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    Kotler03 Basic 04

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    Della Gbedemah
    The document discusses how companies can create customer value, satisfaction, and loyalty. It covers determining customer value and satisfaction, customer-delivered value, loyalty, satisfaction, product and service quality, maximizing customer lifetime value, building loyalty, reducing customer defection, and forming strong customer bonds.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Kotler03 Basic 04

    Uploaded by

    Della Gbedemah
    5 views20 pages
    The document discusses how companies can create customer value, satisfaction, and loyalty. It covers determining customer value and satisfaction, customer-delivered value, loyalty, satisfaction, product and service quality, maximizing customer lifetime value, building loyalty, reducing customer defection, and forming strong customer bonds.

    Original Title

    kotler03_basic_04

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    © © All Rights Reserved

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    The document discusses how companies can create customer value, satisfaction, and loyalty. It covers determining customer value and satisfaction, customer-delivered value, loyalty, satisfaction, product and service quality, maximizing customer lifetime value, building loyalty, reducing customer defection, and forming strong customer bonds.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    5 views20 pages

    Kotler03 Basic 04

    Uploaded by

    Della Gbedemah
    The document discusses how companies can create customer value, satisfaction, and loyalty. It covers determining customer value and satisfaction, customer-delivered value, loyalty, satisfaction, product and service quality, maximizing customer lifetime value, building loyalty, reducing customer defection, and forming strong customer bonds.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    A FRAMEWORK for

    MARKETING MANAGEMENT

    Chapter 4
    Creating Customer Value,
    Satisfaction, and Loyalty

    Kotler Keller
    Chapter Questions

    • How can companies deliver customer


    value, satisfaction, and loyalty?
    • What is the lifetime value of a customer?
    • How can companies cultivate strong
    customer relationships?
    • What is database marketing and why is it
    important?

    4-2
    Determining Customer
    Value and Satisfaction

    Customer perceived value (CPV)


    is the difference between the
    prospective customer’s evaluation
    of all the benefits and costs
    of an offering and the perceived
    alternatives

    4-3
    Determinants of
    Customer-Delivered Value
    Total customer cost Total customer value
    • Monetary cost • Product value
    • Time cost • Services value
    • Energy cost • Personnel value
    • Psychic cost • Image value

    4-4
    Loyalty

    Loyalty is a deeply held commitment to


    rebuy or repatronize
    a preferred product or service
    in the future despite situational
    influences and marketing efforts having
    the potential to cause switching behavior

    4-5
    Satisfaction

    Satisfaction is a person’s
    feelings of pleasure or disappointment
    resulting from comparing
    a product’s perceived performance
    in relation to his or her expectations

    4-6
    Product and Service Quality

    Quality is the totality of features and


    characteristics of a product or
    service that bear on its
    ability to satisfy
    stated or implied needs

    4-7
    Forms of Quality

    • Conformance quality
    • Performance quality

    4-8
    Total Quality Management

    TQM is an organization-wide
    approach to continuously
    improving the quality of
    all the organization’s processes,
    products, and services

    4-9
    Maximizing Customer Lifetime Value

    • Customer profitability
    • Customer equity
    • Lifetime value

    4-10
    Estimating Lifetime Value

    • Annual customer revenue: $500


    • Average number of loyal years: 20
    • Company profit margin: 10%
    • Customer lifetime value: $1,000

    4-11
    Drivers of Customer Equity

    • Value equity
    • Relationship equity
    • Brand equity

    4-12
    Framework for CRM

    • Identify prospects and customers


    • Differentiate customers by needs and
    value to company
    • Interact to improve knowledge
    • Customize for each customer

    4-13
    Improving the Value of
    Company’s Customer Base

    • Reduce the rate of defection


    • Increase longevity
    • Enhance customer growth potential
    • Terminate low-profit customers
    • Focus more effort on high-profit
    customers

    4-14
    The Customer-Development Process

    • Suspects
    • Prospects
    • First-time customers
    • Repeat customers
    • Clients
    • Member
    • Partners

    4-15
    Building Loyalty

    • Basic
    • Reactive
    • Accountable
    • Proactive
    • Partnership

    4-16
    Reducing Customer Defection

    • Define and measure retention rate


    • Distinguish causes of customer attrition
    • Estimate profit loss associated with loss of
    customers
    • Assess cost to reduce defection rate
    • Gather customer feedback

    4-17
    Forming Strong Customer Bonds

    • Add financial benefits


    • Add social benefits
    • Add structural ties

    4-18
    Database Key Concepts

    • Customer • Business
    database database
    • Database • Data warehouse
    marketing • Data mining
    • Mailing list

    4-19
    Increasing Customer Share Requirements

    • Estimate
    • Select
    • Pursue
    • Document

    4-20

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