Chapter 13 Revised

7/27/2019 Chapter 13 Revised

http://slidepdf.com/reader/full/chapter-13-revised 1/10

PowerPoint Presentation by Charlie Cook

The University of West Alabama

Copyright © 2006 Thomson Business & Professional Publishing.

All rights reserved.

Part 4 Focusing on the Customer:

Marketing Growth Strategies

Customer

Relationships:

The Key Ingredient



Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved. 13 –4

What is Customer Relationship

Management?

• Customer Relationship Management (CRM)

– A marketing strategy of maximizing shareholder value

through winning, growing, and keeping the right

customers

• Focus of CRM

–Customers rather than products

–Changes in processes, systems, and culture

– All channels and media involved in the marketing

effort, from the Internet to field sales




Sources of the Next Sale

Exhibit 13.1




Components of Customer Satisfaction

• Key Elements of Customer Satisfaction: –Basic benefits of the product or service

• The elements customers expect all competitors to deliver

–General support services, such as customer

assistance

–A recovery process for counteracting customers’ bad

experiences

–Extraordinary services that excel in meetingcustomers’ preferences and make the product or

service seem customized




Extraordinary Service: Customer Loyalty

• Ways to Provide Extraordinary Service: –Nam ing names (personalized attention), valued 10

times more on the ―worthy of loyalty‖ scale

–Custom care in giving the customers what they want

on an individual basis

–Keeping in touch to let customers know that you’re

taking time to think about them; they don’t forget it

–“Boo

- boo research”

—taking the time to reach out tolost customers to learn why they went elsewhere and

let them know that you want them back




Handling Customer Complaints

• Advantages of Small Firms in Dealing withCustomer Complaints

–Deal directly with issues as they arise

–Easier to give customers attention and respect

–Employees are more empowered to resolvecomplaints

• Learning about Customer Service Concerns

–Direct personal observation

–Feedback forms from customers

–Monitoring customer service communications


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Using Technology to Support

Customer Relationship Management

Telephone

Contacts

Customer

Relations

Online

Shopping

Customer

Support

CRM Software



Simplified Model of Consumer Behavior

Exhibit 13.5

Stage 1 Stage 2 Stage 3 Stage 4



Understanding Psychological

Influences on Customers

• Needs

– Are the starting point for all behavior.

• Categories of needs: physiological, social, psychological, and

spiritual

– Are seldom completely or permanently satisfied (e.g.,

daily newspaper).

–Function together (e.g., the desire for status clothing).

–Consumers may purchase the same product to satisfydifferent needs (e.g., Internet access).



Understanding Psychological

Influences on Customers (cont’d.)

• Perceptions

–The individual processes that give meaning to the

stimuli confronting consumers

• Whatever is perceived depends on the characteristics of boththe stimulus and the perceiver.

• Perceptual Categorization

–The process of grouping similar things so as to

manage huge quantities of incoming stimuli• Creates a barrier (i.e., brand loyalty) to competing brands

Documents

Chapter 13 Revised