DALUBHASAAN NG LUNGSOD NG SAN PABLO

Lungsod ng San Pablo

Bachelor of Science in Accountancy & Entrepreneurship

Module 2 AE 24

Lesson 9 Title: Customers Service

Learning Objectives: To learn and understand that business must know the customers want and
see that they get it
To study and know the five processes of Customer Service
To learn and understand the product/service development

References:
1. BUSINESS, An Integrative Framework by Dr. Fry, Dr.Stoner, Dr.Hatwick
2. Techniques of Financial Analysis by Erich A. Helfert, D.B.A.

Lectures/Explanations/Discussions
Customer Service can be thought of as knowing what customers what and seeing they get it.
Sometimes we think this is solely the job of marketing department. Indeed, some of the specific
activities that are done in the area of customer service are marketing in nature. Yet true
customer service is really everyone’s job.
The Dynamics of Customer Service
Customer Service involve five (5) processes. First, it involves learning about customers. This
means that a business must continually study its customers (as well as potential new customers) to find
out what they really want and need. Customers are sometimes fickle. Tastes and preferences change.
The business must take regular reading on what customers really desire.
Once needs and wants have been identified, the business becomes concerned with a second
process, product or service development. This means that the business must generate products
and services that meet identified customer needs and that provide value for customers. For
manufacturing business this may mean working in customer oriented teams of engineers, marketing,
accounting, and management personnel to develop new and improved products that are tailored
exactly to a client’s specifications. In service business, it may require focus groups to determine how
best to provide the services customers want. Whatever the business, the goal of product development
should be to create new value for the customers.
Once the product has been developed, a third process becomes critical. Communicating Value,
which means that the business must inform potential customer about it product or services and
convince them of the value these products and services provide. Value maybe communicated through
a number of techniques. This process is not just informational, it also involves persuading customers to
select the products of the business over alternatives that may be available in the marketplace. A real
challenge of this communication phase is to convince customers that true value exists. The fourth
process is product availability. This means the managers must make sure the product is available
when and where customers want it. These issues are part of the timeliness theme we discussed before.
The final process, in the dynamics of customer service involves soliciting feedback from the
customers regarding how well the business has met the customers expectations. Soliciting feedback
consist of communicating with customers as well as those who choose not be customers, to find out
what is good as well as bad about the firm’s products, services and activities. This step tells the
business where it has fallen short in providing value for customers. This feedback should be the
foundation for appropriate corrective actions.
The five processes involve a number of people from different area of the business. At a minimum,
they involve employees from research and development and manufacturing. Quality considerations
critical in every area and in every phase of the five processes discussed here.
Learning about the Customers
The first step in serving the customer lies in learning what they really want and need. There are
both a short answer to the question “How do you find out what the customers want?” The
answer is. “Ask then.” This of course, is simplistic, but it captures the spirit immediately. Far too
many businesses make a product that they think customer will want. Then they build an
advertising plan to convince customers that they, indeed want what the manufacturer built. It
would be much better if managers first asked customers what they wanted and then proceeded
to build it. Then the task would be simply to communicate that the product was available and to
accentuate those parts of the product that particularly meet the customer’s needs. Learning
about customers can involve a number of approaches. Most fall the heading of Marker
Research, which lies at the heart of learning about customers.

Market Research
Market Research deals with the tasks of collecting and analysing information about the
market or potential market for a product or service. Information is critical because it
communicates what products are in demand, what features are desirable, and how product is
best delivered to the customer. Whatever form market research takes, it involves the effort to
learn about the customer needs and how best to meet those needs. This can be done in a
number of ways.
First, business decision makers may rely on Secondary Data.it is any data that have already
published. A number of data bases contain excellent information, for example, census data, economic
forecasts, LTO registration, list of registered corporations by SEC, list of banks by the Central Bank of
the Phils, and many more. Second, customer information may be gained thru Primary Data, which data
the business collects directly from customers and potential customers. A popular way to collect data is
with surveys. You may have participated in a market research survey at some time in your life.
Reseachers may survey people to telephone, i a mall, by mail, by e-mail or visiting customers in that
marketer’s store. This kind of information is often more difficult, costly and time consuming to gather
and analyse than is secondary data, but it provides very direct and relevant information if done well.
Surveys offer the advantage of tailoring questions to provide specifically needed information and
probing for reason behind the answers.
When developing surveys to collect primary data, managers must first answer the question,
“”What is it that we need to know and what will we do with that information?” This information
helps managers design the surveys and identify the target sample. They can then determine
how much accuracy and specificity they need. Are extensive details important, or are general
answers acceptable. Should they use mail survey, which is inexpensive but has a low response
rate, or do they want to talk with people personally or by phone to get better response rate and
more detailed answers?
Surveys are not the only way to gather primary data. Many companies use their websites on
the Internet to encourage customers to provide ideas and thoughts on their products or overall
activities. Other businesses gain primary data through focus groups which consist of a small
number of individuals who are invited to sit as a group and respond to questions posed by the a
researcher. For example, a dentist wanted to know whether there is a market for specialized
dentistry aimed at senior citizen. He commissioned a consultant to assemble panel of ten (10)
residents of the community who where between the ages of 55 and 65. The dentist provided a
list of topics to cover.
Data Analysis
It is the study of the information with the goal of helping the manager reach a conclusion about
some aspect of the company. Sometimes, in-depth statistical analysis is needed. Sometimes
the
Manager can just look at information and interpret it .Regardless of method of analysis used.
The final result will be a set of data that tells the manger something about how customers think
and act, that they like and dislike and how they perceive the company’s products or services.
Product Differentiation
Developing a product that differs enough from existing products that customers can distinguish
the new product from existing ones.

