12/21/2007

Table 2-2: 2Setting Up a DotDot-com Presence

Attracting and Keeping Visitors How can we get more prospects to know and visit our site? How can we use marketing to spread word-of-mouth? word-ofHow can we convert visitors into repeaters? How do we make our site more experiential and real? How can we build a strong relationship with our customers? How can we build a customer community? How can we capture and exploit customer data for up-selling upand cross-selling? crossHow much should we spend on building and marketing our site? Advertising on the Internet What are the various ways that we can advertise on the Internet? How do we choose the right sites for placing our ads or sponsorship?

Adapting Marketing to the New Economy
Context factors Content factors Getting feedback

See text for complete table 1-51
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Adapting Marketing to the New Economy
Placing Ads and Promotions Online
Banner ads Sponsorships Microsite Interstitials Browser ads Alliances and affiliate programs Push
1-53 www.bookfiesta4u.blogspot.com

Infogate.com “pushes” targeted content and ads to those who are interested in a product or product category

1-54 www.bookfiesta4u.blogspot.com

Adapting Marketing to the New Economy
Building a Revenue and Profit Model
Advertising income Sponsorship income Membership and subscriptions Profile income Product and service sales Transaction commission and fees Market research/information Referral income
1-55 www.bookfiesta4u.blogspot.com

Adapting Marketing to the New Economy
How Marketing Practices are Changing: Customer Relationship Marketing
Reduce rate of customer defection Increase longevity of customer relationship Enhance growth potential through cross-selling and up-selling crossupMake low profit customers more profitable or terminate them
1-56 www.bookfiesta4u.blogspot.com

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bookfiesta4u. Individual interaction with customers builds stronger relationships.com PowerPoint by Milton M. One-to-One Marketing Mass Marketing Average customer Customer anonymity Standard product Mass production Mass distribution Mass advertising Mass promotion OneOne-way message Economies of scale Share of market All customers Customer attraction One-to-One Marketing One-toIndividual customer Customer profile Customized market offering Customized production Individualized distribution Individualized message Individualized incentives TwoTwo-way messages Economies of scope Share of customer Profitable customers Customer retention 1-58 1-57 www.com 2 .blogspot.bookfiesta4u. identify prospects.blogspot. Define customers by their needs and their value to the company. services. Pressley University of New Orleans 1-62 www.com 1-60 Adapting Marketing to the New Economy Data Warehouses and Data Mining Using the database To identify prospects To determine target market To deepen customer loyalty To reactivate customer purchases To avoid serious customer mistakes Chapter 3 Building Customer Satisfaction.bookfiesta4u. Customize messages.com Adapting Marketing to the New Economy Four steps for One-to-One Marketing One-toDon’t go after everyone.bookfiesta4u.blogspot.com www.12/21/2007 Adapting Marketing to the New Economy Focus disproportionate effort on high value customers Table 2-3: Mass Marketing vs. and products for each customer.blogspot.bookfiesta4u.blogspot.com www.blogspot.bookfiesta4u. Value. Adapting Marketing to the New Economy Customer Databases and Database Marketing Customer mailing list Business database 1-59 www. and Retention by The Downside of Database Marketing 1-61 www.

Customer Expectations Delivering High Customer Value Value proposition ValueValue-delivery system Customer satisfaction surveys: Measuring Satisfaction 1-67 www.blogspot.bookfiesta4u.bookfiesta4u.bookfiesta4u. two-way communication.bookfiesta4u. and how can companies deliver them? What makes a high-performance business? highHow can companies both attract and retain customers? How can companies improve both customer and company profitability? How can companies deliver total quality? 1-63 1-64 www. Responsive companies measure customer satisfaction directly by conducting periodic surveys. Some customer-centered companies-P&G.blogspot. Companies are also using Web sites and e-mail for quick.com Defining Customer Value and Satisfaction Customer Perceived Value (CPV) Total customer value Total customer cost Figure 3-1: Determinants of Customer Delivered Value 1-65 www.blogspot.com www.com 1-66 Defining Customer Value and Satisfaction Total Customer Satisfaction Satisfaction Table 3-1: Tools for Tracking and Measuring Customer Satisfaction Complaint and suggestion systems: A customer-centered organization makes it easy for customercustomers to register suggestions and complaints.12/21/2007 Kotler on Marketing It is no longer enough to satisfy customers. it is also useful to ask additional questions to measure repurchase intention and to measure the likelihood or willingness to recommend the company and brand to others. Whirlpool—establish hot lines with toll-free Whirlpool— tollnumbers. Chapter Objectives In this chapter. we will address the following questions: What are customer value and satisfaction. twoStudies show that although customers are dissatisfied with one out of every four purchases.com www. General customercompaniesElectric. Most customers will buy less or switch suppliers.com 3 . You must delight them. less than 5 percent will complain.bookfiesta4u.blogspot.bookfiesta4u.com See text for complete table 1-68 www.blogspot.blogspot. While collecting customer satisfaction data.

