Podcast
Questions and Answers
What is the primary focus of tactical marketing?
What is the primary focus of tactical marketing?
Which factor is NOT included in the marketing tactics to address consumer needs?
Which factor is NOT included in the marketing tactics to address consumer needs?
What is the purpose of preparing an action plan in the tactical marketing process?
What is the purpose of preparing an action plan in the tactical marketing process?
How should the success of marketing tactics be evaluated?
How should the success of marketing tactics be evaluated?
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Which of the following is a step included in monitoring the budget for marketing tactics?
Which of the following is a step included in monitoring the budget for marketing tactics?
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What is the primary goal of strategic marketing?
What is the primary goal of strategic marketing?
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Which step in the strategic marketing process involves evaluating the company's internal and external environment?
Which step in the strategic marketing process involves evaluating the company's internal and external environment?
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What does a mission statement primarily define?
What does a mission statement primarily define?
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What does SMART stand for in the context of objective setting?
What does SMART stand for in the context of objective setting?
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Which strategy focuses primarily on achieving low-cost leadership?
Which strategy focuses primarily on achieving low-cost leadership?
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What is the first step in the strategic marketing process?
What is the first step in the strategic marketing process?
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Which of the following is NOT a category under which marketing strategies can be classified?
Which of the following is NOT a category under which marketing strategies can be classified?
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During the marketing strategy development phase, which activity is most closely associated with identifying the target market?
During the marketing strategy development phase, which activity is most closely associated with identifying the target market?
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What foundational aspect supports customer loyalty?
What foundational aspect supports customer loyalty?
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Which of the following best defines customer value?
Which of the following best defines customer value?
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Which level of customer value represents customer expectations from a purchase?
Which level of customer value represents customer expectations from a purchase?
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Which type of customer is characterized by a mismatch between their needs and the company's offerings?
Which type of customer is characterized by a mismatch between their needs and the company's offerings?
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What is an example of desired customer value?
What is an example of desired customer value?
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What defines unanticipated customer value?
What defines unanticipated customer value?
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How should a company approach true friends among their customer base?
How should a company approach true friends among their customer base?
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What is a characteristic of butterflies in the context of customer loyalty?
What is a characteristic of butterflies in the context of customer loyalty?
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What is the main objective of differentiation in marketing strategy?
What is the main objective of differentiation in marketing strategy?
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Which of the following describes a focused market strategy?
Which of the following describes a focused market strategy?
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What does forward integration involve?
What does forward integration involve?
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What is market penetration focused on?
What is market penetration focused on?
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Which strategy involves the introduction of new but unrelated products?
Which strategy involves the introduction of new but unrelated products?
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What does retrenchment specifically refer to in a business context?
What does retrenchment specifically refer to in a business context?
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What is the intention behind market development as a strategy?
What is the intention behind market development as a strategy?
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Liquidation in a business context refers to what action?
Liquidation in a business context refers to what action?
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What is a primary reason freeloaders are not considered profitable for businesses?
What is a primary reason freeloaders are not considered profitable for businesses?
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Which strategy is highlighted as a way for companies to retain customer loyalty?
Which strategy is highlighted as a way for companies to retain customer loyalty?
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How can companies effectively communicate with customers in the modern context?
How can companies effectively communicate with customers in the modern context?
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What is one method companies can use to enhance customer service?
What is one method companies can use to enhance customer service?
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Why are local businesses in the Philippines focusing on customer service tools?
Why are local businesses in the Philippines focusing on customer service tools?
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What kind of events can companies conduct to boost loyalty among customers?
What kind of events can companies conduct to boost loyalty among customers?
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What role do social networking sites play in customer service?
What role do social networking sites play in customer service?
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How should companies approach language usage to improve customer engagement?
How should companies approach language usage to improve customer engagement?
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Study Notes
Customer Loyalty and Value Creation
- Customer loyalty hinges on excellent customer service, not just marketing.
- Creating customer value involves multiple functions, including sourcing, operations, processing, communication, human resources, administration, finance, and accounting.
Building Customer Value
- Customer value is the satisfaction derived from a customer's experience, relative to the cost of that experience.
- This cost includes any sacrifice (e.g., money, time, knowledge, data).
- Customer actions include purchases, visits, orders, or sign-ups.
Levels of Customer Value
- Basic and Expected Levels: These include essential business requirements, such as clean restaurants with tables and utensils. Failure to meet these basic needs negatively impacts customer value.
