CUSTOMER

RELATIONSHIP:
CUSTOMER
SERVICE
Principles of Marketing
Contemporary Approaches to Marketing

The Marketing The Relationship The Societal

Concept Marketing Marketing
Concept Concept

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1. Marketing Concept
• The marketing concept considers the needs of both the
customer and the product offered. The objective is to
provide a solution to the customer’s actual or perceived
problem.
• The key is to be more effective in the creation,
communication, and delivery of this value to customers.
• The marketing concept is a customer-centered “sense
and responds” philosophy. The job is not to find the right
customers for your product but to find the right products
for your customers.
• The marketing concept holds- “achieving organizational
goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better
than competitors do”. Your Logo or Name Here 3
2. Relationship Concept
• The relationship marketing
concept believes that all marketing
activities are for the purpose of
establishing ,maintaining, and
strengthening meaningful long-
term relationships with customers.
• Customer profiles, purchase habits, • Many customers leave a
and preferences are tracked and company not because they
monitored. This is to ensure that didn’t like the product, but
customers’ needs are fulfilled and because they were
the relationship with them is frustrated with the
maintained. customer service.Your Logo or Name Here
Steps in relationship marketing
• 1. FOCUS ON COSTUMER NEEDS – Don’t make your customer feel that all
you want is their money. Take the time to find out what they really need
and let them know how you can fulfill these needs.
• 2. REALLY LISTEN TO YOUR PROSPECTS – Reserve 100 % for your
customer and really listen to what he or she Is saying to you. Do not let
your feelings or your ego stand in the way of listening to your customer.
• 3. BE AVAILABLE – Always, always have your contact information such as
e-mail address, phone number, etc. readily available to give to your
prospects and customers. They need to be comfortable in the fact that
they can reach you anytime they need you.
• 4. OFFER INFORMATION AND RESOURCES – Let your customer know you
want to help them with all their needs. Provide a weekly mailing with
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helpful tips , hints and information.
Steps in relationship marketing

• 5. PROVIDE ONGOING SUPPORT – Many times after a person

purchases something, customers have questions or
concerns about that purchase.
• 6. BE HONEST – In our eagerness to sale, we sometimes
stretch the truth or completely abandon it. Never make
promises you cannot fulfill or claims you cannot live up to. If
the customer needs something you cannot provide, discuss
possible options or alternatives or refer them to someone
who can take care of their needs.
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 3. The Societal Marketing Concept
• The Societal Marketing Concept puts the Human welfare on top
before profits and satisfying the wants.
• Societal Marketing creates a favorable image for the company
increases the sales.
• Societal marketing policies are what making companies
actively trying to change social policy, taking part in social
activities, investing time and money in corporate social
responsibility.
Examples of Societal Marketing
**COCA COLA
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**MILO
 CUSTOMER
RELATIONSHIP:
CUSTOMER
SERVICE
Principles of Marketing
Customer vs Consumer
• The customer is the person who buys the goods or
services. Generally, customers aren't loyal to a specific
store, meaning that they might shop at Walmart for
household cleaners because it has a better selection
and the pricing is better, but that they like the food
selection at Whole Foods better.
• Consumers use the products or services they buy.
Thus, consumers are often also considered customers.
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 RELATIONSHIP MARKETING
• "Relationship marketing is a
strategy designed to foster
customer loyalty, interaction
and long-term engagement.
• It is designed to develop
strong connections with
customers by providing them
with information directly
suited to their needs and
interests and by promoting
open communication. Your Logo or Name Here 10
RELATIONSHIP MARKETING
“Acquiring a new customer can cost
five times as much as retaining an
existing customer.”

-Emmett C. Murphy and Mark A.

Murphy
(business authors)

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CUSTOMER SERVICE
• Customer service is the act of taking care of the customer's needs by
providing and delivering professional, helpful, high quality service and
assistance before, during, and after the customer's requirements are
met.
• Customer service can take on many forms – salesperson assistance, product
delivery, technical advice and other means.

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Some characteristics of good customer service
include:
PROMPTNESS
Promises for delivery
of products must be on
time.

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Some characteristics of good customer service
include:
Politeness:

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Some characteristics of good customer service
include:
Politeness:

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Some characteristics of good customer service
include:
Politeness:

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 Some characteristics of good customer service
include:
Professionalism
: customers should be treated
All
professionally, which means the
use of competence or skill
expected of the professional.

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 Some characteristics of good customer service
include:
Personalization:
Using the customer’s name is
very effective in producing
loyalty.
Here’s your
order Sir Jimmy

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Thank You
Kalle Persson
+1 23 987 6554
kalle@email.com
www.fabrikam.com
 CUSTOMER
RELATIONSHIP
DEVELOPMENT
STARATEGIES
Principles of Marketing
RELATIONSHIP DEVELOPMENT STRATEGIES

1.Core Service Provision

2.Switching Barriers
3.Relationship Bonds

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CORE SERVICE PROVISION
• A core service is a service that MUST be there for any
value to be delivered. A cell phone for example, must
provide the ability to communicate. Be it through a
voice call or a text message, cell phones must be able
to communicate. A burger joint must serve
hamburgers. If either one of these are not true,
neither the cell phone nor the burger joint provide
value.

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CORE SERVICE PROVISION
• PERCEIVED SERVICE QUALITY
- customer's perception of the overall quality or superiority of a product or
service with respect to its intended purpose, relative to alternatives. Perceived quality
is, first, a perception by customers. It thus differs from several related concepts, such
as:
a) Actual or objective quality: the extent to which the product or service delivers
superior service
b) Product-based quality: the nature and quantity of ingredients, features, or
services included
c) Manufacturing quality: conformance to specification, the "zero defect" goal
• PERCEIVED VALUE
- A customer's opinion of a product's value to him or her. It may have little or
nothing to do with the product's market price, and depends on the product's ability to
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satisfy his or her needs or requirements.
CORE SERVICE PROVISION
• SATISFACTION
- a measure of how products and services supplied
by a company meet or surpass customer expectation.

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WHY SOME DISSATISFED CUSTOMER
STAY WITH THE FIRM? I

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SWITCHING BARRIERS
• Switching barriers are any obstacles that prevent
customers switching to a different company for a
service or a product.
• CUSTOMER INERTIA - Customers just tend to put up
with poor service and results, as long as it doesn’t get
too bad.
• SWITCHING COST - are any costs – tangible or
intangible – that a consumer has to bear when
changing between brands, products or suppliers.
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SWITCHING COST

• Time Cost
• Effort Cost
• Searching Cost
• Set Up Cost
• Learning Cost
• Contract Cost

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RELATIONSHIP BONDS

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