Would you feel more brand loyalty for a company that tried to immediately resolve a complaint via E-mail.blogspot.blogspot.blogspot.com 4 .com 1-72 The Nature of High Performance Business Stakeholders Processes Resources Core competency Distinctive capabilities Organization and Organizational Culture Organization Corporate culture Scenario analysis 1-73 www.bookfiesta4u.com Can you name a company that has changed the public’s perception of their corporate culture? Has this effectively rehabilitated that company’s image? 1-74 www.blogspot.bookfiesta4u.12/21/2007 Premier Dell.blogspot.com www.com is a special business-oriented part of the businessDell Web site that allows customers to interact with Dell and customize all phases of doing business with Dell.blogspot.bookfiesta4u.com www. or a company that Ehad a customer service representative call within two business days to resolve the problem over the phone? 1-69 www.bookfiesta4u.com 1-70 The Nature of High Performance Business HighHigh-performance business Figure 3-2: The High Performance Business 1-71 www.bookfiesta4u.bookfiesta4u.

blogspot.blogspot.com www.bookfiesta4u.blogspot.com 1-80 5 .blogspot.12/21/2007 Delivering Customer Value and Satisfaction Value Chain Value chain Figure 3-3: The Generic Value Chain 1-75 www.blogspot.bookfiesta4u.bookfiesta4u.com 1-76 Delivering Customer Value and Satisfaction Benchmarks Delivering Customer Value and Satisfaction The Value Delivery Network (Supply Chain) Core Business Processes The market sensing process The new offering realization process The customer acquisition process The customer relationship management process The fulfillment management process 1-77 www.blogspot.bookfiesta4u.bookfiesta4u.com Figure 3-4: Levi Strauss’s ValueDelivery Network Attracting and Retaining Customers Partner relationship management (PRM) Customer relationship management (CRM) 1-79 www.com 1-78 www.bookfiesta4u.com www.

blogspot.bookfiesta4u.bookfiesta4u.com 1-86 6 .com www.bookfiesta4u.blogspot.com Attracting Customers Computing the Cost of Lost Customers Customer churn Lifetime value 1-82 On the Lands’ End Web site.bookfiesta4u. buyerCan you think of another company that has made a change of similar magnitude? Have they had similar results? 1-81 www.blogspot.com www.12/21/2007 Attracting and Retaining Customers Saturn has gained a customer loyalty rate of more than 60% by fundamentally changing the buyer-seller relationship.blogspot.blogspot. customers can click a button to talk with a customer service representative Attracting and Retaining Customers The Need for Customer Retention Measuring Customer Lifetime Value (CLV) Customer Relationship Management (CRM): The Key Customer equity Three drivers of customer equity Value equity Brand equity Relationship equity 1-83 1-84 www.com Figure 3-5: The CustomerDevelopment Process Attracting and Retaining Customers Five levels of investment in customer relationship building Basic marketing Reactive marketing Accountable marketing Proactive marketing Partnership marketing 1-85 www.bookfiesta4u.bookfiesta4u.com www.blogspot.

blogspot.com 1-90 Good Things Bad Things Make only callbacks Make justifications Accommodative language Use correspondence Wait for misunderstandings Wait for service requests Use “owe-us” legal language “oweOnly respond to problems Use long-winded longcommunications Personality problems hidden Talk about making good on the past Fire drill and emergency responsiveness Shift blame Rehash the past 1-92 Attracting and Retaining Customers Adding Social Benefits Table 3-2: Social Actions Affecting Buyer-Seller Relationships Initiate positive phone calls Make recommendations Candor in language Use phone Show appreciation Make service suggestions Use “we” problem-solving problemlanguage Get to problems Use jargon or shorthand Personality problems aired Talk of “our future together” Routinize responses Accept responsibility Plan the future 1-91 www.O.blogspot.bookfiesta4u.blogspot.bookfiesta4u.blogspot.blogspot.com www. Web site presents the benefits of joining.bookfiesta4u.com 1-88 The H.bookfiesta4u.G. Attracting and Retaining Customers Organize and make accessible a database of customer information Make it easy for customers to reach the appropriate personnel Reward outstanding employees Adding Financial Benefits Frequency programs (FPs) 1-89 www.bookfiesta4u.bookfiesta4u.blogspot.com www.12/21/2007 Figure 3-6: Levels of Relationship Marketing Attracting and Retaining Customers Forming Strong Customer Bonds: The Basics CrossCross-departmental participation Integrate the Voice of the Customer into all business decisions Create superior offering for the target market 1-87 www.com www.com 7 .

Company Profitability.com www. and Total Quality Management Measuring Profitability Profitable customer 1-93 www. Pressley University of New Orleans 1-97 1-98 www.bookfiesta4u.blogspot.12/21/2007 Attracting and Retaining Customers Adding Structural Ties Create long-term contracts longCharge lower price to high volume customers Turn product into longlong-term service Customer Profitability.bookfiesta4u.blogspot.blogspot.com 8 .bookfiesta4u.com www.bookfiesta4u.blogspot.bookfiesta4u.com 1-96 Customer Profitability. and Total Quality Management Increasing Company Profitability Competitive advantage Chapter 4 Winning Markets Through MarketMarket-Oriented Strategic Planning by Implementing TQM Total Quality Management Quality PowerPoint by Milton M.blogspot.com www.com 1-94 Figure 3-7: Customer-Product Profitability Analysis Figure 3-8: Allocating marketing investment according to customer value 1-95 www.blogspot. Company Profitability.bookfiesta4u.

Chapter Objectives In this chapter.bookfiesta4u.bookfiesta4u.12/21/2007 Kotler on Marketing It is more important to do what is strategically right than what is immediately profitable.blogspot.com 9 . we examine the following questions: How is strategic planning carried out at the corporate and division levels? How is planning carried out at the business unit level? What are the major steps in the marketing process? How is planning carried out at the product level? What does a marketing plan include? 1-99 1-100 www.com www.blogspot.

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