Nobody is more important to the success of a business than its customers .

1. Nobody is more important to the success of a business than its customers. Customers

2. Case study —Midwest Express Airlines1 • Understanding customers — methods • Conducts in-flight passenger surveys • Makes use of annual telephone interviews with its frequent flyers • Holds focus groups six times a year with customers Customers

3. Case study —Midwest Express Airlines2 • Understanding customers — results • On-time performance • Comfortable accommodation • Good food • Bo be kept informed when problems occur Customers

4. Case study —Midwest Express Airlines3 • Meeting customers’ needs • Offers a one-class, upscale coach service • The leather seats are oversized and offer plenty of leg room • Only four seats per row • Hot, elegant dinners of salmon and filet mignon on china • Flights are rarely late or canceled, but if there is a delay, Midwest personnel make it a priority to let customers know what’s happening. Customers

5. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Customer orientation Consumer orientation Determining consumer wants and needs and developing products to satisfy them Customers

6. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism 消費者到KTV消費，期望獲得什麼？ 問題討論 Customers

7. To exceed customer expectations, to build customer loyalty. Customers

8. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Exceed customer expectations Today business tries to exceed customer expectations by: Reducing Customer Sacrifice Providing Value “The perceived quality of goods and services relative to the price” “What the customer wants,minus what they settle for” Customers

9. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism 我的Lucy怕黑… L. L. Bean Nordstrom Dell Computer American Express … the experience made him a customer for life. Examples Customers

10. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Relationship marketing Establishing and maintaining long-term satisfying relations with both internal and external customers as well as suppliers Customers

11. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism External customers and Internal customers External Customers: People who buy a firms products Internal: Employees whose job performance affects the ability to satisfy external customers Customers

12. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism The Customer-Development Process prospects First-time Customers Repeat Customers Clients Advocates Customers

13. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Exceeding customer expectations Creating loyalty programs ( Frequency marketing) Acknowledging and rewarding repeat customers. Converts customers into advocates Customers

14. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Example of Loyalty Programs Airlines: Frequent flyer miles Loyalty Programs Harley-Davidson: Harley owners group Road Runner Sports: Customer clubs Saturn Automobiles: Annual picnic for owners Customers

15. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Escape 車隊定期出遊 連續3個月，每月刷5筆就送… 買第2件打七折… 案例 Customers

16. Customers’ needs change. And some businesses lose sight of these changes because they fail to listen to their customers. Customers

17. Consumer orientation Relationship marketing Customer loyalty Listening and respondingto the customer Business-to-business Market segmentation Consumer behavior Using technology Consumerism Microsoft’s products → Customers who use them Corporate systems customers Programmers Knowledge workers Ordinary Windows customers Consumers Listening and responding to the customer — Microsoft Customers

18. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Business-to-business buyer vs. Customer buyer Consumer Market: Good purchased by individual for personal use Business-to-business Goods purchased to produce other goods and services Customers

19. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Derived demand Fewer buyers Larger buyers Professional purchasing Multiple decision makers Ongoing relationships Difference between business-to-business market and customer market Customers

20. Most firms can’t serve all segments of a market. Customers

21. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Market segmentation • Market segmentation • Focusing marketing efforts at specific groups whose members havesimilar characteristics. • Target Market • A group of people who have similar wants and needs and who the organization identifies as a potential market for its goods or services Customers

22. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Base for Segmenting Consumer Market Demographic Geographic Psychographics Behavioral Customers

23. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Dividing a market into homogeneous groups on the basis of population locations. Examples 扁帽台南賣得比較好… 日本人冬天喜歡滑雪… Geographic segmentation Customers

24. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Distinguishing consumer groups according to characteristics such as gender, nationality, race and ethnicity, age, income, occupation, education, household size, or stage in the family life cycle. DEMOGRAPHIC SEGMENTATION Customers

25. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Example of demographic segmentation for VW’s Bug • Gender: Female • Age: 22-45 • Marital Status: Single • Ethnicity: Any • Education: College • Income: $30-45 thousand per year Customers

26. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Dividing a population into homogeneous groups on the basis of personality or lifestyle. Example 新光三越A11 vs. A8 vs. A9 Psychographic segmentation Customers

27. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Grouping buyers on the basis of their relationship to a product or service. Example High users Brand loyalty Behavioral segmentation Customers

28. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Primary influences on consumer behavior The process by which customers decide to select, buy, and use goods and services Social Cultural Psychological Personal Customers

29. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism The consumer buying process Recognition of need Research alternatives Purchase decision Post purchase evaluation Customers

30. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Most low-cost,frequently purchased products are habitual purchases. But “high-involvement” purchases are complex decisions. High-involvement Expensive Infrequently bought Personally relevant to the consumer The consumer buying process Customers

31. Highly satisfied customers tend to engage in minimal additional search for information. Customers

32. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Using information technology to better serve customers1 Market Databases: Information developed by statistical sampling and projection Customers

33. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Using information technology to better serve customers2 Customer Databases: Information developed by a company that offers specific profiles on customers and their buying behavior. Customers

34. The cost of attracting anew customer is estimated to be five times the cost of keeping a current customer happy! Customers

35. A company can improve profits by 25 to 85 percent when they reduce customer defections by just 5 percent. Customers

36. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Attracting vs. retaining Customers Consumerism The traditional emphasis in marketing has been on making sales rather than building relationships. This has meant focusing on acquiring new customers rather than retaining existing ones. Forward-thinking companies now are focusing on keeping wisely which customers they’re going to have relationships with and working hard to keep the selected set satisfied. Attracting vs. retaining Customers Customers

37. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Attracting vs. retaining Customers Consumerism Define and measure your retention rate. Distinguish the causes of customer attrition and identify those that can be managed better. Estimate how much profit was lost from the customer’s defection. Calculate the cost to reduce the defection rate. Customer defection rate management Customers

38. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Consumerism: A social movement that seeks to strengthen the rights of buyers To be safe To be informed Four rights of consumers identified by John F. Kennedy in 1962 To be heard To Choose Customers

39. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism 盛香珍果凍…(To be safe) TARA TV…(To be safe) 飲酒過量有害健康…(To be informed) Windows系統內建瀏灠器…(to Choose) Complaint department (To be heard) Examples Customers

40. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Creating a customer-oriented culture The company has only two rules: “Rule 1—The customer is always right. Rule 2—If the customer is ever wrong, reread Rule 1.” (Stew Leonards) Internal mechanisms to stimulate customer responsibility1 Customers

41. Consumer orientation Relationship marketing Customer loyalty Business-to-business Market segmentation Consumer behavior Using technology Consumerism Seeking customer feedback On-site, phone, mail surveys, toll-free telephone numbers, and hiring outside firms to contact customers… Test Sampling Mystery Internal mechanisms to stimulate customer responsibility2 Customers