Customer Centric Organizations

What are customer centric organizations? Customer centricity is a strategic commitment to focus every resource of the firm on serving and delighting profitable customers. Shared visions and values: The essence of customer centricity is in vision, a set of values, and a belief that the future of the firm is embedded in the minds of consumers. Cross Functional Integration: Customer centricity is achieved by marketing and sales, customer call centers and CRM software linked closely to production, HR and finance. System wide simultaneous training: Training of all members at all levels from CEO to front line sales people. Customer based metrics: Customer centricity require changing from metrics based on product lines, geographic divisions, to metrics based on core customers and segments.

How the value is communicated to the customer is most important? From Market Analysis to Market Strategy: Where does consumer behavior fit? Goal of customer centric organization is to provide consumers with more value than its competitors. Value is the difference between what consumers give up for a product and the benefits they receive. How the value is communicated to the customer is most important?

Marketing Strategy Marketing Strategy: It involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or services. It includes: Market analysis Market Segmentation Brand Strategy Implementation

Customer Centric Marketing Strategy Consumer Implementation Marketing Mix Strategies Market Analysis Market Segmentation

1. Market Analysis It is the process of analyzing changing consumer trends, current and potential competitors, company strengths and resources and the technological, legal and economic environment. It include: Consumer insight and product development Consumer environment Corporate strength and resources Current and potential competitors Market Environment

Market Analysis Consumer Insight and Product Development: Consumer insight means understanding of consumer’s expressed and unspoken needs and realities that affect how they make life, brand and product choices. These insights can lead to a new product, innovation in existing product, brand extension etc. Consumer Environment: Examining demographic trends, personal and group influences, consumer’s knowledge, attitudes, and motivations, the process by which consumers make their purchase and consumption decisions, and changing consumer needs, wants and lifestyles.

Corporate Strengths and Resources: Market Analysis Corporate Strengths and Resources: Examining financial stability and resources of the company, technological, personnel, managerial, production, research and marketing abilities. Balancing market opportunities with corporate resources and strengths. Current and potential competitors Market environment: State of economy, government regulations, physical conditions, technology.

2. Market Segmentation Market Segmentation is the process of identifying groups of people who behave in similar ways to each other, but somewhat differently than other groups. Market aggregation or mass marketing occurs when organizations choose to market and sell the same product or service to all consumers.

How to Segment Consumer Markets Psychographic Lifestyle Activities Interest Opinion Purchase and consumption behaviors Shopping location Preferences Frequency of purchase Media Used Price Sensitivity Brand Loyalty Benefits Sought How used Rate of use Values and Culture Personality Demographics Age Gender Ethnicity Income Education Family Size Nationality Life Stage Marital Status Occupation Religion Living Arrangements

How to Segment Consumer Markets Situational Work Vs Leisure usage Time Where used Geographical National boundaries State and regional boundaries Urban Vs Rural

Addressing the needs The quest to be consumer driven has led many firms to offer products or service tailored to different market segments. It becomes costly and complex when consumer’s needs grow increasingly diverse. Mass customization is customizing goods or services for individual customers in high volumes and at relatively low costs. Mass customization pay off in terms of value to the company requires understanding what type of customization customers value the most, which varies in different situations.

Profitability of Market Segmentation The ultimate goal of segmentation is increased customer satisfaction and profitability. Profitability occurs when the economic value to consumers is higher than the cost of creating the value.

Criterion for choosing segments Measurability: Ability to obtain information about the size, nature and behavior of a market segment. Accessibility: Degree to which segments can be reached through promotional campaigns. Substantiality: Refers to the size of the market. Small segments may not generate enough volume to recover cost. Congruity: How similar members within the segment exhibit behaviors or characteristics that correlate with consumption behavior.

3. Marketing mix strategies Product: It includes the total bundle of utilities obtained by consumers in the exchange process. Price: Total cost given up by consumers in exchange for a product. Place: Deciding most effective outlets through which to sell their products and how best to get them there. Promotion: It include advertising, public relations, sales promotion, and personal sales.

The value of brands in marketing strategy Brand is a product or product line, store or service with an identifiable set of benefits, wrapped in a recognizable personality, carrying with it a connection between product and customers. Developing brands that create brand equity requires excellence with both the functional and emotional elements of the brand. Functional Benefit: Performance, quality, price, reliability and logistics. Emotional Benefit: Image, personality, style and feelings.

The value of brands in marketing strategy Brand Promise: Describing what consumers can expect in exchange for their money. Brand Equity: The difference in value created by a brand less the cost of creating the brand. Or the difference in profitability between firms with powerful brands and those with weak brands. Brand Personality: It is the reflection consumers see of themselves or think they will develop by using a brand. Brand Protection: By promising a certain outcome, brands reduce the risk to consumers that a product or service may not deliver as expected.

Seven R of Marketing Mix Research Rate Resources Retailing Reliability Reward Relationship

Implementation Best strategies are rendered worthless without superior implementation in the market place.

Thank You !