} Know your customer – Know your business !

} What is marketing research?

} What constitutes good marketing research?
} What are good metrics for measuring marketing
productivity?
} How can marketers assess their return on investment
of marketing expenditures?
} What are customer value, satisfaction, and loyalty, and
how can companies deliver them?
} What is the lifetime value of customers, and how can
marketers maximize it?
} How can companies attract and retain the right
customers and cultivate strong customer relationships?
} What are the pros and cons of database marketing?
Holistic Marketing
• Inform
• Engage
• Energize
 Customer-
Economic perceived Value

Evaluating

Functional Obtaining

Using

Psychological Disposing
Total Customer Total Customer
Benefit Cost
 Customer-
perceived value

Total customer Total customer

benefit cost

Monetary
Product benefit
cost

Services Time
benefit cost

TCO Personal Energy

benefit cost

Image Psychological
benefit cost
“A deeply held commitment to rebuy or re-patronize a
preferred product or service in the future despite situational
influences and marketing efforts having the potential to
cause switching behavior.”

-- Richard L. Oliver
Vanderbilt’s Owen Graduate School of Management
The value proposition consists of the whole cluster of
benefits the company promises to deliver; it is more than
the core positioning of the offering.

The value delivery system includes all the experiences the

customer will have on the way to obtaining and using the
offering. At the heart of a good value delivery system is a
set of core business processes that help deliver distinctive
consumer value.

Other benefits:
Core positioning: • Good
• Safety performance
• Design
• Environmentally
friendly

Volvo
“A person’s feelings of pleasure or disappointment that
result from comparing a product’s perceived performance to
(or outcome) to expectations.”

Customers -> Dissatisfied vs. Satisfied vs. Delighted

Previous purchases
Friends advice
Marketers’ / competitors

Expectations
 Influence of
Customer Satisfaction

Measurement
Techniques

Customer
Complaints
Surveys
Customer Loss Rate

Mystery Shopper
Customer satisfaction

Speed of communication
 54% - 70%
5% Buy again if resolved Tell 5
people
Complain
95%
25%
If resolved quickly

Dissatisfied
95% Tell 11
Stop buying people
Performance Conformance

Quality

Satisfaction Profitability
 20% of 80% of
Customers Profits
“A person, household, or company that over time yields a
revenue stream exceeding by an acceptable amount the
company’s cost stream for attracting, selling, and serving
that customer.”
} Personalized Marketing
} Customer Empowerment
} Customer Reviews and Recommendations
 Acquiring new customers costs

5x more
than retaining current customers
The average company loses

10%
Of its customers yearly

Reducing customer defections by 5% can increase profits

from

25% to 85%
} Database -> Data Warehousing ->Data Mining

} Database Marketing

• Name, address, telephone #

• Purchase history
• Demographics
• Psychographics
• Mediagraphics