KOTCHA18.ppt 242KB Sep 15 2006 07:09:12 PM
18-1
18-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 18
18
Competitive Strategies:
Building Lasting Customer
Relationships
Copyright 1999 Prentice Hall
Defining
Defining Customer
Customer Value
Value
Total
Total Customer
Customer
Cost
Cost
(Product,
(Product, Service,
Service,
Personnel,
Personnel, &&
Image
Image Values)
Values)
(Monetary,
(Monetary, Time,
Time,
Energy,
Energy, &&
Psychic
PsychicCosts)
Costs)
Customer
Customer
Delivered
Delivered Value
Value
(Profit
(Profit to
to the
the
Consumer)
Consumer)
Total
Total Customer
Customer
Value
Value
-==
Copyright 1999 Prentice Hall
18-2
18-2
Customer
Customer Satisfaction
Satisfaction
18-3
18-3
Product’s Actual Performance
Customer Satisfaction Results When a Company’s
Performance Has Fulfilled a Buyer’s Expectations.
Performance Exceeds ExpectationsCustomer is Delighted
Buyer’s Expectations Are Based On:
Customer’s Past Buying Experiences
Opinions of Friends & Associates
Marketer/ Competitor Information & Promises
Performance Below Expectations Customer is Dissatisfied
Copyright 1999 Prentice Hall
Total
Total Customer
Customer Satisfaction
Satisfaction
• Highly satisfied (delighted) customers produce
benefits:
– They are less price sensitive,
– They remain customers longer,
– They talk favorably about the company and products to
others.
• Delighted customers have emotional and rational
preferences for products, and this creates high
customer loyalty.
• Therefore, the purpose of Marketing is to generate
customer value profitably.
Copyright 1999 Prentice Hall
18-4
18-4
The
The Need
Need for
for Customer
Customer Retention
Retention
18-5
18-5
The Key to Customer Retention is Superior Customer
Value and Satisfaction. Companies Must Consider:
New
New
Customer
Customer
Costs
Costs
Customer
Customer
Lifetime
Lifetime
Value
Value
Copyright 1999 Prentice Hall
Lost
Lost
Customer
Customer
Costs
Costs
Building
Building Customer
Customer Satisfaction
Satisfaction and
and
Loyalty
Loyalty by
by Relationship
Relationship Marketing
Marketing
Relationship Marketing Involves Creating, Maintaining, and
Enhancing Strong, Long-Term Relationships with
Customers and Other Stakeholders.
Methods for Building Relationships Include Offering:
Financial
Financial
Benefits
Benefits
Social
Social
Benefits
Benefits
Structural
Structural
Ties
Ties
Copyright 1999 Prentice Hall
18-6
18-6
Value
Value Chain
Chain
18-7
18-7
Support Activities
Inbound
Inbound
Logistics
Logistics
Operations
Operations
Outbound
Outbound
Logistics
Logistics
Primary Activities
Copyright 1999 Prentice Hall
Marketing
Marketing
and
and
Sales
Sales
Margin
Firm
Firm Infrastructure
Infrastructure
Human
Human Resource
Resource Management
Management
Technology
Technology Development
Development
Procurement
Procurement
Service
Service
Order
Raw
Raw Material
Material
Supplier
Supplier
Copyright 1999 Prentice Hall
Delivery
Order
Vendor
Vendor
Delivery
Order
Producer
Producer
Delivery
Order
Retailer
Retailer
Delivery
Order
Customer
Customer
Delivery
Customer
Customer Value-Delivery
Value-Delivery Network
Network
18-8
18-8
Total
Total Quality
Quality Marketing
Marketing
Necessary
NecessaryBut
ButMay
May
Not
NotBe
BeSufficient
Sufficient
Does
DoesNot
Not
Cost
CostMore
More
Quantum
Quantum
Leaps
Leaps
Continuous
Continuous
Improvement
Improvement
18-9
18-9
Quality
Qualityis
isin
inthe
the
Eyes
Eyesof
ofthe
theCustomer
Customer
Pursuing
Pursuing
aa Total
Total
Quality
Quality
Marketing
Marketing
Strategy
Strategy
Cannot
CannotSave
Save
Poor
PoorProduct
Product
Copyright 1999 Prentice Hall
Every
EveryCompany
Company
Activity
Activity
Total
TotalEmployee
Employee
Commitment
Commitment
High
HighQuality
Quality
Partners
Partners
Competitor
Competitor Analysis
Analysis
Identifying
IdentifyingCompetitors
Competitors
Assessing
Assessing Competitors
Competitors
Determining
DeterminingObjectives
Objectives
Identifying
IdentifyingStrategies
Strategies
Assessing
AssessingStrengths
Strengthsand
and
Weaknesses
Weaknesses
Estimating
EstimatingReaction
Reaction
Patterns
Patterns
Selecting
Selecting Competitors
Competitorsto
to
Attack
Attackand
and to
toAvoid
Avoid
Copyright 1999 Prentice Hall
18-10
18-10
Developing