- Desired Customer Value: This encompasses customer preferences and expectations, differentiating a business from competitors. Providing friendly, helpful staff is an example.
- Unanticipated Customer Value: This exceeds customer expectations, like a gas station attendant cleaning a customer's windshield without charge.
Types of Customers
- Strangers: Customers whose needs don't align with the company's offerings. The company doesn't need to invest significant effort in obtaining their business.
- Butterflies: Customers who aren't loyal to a specific brand, seeking the best deals and often switching brands. Profit from these customers is short-term.
- True Friends: Customers whose needs match the company's offerings. They are loyal and profitable, requiring company investment to maintain relationships.
- Freeloaders: Customers loyal but not profitable. Their needs don't fit the company's offerings well, leading to limited profit potential. Companies may need to increase prices to maintain profitability.
Relationship Development Strategies
- Loyal customers are more profitable.
- Communication: Frequent and effective communication (e.g., emails, social media) is important for retaining customers, particularly in the modern digital environment.
- Rewards: Customer loyalty programs with discounts, freebies, or perks encourage continued patronage.
- Special Events: Sponsoring or hosting parties, concerts, or contests fosters relationships between companies and their loyal customers.
- Enhanced Customer Service: Companies can improve service by outsourcing to third-party organizations for customer inquiries and technical support.
- Language Support: Provide promotional materials or customer service options in regional languages to reach a wider audience.
Customer Service in the Philippine Business Environment
- Local companies' success depends on customer service, which, using customer-oriented culture and technology usage.
- Email and SMS: Effective communication tools for customer interaction.
- Social Networking Sites: Used actively by customers for inquiries and complaints, with companies responding promptly and directing customers to private messaging for further assistance.
- Live Chat Support: Facilitates real-time interaction by offering immediate customer service.
Strategic Marketing
- Strategic marketing is the overarching plan for a company, encompassing its vision, goals, and actions for profitability and productivity.
Strategic Marketing Process
- This process involves establishing a clear direction to meet specific organization goals.
- Key steps include mission identification, situation analysis, objective setting, strategy evaluation and control, and marketing strategy development. This starts with knowing where the company wants to be (objectives) then devising strategies and tactics to get there.
Steps in the Strategic Marketing Process
- Step 1: Mission Identification: Defining the company's purpose, customers, products, and geographic area of operation.
- Step 2: Situation Analysis: Evaluating the market, customers, competitors, and the company's internal and external environments to identify strengths, weaknesses, opportunities, and threats.
- Step 3: Objective Setting: Defining SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives that drive the marketing plan, such as sales goals, market share targets, and profitability.
- Step 4: Marketing Strategy Development: Choosing a suitable marketing strategy (cost leadership, differentiation, focused) and developing an action plan.
- Step 5: Strategy Evaluation and Control: Regularly monitoring and evaluating the marketing strategies to identify any needed adjustments.
Types of Marketing Strategies
- Cost Leadership: Emphasizing low costs to gain leadership in the industry (e.g., mass production to lower prices.)
- Differentiation: Offering unique product attributes or features to stand out and create strong consumer preference.
- Focused: Focusing on a specific, profitable market segment through tailored product development and enhanced customer service.
Marketing Strategy Sub-categories
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Forward Integration: Gaining ownership or control over distributors (retailers).
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Backward Integration: Gaining control or ownership over suppliers.
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Horizontal Integration: Gaining control or ownership over competitors.
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Market Penetration: Increasing market share of current products and services in current markets.
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Market Development: Introducing existing products or services into new geographical areas.
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Product Development: Improving existing products or services, or creating new products to increase sales.
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Related Diversification: Bringing out related new products or services.
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Unrelated Diversification: Offering completely new and unrelated products.
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Retrenchment: Halting declining operations to reduce costs or assets.
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Divestiture: Selling part or all of a business for a tangible/monetary value.
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Liquidation: Selling assets- likely a failing/bankrupt company. This is the last step, selling assets so the company can be dissolved.
Tactical Marketing
- Tactical marketing refers to the actions taken to execute the strategic plan, outlining a detailed action program for a shorter period of time.
Tactical Marketing Process
- This involves defining the tactics or tools needed to implement the marketing plan.
- The core details include the action plan, budget, measurement criteria for the tactics, and the responsibility for implementation.
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Description
Explore the fundamentals of customer loyalty and how it is influenced by customer service and value creation. This quiz covers the various levels of customer value, expectations, and the importance of multiple business functions in creating a satisfactory customer experience.
