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This document discusses key concepts for understanding and improving customer satisfaction and value. It defines customer value as the difference between what customers receive (delivered value) and what they give up (costs). Companies can improve value by reducing costs and enhancing different dimensions of delivered value, like product quality, personnel, image, and services. The document also discusses total quality management, customer loyalty programs, and using customer/product profitability analysis to focus on the most valuable relationships. The overall aim is helping companies attract and retain customers through superior value delivery.
Kotler lama 2
- 2. ©2000 Prentice Hall Objectives Define value & satisfaction - understandDefine value & satisfaction - understand how to deliver themhow to deliver them The nature of high-performanceThe nature of high-performance businessesbusinesses How to attract & retain customersHow to attract & retain customers Improving customer profitabilityImproving customer profitability Total quality managementTotal quality management
- 3. ©2000 Prentice Hall Determinants of Customer Delivered Value Image valueImage value Personnel valuePersonnel value Services valueServices value Product valueProduct value Total customer value Total customer value Monetary costMonetary cost Time costTime cost Energy costEnergy cost Psychic costPsychic cost Total customer cost Total customer cost Customer delivered value Customer delivered value
- 4. ©2000 Prentice Hall Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.
- 5. ©2000 Prentice Hall Resources Organization and aligning... High Performance Business Processes By improving critical business... Stake- holders Set strategies to satisfy key...
- 6. ©2000 Prentice Hall Margin Margin The Generic Value Chain Primary Activities Support Activities Procurement Serv- ice Technology Development Human resource management Firm infrastructure Inbound Logistics Opera- tions Out- bound Logistics Market- ing and sales
- 7. ©2000 Prentice Hall Levi Strauss’ Value-Delivery Network Competition is betweenCompetition is between networksnetworks, not companies., not companies. The winner is the company with the better network.The winner is the company with the better network. Delivery Sears (Retail) Sears (Retail) Levi’s (Apparel) Levi’s (Apparel) Order Delivery Order CustomerCustomer Delivery Du Pont (Fibers) Du Pont (Fibers) Order Delivery Order Milliken (Fabric) Milliken (Fabric)
- 8. ©2000 Prentice Hall Satisfied Customers: Are loyal longerAre loyal longer Buy more (new products & upgrades)Buy more (new products & upgrades) Spread favorable word-of-mouthSpread favorable word-of-mouth Are more brand loyal (less priceAre more brand loyal (less price sensitive)sensitive) Offer feedbackOffer feedback Reduce transaction costsReduce transaction costs
- 9. ©2000 Prentice Hall Levels of Relationship Marketing Many customers/ distributors Medium number of customers/ distributors Few customers/ distributors AccountableProactivePartnership Proactive Accountable Reactive Accountable Reactive Basic or reactive High margin Medium margin Low margin
- 10. ©2000 Prentice Hall Inactive or ex-customers Customer Development PartnersAdvocatesClients Repeat customers First-time customers Suspects Prospects Disqualified prospects
- 11. ©2000 Prentice Hall Customer/Product Profitability Analysis P1 Highly profitable product P2 Profitable product P3 Losing product P4 Mixed-bag product P r o d u c t s + + +High profit customer + - Mixed-bagMixed-bag customercustomer + - -Losing customer C1 C2 C3 Customers
- 12. ©2000 Prentice Hall The Profit Triangle Valuecreation Competitive advantage Internaloperations ProfitProfitProfitProfit
- 13. ©2000 Prentice Hall Quality QualityQuality is theis the totality of featurestotality of features and characteristicsand characteristics of a product orof a product or service that bear onservice that bear on its ability to satisfyits ability to satisfy stated or impliedstated or implied needs.needs. #1
- 14. ©2000 Prentice Hall Review Define value & satisfaction - understandDefine value & satisfaction - understand how to deliver themhow to deliver them The nature of high-performanceThe nature of high-performance businessesbusinesses How to attract & retain customersHow to attract & retain customers Improving customer profitabilityImproving customer profitability Total quality managementTotal quality management