slide1
Download
Skip this Video
Download Presentation
Marketing Fundamentals CUSTOMER-DRIVEN

Loading in 2 Seconds...

play fullscreen
1 / 159

Marketing Fundamentals CUSTOMER-DRIVEN - PowerPoint PPT Presentation


  • 137 Views
  • Uploaded on

Marketing Fundamentals CUSTOMER-DRIVEN. Einstein created his theories not from experiments, but from thought problems. We’re not Einstein, but this section has more to do with philosophy than practice…. It purpose is to create a mindset…. Think of two occasions when you felt that you

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Marketing Fundamentals CUSTOMER-DRIVEN' - ramla


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Marketing Fundamentals

CUSTOMER-DRIVEN

slide2
Einstein created his theories

not from experiments,

but from thought problems.

slide3
We’re not Einstein, but this section has more to do with

philosophy than practice….

It purpose is to create a mindset….

slide5
Think of two occasions when you felt that you

were a valued customer.

Why did you feel that way?

slide6
Think of two occasions when you felt that you

had a negative experience as a customer.

Why did you feel that way?

slide7
Fundamentals

http://www.youtube.com/watch?v=KkBvzS_fJ2g&feature=player_embedded#

slide8
The marketing conceptis the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

Today most firms have adopted the marketing concept, but this has not always been the case.

slide9
In 1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. While this philosophy is consistent with the marketing concept, it would not be adopted widely until nearly 200 years later.
slide10
The Production Concept

Can we produce the product?

Can we produce enough of it?

The Sales Concept

Can we sell the product?

Can we charge enough for it?

slide11
Examples of Marketing

Concepts

http://www.youtube.com/watch?v=l4seWLW2KhQ&feature=player_embedded

slide12
Number 1

What (Who) is a Customer?

slide13
A customer?

Who are we talking about?

Not always clear:

slide14
Who is a customer?

Take a piece of paper and answer

the following questions:

slide15
Who is a customer?

1. Is a student a customer?

slide16
Who is a customer?

1. Is a student a customer?

2. In what ways are they

a customer?

slide17
Who is a customer?
  • Is a student a customer?
  • 2. In what ways are they
  • a customer?
  • 3. In what ways are they
  • not
  • a customer?
slide21
Further:

Practically no one tries to sell to everyone……

slide23
Because:

Not everyone is a Customer!

slide25
Practically no one tries to sell to everyone……

Markets are segmented:

80/20 Rule

Demographics

Psychographics

Needs/Wants

Needs are: Wants backed by resources!

slide27
Is the customer always right?

NO!

“The cliché is wrong. The right customer

is always right. The wrong customer, is

not right for the selling company.”

Jeffrey J. Fox

slide29
Okay Customers are:

Profitable

Loyal

Spreads positive WOM

Gives positive referrals

slide30
Okay customers can:

also be:

Tough, exacting, impatient, challenging, fickle,

exasperating, needy, insistent,

and a pain in the neck.

slide31
Not Okay customers are:
  • “Difficult”
  • The service provider doesn’t care about them
  • 2. The service provider isn’t listening to them
  • 3. The service provider isn’t doing anything to resolve
  • the problem
  • 4. They have been victimized, unfairly treated
  • or taken advantage of
  • 5. The service provider gives the customer the
  • run-around
  • 6. Promises are not kept
slide33
Not Okay customers are:

About 3% of the population is clinically insane

slide34
Not Okay customers are:

About 3% of the population is clinically insane

Another 40% is neurotic…………

slide35
And we just don’t all agree on

things.

http://www.expedia.com/pub/agent.dll/qscr=dspv/htid=11379/crti=7/hotel-reviews

slide36
Low High

PROFITABLE

Customer Misfits

Spinners

Big Spenders

Underachievers

Low

LOYAL

Win-Back Cust

New Potentials

Advocates

Loyalists

High

slide37
Student evaluation of teaching taken at random

from the internet as an example.

Teacher A (picked at random… named Smith)

Student 1

“I am still extremely disappointed I took this class.

I took it as an elective just because I thought it would be interesting...

wrong teacher. The tests were so hard; I'm a straight A student

and ended up with my first B. Don't take him…”

slide38
Teacher A

Student 2

“I like her as a person ,however, I wasn't very fond of her teaching style.

The last month all we did was presentations and were left on our own.

If you don't learn well this way, don't taker her. Otherwise she is pretty good.”

slide39
Teacher A

Student 3

“HE is a guy. His name is Roland Acosta. He's actually pretty good,

but his classes take FOREVER. Bring a laptop or small

GameBoy and you will be fine.”

slide40
Is Teacher A:

a good teacher, or a bad teacher….

slide41
Is Teacher A:

For that matter:

a man or a women?

slide42
Types of “difficult” customers
  • Verbal abusers
  • Blamers
  • Rule Breakers
  • Opportunists
  • Returnaholics

Berry, L.L, and Seiders, K. (2007) “A Cognitive-emotional Theory of Customer

Injustice and Emotional Labor.” Advances in the Psychology of Justice and

Affect. (D. De Cremer, Ed.), 199-226.

slide43
Not Okay customers are:

(bottom line)

Unprofitable:

i.e., not worth the price you are paying.

slide45
Actually….

