2.1ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallChapter2ObjectivesDefinevalueandsatisfactionandunderstandhowtodeliverthem.Describethenatureofhigh-performancebusinesses.Explainhowtoattractandretaincustomers.Understandwaysofimprovingcustomerprofitability.Definetotalqualitymanagement.2.2ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallCustomerValueCustomersestimatewhichofferwilldeliverthemostvalue.Theythenformanexpectationofvalueandactuponit.Customerdeliveredvalue=totalcustomervalueminustotalcustomercost.2.3ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallDeterminantsofCustomerDeliveredValueTotalcustomervalueTotalcustomercostCustomerdeliveredvalueImagevaluePersonnelvalueServicesvalueProductvalueMonetarycostTimecostEnergycostPsychiccost2.4ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallLet’sTalkAboutValueWhatisavalue-priceratio?Thinkofwaysacompanycanimproveitsoffertothecustomer.Whataretwoimplicationsthetextbookgivesasdelivered-valuemaximization?Let’sDiscuss2.5ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallCustomerSatisfactionSatisfaction:feelingsofpleasureordisappointmentresultingfromcomparingaproduct’sperceivedperformanceinrelationtoexpectations.Satisfactionisafunctionofperceivedperformanceandexpectations.Question:whyarecompaniessointentuponsatisfyingthecustomer?2.6ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallKeysLeadingtoHighPerformanceHigh-PerformanceBusinessOrganization(clickformore)Processes(clickformore)Resources(clickformore)Stakeholders(clickformore)Clicktogoforwardtoslide112.7ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallStakeholdersListfourdifferentkindsofstakeholdersforacompany.Whataresomethingsacompanycandotosatisfystakeholders?Canacompanysatisfyallitsstakeholdersatthesametime?QuickQuizClicktogobacktoslide62.8ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallProcessesCompaniesmustincreasefocuson•New-productdevelopment•Customerattractionandretention•Reengineeringworkflows•Buildingcross-functionalteamsresponsibleforeachprocessClicktogobacktoslide62.9ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallResourcesWhataresomecompanyresources?Defineoutsourcing.Whatarethreecharacteristicsofacorecompetence?Whatisthedifferencebetweencorecompetencesanddistinctivecapabilities?Let’sDiscussClicktogobacktoslide62.10ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallOrganizationandOrganizationalCultureCompany’sorganizationisitstructures,policies,andcorporateculture,allofwhichneedtobenourishedinrapidlychangingworld.Corporatecultureissharedexperiences,stories,beliefs,andnormsthatcharacterizeanorganization.Clicktogobacktoslide62.11ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallValueChainFirminfrastructureHumanresourcemanagementTechnologydevelopmentProcurementInboundlogisticsOutboundlogisticsMarketingandsalesSer-viceOpera-tionsPrimaryActivitiesSupportActivities2.12ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallCoreBusinessProcessesExplainandgiveexamplesofeachofthefollowing:New-productrationalizationOrder-to-remittanceCustomerserviceInventorymanagementCustomeracquisitionandretentionLet’sDiscuss2.13ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallLeviStrauss’Value-DeliveryNetworkCompetitionisbetweennetworks,notcompanies.Thewinneristhecompanywiththebetternetwork.DeliverySears(Retail)Levi’s(Apparel)OrderDeliveryOrderCustomerDeliveryDuPont(Fibers)OrderDeliveryOrderMilliken(Fabric)2.14ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallSatisfiedCustomersRemainloyallongerBuymore(newproductsandupgrades)Spreadfavorableword-of-mouthExhibitmorebrandloyalty(lesspricesensitive)OfferfeedbackReducetransactioncosts2.15ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallCustomerDevelopmentSuspectsProspectsInactiveorex-customersDisqualifiedprospectsPartnersAdvocatesClientsRepeatcustomersFirst-timecustomers2.16ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallLevelsofRelationshipMarketingManycustomers/distributorsMediumnumberofcustomers/distributorsFewcustomers/distributorsAccountableProactivePartnershipProactiveAccountableReactiveAccountableReactiveBasicorreactiveHighmarginMediummarginLowmargin2.17ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallEnhancingCustomerBondingandSatisfactionGiveexamplesofthefollowingwaystodevelopstrongercustomerrelations:Let’sDiscussAddingsocialbenefitsAddingfinancialbenefitsAddingstructuralties2.18ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallCustomer/ProductProfitabilityAnalysisP1HighlyprofitableproductP2ProfitableproductP3LosingproductP4Mixed-bagproductProducts+++Highprofitcustomer+-Mixed-bagcustomer+--LosingcustomerC1C2C3Customers2.19ToaccompanyAFrameworkforMarketingManagementbyKotler©2001PrenticeHallTheProfitTriangleCompetitivead