Capturing Value from the customer

Creating Customer Loyalty and Retention

Good customer relationship management creates customer delight. In turn, delighted customer remains loyal and talks favorably to other about the company and its products.

CUSTOMER LIFE TIME VALUE:

The value of the entire stream of purchase that the customer would make over of patronage

Growing share of customer

·         Share of customer;

The portion of the customer’s purchasing that a company gets in its products categories.

To increase share of customer, firm can offer greater verity to current customer. Or they can create programs to cross-sell and up sell in order to market more products and services to existing customer.

Building Customer Equity

Total combine customer lifetime values of all of the company’s customer.

Building Right Relation with the right customer.

The company can classify customers according to their potential profitability and mange its relationships with them accordingly to their potential profitability and manage its relationships with them accordingly.

Building Prpfitable Customer Relationship | Customer Relationship Management

Customer Relationship Management

Maintaining profitable relationship by delivering superior customer value and satisfaction.
Customer Value and Satisfaction
Customer Value;
    the perception about the product is the customer value.
Customer Perceive Value;
The difference between benefits and cost of marketing offering.
CPV = benefits - cost
Customer Satisfaction;
How much product's performance match to the customer expectations

• Performance < Expectation : Dissatisfied 
• Performance = Expectation : Satisfied
• Performance > Expectation : Delighted

Customer Relationship Level and Tools;

• Basic relationship e.g; Unilever's FMCG consumers
• Full partnerships e.g; Walmart and Metro/Macro shopping mall's customer 

many companies use many tools for stronger the customer relationships like

1. Frequency Marketing Programs (reward to the customers who buy frequently or in large amount)
2. Club Marketing Programs  (offer special benefits and create member communities)

Consumer Generated Marketing;

Marketing messages, ads and other brand exchange created by the consumer by themselves

3rd Step In Marketing Process | Preparing An Integrated Marketing Plan And Program | Marketing Mix | 4Ps of Marketing

Marketer develop a plan that deliver the value to the target customer and also build strong relations.
The major marketing mix tools are classified into four broad groups, called the  4Ps of marketing strategies;

1. PRODUCT
2. PRICE
3. PLACEMENT
4. PROMOTION

Product;

the firm must create a need-satisfying market offering.

Price;

How much a company will charge for the offering

Placement;

How it will make the offering available to the customer

Promotion;

How it will communicate to the customer about the market offering

DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGIES

Once it fully understand customer and marketplace, now its time to design a customer driven marketing strategies. To design a winning marketing strategy, the marketing manager must answer two important questions:

1. what customer will we serve( what our target market)?
2. how can we serve these customer ( what's our value preposition)? 

SELECTING CUSTOMER TO SERVE

Marketer now first decide who it will serve. because if you want to serve everyone than you can not serve even a single person profitably so now we should follow these steps.

• Segmentation; divide the whole market into chunks that give you the more profitable business so segmentation can be done by
• Demographically

1. Income
2. Age
3. Gender
4. Family Size
5. Occupation
6. Education
7. Religion
8. Nationality
• Geographically
1. Word region or country
2. Country region
3. City or metro
4. Density 
5. Climate
• Psycho-graphically
1. Social class
2. life style
3. personality
• Behavioral 
1. Occasion
2. Benefits
3. User Status
4. User rate
5. Loyalty status
6. Readiness stage
7. Attitude

Market segmentation reveals the firm market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best. Evaluate and select the segments,

• Targeting
1. Undifferentiated (Mass) marketing
2. Differentiated ( segmented) marketing
3. Concentrated (niche) marketing
4. Micro-marketing (local or individual marketing) 

MARKETING MANAGEMENT ORIENTATIONS 

marketing management wants to design strategies that will build profitable relationships with target consumer. But what philosophy should guide these marketing strategies? What wight should be given to the interest of customers, the organization, and society?
There are five alternative concepts under which organization design and carry out their marketing strategies:

1. Production  Concept ; consumer favor the products + products are affordable, organization should focus on production and distribution efficiency.
2. Product Concept ; Consumer will favor the features, quality and performance of the products. 
3. Selling Concept: Consumer will never buy unless it undertakes a large-scale selling and promotion effort.
4. Marketing Concept: The philosophy that holds achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desire satisfaction better than competitors.
5. Societal Marketing concept: The company requirements, consumers' long run interest and society's long run interest.

UNDERSTAND MARKETPLACE AND CUSTOMER NEEDS

 At first step, marketers need to understand customer needs and wants and the marketplace within which they operate. we now examine five core customer and marketplace concepts

1-NEEDS, WANTS & DEMAND

Need

"State of being deprivation."

Want

"The form of human need take as shaped by culture and individual personality."

Demand

"Human wants that are backed by buying power."

2-MARKETING OFFERING.

 Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

PRODUCTS 

Physical /Tangible goods

SERVICES & EXPERIENCES

Activities or services offered for sales that are essentially intangible and do not result in ownership of anythings but experiences.
e.g
Tourism, air travel & hotel stay etc.

3-VALUE AND SATISFACTION

customer usually face a broad array of products and services that might satisfy a given need. How do they chose among these many market offering? Customer form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.

Satisfied customer buy again and again.

Dissatisfied customer often switch to competitors and disparage the product to others. 

4-EXCHANGE AND RELATIONSHIP

Exchange is the act of obtaining a desired object from someone by  offering something in return. Marketer want to  build strong relationships by consistently delivering superior customer value.

5-MARKETS

The set of all actual and potential buyers of a products or services.

Marketing Process | Simple Model of The Marketing Process | Marketing In 5 Steps

Marketing as the process by which companies create value for the customers and building strong customer relationships in order to capture value from customers in return.

The Marketing Process:

1. understanding the market place and customer needs and Wants.
2. Design a customer driven marketing strategies.
3. Integrated marketing program that delivers superior value.
4. Building profitable relationship and create customer delight.
5. Capturing value from customers to create profits and customer equity.

What is Marketing?

Managing profitable relation relationship.

Two Folds of Marketing:

1. Attach new customer by promising superior value
2. Keep and growing current customer by delivering satisfaction.

Today's marketer want to become a part of your life and to enrich your experience with their brands-to help you live their brands.

At home, at school, where you work, and where you play, you see marketing is almost everything you do. Yet there is much more to marketing than meets the consumer's casual eye. Behind it all is a massive network of people and activities computing for your attention and purchase.

Marketing Defined

Many people think of marketing only selling and advertising. And no wonder-every day we are bombarded with TV commercials, direct-mail offers, sales and e-mail pitches.However, selling and advertising are tip of marketing iceberg.

Today,marketing must be understood not in the old sense of making a
sale-"telling and selling" 

but in the new sense of satisfying customer needs.