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Creating - Customer - Value - Satisfaction - Week 9

This document discusses key concepts for creating customer value, satisfaction, and loyalty from chapters 1 and 5 of the 14th edition of the marketing management textbook. It covers determining factors of customer perceived value and delivered value, definitions of loyalty, value propositions, frameworks for customer relationship management, and building customer bonds. The summaries focus on the essential high-level information presented in the document.

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Melanie Cruz Convento
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28 views16 pages

Creating - Customer - Value - Satisfaction - Week 9

This document discusses key concepts for creating customer value, satisfaction, and loyalty from chapters 1 and 5 of the 14th edition of the marketing management textbook. It covers determining factors of customer perceived value and delivered value, definitions of loyalty, value propositions, frameworks for customer relationship management, and building customer bonds. The summaries focus on the essential high-level information presented in the document.

Uploaded by

Melanie Cruz Convento
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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MARKETING MANAGEMENT

14th edition

5
Creating
Customer Value,
Satisfaction, and
Loyalty

Kotler Keller
Value and Satisfaction
•Perceived Value
– The customer’s evaluation of the difference
between benefits and costs.
– Customers often do not judge values and
costs accurately or objectively.
•Customer Satisfaction
– Product’s perceived performance relative to
customer’s expectations.

CHP: 1&5-2
Determinants of
Customer Perceived Value
Total customer benefit Total customer cost

Product benefit Monetary cost

Services benefit Time cost

Personal benefit Energy cost

Image benefit Psychological cost

CHP: 1&5-3
Determinants of Customer-Delivered
Value
Total
Product Personal
customer
value value
value
Customer-
delivered
value
Total
Monetary Energy
customer
cost cost
cost

CHP: 1&5-4
Loyalty

A deeply held commitment to re-buy


or re-patronize a preferred product
or service in the future despite situational
influences and marketing efforts having
the potential to cause switching behavior.

CHP: 1&5-5
The Value Proposition

The whole cluster of benefits the


company promises to deliver
CHP: 1&5-6
Measuring Satisfaction
Periodic
Periodic Surveys
Surveys

Customer
Customer Loss
Loss Rate
Rate

Mystery
Mystery Shoppers
Shoppers

Monitor
Monitor competitive
competitive
performance
performance

CHP: 1&5-7
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.

CHP: 1&5-8
Total Quality Management

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

CHP: 1&5-9
Maximizing Customer Lifetime Value

Customer
Profitability

Customer Lifetime
Equity Value

CHP: 1&5-10
Framework for CRM

Identify prospects and customers

Differentiate customers by needs


and value to company

Interact to improve knowledge

Customize for each customer

CHP: 1&5-11
CRM Strategies
Reduce
Reduce the
the rate
rate of
of defection
defection

Increase
Increase longevity
longevity

Enhance
Enhance “share
“share of
of wallet”
wallet”

Terminate
Terminate low-profit
low-profit
customers
customers
Focus
Focus more
more effort
effort on
on
high-profit
high-profit customers
customers
CHP: 1&5-12
The Marketing Funnel

CHP: 1&5-13
The Customer-Development
Process
Suspects

Prospects Disqualified

First-time Repeat
customers customers Clients Members

Partners
Ex-customers

CHP: 1&5-14
Building Loyalty

Partnership

Proactive

Accountable

Reactive

Basic
CHP: 1&5-15
Forming Strong Customer Bonds

Add financial
benefits

Add social Add structural


benefits ties

CHP: 1&5-16

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