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CUSTOMER ANALYSIS Course: Marketing Management www.aeunike.lecture.ub.ac.id

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CUSTOMER ANALYSIS

Course: Marketing Management

www.aeunike.lecture.ub.ac.id

Traditional vs Modern Customer-Oriented Company Organization

www.aeunike.lecture.ub.ac.id

Who is customer?

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Purchase, use and

consumption

Initiator

User/consumer Influencer

DeciderPurchaser

Consumer Behavior

What Influences it?• Cultural Factors

• Social Factors

• Personal Factors

Key Psychological Processes:

• Motivation

• Perception

• Learning

• Memory

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Understanding customers: the key questions

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WHOIs involved in

buying and consuming?

CUSTOMERS

WHATAre their choice

criteria?

WHENDo they buy/use

the product?

WHYDo they buy/use

the product?

HOWDo they use the

product?

WHEREDo they buy?

Five-Stage Model of Consumer Buying Process

Problem recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

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Customer Perceived Value

Based on the difference between what the customer gets and what customer gives for different possible choices

Increase Value:• raising economic, functional, or emotional

benefits

and/or

• reducing one or more of the various types of costs

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Customer Value Analysis

STEPS:1. Identify the major attributes and benefits that

customers value2. Assess the quantitative importance of the different

attributes and benefit3. Assess the company's and competitors' performances

on the different customer values against their rated importance

4. Examine how customers in a specific segment rate the company's performance against a specific majorcompetitor on an individual attribute or benefit basis

5. Monitor customer values over time

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Total Customer Satisfaction

Measurement Techniques:• Periodic surveys• Customer loss rate• Mystery shoppers

The fact:no matter how perfectly designed and implemented a marketing program is, mistakes will happen

Solution:Make it easy for the customer to complain toll-free numbers, Web sites, and e-mail addresses

(quick answer and two-way communication)

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Customer Lifetime Value

• The net present value of the cash flows attributed to the relationship with a customer

• Emphasis on customer service and long-term customer satisfaction

• Maximizing long-term customer profitability

• For planning customer investment and help toadopt a long-term perspective

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Conceptual Framework for ModelingCustomer Lifetime Value

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Steps to calculate CLV:1. forecasting of remaining

customer lifetime in years2. forecasting of future revenues

year-by-year, based on estimation about future products purchased and price paid

3. estimation of costs for delivering those products

4. calculation of the net present value of these future amount

Customer Relationship Management

The process of carefully managing detailed information about individual customers and all customers “touch points” to maximize customer loyalty

Improve loyalty and retention:– Interacting with customer

– Developing loyalty programs

– Personalizing marketing

– Creating institutional ties

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Influencing Buyer Behavior

• Personality and Self Personality and Self--Concept C– Personality

– Brand personality• Sincerity

• Excitement

• Competence

• Sophistication

• Ruggedness

– Self-concept• Person’s actual self -concept

• Ideal self-concept

• Others’ self-concept

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Influencing Buyer Behavior

• Psychological Factors

– Motivation

• Motive

– Freud’s Theory

• Laddering

• Projective techniques

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Influencing Buyer Behavior

• Maslow’s Theory

Maslow’s

Hierarchy of

Needs

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Influencing Buyer Behavior

• Herzberg’s Theory

– Dissatisfiers

– Satisfiers

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Influencing Buyer Behavior

• Perception– Selective attention

• People are more likely to notice stimuli than relate to a current need

• People are more likely to notice stimuli than they anticipate

• People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli

– Selective distortion

– Selective retention

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Influencing Buyer Behavior

• Learning– Drive

– Cues

– Discrimination

• Beliefs and Attitudes– Belief

• Spreading activation

– Attitude

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Organizational buying

• Fewer buyers

• Larger buyers

• Close supplier-customer relationship

• Geographically concentrated buyers

• Derived demand

• Inelastic demand

• Professional purchasing

• Fluctuating demand

• Several buying influences

• Multiple sales calls

• Directed purchasing

• Reciprocity

• Leasing

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•The business market versus the consumer market

•Business market

Organizational buying

• Buying Situations

– Straight rebuy

– Modified rebuy

– New Task

• Systems Buying and Selling

– Systems buying

– Turnkey solution

– Systems selling

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Participants in the Business Buying Process

• The Buying Center– Initiators

– Users

– Influencers

– Deciders

– Approvers

– Buyers

– Gatekeepers• Key buying influencers

• Multilevel in-depth selling

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Major Influences on Industrial Buying Behavior

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Major Influences on Buying Decisions

• Environmental Factors

• Organizational Factors

– Purchasing-Department Upgrading

– Cross-Functional Roles

– Centralized Purchasing

– Decentralized Purchasing of Small-Ticket Items

– Internet Purchasing

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Major Influences on Buying Decisions

– Other Organizational Factors

• Long-Term Contracts– Vendor-managed inventory

– Continuous replenishment programs

• Purchasing-Performance Evaluation and Buyers’ Professional Development

• Improved Supply Chain Management

• Lean Production– Just-in-time

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Major Influences on Buying Decisions

• Interpersonal and Individual Factors

• Cultural Factors

– France

– Germany

– Japan

– Korea

– Latin America

– Indonesia

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The Purchasing/Procurement Process

• Three Company Purchasing Orientations

– Buying Orientation

• Commoditization

• Multisourcing

– Procurement Orientation

• Materials requirement planning (MRP)

– Supply Chain Management Orientation

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The Purchasing/Procurement Process

• Types of Purchasing Processes

– Routine products

– Leverage products

– Strategic products

– Bottleneck products

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The Purchasing/Procurement Process

• Stages in the Buying Process– Problem Recognition

– General Need Description and Product Specification• Product value analysis

– Supplier Search• Vertical hubs

• Functional hubs

• Direct external links to major suppliers

• Buying alliances– Company buying sites

– Request for proposals (RFPs)

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The Purchasing/Procurement Process

– Proposal Solicitation

– Supplier Selection• Customer value assessment

• Routine-order products

• Procedural-problem products

• Political-problem products

– Order-Routine Specification• Blanket contract

• Stockless purchase plans

– Performance Review• Buyflow map

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Major Influences on Industrial Buying Behavior

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Institutional and Government Markets

• Institutional market

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References

• Kotler, P., & Keller, K.L. (2009). Marketing Management, 13/E. New Jersey: Prentice-Hall.

• Hooley, G., et.al. (2008). Marketing Strategy and Competitive Positioning, 4/E. Prentice Hall.

www.aeunike.lecture.ub.ac.id