Business marketing midterm CHAPTER 3 PPT [Autosaved].pptx

business marketing

1. Chapter 3 CUSTOMERS RELATIONSHIP: CUSTOMER SERVICE

2. 1. Define relationship marketing 2. Explain the value of customers 3. Identify and describe relationship development strategies 4. Illustrate successful customer service strategy in the Philippines business enterprises.

3. LESSON 3.1 WHAT IS RELATIONSHIP MARKETI NG

4. Importance of Customer Value 1. Designing and providing superior customer value are the keys to successful business strategy in the 21st century. 2. Value reigns supreme in today ’s marketplace and marketspace.

5. 3. Customers will not pay more than a product is worth and will reward excellence. 4. A customer-centric culture provides focus and direction for the organization, ensuring that exceptional value will be offered to customers.

6. 5. Designing and delivering superior customer value propels organizations to market leadership positions in today ’s highly competitive global markets – absolute advantage. 6. Providing outstanding customer value has become a mandate for management.

7. According to Serrano, Relationship Marketing includes activities aimed at developing and managing trusting and long-term relationships with larger customers. (Customer profile, buying patterns and history of contacts are kept in a sales database)

8. Relationship Marketing is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests by promoting open communication.

9. Customer Relationship marketing is a strategy designed for customer loyalty, interaction, and long-term engagement to be fostered. Customer Relationship focuses more on long-term customer retention than acquiring large numbers of new and potentially single-transaction customers.

10. CRM various techniques and technological tools to achieve its goals

11. One-to-one marketing Database marketing Integrated marketing Interactivity

12. Characteristics of Relationship Marketing: It focuses on the long-term rather than the short-term. 2. It focuses on partners and customers rather than on the company’s products.

13. 3. It puts more emphasis on customer retention and growth than on customer acquisition. 4. It relies on cross-functional teams rather than on departmental-level work. 5. It relies more on listening and learning than on talking.

14. 9 Relationship Marketing Strategies and Tools

15. 1 . Networking - Networking, online and off, can be a powerful relationship marketing technique. This isn’t just for job seekers! Think about the interests that you have as a business, and then join groups that share your affinities.

16. 2. Cherish Each Customer - Not just in the way that every company says that they do. Make sure that every interaction you have with your customers shows them that they are valued.

17. 3. Listen to Your Customers - Listen to your customers! Every business says they do, but not all follow through or apply what they ’ve heard. Even listening and responding to compliments can be beneficial. People love knowing they ’ve been heard. Even complaints can be a blessing in disguise. People often just want someone to share their concerns with.

18. 4. Build a Brand Identity - A memorable brand will make it easy for customers to find you and your product(s). Customers will gravitate toward what they find that is memorable.

19. 5. Give Your Customers Free Information - What’s better than free? Not much. Your customers are seeking information about your product(s). They have questions. Give them answers! Identify the topics and interests your customers have

20. 6. Loyalty Rewards - Loyalty programs encourage shoppers to return to stores where they frequently make purchases.

21. 7. Communicate Often - Relationships are based on communication. Your customers and users want to communicate with you, so be sure to communicate with them often. Relationship marketing works well when you strive to be there for your customers.

22. 8. Special Events - Holding a special event for your existing or prospective customers is a great way to build relationships.

23. 9. Face-To-Face Time - Like a lot of what we’ve been mentioning, it comes back to interactions. While electronic communication is great, and often preferred, having a face-to-face meeting can help the customer feel valued.

24. Customer service

25. Customer service is 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 is meeting the needs and desires of any customer .

26. Characteristics of Good Customer Service

27. 1. Promptness : Promises for delivery of products must be on time. Delays and cancellations of products should be avoided.

28. 2. Politeness : Politeness is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir', and ‘thank you very much' are a part of good customer service. For any business, using good manners is appropriate whether the customer makes a purchase or not.

29. 3. Professionalism: All customers should be treated professionally, which means the use of competence or skill expected of the professional. Professionalism shows the customer they're cared for.

30. 4. Personalization: Using the customer's name is very effective in producing loyalty. Customers like the idea that whom they do business with knows them on a personal level.

31. Relationship Marketing and the 4P's

32. 1. Product Customization : Products are increasingly customized to meet individual customer preferences. This approach ensures that the products align closely with what customers want, enhancing satisfaction and loyalty.

33. Collaborative Development : New products are developed in collaboration with suppliers and distributors to leverage their expertise and insights, leading to better product innovation and quality.

34. 2. Price Relationship-Based Pricing: • Prices are set based on the relationship with the customer and the specific bundle of features and services ordered. This approach takes into account the value perceived by the customer and their loyalty.

35. Negotiation in B2B: • In business-to-business (B2B) marketing, pricing often involves negotiation because products or services are tailored to each customer's specific needs.

36. 3. Place Direct Marketing : RM emphasizes direct marketing to customers, reducing the role of middlemen. This direct approach helps build stronger relationships and provides better control over the customer experience.

