Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied needs.
Marketers play a major role in helping their
companies define & deliver high quality products
and services to target customers:


Must correctly identify the customers’ needs and requirements and
communicate this to product designers,
Marketing must deliver each marketing activity to high quality
standards.
9
Steps in Analyzing
Competitors
Identifying the
company’s
competitors
Assessing competitor’s
objectives, strategies,
strengths and weaknesses,
and reaction patterns
Selecting which
competitors to
attack or avoid
10
Basic Competitive Strategies
Overall Cost
Leadership
Focus
Differentiation
Middle of
the Road
11
Competitive Strategies: Value
Disciplines
Companies Gain
Leadership Positions by
Delivering Superior Value
to their Customers
Through These
Strategies:
Operational
Excellence
Customer
Intimacy
Product
Leadership
12
Competitive Marketing
Strategies
Firms Competing in a Given Target Market Differ in their
Objectives and Resources so May Choose the Following
Forms:
Market Leader
Market Challenger
Market Follower
Market Nicher
13
Balancing Customer and
Competitor Orientations
Customer-Centered
Competition
-centered
No
No
Yes
Product Orientation
Competitor Orientation
Yes
Customer Orientation
Market Orientation
14