All Businesses have Partners:

slide46
Partners:

Customers

Competitors

Employees

Governments

Society

The Media

To be successful:

All of these must be kept happy!

slide47
Number 2

The Importance of a Customer Orientation

slide48
Clayson’s Simple Definition:
  • “Marketing is arranging a buyer for a seller.”
  • This means:
  • Marketing is the process of creating
  • satisfying exchanges.
  • 2. Wealth is created through free exchanges.
slide49
Marketing Concept:

“All marketing strategies should be based on

known consumer needs and/or wants.”

slide50
Extension:

“All firms and companies have the same product…

that is, a customer.”

Implications…………..

slide52
Clayson’s Even Simpler Definition:

“Marketing is arranging free exchanges!”

slide53
“Marketing is arranging free exchanges!”

This means…

  • Marketing is the process of creating satisfying exchanges.

2. Wealth is created through free exchanges.

slide58
You go into a store to buy a shirt.

What is the product?

What is the promotion?

What is the price?

What is the place?

slide59
Number 3

What are Customers Like?

slide60
We like to think that

our customers are like

these people….

slide81
Depends on what is meant by rational…
  • The Theory of Utility (economics)
slide82
Depends on what is meant by rational…
  • The Theory of Utility (economics)
  • The Pressure of the Environment
slide84
How much of a

customer’s behavior is

determined by the

environment?

B.F. Skinner

slide86
Depends on what is meant by rational…
  • The Theory of Utility (economics)
  • The Pressure of the Environment
  • The Complication of the Psychic
slide87
How much of a

customer’s behavior is

determined by

unconscious factors?

Sigmund Freud

slide88
Depends on what is meant by rational…
  • The Theory of Utility (economics)
  • The Pressure of the Environment
  • The Complication of the Psychic
slide91
Depends on what is meant by rational…
  • The Theory of Utility (economics)
  • The Pressure of the Environment
  • The Complication of the Psychic
  • The Subtlety of Culture
slide92
How much of a customer’s behavior is

determined by cultural factors?

slide95
Depends on what is meant by rational…
  • The Theory of Utility (economics)
  • The Pressure of the Environment
  • The Complication of the Psychic
  • The Subtlety of Culture
  • The Control of Information
slide97
Marketing Maven:

A maven (also mavin) is a trusted expert in a particular field, who seeks to pass knowledge on to others. The word maven comes from the Hebrew, via Yiddish, and means one who understands, based on an accumulation of knowledge.

slide98
Gatekeepers…

http://movies.nytimes.com/2009/12/20/movies/20scott.html

slide99
Information:

Example: Oliver North and Congress 1987

slide101
5/06/87

“Folks in North’s hometown recall his driving ambition”

Front page story

slide104
5/10/87

“North attracts support from sympathetic viewers.”

Front page story

slide106
5/11/87

“Poll: Americans believe North but not Reagan.”

Front page story

slide107
5/11/87 (Same day)

“Poll: Americans believe North but not Reagan.”

Front page story

slide108
5/12/87

“North comes out as hero during week of hearings”

Front page story

slide110
5/19/87

“Contras sack poor village in Nicaragua: Pregnant woman,

3 kids among killed in attack”

Source: NY Times

Top front page story

slide111
5/19/87 (Same day)

“Reagan urges more funding for Contras”

On page A3

slide112
5/20/87

“Nicaragua gets more aims” [from the Soviet Union]

First page story

slide114
So….

What is news?

slide115
Information control has become a major

problem/opportunity in a connected society.

http://www.youtube.com/watch?v=5YGc4zOqozo

slide116
Number 4

What are They Actually Buying

slide117
Customers do not buy products.

They buy what products DO for them.

slide119
What products do is not always

obvious or tangible…..

slide120
What a product does for one person,

may not be what it does for someone else.

slide124
Number 5

How to Find Out What Customers Want/Need

slide125
What is Information?