Developing Competitive
Competitive Marketing
Marketing
Strategies
Strategies
Basic
Basic Competitive
Competitive Strategies
Strategies
Overall
Overall Cost
Cost
Leadership
Leadership
Focus
Focus
Differentiation
Differentiation
Middle
Middle of
of
the
the Road
Road
Copyright 1999 Prentice Hall
18-11
18-11
Developing
Developing Additional
Additional Competitive
Competitive
Marketing
Marketing Strategies
Strategies
Value
Value Disciplines
Disciplines
Operational
Operational
Excellence
Excellence
Product
Product
Leadership
Leadership
Copyright 1999 Prentice Hall
Customer
Customer
Intimacy
Intimacy
18-12
18-12
Competitive
Competitive Positions
Positions
Competitive Positions
18-13
18-13
Competitive Strategies
Market
Market Leader
Leader
Firm
Firmwith
withthe
theLargest
Largest
Market
MarketShare
Share
Market
Market Challenger
Challenger
Runner-Up
Runner-UpFirms
Firmsthat
that
Fight
FightHard
Hardto
toIncrease
Increase
Market
MarketShare
Share
Expand
ExpandTotal
TotalMarket
Market
Protect
ProtectMarket
MarketShare
Share
Expand
ExpandMarket
MarketShare
Share
Full Frontal Attack
Indirect Attack
Market
Market Followers
Followers
Runner-Up
Runner-UpFirms
Firmsthat
thatWant
Want
to
toHold
HoldTheir
TheirShare
ShareWithout
Without
Rocking
Rockingthe
theBoat
Boat
Market
Market Nichers
Nichers
Firms
Firmsthat
thatServe
ServeSmall
Small
Segments
SegmentsNot
NotBeing
Being
Pursued
Pursuedby
byOther
OtherFirms
Firms
Copyright 1999 Prentice Hall
Follow
FollowClosely
Closely
Follow
Followat
ataaDistance
Distance
By
ByCustomer,
Customer,Market,
Market,
Quality-Price,
Quality-Price,Service
Service
Multiple
MultipleNiching
Niching
Competition-Centered
Competition-Centered
Balancing
Balancing Customer
Customer and
and
Competitor
Competitor Orientations
Orientations
18-14
18-14
Customer-Centered
Customer-Centered
No
No
Yes
Yes
No
No
Product
Product
Orientation
Orientation
Customer
Customer
Orientation
Orientation
Yes
Yes
Competitor
Competitor
Orientation
Orientation
Market
Market
Orientation
Orientation
Copyright 1999 Prentice Hall
18-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 18
18
Competitive Strategies:
Building Lasting Customer
Relationships
Copyright 1999 Prentice Hall
Defining
Defining Customer
Customer Value
Value
Total
Total Customer
Customer
Cost
Cost
(Product,
(Product, Service,
Service,
Personnel,
Personnel, &&
Image
Image Values)
Values)
(Monetary,
(Monetary, Time,
Time,
Energy,
Energy, &&
Psychic
PsychicCosts)
Costs)
Customer
Customer
Delivered
Delivered Value
Value
(Profit
(Profit to
to the
the
Consumer)
Consumer)
Total
Total Customer
Customer
Value
Value
-==
Copyright 1999 Prentice Hall
18-2
18-2
Customer
Customer Satisfaction
Satisfaction
18-3
18-3
Product’s Actual Performance
Customer Satisfaction Results When a Company’s
Performance Has Fulfilled a Buyer’s Expectations.
Performance Exceeds ExpectationsCustomer is Delighted
Buyer’s Expectations Are Based On:
Customer’s Past Buying Experiences
Opinions of Friends & Associates
Marketer/ Competitor Information & Promises
Performance Below Expectations Customer is Dissatisfied
Copyright 1999 Prentice Hall
Total
Total Customer
Customer Satisfaction
Satisfaction
• Highly satisfied (delighted) customers produce
benefits:
– They are less price sensitive,
– They remain customers longer,
– They talk favorably about the company and products to
others.
• Delighted customers have emotional and rational
preferences for products, and this creates high
customer loyalty.
• Therefore, the purpose of Marketing is to generate
customer value profitably.
Copyright 1999 Prentice Hall
18-4
18-4
The
The Need
Need for
for Customer
Customer Retention
Retention
18-5
18-5
The Key to Customer Retention is Superior Customer
Value and Satisfaction. Companies Must Consider:
New
New
Customer
Customer
Costs
Costs
Customer
Customer
Lifetime
Lifetime
Value
Value
Copyright 1999 Prentice Hall
Lost
Lost
Customer
Customer
Costs
Costs
Building
Building Customer
Customer Satisfaction
Satisfaction and
and
Loyalty
Loyalty by
by Relationship
Relationship Marketing
Marketing
Relationship Marketing Involves Creating, Maintaining, and
Enhancing Strong, Long-Term Relationships with
Customers and Other Stakeholders.
