Principles of Marketing Final Flashcards
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
It is meeting the needs and desires of any customer
Customer Service
It is the act of obtaining a desired object/product from someone by offering something in return.
Exchange
5 Conditions of Exchange
- At least two parties
- Each party has something that might be of value to the other party.
- Each party is capable of communication and delivery
- Each party is free to accept or reject the offer.
- Each party believe that is appropriate or desirable to deal with the other party.
The process of trying to arrive at mutually agreeable terms.
Negotiation
To deliver a long term value to the customer and secure customer satisfaction and patronage.
Relationship with customers
It involves creating, maintaining and enhancing strong relationships with customers and other stakeholders.
Relationship Marketing
It is a form of marketing developed from direct response marketing campaigns that emphasizes customer retention and satisfaction rather than sales transactions.
Relationship Marketing
The company salesperson sells the product but does not follow up in any way
Basic
The salesperson sells the product and encourages the customer to call whenever he or she has any questions or problems
Reactive
The salesperson phones the customer a short time after the sale to check
Accountable
The salesperson also solicits from the customer any product improvement suggestions and any specific disappointments.
Accountable
The salesperson or others in the company phone the customer from time to time with suggestions about improved product use or helpful new products.
Proactive
The company works continuously with the customer and with other customers to discover ways to deliver better value.
Partnership
Levels of relationship that can be formed with customers
- Basic
- Reactive
- Accountable
- Proactive
- Partnership
These are basic unit of exchange.
Transaction
A trade of values between two parties.
Transaction
The proof of transaction.
Bill / Invoice.
A strategy designed for customer loyalty, interaction, and long-term engagement to be fostered.
Relationship Marketing
It is designed to develop strong
connections with customers by providing them with information directly suited to their needs
and interests by promoting open communication.
Relationship Marketing
The development of an ongoing connection between a
company and its customers.
Customer relationship
The relationship involves marketing communications, sales support, technical assistance and customer service.
Customer Relationship
A big part of marketing.
Customer Relationship
An interaction with current customers and potential
ones.
Relationship Marketing
It includes activities aimed at developing, and managing trusting and long-term relationships with larger customers
Relationship Marketing
Characteristics of Relationship Marketing
- It focuses on the long-term rather than the short-term.
- It focuses on partners and customers rather than on the company’s products.
- It puts more emphasis on customer retention and growth than on customer acquisition.
- It relies on cross-functional teams rather than on departmental-level work.
- It relies more on listening and learning than on talking.
Benefits in Developing and Implementing Customer Relationship
- Consistent customer experience
- Customer Feedback
- Customer Profitability
- Customer advocate
- Innovation
The company can segregate its‘ customers into groups based on their characteristics like purchasing power, frequency
and volume of sale transactions.
Understanding Customer Characteristics
It also helps the company get valuable feedback from its customers and understand their needs and expectations.
Understanding Customer Characteristics
The company knows what its customers’needs are, it will help reduce wastage due to trial and error methods.
Delivery and Meeting Expectations
Sellers should maintain good attitude to the buyers.
Repeat Business
Trust and loyalty go hand in hand and it is super beneficial for all business.
Prevents Negative Transition
It will help prevent customers from turning to competitors.
Prevents Negative Transition
It will help prevent customers from turning to competitors.
Prevents Negative Transition
Increasing customer base - satisfied existing customer is 100% more likely to recommend a product/service to a prospective customer.
Word-of-Mouth Marketing
Apart from customer, referrals, there are several other ways to increase customer satisfaction by employing methods of utilizing social networking websites, blogs, informal surveys, benefits on loyalty cards, timely response to complaints and requests as a
constant reminder of its presence around and retention equity is improved by enhancing customer satisfaction.
Word-of-Mouth Marketing
Benefits also include lesser marketing value creation.
Reduced Marketing Cost
This can be explained by stating the following statistics: every 5% increase in customer retention can increase a company’s annual profits from at least 25% to as much as 125%, while simultaneously leading to a reduction of 10% in marketing costs. An existing customer will spend 33% more than a new customer to buy a company’s product/service.
Reduced Marketing Cost
The benefits are reaped both by the company and the customers. It helps customers identify more with the company.
