1. Marketing Management Dr. Doni P. Alamsyah, MM Meeting 3

2. Creating Long-term Loyalty Relationship Analyzing Customer Markets Analyzing Business Markets Identifying Market Segments and Targets Connecting with Customers

3. 1.What are customer value, satisfaction, and loyalty, and how can companies deliver them? 2.What is the lifetime value of customers, and how can marketers maximize it? 3.How can companies attract and retain the right customers and cultivate strong customer relationships? 4.What are the pros and cons of database marketing? Creating Long-term Loyalty Relationship 1 1

4. Creating Long-term Loyalty Relationships

5. Building Customer Value, Satisfaction, and Loyalty Creating Long-term Loyalty Relationships 1.Customer Perceived Value CHOICE PROCESSES AND IMPLICATIONS DELIVERING HIGH CUSTOMER VALUE APPLYING VALUE CONCEPTS Customer-perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

7. Building Customer Value, Satisfaction, and Loyalty Creating Long-term Loyalty Relationships 2. Total Customer Satisfaction INFLUENCE OF CUSTOMER SATISFACTION CUSTOMER COMPLAINTS MEASUREMENT TECHNIQUES satisfaction is a person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance (or outcome) to expectations.

9. Building Customer Value, Satisfaction, and Loyalty Creating Long-term Loyalty Relationships 3. Product and Service Quality IMPACT OF QUALITY the American Society for Quality’s definition: Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs

11. What are customer value, satisfaction, and loyalty, and how can companies deliver them?

12. Maximizing Customer Lifetime Value Creating Long-term Loyalty Relationships 1. Customer Profitability A profitable customer is a person, household, or company that over time yields a revenue stream exceeding by an acceptable amount the company’s cost stream for attracting, selling, and serving that customer 2. Measuring Customer Lifetime Value Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases

13. Maximizing Customer Lifetime Value Creating Long-term Loyalty Relationships

14. What is the lifetime value of customers, and how can marketers maximize it?

15. Cultivating Customer Relationships Creating Long-term Loyalty Relationships 1. Customer Relationship Management CUSTOMER EMPOWERMENT CUSTOMER REVIEWS AND RECOMMENDATIONS PERSONALIZING MARKETING Customer relationship management (CRM) is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty.

17. Cultivating Customer Relationships Creating Long-term Loyalty Relationships 2. Attracting and Retaining Customers REDUCING DEFECTION RETENTION DYNAMICS MANAGING THE CUSTOMER BASE Campaigns that target loyal customers by reinforcing the benefits they enjoy often also attract new customers

19. Cultivating Customer Relationships Creating Long-term Loyalty Relationships 3. Building Loyalty DEVELOPING LOYALTY PROGRAMS CREATING INSTITUTIONAL TIES INTERACTING WITH CUSTOMERS 4. Win-Backs Creating a strong, tight connection to customers is the dream of any marketer and often the key to long-term marketing success

21. How can companies attract and retain the right customers and cultivate strong customer relationships?

22. Customer Databases and Database Marketing Creating Long-term Loyalty Relationships 1.Customer Databases 2.Data Warehouses and Data Mining 3.The Downside of Database Marketing and CRM

24. The aim of marketing is to meet and satisfy target customers-needs and wants better than competitors. Marketers must have a thorough understanding of how consumers think, feel, and act and offer clear value to each and every target consumer. Analyzing Consumer Markets

25. 1.What Influences Consumer Behavior? 2.Key Psychological Processes 3.The Buying Decision Process: The Five-Stage Model 4.Behavioral Decision Theory and Behavioral Economics Analyzing Consumer Markets 2 2

26. What Influences Consumer Behavior? Analyzing Consumer Markets Chapter 2 1.Cultural Factors 2.Social Factors References Group, Family, Status 3.Personal Factors Age, Accupation, Personality, Life Style

27. How do consumer characteristics influence buying behavior?

28. Key Psychological Processes Analyzing Consumer Markets 1.Motivation: Freud, Maslow, Herzberg 2.Perception 3.Learning 4.Emotions 5.Memory

29. Key Psychological Processes Analyzing Consumer Markets

30. Model of Consumer Behavior

31. Surgery for Beauty

32. The Buying Decision Process: The Five-Stage Model Analyzing Consumer Markets Information Search

33. Analyzing Consumer Markets Evaluation and Purchase Decision

35. Analyzing Business Markets Frederick E. Webster Jr. and Yoram Wind define organizational buying as the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers B-to-B or B-to-C

37. Identifying Market Segments and Targets Market segmentation divides a market into well-defined slices. A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target. Geographic, Demographic, Psychographic, Behavioral