♥♥ Customer Satisfaction & Customer Value $$
Marketing is the delivery of customer value at a profit, as trade creates wealth.
Exchange is a process by which both parties benefit (company & customers).
To distinguish between customer satisfaction and customer value, the concepts of needs, wants and demands are covered, along with the product that has to provide a solution, in order to satisfy the consumer.
Satisfaction from trade is met by the supply of a product that provides a solution to these customer wants, needs and demands.
NEEDS a state of deprivation, marketers don’t stipulate them, see Maslow’s Hierarchy Of Human Needs.
WANTS are human needs shaped by culture and personality.
DEMANDS wants with buyer power, with limited resources arises high competition.
Understand the distinction between the two will aid your marketing toward building good customer relationships first and being rewarded for your efforts second.
It will also help to manage the rewards of not just increased profits but increased demand from customers.
This increased demand is the result from your organisation perceived value or the value of a specific product or service, whether that range from quality, price or use.
Introducing the five marketing management philosophies that are production, product, selling, and marketing/societal marketing.
These marketing strategies can be profitable shop floor customer relationships or through social media marketing.
You will begin in your marketing career to spot and predict marketing trends and mediums, this could be a surge in non-profit marketing, globalisation, or new technology.
The economy and economics also play a significant role too, whether through interest rates, trade between countries, or inflation.
While, the concept of marketing metrics or measuring marketing performance can be used to asses performance.
Research Stages of Demand:
What Is Marketing?
Marketing is an activity toward a set of institutions or processes to create, deliver, and exchange products or services that have value for customers, business professionals and society.
Or as stated above is the delivery of customer satisfaction for profit.
Activities that create or exchange products/services with others also exchange values.
In the last 50 years marketing has evolved from the old-fashioned ‘telling & selling’ to a focus on long-term customer relations, and today real-time virtual customer service.
Five steps to successful marketing:
1- Know market (suppliers, competitors, law, etc.) & target customer needs/wants
2- Technology and social focus marketing approach
3- Create value and brand price/quality
4- Strengthen relationships and loyalty
5- Reward & reinvest customer value, market share, & profits
These are proven steps in marketing to develop, while the last step is a sustainable strategy to encourage further growth and consistency.
Repeat after me…Product, Price, Place, Promotion…Marketing Four Ps
…PRODUCT, (packaging, quality, brand, design, services, ect.)
…PRICE, (payment methods, return policy, discounts, ect.)
…PLACE, (inventory, mediums, coverage, location, transportation, storage, ect.)
…PROMOTION, (advertising, social media, public relations, sales, ect.)
For a video on the supply chain (or value delivery network), that is how raw materials are directed to manufacturers, wholesalers sell to re-sellers, and so on to the end consumer, watch this market coordination at work in I, Pencil the movie.
Management Perspective >>> Customer Perspective
PRODUCT >>> SOLUTION
PRICE >>> COST
PLACE >>> CONVENIENCE
PROMOTION >>> COMMUNICATION
Now, you be beginning to visualise how marketing creates customer value and satisfaction, here is a REPETITIVE diagram to help you:
↔ Needs, Wants & Demands ↔ Products, Services & Experiences ↔ Values, Satisfaction & Quality ↔ Exchange, Transactions & Relationships ↔ Markets ↔ Needs, Wants & Demands ↔ Products, Services & Experiences ↔ Values, Satisfaction & Quality ↔ Exchange, Transactions & Relationships ↔ Markets ↔ Needs, Wants & Demands ↔ Products, Services & Experiences ↔ Values, Satisfaction & Quality ↔ Exchange, Transactions & Relationships ↔ Markets ↔ Needs, Wants & Demands ↔ Products, Services & Experiences ↔ Values, Satisfaction & Quality ↔ Exchange, Transactions & Relationships ↔ Markets ↔ Needs, Wants & Demands ↔ Products, Services & Experiences ↔ Values, Satisfaction & Quality ↔ Exchange, Transactions & Relationships ↔ Markets ↔
A market offering is a product of GOODS, IDEAS, PLACES, SERVICES or EXPERIENCES that can be offered to a market to satisfy a need/want.
Forming the basis of important product decisions and concept.
Conversely, marketing myopia is to pay attention to individual products rather than needs which the product satisfies.
Philp Kotler is an American marketing author, consultant and professor.
See his three videos Philp Kotler: Marketing Strategy, Philp Kotler on Marketing Lessons from Barack Obama’s 2008 US election campaign – a BVO interview, and Marketing Summit 2007.
Perceived Value vs Satisfaction
While your at it have a look at this video ACTIVEWEAR as it humorously demonstrates marketing.
Here, we can recognise perceived value in the video being the value gained in owning a product (activewear) versus costs from obtaining a product (activewear), while satisfaction is obtained from perceived performance (image value) in relation to expectations (personal value).
We can also begin to see that the market is made up of actual buyers and potential buyers, who share similar needs/wants, represented in the culture and/or sport community.
Remember the first stem to marketing success that I highlighted above, are you paying attention there?
You better be as this can create an important difference in your quality of work.
Let me restate myself, that is to target your customer needs and wants.
The art of marketing management is to choose a target market and build relationships who freely market your brand for you.
BE OPEN TO NEW IDEAS:
Today’s companies are building direct and fewer customer relationships that are more profitable.
Relationship marketing creates, enhances and maintains “value-laden” relationships.
Customer Relationship Management builds and maintains profitable customer relationships by delivering customer value and satisfaction.
Partner Relationship Management companies are forming cross-functional selling teams.
Levels of customer relationships range from basic to full-partnerships.
Delivering a good service or product today can result in an returning and long-term customer.
It is vital a company ensure the retaining of customers, through special discounts and club memberships, or innovating better products against what the competition is offering.
Increase customer involvement, interaction and engagement through activities to create lasting impressions and differentiation.
As the cost of attracting new customers is five times as much compared to retaining old customers.
Customer lifetime value states that if you lose a customer, you lose thousands that could have been spend over their lifetime.
In contrast to demarketing to decrease customer base, in order to better provide quantity and quality to meet specific products that may lose their quality with overuse.
Make leaving a hard option to do by offering more benefits in relation to their cost of leaving.
Pursuing marketing satisfaction in the companies capabilities of exchange.
Start to Design a Winning Marketing Strategy Now!
The marketing strategy outlines what customers the company will serve, to deliver target customers.
Two essential questions to ask: (i) What customers will we serve? (ii) How can we best serve these customers?
Targeting: (i) Target market. (ii) Value proposition.
The marketing mix is a set of tools a company uses to implement this strategy, combining marketers to deliver the intended value to the customer.
To communicate with consumer about offer and persuade of its merits.
Markets can be consumer markets or B2B markets, distinct from ‘industry’ that are sellers.
SELLERS search for BUYERS.
While, identifying their consumer needs they work toward arranging offers or set prices, and keep record for future loyalty.
Marketing involves waiting on final buyers to out-do competitors.
Having Shared With You Essential Tools and Concepts, do remember to record your success and PRESENT EVIDENCE! Market that EVIDENCE to your target audience!
Featured image supplied free from Pixabay.
Copyright © 2016 Zoë-Marie Beesley
Licensed under a Creative Commons Attribution 4.0 International License.