Identification with the company
Keeping your communication lines open and keeping in touch with the customers makes them feel like they are being valued.
Identification with the company
It will keep customers coming in and build brand equity for the company in the long run.
Identification with the company.
The company’s employees must be ready to deliver beyond the company’s boundaries on customer demand.
Product Market Expansion
Defined as the satisfaction derived from what a customer may experience or expect by choosing a particular action relative to the cost of that action.
Customer Value
It refers to anything that can be given up to receive the desired product or service which can be in the form of money, time, knowledge, data or others.
Cost
Levels of Customer Value
- Basic and expected levels
- Desired customer value
- Unanticipated customer value
These levels include the basic requirements of conducting a business.
Basic and expected levels
Restaurants are expected to have a spacious dining area and clean tables and utensils. If these requirements are not met by the business, it cannot provide high
quality customer value.
Basic and expected levels
This involves what the customers want from the purchase or service experience.
Desired customer value
For example, a retail shop can provide friendly and helpful staff who can a: the customers in making the right choices.
Desired customer value
It pertains to an unexpected purchase or service experience that may go beyond what the customers desire.
Unanticipated customer value
For example, in a gasoline station, the gasoline boy cleans the window after filling up the customer’s gasoline tank without an extra charge.
Unanticipated customer value
Types of Customers
- Strangers
- Butterflies
- True friends
- Freeloaders
Are customers whose needs do not fit the company’s offerings. The company does not need to invest and exert effort to win them.
Strangers
are not loyal to specific brand because they keep on looking for the best deals which may lead to patronizing other brands.
Butterflies
Have needs that match the company’s offerings. They make repeat purchases and patronize the brand as long as it satisfies their needs.
True friends
The company must
invest in these customers and strengthen its relationship with them.
True friends
Loyal but not profitable because of the limited fit between their needs and the company’s offering.
Freeloaders
For example, a few customers of a salon patronizes its services regularly but do not generate enough profit to sustain the maintenance costs, it can
carn only if it raises the prices of its services.
Freeloaders
It is easier to create a product if the features and specifications of the product are known.
Delivery and Meeting Expectations
Benefits of Relationship Marketing
- Understanding Customer Characteristics
- Delivery and Meeting Expectations
- Repeat Business
- Prevents Negative Transition
- Word-of-Mouth Marketing
- Reduced Marketing Cost
- Identification with the company
- Product Market Expansion
It is important to always get in touch with customers through e-mail and social networking sites especially in the new
normal situation. Provide various means to give immediate feedback (e.g., online customer surveys)
Communicate with customers frequently and effectively.
Customer loyalty programs, which include special discounts, freebies, perks, may work well for various types of products and services.
Offer customer rewards
These encourage customers to remain loyal to the brand because they are rewarded for their patronage.
Offer customer rewards
Companies can hold or sponsor parties, concerts, contests, and the like to boost interaction among loyal customers and company representatives
Conduct special events and provide sponsorship
Some company outsource their services to third party organizations to cater complaints and inquiries, promote their latest offerings and provide technical support.
Enhance customer service.
Marketers can create promotional materials in different languages to cater specific regions.
Utilize languages to reach a wider audience
Consumers can also now choose
the language they would like to use to communicate with customer service representative.
Utilize languages to reach a wider audience.
Costumer Service in the Philippines Business Enterprise
- Email and SMS
- Social Networking Sites
- Live chat support
Relationship Development Strategies
- Communicate with customers frequently and effectively
- Offer customer rewards.
- Conduct special events and provide sponsorship
- Enhance customer service
- Utilize languages to reach a wider audience
help businesses communicate with their clientele more easily as most consumers regularly check their inboxes.
Email and SMS
Aside from their primary function of connecting people, have become a channel for netizens to ask for customer support.
Social Networking Sites
Telecom Companies promptly responds to inquiries and complaints on social media and redirects the customer to the site’s private messaging system for further assistance.
Social Networking Sites
facilitates real time correspondence between customer and the company representative.
Live chat support
Eleven Sub - Categories of Marketing Strategies;
- Forward integration
- Backward integration
- Horizontal integration
- Market Penetration
- Market Development
- Product Development
- Related Diverisification
- Unrelated Diversification
- Retrenchment
- Divestiture
- Liquidation