Developing Product or Service

Product or service department is a broad term referring to the creation of a product and service
that provides greater value to customers than previously existed. There are actually six (6)
types of product development.
1. A new-to-the-world product
2. A new product line
3. A New Product added to an existing one
4. An improved product
5. A repositioned product
6. A lower-priced version of an existing product

New-to-the-world product refer to totally new products never before seen by mankind. There are
actually rare. In the vast majority of cases, new products are simply variations on existing products.
Example of this is Zip Drive produced by Iomega Corp. It is an external and internal drive for computers
that uses a disk that is about the size of a 3.5 inch floppy but thicker and hold the equivalent of 70
normal disks This is already obsolete, it is just example of the new-to-the-world product. The clever
thing about the external drive is that you can plug it into a computer without even turning the computer
off. This gives major flexibility in transporting data and applications from computer to computer.
New Product Line are products developed by a company that did not produce them before, even
though other companies did. Dickies, a long time maker of heavy-duty work clothes, has developed a
line of work clothes for people who do not work in work-heavy situations. Such products existed before
but they are new for Dickies. Personally when I came back from California, I brought a pair of sunglass
and it was made by Dickies, and gave to my gf in Batangas. This company never before is making
sunglass, now its newly producing it.
A less radical methods is to add a new product to an existing product line. This means that a
company develops a product it has never had in order to expand current product line. When General
Milling Corp. brought Multi Grain Cheerios, it was adding a new product to go with regular Cheerios,
Honey Nut Cheerios and frosted Cheerios products. This, it added new product to the Cheerios line of
cereals.
A firm may also improve or revise existing product to make it more appealing to customers. Product
Improvement does not create a new product, but it makes a significant improvement on an existing
product or product line. This includes bringing out new models or adding features that make product
more valuable. –for example, a faster, more powerful computer chip.
Sometimes, a firm may reposition a current product for a new customer grouping. Product
Repositioning which means taking an existing product and finding ways to market it to new customer
groups. This is the basis of Levi’s efforts to get office workers to wear its Dockers clothes to work. It
has repositioned Dockers as being appropriate for office attire, not just as casual wear. Sometimes, I
am wearing Dockers polo shirt while working at DLSP.
Finally, the firm may introduce lower-priced version of existing product in an effort to increase sales
volume. These versions often have fewer features than the standard product, but they are considerably
less expensive. For example, contemporary remote controls for TVs are complex instruments that can
also program the VCR. They have too many buttons that many people do not know how to operate
them. Now a remote has been introduced that has only a power button and two toggles, one for
increasing or decreasing volumes and on for changing channels. This remote is substantially cheaper
(easier to use) than the traditional remote.
Puregold’s Style fo Giving
The Vice Chairman of Puregold Price Club Inc., has a simple yet successful message those who would
want to start a business. You have make everybody who supports you grow also. She said one of the
many ways Puregold attempts to ensure that many of the “”sari-sari stores owners”” who patronize
them thrive in their business, is the company’s philosophy of taking care their customers. We at
Puregold are not selfish. We share and transfer business know how that we have learned through the
years of running. Puregold to our customers who are willing to understand the intricacies of sari-sari
store business, We want our loyal customers, especially the sari-sari store owners to grow and develop
their business too. It is a good business for us. It creates more opportunities for us and our growing
sari-sari stores owners. Puregold national operations manager said about 35% to 50% of their
customers are sari-sari stores owners. Puregold’s “”Tindahan ni Aling Puring”” “”Gold Members”” are
given the Gold Welfare Insurance, a free insurance that covers life, accident and calamities.Puregold
has made crucial inroads among food resellers, such as carinderia owners, canteens and even small
lodging inns.

Prepared:

Ramon R. Enriquez, CPA, CIA, MBA