Price Promotion Place Product Marketing Mix The Four Ps The Four Cs

1.2 2 Confidence Risk and uncertainty are discomforting to buyers Buyer develops expectations based on: 1.Past experiences with former or comparable purchases 2.Brand images conveyed through the execution of marketing efforts The lack of doubt concerning the value one is going to receive from a transaction

Market Orientations Production Manufacturing and distribution effectiveness Manufacturing and distribution effectiveness Product Innovativeness for high performance and quality Cost Relentless focus on cost cutting Supply side – concerns all of the factors necessary in bringing product to market

Market Orientations (cont) Relationship Building long-term interaction between the buyer and seller Selling Aggressive promotion and selling Marketing Responding to customer needs and wants Demand side – expanding the customer base either in the total market, for market share, or among core customers

The average wronged customer will tell _____to ____ people (Over ____ percent will tell more than 20 people.) High Cost of Losing a Customer 1. In the average business, for every customer who bothers to complain, there are _____ others who remain silent.

1.6 6 High Cost of Losing a Customer 3. ______ percent of unhappy customers will never purchase goods or services from you again. 4. If you make an effort to remedy customers’ complaints, _____ percent to _____ percent of them will stay with you.

1.7 7 High Cost of Losing a Customer 5. It costs about ___ times as much to attract a new customer as it costs to keep an old one.

1.8 8 Satisfied Customers Meeting Expectations  Remain loyal longer  Buy more (new products and upgrades)  Spread favorable word-of-mouth  Exhibit more brand loyalty (less price sensitive)  Offer feedback  Reduce transaction costs

1.9 9 Customer Retention  Produce greater levels of purchases per customer  Elicit customer recommendations to others, with enthusiastic endorsements from the most committed  Decrease the proportion of efforts on less profitable customers

Customer Lifetime Value Source: Roger Best 2004

Performance Measures Organization-Focused Metrics Sales Return on Sales Return on Assets Inventory Turnover Market Share Gross Profits Product Defects Billing Errors

Performance Measures Customer-Focused Metrics  Customer Satisfaction  Customer Retention  Customer Perceived Relative Product Quality  Customer Perceived Relative Service Quality  Brand Awareness  Intentions to Purchase  Customer Attitudes

Traditional Approach to Marketing Expenditures

Green-Hills Approach to Marketing Expenditures

Green-Hill Results  Increase in the most valued customer segment  Increased customer spending  Four-percentage point increase in gross profits  Customer retention rate ten percentage points above the past.