Methods for Building Relationships Include Offering:
Financial
Financial
Benefits
Benefits
Social
Social
Benefits
Benefits
Structural
Structural
Ties
Ties
Copyright 1999 Prentice Hall
18-6
18-6
Value
Value Chain
Chain
18-7
18-7
Support Activities
Inbound
Inbound
Logistics
Logistics
Operations
Operations
Outbound
Outbound
Logistics
Logistics
Primary Activities
Copyright 1999 Prentice Hall
Marketing
Marketing
and
and
Sales
Sales
Margin
Firm
Firm Infrastructure
Infrastructure
Human
Human Resource
Resource Management
Management
Technology
Technology Development
Development
Procurement
Procurement
Service
Service
Order
Raw
Raw Material
Material
Supplier
Supplier
Copyright 1999 Prentice Hall
Delivery
Order
Vendor
Vendor
Delivery
Order
Producer
Producer
Delivery
Order
Retailer
Retailer
Delivery
Order
Customer
Customer
Delivery
Customer
Customer Value-Delivery
Value-Delivery Network
Network
18-8
18-8
Total
Total Quality
Quality Marketing
Marketing
Necessary
NecessaryBut
ButMay
May
Not
NotBe
BeSufficient
Sufficient
Does
DoesNot
Not
Cost
CostMore
More
Quantum
Quantum
Leaps
Leaps
Continuous
Continuous
Improvement
Improvement
18-9
18-9
Quality
Qualityis
isin
inthe
the
Eyes
Eyesof
ofthe
theCustomer
Customer
Pursuing
Pursuing
aa Total
Total
Quality
Quality
Marketing
Marketing
Strategy
Strategy
Cannot
CannotSave
Save
Poor
PoorProduct
Product
Copyright 1999 Prentice Hall
Every
EveryCompany
Company
Activity
Activity
Total
TotalEmployee
Employee
Commitment
Commitment
High
HighQuality
Quality
Partners
Partners
Competitor
Competitor Analysis
Analysis
Identifying
IdentifyingCompetitors
Competitors
Assessing
Assessing Competitors
Competitors
Determining
DeterminingObjectives
Objectives
Identifying
IdentifyingStrategies
Strategies
Assessing
AssessingStrengths
Strengthsand
and
Weaknesses
Weaknesses
Estimating
EstimatingReaction
Reaction
Patterns
Patterns
Selecting
Selecting Competitors
Competitorsto
to
Attack
Attackand
and to
toAvoid
Avoid
Copyright 1999 Prentice Hall
18-10
18-10
Developing
Developing Competitive
Competitive Marketing
Marketing
Strategies
Strategies
Basic
Basic Competitive
Competitive Strategies
Strategies
Overall
Overall Cost
Cost
Leadership
Leadership
Focus
Focus
Differentiation
Differentiation
Middle
Middle of
of
the
the Road
Road
Copyright 1999 Prentice Hall
18-11
18-11
Developing
Developing Additional
Additional Competitive
Competitive
Marketing
Marketing Strategies
Strategies
Value
Value Disciplines
Disciplines
Operational
Operational
Excellence
Excellence
Product
Product
Leadership
Leadership
Copyright 1999 Prentice Hall
Customer
Customer
Intimacy
Intimacy
18-12
18-12
Competitive
Competitive Positions
Positions
Competitive Positions
18-13
18-13
Competitive Strategies
Market
Market Leader
Leader
Firm
Firmwith
withthe
theLargest
Largest
Market
MarketShare
Share
Market
Market Challenger
Challenger
Runner-Up
Runner-UpFirms
Firmsthat
that
Fight
FightHard
Hardto
toIncrease
Increase
Market
MarketShare
Share
Expand
ExpandTotal
TotalMarket
Market
Protect
ProtectMarket
MarketShare
Share
Expand
ExpandMarket
MarketShare
Share
Full Frontal Attack
Indirect Attack
Market
Market Followers
Followers
Runner-Up
Runner-UpFirms
Firmsthat
thatWant
Want
to
toHold
HoldTheir
TheirShare
ShareWithout
Without
Rocking
Rockingthe
theBoat
Boat
Market
Market Nichers
Nichers
Firms
Firmsthat
thatServe
ServeSmall
Small
Segments
SegmentsNot
NotBeing
Being
Pursued
Pursuedby
byOther
OtherFirms
Firms
Copyright 1999 Prentice Hall
Follow
FollowClosely
Closely
Follow
Followat
ataaDistance
Distance
By
ByCustomer,
Customer,Market,
Market,
Quality-Price,
Quality-Price,Service
Service
Multiple
MultipleNiching
Niching
Competition-Centered
Competition-Centered
Balancing
Balancing Customer
Customer and
and
Competitor
Competitor Orientations
Orientations
18-14
18-14
Customer-Centered
Customer-Centered
No
No
Yes
Yes
No
No
Product
Product
Orientation
Orientation
Customer
Customer
Orientation
Orientation
Yes
Yes
Competitor
Competitor
Orientation
Orientation
Market
Market
Orientation
Orientation
Copyright 1999 Prentice Hall