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The customer is always right-handed: Customer satisfaction, customer sophistication and market granularity Lecture 2.

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Presentation on theme: "The customer is always right-handed: Customer satisfaction, customer sophistication and market granularity Lecture 2."— Presentation transcript:

1 The customer is always right-handed: Customer satisfaction, customer sophistication and market granularity Lecture 2

2 A route-map for market- led strategic change Value-based marketing strategy New marketing meets old marketing Strategic thinking and thinking strategically Customer value strategy and positioning The strategic pathway Strategic market choices and targets Market sensing and learning strategy Strategic relationships and networks Change strategy Strategic gaps Organization and processes for change Implementation process and internal marketing Part I Customer value imperatives Part II Developing a value-based marketing strategy Part III Processes for managing strategic transformation The Customer is always right-handed

3 Agenda The customer conundrum The sophisticated customer Market shifts and quakes –consumer market changes –market granularity –re-shaped business-to-business markets How can marketing processes respond to these changes?

4 The customer conundrum Customer service is bad all over Customer satisfaction and customer loyalty –satisfaction and loyalty are not the same The real customer problem –do we know what service to maximise? –can we deliver what we promised? –happy customers and happy employees? The problem is strategy

5 Customer satisfaction versus customer loyalty Customer loyalty Customer satisfaction High Low High Low Satisfied stayers Happy wanderers Hostages Dealers

6 Customer expectations and outcomes The service and quality we promise The service and quality the customer receives Good Bad HighLow OK. You get what you pay for. I am in LOVE – I didnt know you were this good! I HATE you bastards – you lied to me! OK. Its bad, but its what I expected.

7 Service and quality versus customer satisfaction Impact of service and quality on customer satisfaction/retention Service and quality level High Low High Low Smart servicers Over- servicers Under- servicers Non- servicers

8 Customer satisfaction and the internal market External customer satisfaction Internal customer satisfaction High Low High Low Synergy happy customers and happy employees Internal euphoria Never mind the customer, what about the squash ladder? Coercion you WILL be committed to customers, or else… Alienation unhappy customers and unhappy employees

9 The sophisticated customer Issue – customers and markets have changed: –Customers wised up to marketing –Know what marketers are up to –Traditional marketing consistently underestimates intelligence of customer Many customer demands which we need to respond to:

10 The sophisticated customer Who are you calling fickle – I just changed my mind? Value is what we say it is By the way, free is one of my favourite prices Loyalty is for sellers not buyers Quality or cheap? Both please

11 The sophisticated customer Lets play the waiting game and see what happens Make life simpler But not too simple But, I dont like change Make it specially for me Instant gratification is just not fast enough

12 The sophisticated customer But dont make me angry And now entertain me And now peel me a grape Make all the bad stuff in the world go away There will be no secrets any more

13 Market shifts and quakes – Consumer markets The typical family The MySpace Generation Saga Louts The pink market The wealthy The poor

14 Market shifts and quakes – Consumer markets Ethnic markets The green and ethical consumer The Neo-Cromwellians Scared consumers

15 Market shifts and quakes – Market granularity Shift in focus from megatrends to microtrends Broad market trends average out important differences The issue shifts from huge cultural shifts to new identity groups

16 Market shifts and quakes – Reshaped business-to-business markets Dominant customers Impact of customer power Bad customers –who play the rules –who break the rules –who make the rules

17 How can marketing processes respond? Radical and disruptive changes in market structures have left traditional marketing behind The urgent challenge is to update how we do marketing to reflect how customers and markets have changed


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