Kotler mm 13e_basic_05
-
Upload
institute-of-management-studies-uop -
Category
Education
-
view
3.103 -
download
6
Transcript of Kotler mm 13e_basic_05
![Page 1: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/1.jpg)
Creating Customer Value, Satisfaction,
and Loyalty
Marketing Management, 13th ed
5
![Page 2: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/2.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-2
Chapter Questions
• What are customer value, satisfaction, and loyalty, and how can companies deliver them?
• What is the lifetime value of customers?• How can companies cultivate strong customer
relationships?• How can companies both attract and retain
customers?• What is database marketing?
![Page 3: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/3.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-3
What is Customer Perceived Value?
Customer perceived value is the difference between the prospective
customer’s evaluation of all the benefits and all the costs of an offering and the
perceived alternatives.
![Page 4: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/4.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-4
Figure 5.2 Determinants of Customer Perceived Value
Image benefit Psychological cost
Personal benefit Energy cost
Services benefit Time cost
Product benefit Monetary cost
Total customer benefit Total customer cost
![Page 5: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/5.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-5
Steps in a Customer Value Analysis
• Identify major attributes and benefits that customers value
• Assess the qualitative importance of different attributes and benefits
• Assess the company’s and competitor’s performances on the different customer values against rated importance
• Examine ratings of specific segments• Monitor customer values over time
![Page 6: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/6.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-6
What is Loyalty?
Loyalty is a deeply held commitment to re-buy or re-patronize a preferred
product or service in the future despite situational influences and marketing efforts having the potential to cause
switching behavior.
![Page 7: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/7.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-7
Top Brands in Customer Loyalty
• Avis• Google• L.L. Bean• Samsung (mobile
phones)• Yahoo!• Canon (office
copiers)
• Land’s End• Coors• Hyatt• Marriott• Verizon• KeySpan Energy• Miller Genuine Draft• Amazon
![Page 8: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/8.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-8
Measuring Satisfaction
• Periodic surveys
• Customer loss rate
• Mystery shoppers
• Monitor competitive performance
![Page 9: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/9.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-9
What is Quality?
Quality is the totality of features andcharacteristics of a product or
service that bear on its ability to satisfy
stated or implied needs.
![Page 10: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/10.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-10
Maximizing Customer Lifetime Value
• Customer profitability
• Customer equity
• Lifetime value
![Page 11: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/11.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-11
Estimating Lifetime Value
• Annual customer revenue: $500
• Average number of loyal years: 20
• Company profit margin: 10
• Customer lifetime value: $1000
![Page 12: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/12.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-12
What is Customer Relationship Management?
CRM is the process of carefully managing detailed information about individual customers and all customer
touchpoints to maximize customer loyalty.
![Page 13: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/13.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-13
Framework for CRM
• Identify prospects and customers
• Differentiate customers by needs and value to company
• Interact to improve knowledge
• Customize for each customer
![Page 14: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/14.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-14
CRM Strategies
• Reduce the rate of defection
• Increase longevity
• Enhance share of wallet
• Terminate low-profit customers
• Focus more effort on high-profit customers
![Page 15: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/15.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-15
Customer Retention
• Acquisition of customers can cost 5 times more than retaining current customers.
• The average customer loses 10% of its customers each year.
• A 5% reduction to the customer defection rate can increase profits by 25% to 85%.
• The customer profit rate increases over the life of a retained customer.
![Page 16: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/16.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-16
Steps for Creating Customer Evangelists
• Customer plus-delta
• Napsterize your knowledge
• Build the buzz
• Create community
• Make bite-size chunks
• Create a cause
![Page 17: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/17.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-17
Database Key Concepts
• Customer database
• Database marketing
• Mailing list
• Business database
• Data warehouse
• Data mining
![Page 18: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/18.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-18
Using the Database
• To identify prospects
• To target offers
• To deepen loyalty
• To reactivate customers
• To avoid mistakes
![Page 19: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/19.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-19
Don’t Build a Database When
• The product is a once-in-a-lifetime purchase
• Customers do not show loyalty
• The unit sale is very small
• The cost of gathering information is too high
![Page 20: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/20.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-20
Perils of CRM
• Implementing CRM before creating a customer strategy
• Rolling out CRM before changing the organization to match
• Assuming more CRM technology is better
• Stalking, not wooing, customers
![Page 21: Kotler mm 13e_basic_05](https://reader036.fdocuments.us/reader036/viewer/2022062407/55d4fce0bb61ebaf528b4666/html5/thumbnails/21.jpg)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-21