37. Customer Choice : Customers are offered multiple options for ordering, paying for, receiving, installing, and even repairing products. This flexibility enhances convenience and customer satisfaction.

38. 4. Promotion Individual Communication : RM promotes more individual communication and dialogue with customers, fostering personalized interactions and deeper connections.

39. Integrated Marketing Communications : RM supports integrated marketing communications to ensure consistent messaging and branding across all channels, delivering the same promise and image to customers.

40. Extranets for Information Exchange : RM sets up extranets with large customers to facilitate information exchange, joint planning, ordering, and payments. These online platforms improve collaboration and streamline processes .

41. BENEFITS OF RELATIONSHIP MARKETING

42. 1. Understanding customer characteristics, the company can segregate its customers into groups based on their characteristics like purchasing power, frequency and volume of sale transactions. It also helps the company get valuable feedback from its customers and understand their needs and expectations.

43. 2. Delivery and meeting expectations if the company knows what its customers’ needs are, it will help reduce wastage due to trial and error methods. It is easier to create a product if the features and specifications of the product are known.

44. 3. Repeat Business Sellers should maintain good attitude to the buyers. By doing this, buyers will feel that they do not need to switch sellers.

45. 4. Prevents negative transition trust and loyalty go hand in hand and it is super beneficial for all business. It will help prevent customers from turning to competitors.

46. 5. Word-of-mouth marketing a happy customer will always promote business by telling ten other people about the amazing services or performance received from a company.

47. 6 . Increasing customer base satisfied existing customer is 100%more likely to recommend a product/service to a prospective customer. 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.

48. 7 . Reduced marketing cost Benefits also include lesser marketing costs and more value creation. 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.

49. 8. Minimization of customer price sensitivity a happy customer will be willing to pay more for a product if there is a guaranteed satisfaction of products and aftersales services attached to the price

50. 9. Identification with the company the benefits are reaped both by the company and the customers. It helps customers identify more with the company. Keeping your communication lines open and keeping in touch with the customers makes them feel like they are being valued. It will keep customers coming in and build brand equity for the company in the long run.

51. 10. Product Market Expansion the company’s employees must be ready to deliver beyond the company’s boundaries on customer demand.

52. CUSTOMER VALUE

53. Customer Value is the relationship between benefits and the costs including money, stress, and time to sacrifice that is necessary to get those benefits. Or simply stated in a mathematical equation: Benefits – Cost = Customer Value

54. F our key components known as SQIP in Customer Value

55. S ERVICE the intangible value offered to customers

56. Q UALITY customer’s perception of how well a company’s products and services meet expectations

57. I MAGE customers’ perception of the company or business they interact with

58. P RICE the price a company can command for its products and services that its customers are able and willing to pay.

59. DELIVERING CUSTOMER VALUE

60. Three strategies, companies can effectively deliver customer value: 1. Provide consumer with the best cost. 2. Provide the consumer with the best product. 3. Provide the consumer with the best service.

61. CREATING MORE CUSTOMER VALUE 1. Understand what drives value for customers 2. Understand value proposition 3. Identify the customers and segments where the company can create more value relative to competitors 4. Create a win-win price 5. Focus investments on the most valuable customer

62. Customer Relationship

63. Customer Relationship is a marketing approach that focuses on creating an ongoing and long-term relationship with customers.

64. Benefits in developing and implementing customer relationship

65. 1. Innovation 2. Customer advocate 3. Customer Profitability 4. Customer Feedback 5. Consistent customer experience

66. Strategies in Developing Customer Relationship:

67. 1.Make every customer interaction count 2. Follow-through on commitments and claims about products or services.

68. 3. Develop Employees 4. Offer benefits and product value that responds to the customer’s desires. 5. Treat customers as individual who are respected and valued 6. Listen to customer.

69. 7. Build a strong brand identity 8. Surround customers with valuable information by using emails, websites, content, social media, and other methods of outreach but do not be invasive.

70. 9. The business must have a website 10. Reward loyal customers. 11. Nothing strengthens a bond more that Appreciation 12. Create a blog about the business where discuss is more casual and inviting.

71. Customer Service Strategy

72. CUSTOMER SERVICE is 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.

73. Elements of the Customer Service strategy

74. 1. A vision for customer service 2. Assessing customer needs 3. Hiring for Service 4. Organizational goals for customer service

75. 5. Customer Service Training 6. Employee Accountability 7. Rewarding Good Service

76. THE SUKI SYSTEM IN THE PHILIPPINE

77. SUKI SYSTEM - system of patronage in which a customer regularly buys their merchandise from a certain client. SUKI – a partner system of doing business in the Philippines, wherein a customer buys certain products from a particular vendor, who in turn offers discounts and other perks for such exclusivity. Filipinos use the word suki to refer to both buyers and sellers, indicating their equal roles and obligations in an eponymous relationship