© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Building Profitable Customer Relationships A Company’s Demand
A new Customer
Repeat Customer
Traditional marketing theory and practice have focused on attracting new customers and making the sale. companies are now going all out to retain current customers and build lasting customer relationships.
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Beyond designing strategic to attract new customers and create transactions with them, companies are now going all out to retain current customers and build lasting customer relationships. Sophisticated competitors Changing demography Fewer New Customer Availability
Market Growth
Supply New costumer
Slow growth economy Over capacity Industries
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
To attract new customers To keep a current customer satisfied
means more than losing a single sale
LOSING A CUSTOMER
It means losing the entire stream of Purchases that customer would make Over a lifetime of patronage
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Attracting new customers remains an important marketing management task. However, the focus today is shifting towards retaining current customers and building profitable, long-term relationships with them. The key to customer retention is superior customer value and satisfaction.
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Marketing management can be guided by five different philosophies
Production concept Products concept Selling concept holds that consumers favor products that are available and highly affordable; management's task is to improve production efficiency and bring down prices. holds that consumers favor products that offer the most quality, performance and innovative features; thus, little promotional effort is required. holds that consumers will not buy enough of the organization's products unless it undertakes a large-scale selling and promotion effort. holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do holds that the company should determine the needs, wants and interests of target markets. Generating customer satisfaction and long-run societal well-being are the keys to achieving both the company's goals and its responsibilities
Marketing concept Societal Marketing
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Differences between Sales & Marketing Orientations Organization needs Selling Goods and Services Everybody Profit through max. sales Intensive Promotion
Sales Focus
Marketing Focus Customer needs Satisfying Customer’s need Specific Group of People Profit through CSO Coordinated marketing activity
the marketing concept takes an outside-in perspective. It starts with a well-defined market, focuses on customer needs, co-ordinates all the marketing activities affecting customers and makes profits by creating long-term customer relationships based on customer value and satisfaction. Under die marketing concept, companies produce what consumers want, thereby satisfying consumers and making profits.
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
The Societal Marketing Concept the organization should determine the needs, wants and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being. Environmental problems Resources shortages World-wide economic problems Neglected social services According to the societal marketing concept, the pure marketing concept overlooks possible conflicts between short-run consumer wants and long-run consumer welfare.
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Pure Marketing Concept
Society (human welfare)
Consumers (want satisfaction)
Societal Marketing Concept
Company (want profit)
the societal marketing concept calls upon marketers to balance three considerations in setting their marketing policies
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Most people see it as a highly responsible corporation producing fine soft drinks that satisfy consumer tastes Yet certain consumer and environmental groups have voiced concerns that Coke has little nutritional value can harm people's teeth contains caffeine
adds to the litter problem with disposable bottles and cans
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Marketing Short run decisions Company’s
Profit
Long run importance Of satisfying consumer wants
Society’s interest
Needs Wants Satisfaction
Marketing Concept emerged
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Criticisms of Marketing High Prices Deceptive Practices High-Pressure Selling Unsafe Product Poor Services To disadvantage customer
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
Deceptive Prices
Falsely advertising “factory” or “wholesale” prices or large reductions from phony high retail list prices
Deceptive Practices
Deceptive Promotion
Overstating a product’s features or performance, running rigged contests
Deceptive Packaging
Exaggerating package contents through subtle design, using misleading labeling, etc
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
THANK YOU For LISTENING
Presentation 5 Presented by Sugiharto,SH.MM M-com class Program Presentation created by Ace013 Presentation Pro Images provided by Deviant art HD wallpaper Closing theme performed by OST mgs3 escape
© XXIX, Marketing Management by Sugiharto, SH.MM, GICI BUSINESS SCHOOL
© XXIX 2009