Customer-Centric Marketing: Strategies for Success
Importance of Customer Service
Great service leads to customer loyalty, increased profit, and a positive reputation. Conversely, bad service results in a negative reputation, potential lawsuits, lower profits, and loss of customers.
Outstanding Customer Service
Taking care of the customer’s needs and wants, providing help, and quality service before, during, and after completing the customer’s requirements creates a satisfying experience.
Marketing Process
Building profitable customer relationships by creating value for customers and capturing value in return.
Musts:
- Give customers what they are looking for
- Provide quality service
- Foster customer loyalty
Parts
- Company: Acts, creates value for customers (steps 1-4)
- Customer: Gives value in return to the company to capture (step 5)
Steps
1. Understand the Market and Customer Needs/Wants
- Research the market
- Manage marketing information
2. Design a Customer-Driven Marketing Strategy
- Select target market
- Design a value proposition
3. Construct a Marketing Program
- Turn marketing strategy into real value for the customer
- Use marketing elements (4Ps)
4. Build Profitable Relationships and Create Customer Delight
- Customer relationship management: Create a satisfying experience
- Partner relationship management: Collaborate with marketing partners to serve the customer
5. Capture Customer Value to Create Profit
- Create satisfied, loyal customers who will return value
- Capture long-term value
- Increase market share and win a greater share of customers
Customer Characteristics
A customer is a person or entity who buys products, services, or ideas from a seller or supplier to satisfy needs and wants.
Factors that Affect the Purchase Decision
Demographic (Objective and Quantifiable)
- Age
- Gender
- Occupation
- Education
- Marital status
- Race
- Income
- Expenditures
- Mobility
- Housing
- Location
Social (Why Customers Act Differently)
Studies of customers’ lifestyles (how they live, spend time, and money)
- Culture (traditions)
- Time expenditures (hobbies)
- Family life cycle
- Opinion leaders (famous people)
- Reference groups (peer pressure)
- Social performance (role)
- Social class
Psychological (Behavior, Necessities, Values, Character)
- Personality
- Importance of purchase (urgency, use)
- Innovativeness (trends)
- Perceived risk
- Motivation (needs and wants)
- Class consciousness (brand)
- Attitudes and opinions (values)
Marketing Mix
1. Product
- Build a product that satisfies the needs and wants of a group
- Right product/service requires extensive research
- Design: Aesthetically appealing, meeting safety standards
- Outstanding packaging leads to recognition
- Branding differentiates from competitors, identifies, and maintains confidence
- Life Cycle:
- Introduction
- Growth
- Maturity
- Saturation
- Decline
2. Price
- Determines profit and survival
- Affects demand and sales
- Influences perceived value
- Depends on:
- Cost of production
- Competitors’ prices
- Market share
- Pricing Strategies:
- Cost-plus
- Premium
- Penetration
- Competitive
- Discriminatory
3. Place
- Distribute at the right time and place
- Accessible to potential customers
- Distribution Strategies:
- Intensive
- Extensive
- Selective
- Franchising
- Access different channels
- Depends on:
- Sales force
- Trade fairs
- Online stores
4. Promotion
- Capture customers’ attention to persuade and create desire
- Send the message at the right time
- Depends on:
- Budget
- Message
- Target market
- Boost brand recognition
- Types:
- Advertising
- Public relations
- Sales promotion
- Personal selling
Product
- Variety
- Quality
- Design
- Brand name
- Features
- Packaging
Price
- List prices
- Discounts
- Payment period
- Credit lines
Place
- Channels
- Coverage
- Locations
- Inventory
- Transportation
- Logistics
Promotion
- Advertising
- Personal selling
- Sales promotion
- Public relations