Non-Monetary Aspects of Customer Relationship Marketing

Non-Monetary Aspects of Marketing

• Customer satisfaction is high when performance exceeds expectations, and low when it falls short.
• Development and management of customer relationships hinge on perceived value.

Exchanges and Relationship Marketing

• Marketing focuses on satisfying needs and wants through exchanges between parties.
• Exchanges involve obtaining desired goods by offering something in return, extending beyond mere buying and selling.

Market Dynamics

• Buyers possess distinct needs and wants, satisfied through exchanges and relationships.
• Modern marketing operates as a two-way mechanism, with active buyer interaction and engagement.

Modern Marketing System

• Involves various entities like companies, suppliers, intermediaries, competitors, and the final consumer.
• Key environmental forces include technological, economic, political, and cultural influences that affect marketing dynamics.

Customer Value-Driven Marketing Strategy

• Marketing management combines the art and science of targeting markets and building profitable customer relationships.
• Effective marketing aims to make selling unnecessary by facilitating strong engagement and value creation.

Core Marketing Concepts

• Needs: Basic human deprivations (e.g., hunger, shelter).
• Wants: Specific desires shaped by culture and personality (e.g., specific foods).
• Demand: A want supported by purchasing power (e.g., willing to pay BDT350 for food).

Market Offerings

• Products fulfill needs and wants through a combination of products, services, information, and experiences.
• The emphasis should be on overall benefits and experiences rather than just product features.

Value and Satisfaction

• Value is determined by the equation: Benefit – Cost.
• Customer satisfaction reflects whether products/services meet or exceed expectations.

Customer Segmentation and Targeting

• Segmentation divides the market into groups with shared characteristics, allowing for targeted marketing strategies.
• Demographic segmentation considers factors like age and income, while psychographic factors involve lifestyle and values.

Value Proposition

• A clear set of benefits or promises offered to customers to meet their needs effectively distinguishes a brand in the market.

Marketing Concepts

• Production Concept: Focus on efficiency and distribution, but may lead to myopia.
• Product Concept: Prioritizes quality and features but fails when other variables are neglected.
• Selling Concept: Relies on aggressive promotion and sales efforts.
• Marketing Concept: Centers on customer satisfaction to achieve organizational goals.
• Societal Marketing Concept: Balances consumer desires with societal well-being and company profit.

Integrated Marketing Plan

• An integrated marketing program utilizes the marketing mix (Product, Price, Promotion, Place) to deliver value to target customers.

Customer Relationship Management

• Effective management of customer relationships enhances perceived value and satisfaction.
• Customer perceived value contrasts benefits against costs to evaluate market offerings relative to competition.

Customer Satisfaction

• Satisfaction is measured by how well product performance aligns with buyer expectations, influencing loyalty and word-of-mouth promotion.

Customer Engagement in the Digital Age

• Modern marketing fosters ongoing customer participation in brand conversations and experiences.
• Consumer-generated marketing involves both invited feedback and organic discussion on social media.

Capturing Value from Customers

• Maintaining existing customers is more cost-effective than acquiring new ones; loyal customers contribute significantly to revenue.
• Customer Lifetime Value quantifies the expected revenue stream from a customer over their lifetime.

Building Customer Equity

• Customer equity reflects the total potential value of all customers combined.
• Strong customer loyalty leads to increased customer equity, serving as a predictor of company performance.

This quiz explores the non-monetary aspects of perceived value and customer satisfaction in relationship marketing. It discusses how performance relative to expectations influences customer satisfaction and the importance of exchanges in fulfilling needs and wants. Test your understanding of these key concepts in developing customer relationships!