Information is something that changes

What You KNOW.

slide126
Information is Something that Changes
  • What You KNOW.
  • It is very valuable… and expensive.
  • It has a very pragmatic value.
slide127
Information:

Value

Dependent upon the value of

decisions that can be made with

a change in what you know.

slide128
Information is Something that Changes
  • What You KNOW.
  • It is very valuable… and expensive.
  • It has a certain value.
  • The amount of information 1/prob.
slide129
Information is Something that Changes
  • What You KNOW.
  • It is very valuable… and expensive.
  • It has a certain value.
  • The amount of information 1/prob.
  • It is property.
  • It always needs to be evaluated.
slide130
Information:
  • Evaluation
  • Who produced it?
  • When was it produced?
  • How was it produced?
  • How was it analyzed?
  • Why was it produced?
  • Who benefits from this information?
  • Why is this information available to me?
slide131
Information:
  • Warning signs:
  • Confirms what you have always known.
  • Confirms what you WANT to believe.
  • Contradicts what you have always known.
  • Is it GOOD THINK?
slide132
Number 5

Getting to Know the Customer

slide133
Getting to Know the Customer

How to obtain information:

1. Do marketing research…

Check out: www:cba.uni.edu/clayson/mba

for a complete outline for research

slide134
Conflicts between MR and Management
  • Personality: The bottom line is that the manager who is using research is
  • probably unlike the person that is producing it.
  • 2.Research may be critical:
  • 3.Money (expense): At times it is an expense without an explicit bottom line.
  • 4.Time - “need it now”: Managers want information “now;” researchers want
  • to supply it “later.”
  • 5.Intuition (art): Successful managers typically have successful track records.
  • Many have assumed that decision making is an “art,” and “art” and research may
  • be seen as incompatible.
  • 6.Past - Future Orientation: Research is ultimately done on past events,
  • while a manager is asking for research to reduce the uncertainty about the future.
  • 7.Pseudo Research: Researchers do not like to produce pseudo research.
  • Managers many times want information that will never be used for decision making
  • for a variety of reasons.
slide135
Managers’ Response to Research and Evolution

1. Stage of Ignorance:

2. Stage of Blind Faith:

3. Stage of Disillusionment:

4. Stage of Sophistication:

slide137
Getting to Know the Customer

How to obtain information:

1. Do marketing research…

Check out: www:cba.uni.edu/clayson/mba

for a complete outline for research

2. Start liking your customers

“My job would be great if it weren’t for the customers.”

Some consultants recommend that top managers

spend 50 percent of their time face-to-facewith

actual customers.

slide138
Getting to Know the Customer

“Spending time with customers is a hundred times

more important than attending staff meetings and

reading monthly reports.”

Jeffrey Fox

slide139
Getting to Know the Customer

How to obtain information:

1. Do marketing research…

Check out: www:cba.uni.edu/clayson/mba

for a complete outline for research

2. Start liking your customers

3. Listen

“It does no good to get close to customers if you

aren’t listening.”

Jennings & Haughton

slide140
Getting to Know the Customer

How to obtain information:

1. Do marketing research…

Check out: www:cba.uni.edu/clayson/mba

for a complete outline for research

2. Start liking your customers

3. Listen

Empathy

Curiosity

Patience

slide141
Getting to Know the Customer

How to obtain information:

4. Don’t be an Info-Snob

“Do you do regular in-depth interviews with the

sales force?

slide142
Getting to Know the Customer

How to obtain information:

4. Don’t be an Info-Snob.

“Do you do regular in-depth interviews with the

people who interact with customers

(clerks, etc.)?

slide143
Coast to Coast

Everyone else is a “flyover.”

slide144
Getting to Know the Customer

“Do you do regular in-depth interviews with the

sales force?

“Do you do regular in-depth interviews with the

people who interact with customers

(clerks, etc.)?

Why Not!!

slide145
Number 7

Creating a Customer-Oriented Organization

slide146
Product Development

Don’t be product driven!

Products are the objects of a transaction.

It is the transaction, not the product, that

is important.

slide147
For example:

If it is the transaction, then

always make it very easy to do the transaction.

Always make it easy for the customer to pay you.

https://online.kitco.com/sellprice/Ordr_Faq.htm

http://www.youtube.com/watch?v=2pkzfjnGoKo

slide148
Product Development
  • The products come from customer
  • needs and/or wants.
  • Products should not come from:
  • What can be done
  • What developers want done
slide149
Product Development

Don’t throw products over the wall!

slide151
Destroy the Bureaucracy!!

“Blow it up as fast as you can!”

slide152
Destroy the Bureaucracy!!

“Anyone found guilty of building or

perpetuating bureaucracies should

be tried on charges of management,

malpractice, found guilty, and spend

serious time in the slammer. “

Jennings & Haughton

slide153
Destroy the Bureaucracy!!

The best idea always win.

Irrespective of where, or from whom, it

comes.

slide154
Destroy the Bureaucracy!!

The best idea always win.

Reward ideas

Even when they are wrong!

slide156
Destroy the Bureaucracy!!

The best idea always win.

Reward ideas

Acknowledge people’s contributions.

Positive reinforcement works almost

every time it is tried.

slide157
All Business is Service!

“People become rich when they

make other people happy.

They become very wealthy

when they make a lot of

people happy.”

Benjamin Stein

slide158
The Importance of Management

Management

Management

Management

slide159
The Importance of Management

Management

Management

Management

Service is no better than management!!

ad