Marketing: Customer Satisfaction

• Marketing has two key aspects: a philosophy focused on customer satisfaction, and a set of activities to enact that philosophy.
• Marketing involves creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society, as per the American Marketing Association.
• Essentially, marketing anticipates and fulfills consumer needs through mutually beneficial exchanges, striving for profitability and efficiency over competitors.
• For profit-driven companies, consumers are the priority, aiming to satisfy their needs.

Customer Satisfaction

• This is achieved when a product meets or exceeds customer expectations.
• Satisfaction occurs when performance surpasses expectations
• Dissatisfaction results when performance falls short
• Mere satisfaction is achieved when performance equals expectations

Measuring Satisfaction

• Implement as a continuous effort
• Employ formal surveys
• Analyze customer feedback and complaints
• Engage with staff
• Gather comprehensive information

Two-Factor Model

• Hygiene factors lead to dissatisfaction if unmet.
• Satisfiers boost satisfaction when present
• E.g. a clean hotel room is a hygiene factor, and a chocolate on a pillow is a satisfier

Benefits of Customer Satisfaction

• Reduced costs for acquiring customers
• Solid base profit
• Increased revenue
• Savings in costs
• More word-of-mouth referrals
• Ability to charge premium prices

Concept of Exchange

• Exchange involves a seller and a buyer.

Five Conditions for Exchange

• There must be two parties involved: a buyer and a seller.
• Both parties must possess something of value.
• Effective communication and delivery are essential.
• Parties should be free to accept or decline the offer.
• A desire to engage with the other party is necessary.

Marketing Management Philosophies

• Production orientation: Focus on efficient production
• Product orientation: Emphasis on product quality and features
• Sales orientation: Focus on aggressive sales techniques
• Consumer (marketing) orientation: Prioritizing consumer wants and needs
• Societal marketing orientation: Considering societal well-being
• Relationship marketing orientation: Building long-term customer relationships

Sales vs Consumer Orientations

• Sales focus is inward (maximizing sales volume), while a consumer focus is outward (satisfying consumer wants).
• Sales sees the business as selling goods/services; consumer focused see it as satisfying consumer wants/needs.
• Sales uses intensive advertising/promotion, while consumer approach uses coordinated marketing activities.
• Sales targets everybody, consumer targets specific groups

Implementing the Marketing Concept

• This involves changes in authority and responsibility
• The importance of new opportunities must be acknowledged
• A firms business needs to be known
• Recognition of the importance of competitive advantage is a must

Changes in Authority and Responsibility

• Marketing's implementation necessitates firm-wide relationship revisions.
• Non-marketing staff may experience reduced authority.
• Marketing research staff may see increased authority.
• Participation is encouraged in planning
• Gradual implementation is recommended

Importance of New Opportunities

• Evaluate potential ventures with these questions in mind: What business are we in? Does it align with our scope? Will it create a lasting competitive edge?

The Firm's Business

• Define your business by addressing: What product type? What customer need? Which customer type? Which geographical area?

Defining the Firm's Business

• Instead of focusing on just goods and services, the question, "What business are we?" should be answered in terms of customer benefits, because it encourages: focus on customer needs, innovation, and awareness of changing preferences.

Competitive Advantage

• Firms should establish a competitive edge
• They should be aware of indirect competition
• A rational decision should be implemented
• Reasons for buying should be clear

Differentiation Factors

• Service quality should be differentiated
• Customer value should be high
• Customer satisfaction should be optimized
• Customer-oriented personnel should be hired
• Well-trained employees are a must
• Employee empowerment should be enforced
• Teamwork is key

Competitive Advantage Examples

• Cost: Shoprite Checkers, The Crazy Store, Mr Price
• Quality: Woolworths, Mercedes-Benz
• Flexibility: Taxis, Giovanni’s
• Location: Waterfront, Shell Ultra City, Spaza shops
• Safety: Mercedes Benz, Volvo
• Image: Ray-Ban, Mont Blanc
• Product: All Gold
• Design: Schick
• Distribution: Pick n Pay, Woolworths

The Marketing Process

• Understand business and mission
• Set objectives
• Analyze information via SWOT
• Formulate a strategy
• Implement strategy
• Measure performance
• Evaluate efforts

Marketing Concepts

• Marketing Strategy: The overarching approach to achieve marketing goals.
• Marketing Plan: A detailed, written document outlining marketing activities.
• Marketing Programme: A set of coordinated marketing activities to execute the marketing plan.

Role of Marketing

• Marketing encompasses planning and leading
• Marketing includes controlling and organizing

Criticisms of Marketing

• It creates discrepancy of quantity
• It creates discrepancy of assortment
• It can cause spatial separation
• Marketing leads to separation in time
• It leads to separation of information
• It causes separation in ownership
• Marketing results in separation in value

Why Study Marketing

• Marketing impacts society significantly
• Marketing is vital for businesses
• Marketing offers many job opportunities
• Marketing affects daily life