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8/7/2019 Customer Satisfaction, Loyalty, and Retention
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Customer Satisfaction, Loyalty, and
Retention
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` Segmentation, Firm-level classification, product-service levelclassification.
` Customer Satisfaction Module (CSM) and ABC Analysis.
` Need for customer satisfaction measurement.
` Customer relationship management (CRM)
` Process of identifying and maintaining customer, dealers and
large individual buyer-user.
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Reason for Non- Achievement of CRM
` Lack of relevant market knowledge.
` Internal strengths and weakness.
` Failure to be flexible
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Aspects of Customer Satisfaction
` Rational issues.
` Non-rational issues.
` Image and attitude-oriented issues.
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Achieving Customer Satisfaction
` Classification of customer and prospects.
` Listing of important customer and their executives.
` Qualitative assessments of the perception of service level.
` Segmental optimum criteria set (OCS)
` Comparative evaluation of the major suppliers
` Computation of dissatisfaction/satisfaction gaps (DSS)
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Customer Retention
` Identify relevant prospects.
` Convert them to customers.
` Maintenance marketing ensure
` Retention
` Brand loyalty
` Technical, commercial and managerial comparisons.
` 4 Ps (Products, price, place, promotion)
` P5 (internal, inter-department cohesive process of the effective
markets)
` P6 (quality of trained professionals, especially, effective problem
solver)
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Industrial Marketing Research
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` Present demand
` Future potential
` Derived demand
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Nature of Marketing Research
` Content : what the researcher attempts to study and why.
` Method : the conceptual basis.
` The Methodology for investigation.
` Technique : procedures or tactics
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Scope of industrial marketing research
` Assessment of the demand
` Potential for existing products and services.
` Identifying the future scope.
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Marketing Research Process
` Situational factor
` The economic status.
` Technical and technological
factor
` The political and legal status
` Specific scope
` Geographical coverage
` Types of end-users to be
studies number
` Depth of research needed
` Types and quality of
investigators
` Sampling Frame
` Sample size
` Research instruments
` Structured
` Unstructured
` Quantitative (rational) scales
` Qualitative (subjective)scales
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Industrial Marketing Intelligence System
` Internal, External or a combination.
` Collect relevant data
` Identify source
` Organize Industrial research
` Marketing Research Design
` Basis for research design
` Product/service type
` Level of competition
` Stage of product life cycle (PLC)
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Applications of Marketing Research
` Quantitative studies quantify
` Total market demand and potential assessment
` Impact of changing governmental rules and regulations.
` Projection of probable market share and growth rates.
` Total market studies.
` Other types of studies
` Image studies
` New product/service introduction studies
` Qualitative studies to find out the need
` Futuristic studies.
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Standard Industrial Products and
Services
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` Marketing-mix parameters (6Ps) are standardized
` Product specifications (P1)
` Commercial terms (P2)
` Methods of distribution (P3)
` Promotion (P4)
` Internal process (P5)
` People (P6)
Relevant marketing Organization
o People
o Process
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Major Problem Areas
` Technological constraints and competition` Low customer preference
` Distribution channel problems
` Purchase criteria of buyers
` Changes required in pricing system
` Types of costs
` Method of costing
` Full costing
` Marginal costing
` Relative contribution approach
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Basic Steps for Marketing
` Industrial buyers behavior` Situational aspects
` Assessment of the buyers· relevant background
` Product-specific factor (PSF)
` Company-specific factor (CSF)
` Information handling habits of buyers
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Assessment of the industrial buying process
` Identify relevant members of the decision making unit (DMU)` Assess their needs and wants
` Assess the strengths and weaknesses of the existing
established vendor
` Perception on the present service levels
` Existing gaps
` Decide whether it should try to enter this market.
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` Achieving Customer Satisfaction` Targeted end-users·
` Product-service strategy
` Product line performance evaluation
` Organizational structuring
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Fabricated Industrial Products
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` Designed to cater to the specific needs and wants of specificclients
` Marketing Aspects
` Product classification
` Need organizational structure need for an integratedapproach.
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Effective business strategy (annual or even long-tem business strategy
Effective marketing strategy
Relevant marketing-mix parameters (6 Ps)
Sales/marketing organization : needed structuring
Actual operations through field-level control and direction
Timely internal audit (management control system)
Follow-up, feedback, and re-planning (a never-ending process)
STEPS FOR A SYNERGISTIC APPROACH
annual sales plan (ASP)
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` Effective strategy formulation` Design a research proposal
` Assess the buying firm·s work environment
` Repeated meeting with buyers, assess
` Symptoms
` Probable alternative
` Assess the competitors strengths and weaknesses.
` Assess the aims of the buying firm·s DMU
` Assess which members have the decision making powers
` How can each of the key members be influenced
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` Systems Marketing
` Marketing Strategies for Industrial Service Firms
` Marketing Strategies and tactical and positioning issues
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Capital Equipment and Services
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` Centralized firm
` Mixed decentralized private group
` Profit-conscious private firm
Capital Item
Categorization
`
Miracle·s product classification` A very high purchase unit value
` Very high purchase significance to buyers and users
` Need for considerable effort on the part of the buyer in locating the
right supply source, equipment, model, or service
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` Complexity in technical usage, calling for meticuloustraining of all operating personnel
` Very high need for after-sales service
` Before purchase decision are taken
` During the process of purchase decision making and` After purchase decision have been taken
` The information handling of the buyers and other
concerned DMU members which depend on the buying
company·s ¶culture· and decision making process and thesize of the buying firm.
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` The new product concept` Prospective buyer segments for the new system.
