Transcript 2 piercy fourth ed

The customer is always right-handed:
Customer satisfaction, customer sophistication and
market granularity
Lecture 2
A route-map for marketled strategic change
Part I
Customer value
imperatives
Part II
Developing a value-based
marketing strategy
The strategic pathway
Market sensing
and learning
strategy
The Customer
is always
right-handed
New
marketing
meets
old marketing
Value-based
marketing
strategy
Strategic
thinking and
thinking
strategically
Strategic
market choices
and targets
Customer value
strategy and
positioning
Strategic
relationships
and networks
Part III
Processes for managing
strategic transformation
Change strategy
Strategic
gaps
Organization
and processes
for change
Implementation
process and
internal
marketing
Agenda
• The customer conundrum
• The sophisticated customer
• Market shifts and quakes
– consumer market changes
– market granularity
– re-shaped business-to-business markets
• How can marketing processes respond to these
changes?
The customer conundrum
• Customer service is bad all over
• Customer satisfaction and customer loyalty
– satisfaction and loyalty are not the same
• The real customer problem
– do we know what service to maximise?
– can we deliver what we promised?
– happy customers and happy employees?
• The problem is strategy
Customer satisfaction
versus
customer loyalty
Customer loyalty
High
High
Low
Happy
Satisfied
stayers wanderers
Customer
satisfaction
Hostages
Low
Dealers
Customer expectations
and outcomes
The service and quality
we promise
High
Good
The service
and quality
the customer
receives
Bad
Low
I am in
LOVE – I
OK.
You get what didn’t know
you pay for. you were this
good!
OK.
I HATE you
It’s bad,
bastards –
but it’s what
you lied to me!
I expected.
Service and quality
versus customer
satisfaction
Impact of service and quality on
customer satisfaction/retention
High
High
Service and
quality level
Low
Low
Smart
Overservicers servicers
UnderNonservicers servicers
Customer satisfaction
and the internal
market
External customer satisfaction
High
High
Internal
customer
satisfaction
Low
Synergy
“happy”
customers
and “happy”
employees
Low
Internal
euphoria
“Never mind the
customer, what
about the
squash ladder?”
Coercion Alienation
“you WILL be
committed to
customers,
or else…
“unhappy”
customers
and “unhappy”
employees
The sophisticated customer
Issue – customers and markets have changed:
– Customers wised up to marketing
– Know what marketers are up to
– Traditional marketing consistently underestimates
intelligence of customer
Many customer demands which we need to respond to:
The sophisticated customer
•
•
•
•
•
Who are you calling fickle – I just changed my mind?
Value is what we say it is
By the way, “free” is one of my favourite prices
Loyalty is for sellers not buyers
Quality or cheap? Both please
The sophisticated customer
•
•
•
•
•
•
Let’s play the waiting game and see what happens
Make life simpler
But not too simple
But, I don’t like change
Make it specially for me
Instant gratification is just not fast enough
The sophisticated customer
•
•
•
•
•
But don’t make me angry
And now entertain me
And now peel me a grape
Make all the bad stuff in the world go away
There will be no secrets any more
Market shifts and quakes –
Consumer markets
•
•
•
•
•
•
The typical family
The MySpace Generation
Saga Louts
The pink market
The wealthy
The poor
Market shifts and quakes –
Consumer markets
•
•
•
•
Ethnic markets
The green and ethical consumer
The Neo-Cromwellians
Scared consumers
Market shifts and quakes –
Market granularity
• Shift in focus from “megatrends” to “microtrends”
• Broad market trends average out important differences
• The issue shifts from huge cultural shifts to new “identity
groups”
Market shifts and quakes – Reshaped
business-to-business markets
• Dominant customers
• Impact of customer power
• Bad customers
– who play the rules
– who break the rules
– who make the rules
How can marketing processes
respond?
• Radical and disruptive changes in market structures
have left traditional marketing behind
• The urgent challenge is to update how we “do” marketing
to reflect how customers and markets have changed