Approaches + Customer Relationship: Customer Service Flashcards
Focused on Production Methods, Product Quality, and Effective Selling Methods as Profit Drivers in Marketing.
Traditional Approach
Assumes that customers prefer products that are inexpensive but high-quality, and widely available. Efforts are concentrated in expanding distribution, and improving production efficiency.
The Production Concept
Lower Production Cost = Lower Prices
Quantity over Quality
The Production Concept
Assumes that customers will always prefer and patronize products of high quality. Resources are focused on product improvement and innovation. Product attributes and features are continuously enhanced.
Product Concept
Quality over Quantity
Product Concept
Emphasizes aggressive selling and promotional efforts. It assumes that customers are generally timid and must be persuaded. The object is to sell what is manufactured rather than manufacture what the market wants.
Selling Concept
There are three (3) Concepts under Traditional Approach. These include:
- Production Concept
- Product Concept
- Selling Concept
There are three (3) Concepts under Contemporary Approach. These include:
- Marketing Concept
- Relationship Marketing Concept
- Societal Marketing Concept
Considers the needs of both customers and the products 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.
Marketing Concept
Concept wherein “marketers take responsibility for knowing the clientele, and eventually developing goods or services based on what the clients need or want, which leads to long-term profitability”.
The Marketing Concept
Believes that all marketing activities are for the purpose of establishing, maintaining, and strengthening meaningful long-term relationships with customers.
Relationship Marketing Concept
Customer profiles, purchase habits, and preferences are tracked and monitored. This is to ensure that customers ‘needs are fulfilled and the relationship with them is maintained. Extensive customer databases are created, maintained and updated.
Relationship Marketing Concept
This arises when a customer has had several positive experiences with a company’s products and services and thus, is motivated to continue to support the company and patronize its products and services.
It tends to persist despite the actions of the company or changes in the business environment.
Customer Loyalty
The societal marketing concept is similar to the marketing concept. It goes further to include considerations that protect the customers ‘well-being and interests, as well as the interests of the environment and society.
Societal Marketing Concept
It merges PROFITABILITY and CORPORATE SOCIAL RESPONSIBILITY.
Societal Marketing Concept
Customer-Driven Marketing Focuses on…
Customer Needs
Designed to identify and target the specific needs and preferences of a particular customer segment, allowing companies to deliver more personalized and effective value propositions (Kotler & Keller, 2016).
Customer-Driven Marketing
The Importance of Customer-Driven Marketing include:
- Meet Customer Needs
- Build Customer Loyalty
A satisfied customer shares his experience with relatives and friends, which can result in additional sales.
Word of Mouth
The process of ensuring customer satisfaction. Personal encounter with your client or customer, whether it be via email, telephone or in person.
Customer Service
Coaches employees to improve support and satisfaction among customers.
Customer Service Programs
“A strong [][][] includes exercises for improving interpersonal communication, product knowledge, conflict resolution, crisis management, and more.” (Hubspot, 2024)
Customer Service Program
Customer-centered organization can differentiate their customer service through:
- The development and training of competent customer contact personnel.
- Designing and implementing a superior service delivery environment process.
Process of managing an organization’s interactions with current and future customers.
Customer Relationship Management
Recognizing that companies can sustain for LONG TERM profitability, by attracting and maintaining their valuable customers.
Customer Relationship Management
It is used in customer segmentation and profiling. Email addresses may be used to update customers on new merchandise, promotional offers and other store activities.
Customer Database
Can take on many forms – salesperson assistance, product delivery, technical advice, help desks or other means.
Customer Service