` Competition
` Actual market opportunities
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Business-to-Business Marketing
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` E-commerce` E-commerce is an effective medium for selling products,
services and contents over the Internet.
` E-Procurement increases a company·s effectiveness
` Lowering the procurement costs` Minimizing the paper work
` Improving the supplier relationships
` Reducing unauthorized purchasing and
` Providing employee-level empowerment by eliminating paperand the labor-intensive process associated with the current
system.
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Models of B2B MarketingOnline catalogues
Credit card
processing
Company
electronic
catalogs
Company
Warehouse
ManufactureWarehouse
Third party
e-fulfillmentcompany
BusinessBusiness
Business pay electronically through
credit card or PO
Distribution is through UPS/FedEx/USPS
trucking, or ships
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B to B internet
auction site
(i.e., trade out)
Business
Business
Business
Business
Business
Business
Highest bidder at closing pays
through credit card or PO
Distribution is through UPS/FedEx/USPS
trucking, or ships
Bid
Bid
Bid
THEAUCTION MODEL
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Community Market Makers
B 2 B
marketplace
Suppliers
Suppliers
Business A
Business B
Businesses place
product and services in
the marketplace
Businesses look at the
marketplace to find products and
services in a virtual industry
THE COMMUNITY MARKET-MAKER MODEL
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Exchanges or digital marketplaces
Exchange
Suppliers
Suppliers
Business A
Business B
Suppliers receive
request and bid for
REP
Businesses place RFP in
the exchange, requesting
product pricing
THE EXCHANGE MODEL
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Why Use E-Commerce
` Quality, service, and value are the backbone of e-commerce` Ease of use
` Privacy
` Responsiveness
` Online Marketing
` E-CRM
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Benefits of CRM
` CRM implementation in business-to-business marketing` Significant increase in customer profitability due to
improvements in the processes of customer acquisition and
customer value maximization through cross selling and up
selling, credit and risk recovery, debt recovery, and customer
retention.
` The ability to deliver the improves levels of services
demanded by customers, now and in the future, through the
delivery of more relevant communication to customers.
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` The technology (both hardware and software) available candeliver significant benefits, if driven by well-focused business
objectives. E-CRM can bring substantial benefits to an
organization by threading these interaction and linking them
to the organization.
` Eliminating slip-through of customer interaction.
` Improved response time.
` Increased customer referrals.
` Higher revenues through cross selling and up selling
` Reduced customer queries through web self-help resolution.
` Increased user productivity
` Savings from automated routing, automated reporting and
the use of auto responses.
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` E-Business
` E-marketplace
E-business
(E-commerce+
e-service +e-government)
Revenue model
Sale of good/service
Advertising
Industry consortium
Pricing
Buyer dominatedSeller dominated
Market oriented
Business models
Fixed price
AuctionsTender
Consortia
Tar get market
Niche
Broad
Pr oduct
Sales of goods/service
Information
Advertisement banners
Agent/brokerage service
R&D
Pr oduct delivery
Physical
Virtual
Business scope
B2B
B2CB2G
C2B
Payment modesPhysical
Virtual
The dimensions of e-business
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Support activities
Firm infrastructure
Human resource management
Technology development
ProcurementInbound
logisticsOperations
Outbound
logisticsMarketing
and salesServices
PURCHASING AND THE VALUE CHAIN
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Models of e-marketplace
` Supplier-oriented marketplace` Buyer-oriented marketplace
` Intermediary ²oriented marketplace (hubs)
` Functional hubs or horizontal exchanges
` Vertical hubs : This exchange-specific industry or market
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E-procurement
` Corporate procurement involves the purchasing of materials,services and equipment used for operation.
` Three stages namely-
` Information gathering
`
Negotiation` Order processing
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Traditional procurement processes
drawbacks
` Wastage of time due to` Lengthy approval processes
` Paper flow
` Repetition of labor because of
` Incorrect/insufficient information,` Manual mistake and
` Inefficient communication
` Increased expenditure in terms of
` Paper costs
` Administrative costs
` Operational costs and
` Maverick/ off-contract buying
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` E- procurement applications` Lower procurement costs
` Less paperwork
` Improved supplier relationship
` Reduction in unauthorized purchasing
` Employee empowerment
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Key requirements in an-e- procurement
system
` Configuration` Easy-to-use process
` Security
` The advantages of e- procurement are as follows-
` Saving in purchase (a saving of 1% in purchase because of e- procurement isequivalent to increasing the sales by 5%.)
` Reduced purchase order processing cycle time (by 70%)
` Improved order accuracy
` Enhanced user satisfaction
` Deployment of resources for strategic activities rather than for managing
transaction
` Supplier benefits in the form of improved processes
` Contract compliance
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Reverse auction
` A strategic relationship is less important` Price is the main decision factor
` Many qualified suppliers
`
Standard (but not pure commodity) product` Low to medium strategic importance
` Purchase can be ¶lotted·
` benchmarks
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Benefits to buyers
`
Reduced costs` Maximized value
` Increased efficiency
Benefits to vendors
` Additional channels` Mean of unloading surplus inventory
` Means of comparing
` Price discrimination by market segment
` Reduced credit risks
` Lower collection costs
` Lower marketing cost per unit sold
` Test prices without risk
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` Enterprise marketing automation (EMA)` EMA functionality
` Campaign Management
` Identification of the prospect
`
Generation of the lead` Prospect and customer information capture
` Lead qualification
` Distribution of leads to appropriate segments
` Campaign execution (promotions, event planning)
` Response management
` Refinement
` Channel management